Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Nonresident Income and Deductions

Taxation of Nonresidents

Wages, Salaries, and Tips (continued)

Some tax treaties allow a limited exemption from tax for wages earned while temporarily studying in the U.S. To avoid withholding on wages eligible for the exemption, a student should fill out Form 8233, Exemption From Withholding on Compensation for Independent Personal Services of Nonresident Alien Individual, and give three copies to the employer.

If a student fails to give Form 8233 to the employer, or earns more than the treaty exemption amount, federal tax will be withheld and amounts earned will be reported on Form W-2. However, treaty provisions can still be claimed on the tax return.

Income not subject to withholding because of a treaty is reported on Form 1042-S. This is reported on the Form 1040NR line for Total Income Exempt by a Treaty & Schedule OI. See Publication 4011 for details.

Top of Form 8233
Form 1042-S

Form 1042-S