Tax Treaty Eligibility for Nonresident Alien Contractors

Criteria for Treaty Eligibility

For Nonresident Alien contractors to be eligible for tax treaty benefits certain criteria must be met.

• Treaty must exist between U.S. and home country.
• Must meet treaty eligibility requirements. See IRS Publ. 901 or Tax Treaty Countries.
• Must have an IRS identification number (ITIN) or U.S. social security number (SSN).
• Must complete tax treaty forms (8233 and Tax Treaty Affidavit).
  • Form 8233 - Exemption From Withholding on Compensation for Independent Personal Service of a Nonresident Alien Individual
  • Tax Treaty Affidavit

Year-end Reporting Requirements

The University will submit all reportable payments and taxes to the IRS and the payee on IRS Form 1042-S. The contractor should complete form 1040-NR or form 1040NR-EZ income tax return and file it with the IRS after year end.

For more information on taxable income and how to file a tax return the contractor/payee should see the following forms and publications:

• Publ. 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations 
• Publ. 519, U.S. Tax Guide for Aliens
• Publ. 901, U.S. Tax Treaties
• Form 1040NR-EZ 

International Student and Scholar Services has provided a helpful website for those foreign scholars seeking information on completing a tax return.

The IRS also provides more detailed information about income and tax reporting and filing issues in the International Taxpayer section of their website.