Instructions For Form 8233 - 2016 (Page 2 of 6) in pdf

See the instructions for line 4 for

determined until after the end of the

Line 3. Check the single box

additional information for determining

year. These individuals are subject to

regardless of your actual marital status.

residence for purposes of claiming a tax

30% withholding from gross income

Line 5. In most cases, you should

treaty withholding exemption on this

paid for personal services performed

claim one withholding allowance.

form.

unless a reduced rate of withholding is

However, if you are a resident of

applied for using Form 13930. In

Resident of a Treaty Country

Canada, Mexico, or South Korea; a

addition, many tax treaties contain

student from India; or a U.S. national;

An alien individual can claim to be a

separate articles that apply to public

you may be able to claim additional

resident of a treaty country if he or she

entertainers. If present, these articles

withholding allowances for your spouse

qualifies as a resident of that country

take precedence over the “independent

and children. See Pub. 519 for more

under the terms of the residency article

personal services” and “dependent

information.

of the tax treaty between the United

personal services” articles of the

States and that country. See

If you are completing Form W-4 for

treaties.

Nonresident Alien, earlier.

more than one withholding agent (for

example, you have more than one

Required Withholding Form

A nonresident alien can claim a tax

employer), figure the total number of

For compensation you receive for

treaty benefit on this form only if that

allowances you are entitled to claim

independent personal services,

individual is the beneficial owner of the

(see the previous paragraph) and claim

complete Form 8233 to claim a tax

income and meets the residency

no more than that amount on all Forms

treaty withholding exemption for part or

requirement and all other requirements

W-4 combined. Your withholding usually

all of that income and/or to claim the

for benefits under the terms of the

will be most accurate when all

daily personal exemption amount.

tax treaty.

allowances are claimed on the Form

W-4 for the highest-paying job and zero

Compensation for Dependent

Compensation for Independent

allowances are claimed on the others.

Personal Services

Line 6. Write “nonresident alien” or

Dependent personal services are

Independent personal services are

“NRA” above the dotted line on line 6. If

services performed as an employee in

services performed as an independent

you would like to have an additional

the United States by a nonresident

contractor in the United States by a

amount withheld, enter the amount on

alien. Dependent personal services

nonresident alien who is self-employed

line 6.

include compensatory scholarship or

rather than an employee. Compensation

fellowship income (defined later).

for such services includes payments for

Line 7. Do not claim that you are

Compensation for such services

contract labor; payments for

exempt from withholding on line 7 of

includes wages, salaries, fees,

professional services, such as fees to

Form W-4 (even if you meet both of the

bonuses, commissions, and similar

an attorney, physician, or accountant, if

conditions listed on that line).

designations for amounts paid to an

the payments are made directly to the

Compensatory Scholarship or

employee.

person performing the services;

Fellowship Income

consulting fees; honoraria paid to

visiting professors, teachers,

Required Withholding Form(s)

In general, scholarship or fellowship

researchers, scientists, and prominent

income is compensatory to the extent it

Complete Form 8233 for compensation

speakers; and generally, payments for

represents payment for past, present, or

you receive for dependent personal

performances by public entertainers.

future services (for example, teaching or

services only if you are claiming a tax

research) performed by a nonresident

Business profits. Certain treaties do

treaty withholding exemption for part or

alien as an employee and the

not have an independent personal

all of that income. Do not use Form

performance of those services is a

services article. Payments for

8233 to claim the daily personal

condition for receiving the scholarship

independent personal services may be

exemption amount. For compensation

or fellowship (or tuition reduction).

covered under the business profits

for which you are not claiming a tax

article of an applicable income tax

treaty withholding exemption, use Form

Example. XYZ University awards a

treaty. If you are eligible to claim

W-4.

scholarship to N, a nonresident alien

exemption from withholding on this type

student. The only condition of the

of income, complete and give Form

Completing Form W-4. You should

scholarship is that N attends classes

8233 to the withholding agent.

complete Form W-4 as follows:

and maintains a minimum level of

academic performance. The scholarship

Under certain treaties,

Line 2. You are required to enter a

income is not compensatory because N

independent services may be

social security number (SSN) on line 2

is not required to perform services as an

attributable to a deemed

of Form W-4. If you do not have an SSN

CAUTION

employee as a condition for receiving

permanent establishment, and thus

but are eligible to get one, you should

the scholarship.

taxable. For example, see Article 5(9) of

apply for it. Get Form SS-5, Application

the U.S.-Canada income tax treaty.

for a Social Security Card, online at

Required Withholding Form(s)

, from your local

Public entertainers. Special

Social Security Administration (SSA)

Compensatory scholarship or fellowship

restrictions on exemption from or

office, or by calling the SSA at

income is considered to be dependent

reduction of withholding apply to

1-800-772-1213.

personal services income. Therefore,

nonresident alien public entertainers

complete Form 8233 for this income

(such as actors, musicians, artists, and

You cannot enter an individual

only if you are claiming a tax treaty

athletes). Generally, Form 8233 cannot

taxpayer identification number

withholding exemption for part or all of

be accepted because the exemption

(ITIN) on line 2 of Form W-4.

that income. Do not complete Form

CAUTION

may be based on factors that cannot be

-2-

Instructions for Form 8233 (Rev. 10-2016)

Instructions For Form 8233 - 2016 Page 2

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