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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
• The trust (or any part of the trust) is explanations for many of those “4,” in column (c), and the amount of
treated as a grantor trust under the treaties are also available at that site. exempt income in the current tax year,
grantor trust rules (sections 671 “$40,000,” in column (d). Andrea will
Column (a), Country. Enter the
through 679), whether or not the report the total amount of exempt
treaty country that qualifies you for
person who is treated as the owner of income in row (e), “$40,000,” on Form
treaty benefits.
the trust is a U.S. person. 1040-NR, line 1k.
• The trust made a distribution or Column (b), Tax treaty article. Line 2. Check “Yes” if you were
loan to a U.S. person during the tax Enter the number of the treaty article subject to tax in a foreign country on
year. A distribution (direct or indirect) that exempts the income from U.S. any of the income reported in line 1,
or loan includes the uncompensated tax. column (d).
use of trust property (section 643(i)(2)
(E)). Column (c), Number of months Line 3. Check “Yes” if you are
• The trust received a contribution claimed in prior tax years. Enter claiming tax treaty benefits pursuant
from a U.S. person during the tax the number of months in prior tax to a Competent Authority
year. years for which you claimed an determination allowing you to do so.
exemption from U.S. tax based on the You must attach to your tax return a
See the Instructions for Form 3520. specified treaty article. copy of the Competent Authority
A U.S. person is a U.S. citizen or Column (d), Amount of exempt determination letter.
resident alien, a domestic partnership, income in current tax year. Enter If you are claiming tax treaty
a domestic corporation, any estate the amount of income in the current ! benefits and you failed to
other than a foreign estate, a tax year that is exempt from U.S. tax CAUTION submit adequate
domestic trust, or any other person based on the specified treaty article. documentation to a withholding agent,
who is not a foreign person. See Pub. you must attach to your tax return all
Line (e), Total. Add the amounts
519 for more information. information that would have otherwise
in column (d). Enter the total on
Item K Schedule OI (Form 1040-NR), item L, been required on the withholding tax
If you received total compensation of line 1e, and on Form 1040-NR, document (for example, all
$250,000 or more for 2022, check the page 1, line 1k. Do not include this information required on Form
first “Yes” box. If you checked the first amount on any other line of the Form W-8BEN (Individuals), Form
“Yes” box, check the second “Yes” 1040-NR. W-8BEN-E (Entities), or Form 8233).
box if you are using an alternative Attach any Form 1042-S you Treaty-based return position dis-
method to determine the source of the received for treaty-exempt income to closure. If you take the position that
compensation. Total compensation Form 1040-NR, page 1. If required, a treaty of the United States overrides
includes all compensation from also attach Form 8833. See or modifies any provision of the
sources within and outside the United Treaty-based return position Internal Revenue Code and that
States. disclosure, later. position reduces (or potentially
If you check the second “Yes” box, Example. Andrea is a citizen of reduces) your tax, you must generally
you must attach a statement to your Italy and was a resident there until report certain information on Form
return. For details about the statement September 2021, when Andrea 8833 and attach it to Form 1040-NR.
and the alternative method, see moved to the United States to accept If you fail to report the required
Services Performed Partly Within and a position as a high school teacher at information, you will be charged a
Partly Outside the United States, an accredited public school. Andrea penalty of $1,000 for each failure,
earlier. came to the United States on a J-1 unless you show that such failure is
visa (Exchange visitor) and signed a due to reasonable cause and not
Item L contract to teach for 2 years at this willful neglect. For more details, see
If you are claiming exemption from U.S. school. Andrea began teaching Form 8833 and its instructions.
income tax under a U.S. income tax in September 2021 and plans to
treaty with a foreign country on Form continue teaching through May 2023. Exceptions. You do not have to
1040-NR, you must provide all the Andrea's salary per school year is file Form 8833 for any of the following.
information requested in item L. $40,000. Andrea plans to return to See Pub. 519 for more items.
Italy in June 2023 and resume 1. You claim a treaty that reduces
Line 1. If you are a resident of a
Andrea’s Italian residence. For the withholding tax on interest,
treaty country (that is, you qualify as a
calendar year 2022, Andrea earned dividends, rents, royalties, or other
resident of that country within the
$40,000 from the teaching position, fixed or determinable annual or
meaning of the tax treaty between the
which is exempt from income tax per periodic income ordinarily subject to
United States and that country), you
Article 20 of the tax treaty between the the 30% rate.
must know the terms of the tax treaty
United States and Italy.
between the United States and that 2. You claim a treaty that reduces
country to properly complete item L. For tax year 2022, Andrea or modifies the taxation of income
You can download the complete text completes Schedule OI, item L, by from dependent personal services,
of most U.S. tax treaties at IRS.gov. entering “Italy” in column (a), the pensions, annuities, social security
Enter “tax treaties” in the search box applicable tax treaty article, “20,” in and other public pensions, or income
and click on United States Income column (b), the number of months of of artists, athletes, students, trainees,
Tax Treaties - A to Z. Technical treaty-exempt income in prior years,
-44- Instructions for Form 1040-NR (2022)
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