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)

The following worksheet can help you determine the correct amount of wages to report on the Total amount from Form(s) W-2, box 1. line of Form 1040-NR. Some of the lines may not apply to the student or scholar you are assisting. If the student or scholar has more than one W-2, add the Box 1 amounts together before completing this worksheet.

Wages from Box 1 of Form W-2

Plus

Code 19 income from Form 1042-S

Plus

Code 20 income from Form 1042-S

Minus

Code 19 treaty benefit

Minus

Code 20 treaty benefit

Equals

Wages to be entered on return
Tip

Amounts excluded by treaty benefits Codes 18 and 19 should not be included in the Total amount from Form(s) W-2, box 1 line. These amounts will be shown on Schedule OI and the line for Total income exempt by a treaty from Schedule OI.

Tip

Amounts claimed for the treaty exemption on the Form 1040-NR will be the lesser of amounts earned or the treaty maximum. For example, if a treaty allows $5,000 and the wages were $3,800, the amount listed as exempted by the treaty will be $3,800.