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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
in the Instructions for Form 1040, for purposes of deter- on January 1, 2019. The student remained a nonresident
mining the taxable amount to be reported on Form 1040 or alien through 2023 and was able to exclude scholarship
1040-SR, line 6b. You are not required to file a Form 8833 from U.S. tax in those years under Article 20 of the
for those benefits. U.S.-People's Republic of China income tax treaty. On
January 1, 2024, the student became a resident alien un-
Students, Apprentices, Trainees, Teachers, der the substantial presence test because their stay in the
Professors, and Researchers Who Became United States exceeded 5 years. Even though the student
is now a resident alien, the provisions of Article 20 still ap-
Resident Aliens
ply because of the exception to the saving clause in para-
Generally, you must be a nonresident alien student, ap- graph 2 of the Protocol to the U.S.–People's Republic of
prentice, trainee, teacher, professor, or researcher in order China treaty dated April 30, 1984. The student should re-
to claim a tax treaty exemption for remittances from port their scholarship income shown on their Form 1042-S
abroad for study and maintenance in the United States, for or Form 1098-T on Schedule 1 (Form 1040), line 8r. Then
scholarship, fellowship, and research grants, and for wa- they should report the amount for which treaty benefits are
ges or other personal service compensation. Once you claimed, in parentheses, on Schedule 1 (Form 1040),
become a resident alien, you can generally no longer line 8z. They should enter "Exempt income," the name of
claim a tax treaty exemption for this income. the treaty country, and the treaty article that provides the
exemption.
However, if you entered the United States as a nonresi-
dent alien, but you are now a resident alien for U.S. tax
purposes, the treaty exemption will continue to apply if the Reporting Treaty Benefits
tax treaty's saving clause (explained earlier) provides an
exception for it and you otherwise meet the requirements Claimed
for the treaty exemption (including any time limit for claim-
ing treaty exemptions, explained below). This is true even If you claim treaty benefits that override or modify any pro-
if you are a nonresident alien electing to file a joint return, vision of the Internal Revenue Code, and by claiming
as explained in chapter 1. these benefits your tax is, or might be, reduced, you must
attach a fully completed Form 8833 to your tax return. See
If you qualify under an exception to the treaty's saving Exceptions below for the situations where you are not re-
clause, you can avoid income tax withholding by giving the quired to file Form 8833.
payer a Form W-9 with the statement required by the Form
W-9 instructions. Form 8833 filing requirement. You must file a U.S. tax
return and Form 8833 if you claim the following treaty ben-
Time limit for claiming treaty exemptions. Many trea- efits.
ties limit the number of years you can claim a treaty ex-
• You claim a reduction or modification in the taxation of
emption. For students, apprentices, and trainees, the limit
gain or loss from the disposition of a U.S. real property
is usually 4–5 years; for teachers, professors, and re-
interest based on a treaty.
searchers, the limit is usually 2–3 years. Once you reach
this limit, you can no longer claim the treaty exemption. • You claim a credit for a specific foreign tax for which
See the treaty or Pub. 901 for the time limits that apply. foreign tax credit would not be allowed by the Internal
Revenue Code.
How to report income on your tax return. In certain
cases, you don’t need to report the income on your Form • You receive payments or income items totaling more
than $100,000 and you determine your country of resi-
1040 or 1040-SR because the income will be exempt from
dence under a treaty and not under the rules for resi-
U.S. tax under a treaty. However, if the income has been
dency discussed in chapter 1.
reported as taxable income on a Form W-2, Form 1042-S,
Form 1099, or other information return, you should report These are the more common situations for which Form
it on the appropriate line of Form 1040 or 1040-SR (for ex- 8833 is required. For additional provisions, see the Form
ample, line 1a, amounts reported in box 1 of Form W-2). 8833 instructions.
Enter the amount for which treaty benefits are claimed, in
parentheses, on Schedule 1 (Form 1040), line 8z. Enter Exceptions. You do not have to file Form 8833 for any of
“Exempt income,” the name of the treaty country, and the the following situations.
treaty article that provides the exemption. Combine the 1. You claim a reduced rate of withholding tax under a
amounts reported on lines 8a through 8z on Schedule 1 treaty on interest, dividends, rent, royalties, or other
(Form 1040) and enter on line 9. Then, combine the totals FDAP income ordinarily subject to the 30% rate.
from Schedule 1 (Form 1040), lines 1 through 7 and 9 and
enter the total on line 10. Then, enter the total from Sched- 2. You claim that a treaty reduces or modifies the taxa-
ule 1 (Form 1040), line 10, on Form 1040 or 1040-SR, tion of income from dependent personal services,
line 8. pensions, annuities, social security and other public
pensions, or income of artists, athletes, students,
Example. A citizen of the People's Republic of China trainees, or teachers. This includes taxable scholar-
entered the United States as a nonresident alien student ship and fellowship grants.
70 Chapter 9 Tax Treaty Benefits Publication 519 (2023)
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