Criteria for Treaty Eligibility
For nonresident foreign national contractors to be eligible for tax treaty benefits certain criteria must be met:
- A treaty must exist between the U.S. and home country
- The contractor must meet treaty eligibility requirements. See IRS Publication 901 or Tax Treaty Countries and Affidavits.
- The contractor must have an IRS identification number (ITIN) or U.S. Social Security number.
- These tax treaty forms must be completed:
- 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:
- IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations
- IRS Publication 519, U.S. Tax Guide for Aliens
- IRS Publication 901, U.S. Tax Treaties
- Form 1040NR-EZ
International Student and Scholar Services' Taxes Overview contains helpful information, including links to a residency tool and tax providers.
The IRS also has more information about income and tax reporting and filing in the International Taxpayer section of their website.