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8233 to claim the daily personal

fellowship income (provided the

United States does not have a ratified

exemption amount.

nonresident alien is not claiming treaty

tax treaty,

benefits with respect to that income).

Are not trying to claim tax treaty

For any part of this compensatory

The withholding agent makes this

benefits that do not exist in your treaty,

income for which you are not claiming a

election by requesting that the

Complete lines 11 through 14 in

tax treaty withholding exemption, use

nonresident alien complete Form W-4

sufficient detail to allow the IRS to

Form W-4. See Completing Form W-4,

using the instructions in Rev. Proc.

determine the tax treaty benefit you are

earlier.

88-24, 1988-1 C.B. 800. Indian students

claiming,

also should see Rev. Proc. 93-20,

Claim the proper number of personal

Noncompensatory Scholarship

1993-1 C.B. 528.

exemptions on line 15, and

or Fellowship Income

Complete the required certification in

Withholding Agent

Part III.

Noncompensatory scholarship or

Any person, U.S. or foreign, that has

fellowship income is scholarship or

control, receipt, or custody of an amount

Specific Instructions

fellowship income that is not

subject to withholding or that can

compensatory scholarship or fellowship

disburse or make payments of an

income (defined earlier).

Part I

amount subject to withholding is a

In most cases, the taxable portion of

withholding agent. The withholding

Line 2

noncompensatory scholarship or

agent can be an individual, corporation,

You are required to furnish a U.S.

fellowship income (defined later) paid to

partnership, trust, association, or any

taxpayer identifying number on this

a nonresident alien is subject to

other entity, including (but not limited to)

form. In most cases, you are required to

withholding at:

any foreign intermediary, foreign

enter your SSN on line 2. See Line 2 in

30%, or

partnership, and U.S. branch of certain

Completing Form W-4 for instructions

14% if the nonresident alien is

foreign banks and insurance

on how to get an SSN.

temporarily present in the United States

companies. In most cases, the person

under an "F", "J", "M", or "Q" visa.

who pays (or causes to be paid) the

If you do not have an SSN and are

amount subject to withholding to the

not eligible to get one, you must get an

Taxable portion of noncompensato-

nonresident alien individual (or to his or

ITIN. To apply for an ITIN, file Form W-7

ry scholarship or fellowship income.

her agent) must withhold.

with the IRS. In most cases, you apply

If you were a degree candidate, the

for an ITIN when you file your tax return

amount of this type of income that you

Beneficial Owner

for which the ITIN is needed. However,

used for expenses other than tuition and

For payments other than those for which

if the reason for your ITIN request is

course-related expenses (fees, books,

a reduced rate of withholding is claimed

because you need to provide Form

supplies, and equipment) is taxable in

under an income tax treaty, the

8233 to the withholding agent, you must

most cases. For example, in most cases

beneficial owner of income is in most

file Form W-7 and provide proof that you

amounts used for room, board, and

cases the person who is required under

are not eligible for an SSN (your Form

travel are taxable. If you were not a

U.S. tax principles to include the income

degree candidate, the full amount of the

SS-5 was rejected by the SSA) and

in gross income on a tax return. A

scholarship or fellowship income is

include a Form 8233. It usually takes

person is not a beneficial owner of

taxable in most cases.

about 6 to 10 weeks to get an ITIN.

income, however, to the extent that

person is receiving the income as a

For details on how to apply for an

Required Withholding Form

nominee, agent, or custodian, or to the

ITIN, see Form W-7 and its instructions.

extent the person is a conduit whose

Get Form W-7 online at

In most cases, you should complete

participation in a transaction is

formspubs. For more information on

Form W-8BEN to claim a tax treaty

disregarded. In the case of amounts

obtaining an ITIN, go to

withholding exemption for this type of

paid that do not constitute income,

individuals/individual-taxpayer-

income. No Form W-8BEN is required

beneficial ownership is determined as if

identification-number-itin.

unless a treaty benefit is being claimed.

the payment were income.

Exception. If you are receiving both

If you have applied for an SSN or

compensation for personal services

Avoid Common Errors

ITIN but have not yet received it, you

(including compensatory scholarship or

can attach a copy of a completed Form

To ensure that your Form 8233 is

fellowship income) and

W-7 or SS-5 showing that a number has

promptly accepted, be sure that you:

noncompensatory scholarship or

been applied for.

Answer all applicable questions

fellowship income from the same

completely,

An ITIN is for tax use only. It

withholding agent, you can use one

Specify the tax year for which this

does not entitle you to social

Form 8233 for both types of income.

form will be effective in the space

security benefits or change your

However, this exception applies only if

CAUTION

provided above Part I of the form,

employment or immigration status under

you are claiming a tax treaty withholding

Enter your complete name,

U.S. law.

exemption for both types of income.

addresses, and identifying number(s) in

Alternate withholding election. A

Expired ITIN. Generally, ITINs issued

Part I,

withholding agent can elect to withhold

after December 31, 2012, will remain in

Have attached the required statement

on the taxable portion of

effect as long as the individual to whom

described in the line 10 instructions if

noncompensatory scholarship or

the ITIN was issued files a tax return (or

you are a foreign student, trainee,

fellowship income of a nonresident alien

is included as a dependent on the tax

professor/teacher, or researcher,

temporarily present in the United States

return of another taxpayer) for three

Are not trying to claim tax treaty

under an “F,” “J,” “M,” or “Q” visa as if it

consecutive tax years. Otherwise, the

benefits for a country with which the

were compensatory scholarship or

ITIN will expire at the end of the third

Instructions for Form 8233 (Rev. 10-2016)

-3-

Instructions For Form 8233 - Exemption From Withholding On Compensation For Independent (And Certain Dependent) Personal Service Of A Nonresident Alien Individual Page 4

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