Tax Treaty Eligibility for Nonresident Foreign National Contractors

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:

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:

International Student and Scholar Services has a helpful website for foreign scholars on how to complete a tax return.

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