Department of the Treasury

Internal Revenue Service

Publication 519

Cat. No. 15023T

U.S. Tax Guide 

for Aliens

For use in preparing

2023 Returns

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Contents

Introduction .............................. 1

What's New ............................... 3

Reminders ............................... 3

Chapter 1. Nonresident Alien or 

Resident Alien? ........................ 4

Chapter 2. Source of Income ............... 15

Chapter 3. Exclusions From Gross Income .... 21

Chapter 4. How Income of Aliens Is Taxed ..... 25

Chapter 5. Figuring Your Tax ................ 36

Chapter 6. Dual-Status Tax Year ............. 46

Chapter 7. Filing Information ............... 50

Chapter 8. Paying Tax Through Withholding or 

Estimated Tax ........................ 55

Chapter 9. Tax Treaty Benefits .............. 67

Chapter 10. Employees of Foreign 

Governments and International 

Organizations ......................... 71

Chapter 11. Departing Aliens and the Sailing 

or Departure Permit .................... 73

Chapter 12. How To Get Tax Help ............ 76

Taxpayer Assistance Inside the United States ... 76

Appendix A—Tax Treaty Exemption Procedure 

for Students .......................... 84

Appendix B—Tax Treaty Exemption Procedure 

for Teachers and Researchers ............ 89

Index .................................. 96

Future Developments

For the latest information about developments related to 

Pub. 519, such as legislation enacted after it was 

published, go to IRS.gov/Pub519.

Introduction

For tax purposes, an alien is an individual who is not a 

U.S. citizen. Aliens are classified as nonresident aliens 

and resident aliens. This publication will help you determine your status and give you information you will need to 

file your U.S. tax return. Resident aliens are generally 

taxed on their worldwide income, the same as U.S. citizens. Nonresident aliens are taxed only on their income 

from sources within the United States and on certain income connected with the conduct of a trade or business in 

the United States.

Feb 12, 2024
Table A. Where To Find What You Need To 

Know About U.S. Taxes

Commonly Asked Questions Where To Find the Answer

Am I a nonresident alien or resident alien? See chapter 1.

Can I be a nonresident alien and a resident alien in the same 

year?

• See Dual-Status Aliens in chapter 1.

• See chapter 6.

I am a resident alien and my spouse is a nonresident alien. Are 

there special rules for us?

• See Nonresident Spouse Treated as a Resident

in chapter 1.

• See Community Income in chapter 2.

Is all my income subject to U.S. tax? • See chapter 2.

• See chapter 3.

Is my scholarship subject to U.S. tax? • See Scholarships, Grants, Prizes, and Awards in chapter 2.

• See Scholarships and Fellowship Grants in chapter 3.

• See chapter 9.

Would any U.S. estate or gift taxes apply to me, my estate, or an 

estate for which I am an executor, trustee, or representative?

See U.S. federal estate and gift tax in Reminders.

What is the tax rate on my income subject to U.S. tax? See chapter 4.

I moved to the United States this year. Can I deduct my moving 

expenses on my U.S. return?

See Deductions in chapter 5.

Can I claim my spouse and/or children as dependents? See Dependents in chapter 5.

I pay income taxes to my home country. Can I get credit for these 

taxes on my U.S. tax return?

See Tax Credits and Payments in chapter 5.

What forms must I file and when and where do I file them? See chapter 7.

How should I pay my U.S. income taxes? See chapter 8.

Am I eligible for any benefits under a tax treaty? • See Income Entitled to Tax Treaty Benefits in chapter 8.

• See chapter 9.

Are employees of foreign governments and international 

organizations exempt from U.S. tax?

See chapter 10.

Is there anything special I have to do before leaving the United 

States? 

• See Expatriation Tax in chapter 4.

• See chapter 11.

The information in this publication is not as comprehensive for resident aliens as it is for nonresident aliens. Resident aliens are generally treated the same as U.S. citizens 

and can find more information in other IRS publications at 

IRS.gov/Forms.

Table A provides a list of questions and the chapter or 

chapters in this publication where you will find the related 

discussion.

Answers to frequently asked questions are presented in 

the back of the publication.

Comments and suggestions. We welcome your comments about this publication and suggestions for future 

editions.

You can send us comments through IRS.gov/

FormComments. Or, you can write to the Internal Revenue 

Service, Tax Forms and Publications, 1111 Constitution 

Ave. NW, IR-6526, Washington, DC 20224.

Although we can’t respond individually to each comment received, we do appreciate your feedback and will 

consider your comments and suggestions as we revise 

our tax forms, instructions, and publications. Don’t send 

tax questions, tax returns, or payments to the above address.

Getting answers to your tax questions. If you have 

a tax question not answered by this publication or the How 

To Get Tax Help section at the end of this publication, go 

to the IRS Interactive Tax Assistant page at IRS.gov/

Help/ITA where you can find topics by using the search 

feature or viewing the categories listed.

Getting tax forms, instructions, and publications. 

Go to IRS.gov/Forms to download current and prior-year 

forms, instructions, and publications.

Ordering tax forms, instructions, and publications. 

Go to IRS.gov/OrderForms to order current forms, instructions, and publications; call 800-829-3676 to order 

prior-year forms and instructions. The IRS will process 

your order for forms and publications as soon as possible. 

Don’t resubmit requests you’ve already sent us. You can 

get forms and publications faster online.

2 Publication 519 (2023)
What's New

Termination of 1979 Tax Convention with Hungary. 

On July 15, 2022, the U.S. Treasury Department (Treasury) announced that Hungary was notified on July 8, 

2022, that the United States would terminate its tax treaty 

with Hungary. In accordance with the treaty’s provisions 

on termination, termination is effective on January 8, 

2023. With respect to taxes withheld at source, the treaty 

ceases to have effect on January 1, 2024. In respect of 

other taxes, the treaty ceases to have effect with respect 

to taxable periods beginning on or after January 1, 2024.

Qualified disability trusts. The exemption amount for a 

qualified disability is $4,700 for 2023.

Reminders

Filing status name changed to qualifying surviving 

spouse. The filing status qualifying widow(er) is now 

called qualifying surviving spouse. The rules for the filing 

status have not changed. The same rules that applied for 

qualifying widow(er) apply to qualifying surviving spouse. 

See Qualifying surviving spouse in the Instructions for 

Form 1040 for details on the qualifying surviving spouse 

filing status.

New lines 1a through 1z on Form 1040-NR. In 2022, 

line 1 was expanded with new lines 1a through 1z. Some 

amounts that in prior years were reported on Form 

1040-NR are reported on Schedule 1 (Form 1040).

• Scholarships and fellowship grants not reported on 

Form W-2 are reported on Schedule 1 (Form 1040), 

line 8r.

• Pension or annuity from a nonqualified deferred compensation plan or a nongovernmental section 457 plan 

are reported on Schedule 1 (Form 1040), line 8t.

• Wages earned while incarcerated are reported on 

Schedule 1 (Form 1040), line 8u.

Credit for child and dependent care expenses. The 

changes to the credit for child and dependent care expenses implemented by the American Rescue Plan Act of 

2021 (ARP) were not extended. The credit for the child 

and dependent care expenses is nonrefundable. The dollar limit on qualifying expenses is $3,000 for one qualifying 

person and $6,000 for two or more qualifying persons. 

The maximum credit amount allowed is 35% of your employment-related expenses. For more information, see the 

Instructions for Form 2441 and Pub. 503.

Recovery rebate credit is not available. Aliens could 

claim the recovery rebate credit for 2020 and 2021 if they 

were a resident alien for the entire year, were married and 

chose to file a joint return with a U.S. citizen or resident 

spouse, or were a dual-status alien and chose to be treated as a U.S. resident for the entire year. The credit is not 

available after 2021.

Disaster tax relief. Disaster tax relief is available for 

those impacted by certain Presidentially declared 

disasters (see IRS.gov/DisasterTaxRelief). Aliens who are 

required to file a U.S. income tax return may be affected. 

For more information, see the Instructions for Form 1040, 

or the Instructions for Form 1040-NR.

Premium tax credit. You may be eligible to claim the 

premium tax credit if you, your spouse, or a dependent enrolled in health insurance through the Health Insurance 

Marketplace (Marketplace). See Form 8962 and its instructions for more information.

Advance payments of the premium tax credit. Advance payments of the premium tax credit may have been 

made to the health insurer to help pay for the insurance 

coverage of you, your spouse, or your dependent. If advance payments of the premium tax credit were made, you 

must file a 2023 tax return and Form 8962. If you enrolled 

someone who is not claimed as a dependent on your tax 

return, or for more information, see the Instructions for 

Form 8962.

Form 1095-A. If you, your spouse, or a dependent enrolled in health insurance through the Marketplace, you 

should have received a Form 1095-A. If you receive a 

Form 1095-A, save it. It will help you figure your premium 

tax credit. If you did not receive a Form 1095-A, contact 

the Marketplace.

U.S. federal estate and gift tax. An individual (or deceased person) who is (or was) a nonresident noncitizen 

of the United States for estate and gift tax purposes may 

still have U.S. estate and gift tax filing and payment obligations. The determination of whether an individual is a nonresident noncitizen for U.S. estate and gift tax purposes is 

different than the determination of whether an individual is 

a nonresident alien for U.S. federal income tax purposes. 

Estate and gift tax considerations are outside of the scope 

of this publication, but information is available on IRS.gov 

to determine whether any U.S. estate or gift tax considerations may apply to your situation. Further information on 

U.S. federal estate tax considerations for nonresident noncitizens is available at Estate Tax for Nonresidents not 

Citizens of the United States and Frequently Asked 

Questions on Estate Taxes for Nonresidents not Citizens 

of the United States. Further information on U.S. federal 

gift tax considerations for nonresidents noncitizens of the 

United States is available at Gift Tax for Nonresidents not 

Citizens of the United States and Frequently Asked 

Questions on Gift Taxes for Nonresidents not Citizens of 

the United States.

Digital assets. If, in 2023, you engaged in a transaction 

involving digital assets, you may need to answer "Yes" to 

the question on page 1 of Form 1040-NR. See Digital Assets in the Instructions for Form 1040 for information on 

transactions involving digital assets. Do not leave this field 

blank. The question must be answered by all taxpayers, 

not just taxpayers who engaged in a transaction involving 

digital assets.

Third-party designee. You can check the “Yes” box in 

the “Third-Party Designee” area of your return to authorize 

the IRS to discuss your return with a friend, a family member, or any other person you choose. This allows the IRS 

to call the person you identified as your designee to answer any questions that may arise during the processing 

Publication 519 (2023) 3
of your return. It also allows your designee to perform certain actions such as asking the IRS for copies of notices or 

transcripts related to your return. Also, the authorization 

can be revoked. See your income tax return instructions 

for details.

Change of address. If you change your mailing address, be sure to notify the IRS using Form 8822.

Photographs of missing children. The IRS is a proud 

partner with the National Center for Missing & Exploited 

Children® (NCMEC). Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring 

these children home by looking at the photographs and 

calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

1.

Nonresident Alien or 

Resident Alien?

Introduction

You should first determine whether, for income tax purposes, you are a nonresident alien or a resident alien.

If you are both a nonresident and resident in the same 

year, you have a dual status. See Dual-Status Aliens, later. 

Also see Nonresident Spouse Treated as a Resident and 

some other special situations explained later in the chapter.

Topics

This chapter discusses:

• How to determine if you are a nonresident, resident, or 

dual-status alien; and

• How to treat a nonresident spouse as a resident alien.

Useful Items

You may want to see:

Form (and Instructions)

1040 U.S. Individual Income Tax Return

1040-SR U.S. Tax Return for Seniors

1040-NR U.S. Nonresident Alien Income Tax Return

8833 Treaty-Based Return Position Disclosure 

Under Section 6114 or 7701(b)

8840 Closer Connection Exception Statement for 

Aliens

8843 Statement for Exempt Individuals and 

Individuals With a Medical Condition

 1040

 1040-SR

 1040-NR

 8833

 8840

 8843

See chapter 12 for information about getting these forms.

Nonresident Aliens

If you are an alien (not a U.S. citizen), you are considered 

a nonresident alien unless you meet one of the two tests 

described under Resident Aliens below.

Resident Aliens

You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2023 (January 1–December 31). Even if you do not meet either of these tests, 

you may be able to choose to be treated as a U.S. resident for part of the year. See First-Year Choice under 

Dual-Status Aliens, later.

Green Card Test

You are a resident for tax purposes if you are a lawful permanent resident of the United States at any time during 

calendar year 2023. (However, see Dual-Status Aliens, 

later.) This is known as the green card test. You are a lawful permanent resident of the United States at any time if 

you have been given the privilege, according to U.S. immigration laws, of residing permanently in the United States 

as an immigrant. You generally have this status if the U.S. 

Citizenship and Immigration Services (USCIS) (or its predecessor organization) has issued you a Form I-551, U.S. 

Permanent Resident Card, also known as a green card. 

You continue to have resident status under this test unless 

the status is taken away from you or is administratively or 

judicially determined to have been abandoned.

Note. Even if an individual meets the green card test, if 

the individual claims foreign residency under a tiebreaker 

rule they would be treated as a nonresident for purposes 

of their tax liability. See section 7701(b)(6)(B).

Resident status taken away. Resident status is considered to have been taken away from you if the U.S. Government issues you a final administrative or judicial order of 

exclusion or deportation. A final judicial order is an order 

that you may no longer appeal to a higher court of competent jurisdiction.

Resident status abandoned. An administrative or judicial determination of abandonment of resident status may 

be initiated by you, the USCIS, or a U.S. consular officer.

If you initiate the determination, your resident status is 

considered to be abandoned when you file either of the 

following documents with your U.S. Permanent Resident 

Card (green card or Form I-551) attached with the USCIS 

or a U.S. consular officer.

• Form I-407, Record of Abandonment of Lawful Permanent Resident Status.

4 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
• A letter stating your intent to abandon your resident 

status.

When filing by mail, you must send by certified mail, return receipt requested (or the foreign equivalent), and 

keep a copy and proof that it was mailed and received.

Until you have proof your letter was received, you 

remain a resident alien for tax purposes even if 

the USCIS would not recognize the validity of your 

green card because it is more than 10 years old or because you have been absent from the United States for a 

period of time.

If the USCIS or U.S. consular officer initiates this determination, your resident status will be considered to be 

abandoned when the final administrative order of abandonment is issued. If you are granted an appeal to a federal court of competent jurisdiction, a final judicial order is 

required.

Under U.S. immigration law, a lawful permanent resident who is required to file a tax return as a resident and 

fails to do so may be regarded as having abandoned status and may lose permanent resident status.

A long-term resident (LTR) who ceases to be a 

lawful permanent resident may be subject to special reporting requirements and tax provisions. 

See Expatriation Tax in chapter 4.

Termination of residency after June 3, 2004, and 

before June 17, 2008. If you terminated your residency 

after June 3, 2004, and before June 17, 2008, you will still 

be considered a U.S. resident for tax purposes until you 

notify the Secretary of Homeland Security and file Form 

8854, Initial and Annual Expatriation Statement.

Note. Requirements for taxpayers who expatriated before June 17, 2008, are no longer discussed in the Instructions for Form 8854 or Pub. 519. For information on expatriation before June 17, 2008, see the 2018 Instructions for 

Form 8854, and chapter 4 of the 2018 Pub. 519.

Termination of residency after June 16, 2008. For 

information on your residency termination date, see Former LTR under Expatriation After June 16, 2008 in chapter 4.

Substantial Presence Test

You are a resident for tax purposes if you meet the substantial presence test for calendar year 2023. To meet this 

test, you must be physically present in the United States 

on at least:

1. 31 days during 2023; and

2. 183 days during the 3-year period that includes 2023, 

2022, and 2021, counting:

a. All the days you were present in 2023,

b. 1/3 of the days you were present in 2022, and

c. 1/6 of the days you were present in 2021.

CAUTION

!

CAUTION

!

Example. You were physically present in the United 

States on 120 days in each of the years 2023, 2022, and 

2021. To determine if you meet the substantial presence 

test for 2023, count the full 120 days of presence in 2023, 

40 days in 2022 (1/3 of 120), and 20 days in 2021 (1/6 of 

120). Because the total for the 3-year period is 180 days, 

you are not considered a resident under the substantial 

presence test for 2023.

The term “United States” includes the following areas.

• All 50 states and the District of Columbia.

• The territorial waters of the United States.

• The seabed and subsoil of those submarine areas that 

are adjacent to U.S. territorial waters and over which 

the United States has exclusive rights under international law to explore and exploit natural resources.

The term does not include U.S. territories or U.S. airspace.

Days of Presence in the United States

You are treated as present in the United States on any day 

you are physically present in the country at any time during the day. However, there are exceptions to this rule. Do 

not count the following as days of presence in the United 

States for the substantial presence test.

• Days you commute to work in the United States from a 

residence in Canada or Mexico if you regularly commute from Canada or Mexico.

• Days you are in the United States for less than 24 

hours when you are in transit between two places outside the United States.

• Days you are in the United States as a crew member 

of a foreign vessel.

• Days you are unable to leave the United States because of a medical condition that arose while you are 

in the United States.

• Days you are in the United States under a NATO visa 

as a member of a force or civilian component to 

NATO. However, this exception does not apply to an 

immediate family member who is present in the United 

States under a NATO visa. A dependent family member must count every day of presence for purposes of 

the substantial presence test.

• Days you are an exempt individual.

The specific rules that apply to each of these categories 

are discussed next.

Regular commuters from Canada or Mexico. Do not 

count the days on which you commute to work in the United States from your residence in Canada or Mexico if you 

regularly commute from Canada or Mexico. You are considered to commute regularly if you commute to work in 

the United States on more than 75% (0.75) of the workdays during your working period.

For this purpose, “commute” means to travel to work 

and return to your residence within a 24-hour period. 

“Workdays” are the days on which you work in the United 

States or Canada or Mexico. “Working period” means the 

Publication 519 (2023) Chapter 1 Nonresident Alien or Resident Alien? 5
period beginning with the first day in the current year on 

which you are physically present in the United States to 

work and ending on the last day in the current year on 

which you are physically present in the United States to 

work. If your work requires you to be present in the United 

States only on a seasonal or cyclical basis, your working 

period begins on the first day of the season or cycle on 

which you are present in the United States to work and 

ends on the last day of the season or cycle on which you 

are present in the United States to work. You can have 

more than one working period in a calendar year, and your 

working period can begin in one calendar year and end in 

the following calendar year.

Example. Maria Perez lives in Mexico and works for 

Compañía ABC in its office in Mexico but was temporarily 

assigned to the firm's office in the United States from February 1 through June 1. On June 2, Maria resumed employment in Mexico. For 69 workdays, Maria commuted 

each morning from home in Mexico to work in Compañía 

ABC's U.S. office and returned home in Mexico on each of 

those evenings. For 7 workdays, Maria worked in Maria’s 

firm's Mexico office. For purposes of the substantial presence test, Maria does not count the days commuting to 

work in the United States because those days equal more 

than 75% (0.75) of the workdays during the working period 

(69 workdays in the United States divided by 76 workdays 

in the working period equals 90.8%).

Days in transit. Do not count the days you are in the 

United States for less than 24 hours and you are in transit 

between two places outside the United States. You are 

considered to be in transit if you engage in activities that 

are substantially related to completing travel to your foreign destination. For example, if you travel between airports in the United States to change planes en route to 

your foreign destination, you are considered to be in 

transit. However, you are not considered to be in transit if 

you attend a business meeting while in the United States. 

This is true even if the meeting is held at the airport.

Crew members. Do not count the days you are temporarily present in the United States as a regular crew member 

of a foreign vessel (boat or ship) engaged in transportation between the United States and a foreign country or a 

U.S. territory. However, this exception does not apply if 

you otherwise engage in any trade or business in the United States on those days.

Medical condition. Do not count the days you intended 

to leave, but could not leave, the United States because of 

a medical condition or problem that arose while you were 

in the United States. Whether you intended to leave the 

United States on a particular day is determined based on 

all the facts and circumstances. For example, you may be 

able to establish that you intended to leave if your purpose 

for visiting the United States could be accomplished during a period that is not long enough to qualify you for the 

substantial presence test. However, if you need an extended period of time to accomplish the purpose of your visit 

and that period would qualify you for the substantial presence test, you would not be able to establish an intent to 

leave the United States before the end of that extended 

period.

In the case of an individual who is judged mentally incompetent, proof of intent to leave the United States can 

be determined by analyzing the individual's pattern of behavior before they were judged mentally incompetent.

If you qualify to exclude days of presence because of a 

medical condition, you must file a fully completed Form 

8843 with the IRS. See Form 8843, later.

You cannot exclude any days of presence in the United 

States under the following circumstances.

• You were initially prevented from leaving, were then 

able to leave, but remained in the United States beyond a reasonable period for making arrangements to 

leave.

• You returned to the United States for treatment of a 

medical condition that arose during a prior stay.

• The condition existed before your arrival in the United 

States and you were aware of the condition. It does 

not matter whether you needed treatment for the condition when you entered the United States.

Exempt individual. Do not count days for which you are 

an exempt individual. The term “exempt individual” does 

not refer to someone exempt from U.S. tax, but instead refers to anyone in the following categories.

• An individual temporarily present in the United States 

as a foreign government-related individual under an 

“A” or “G” visa other than individuals holding “A-3” or 

“G-5” class visas.

• A teacher or trainee temporarily present in the United 

States under a “J” or “Q” visa who substantially complies with the requirements of the visa.

• A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa who substantially complies with the requirements of the visa.

• A professional athlete temporarily present in the United States to compete in a charitable sports event.

The specific rules for each of these four categories (including any rules on the length of time you will be an exempt individual) are discussed next.

Foreign government-related individuals. A foreign 

government-related individual is an individual (or a member of the individual's immediate family) who is temporarily 

present in the United States:

• As a full-time employee of an international organization,

• By reason of diplomatic status, or

• By reason of a visa (other than a visa that grants lawful 

permanent residence) that the Secretary of the Treasury determines represents full-time diplomatic or consular status.

Note. You are considered temporarily present in the 

United States regardless of the actual amount of time you 

are present in the United States.

6 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
An international organization is any public international 

organization that the President of the United States has 

designated by Executive Order as being entitled to the 

privileges, exemptions, and immunities provided for in the 

International Organizations Act. An individual is a full-time 

employee if their work schedule meets the organization's 

standard full-time work schedule.

An individual is considered to have full-time diplomatic 

or consular status if they:

• Have been accredited by a foreign government that is 

recognized by the United States;

• Intend to engage primarily in official activities for that 

foreign government while in the United States; and

• Have been recognized by the President, Secretary of 

State, or a consular officer as being entitled to that 

status.

Members of the immediate family include the individual's spouse and unmarried children (whether by blood or 

adoption) but only if the spouse's or unmarried children's 

visa statuses are derived from, and dependent on, the exempt individual's visa classification. Unmarried children 

are included only if they:

• Are under 21 years of age,

• Reside regularly in the exempt individual's household, 

and

• Are not members of another household.

Note. Generally, if you are present in the United States 

under an “A” or “G” class visa, you are considered a foreign government-related individual (with full-time diplomatic or consular status). None of your days count for purposes of the substantial presence test.

Household staff exception. If you are present in the 

United States under an “A-3” or “G-5” class visa as a personal employee, attendant, or domestic worker for either a 

foreign government or international organization official, 

you are not considered a foreign government-related individual and must count all your days of presence in the United States for purposes of the substantial presence test.

Teachers and trainees. A teacher or trainee is an individual, other than a student, who is temporarily in the 

United States under a “J” or “Q” visa and substantially 

complies with the requirements of that visa. You are considered to have substantially complied with the visa requirements if you have not engaged in activities that are 

prohibited by U.S. immigration laws and could result in the 

loss of your visa status.

Also included are immediate family members of exempt 

teachers and trainees. See the definition of “immediate 

family,” earlier, under Foreign government-related individuals.

You will not be an exempt individual as a teacher or 

trainee in 2023 if you were exempt as a teacher, trainee, or 

student for any part of 2 of the 6 preceding calendar years. 

However, you will be an exempt individual if all of the following conditions are met.

• You were exempt as a teacher, trainee, or student for 

any part of 3 (or fewer) of the 6 preceding calendar 

years.

• A foreign employer paid all of your compensation during 2023.

• You were present in the United States as a teacher or 

trainee in any of the 6 prior years.

• A foreign employer paid all of your compensation during each of the preceding 6 years you were present in 

the United States as a teacher or trainee.

A foreign employer includes an office or place of business 

of an American entity in a foreign country or a U.S. territory.

If you qualify to exclude days of presence as a teacher 

or trainee, you must file a fully completed Form 8843 with 

the IRS. See Form 8843, later.

Example. Carla was temporarily in the United States 

during the year as a teacher on a “J” visa. Carla’s compensation for the year was paid by a foreign employer. Carla 

was treated as an exempt teacher for the previous 2 years, 

but compensation was not paid by a foreign employer. 

Carla will not be considered an exempt individual for the 

current year because of being exempt as a teacher for at 

least 2 of the past 6 years.

If Carla’s compensation for the past 2 years had been 

paid by a foreign employer, Carla would be an exempt individual for the current year.

Students. A student is any individual who is temporarily in the United States on an “F,” “J,” “M,” or “Q” visa and 

who substantially complies with the requirements of that 

visa. You are considered to have substantially complied 

with the visa requirements if you have not engaged in activities that are prohibited by U.S. immigration laws and 

could result in the loss of your visa status.

Also included are immediate family members of exempt 

students. See the definition of “immediate family,” earlier, 

under Foreign government-related individuals.

You will not be an exempt individual as a student in 

2023 if you have been exempt as a teacher, trainee, or 

student for any part of more than 5 calendar years unless 

you meet both of the following requirements.

• You establish that you do not intend to reside permanently in the United States.

• You have substantially complied with the requirements 

of your visa.

The facts and circumstances to be considered in determining if you have demonstrated an intent to reside permanently in the United States include, but are not limited 

to, the following.

• Whether you have maintained a closer connection to a 

foreign country (discussed later).

• Whether you have taken affirmative steps to change 

your status from nonimmigrant to lawful permanent 

Publication 519 (2023) Chapter 1 Nonresident Alien or Resident Alien? 7
resident, as discussed later under Closer Connection 

to a Foreign Country.

If you qualify to exclude days of presence as a student, 

you must file a fully completed Form 8843 with the IRS. 

See Form 8843, later.

Professional athletes. A professional athlete who is 

temporarily in the United States to compete in a charitable 

sports event is an exempt individual. A charitable sports 

event is one that meets the following conditions.

• The main purpose is to benefit a qualified charitable 

organization.

• The entire net proceeds go to charity.

• Volunteers perform substantially all the work.

In figuring the days of presence in the United States, 

you can exclude only the days on which you actually competed in a sports event. You cannot exclude the days on 

which you were in the United States to practice for the 

event, to perform promotional or other activities related to 

the event, or to travel between events.

If you qualify to exclude days of presence as a professional athlete, you must file a fully completed Form 8843 

with the IRS. See Form 8843 next.

Form 8843. If you exclude days of presence in the United 

States because you fall into any of the following categories, you must file a fully completed Form 8843.

• You were unable to leave the United States as planned because of a medical condition or problem.

• You were temporarily in the United States as a teacher 

or trainee on a “J” or “Q” visa.

• You were temporarily in the United States as a student 

on an “F,” “J,” “M,” or “Q” visa.

• You were a professional athlete competing in a charitable sports event.

Attach Form 8843 to your 2023 income tax return. If you 

do not have to file a return, send Form 8843 to the following address.

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

You must file Form 8843 by the due date for filing Form 

1040-NR. The due date for filing is discussed in chapter 7. 

If you are required to file Form 8843 and you do not timely 

file Form 8843, you cannot exclude the days you were 

present in the United States as a professional athlete or 

because of a medical condition that arose while you were 

in the United States. This does not apply if you can show 

by clear and convincing evidence that you took reasonable actions to become aware of the filing requirements and 

significant steps to comply with those requirements.

Closer Connection to a Foreign Country

Even if you meet the substantial presence test, you can be 

treated as a nonresident alien if you:

• Are present in the United States for less than 183 days 

during the year,

• Maintain a tax home in a foreign country during the 

year, and

• Have a closer connection during the year to one foreign country in which you have a tax home than to the 

United States (unless you have a closer connection to 

two foreign countries, discussed next).

Closer connection to two foreign countries. You can 

demonstrate that you have a closer connection to two foreign countries (but not more than two) if you meet all of 

the following conditions.

• You maintained a tax home beginning on the first day 

of the year in one foreign country.

• You changed your tax home during the year to a second foreign country.

• You continued to maintain your tax home in the second foreign country for the rest of the year.

• You had a closer connection to each foreign country 

than to the United States for the period during which 

you maintained a tax home in that foreign country.

• You are subject to tax as a resident under the tax laws 

of either foreign country for the entire year or subject 

to tax as a resident in both foreign countries for the period during which you maintained a tax home in each 

foreign country.

Tax home. Your tax home is the general area of your 

main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax 

home is the place where you permanently or indefinitely 

work as an employee or a self-employed individual. If you 

do not have a regular or main place of business because 

of the nature of your work, then your tax home is the place 

where you regularly live. If you do not fit either of these 

categories, you are considered an itinerant and your tax 

home is wherever you work.

For determining whether you have a closer connection 

to a foreign country, your tax home must also be in existence for the entire current year and must be located in the 

same foreign country to which you are claiming to have a 

closer connection.

Foreign country. In determining whether you have a 

closer connection to a foreign country, the term “foreign 

country” means:

• Any territory under the sovereignty of the United Nations or a government other than that of the United 

States,

• The territorial waters of the foreign country (determined under U.S. law),

8 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
• The seabed and subsoil of those submarine areas that 

are adjacent to the territorial waters of the foreign 

country and over which the foreign country has exclusive rights under international law to explore and exploit natural resources, and

• Territories of the United States.

Establishing a closer connection. You will be considered to have a closer connection to a foreign country than 

the United States if you or the IRS establishes that you 

have maintained more significant contacts with the foreign 

country than with the United States. In determining 

whether you have maintained more significant contacts 

with the foreign country than with the United States, the 

facts and circumstances to be considered include, but are 

not limited to, the following.

1. The country of residence you designate on forms and 

documents.

2. The types of official forms and documents you file, 

such as Form W-9, Form W-8BEN, or Form W-8ECI.

3. The location of:

• Your permanent home;

• Your family;

• Your personal belongings, such as cars, furniture, 

clothing, and jewelry;

• Your current social, political, cultural, professional, 

or religious affiliations;

• Your business activities (other than those that 

constitute your tax home);

• The jurisdiction in which you hold a driver's license;

• The jurisdiction in which you vote; and

• Charitable organizations to which you contribute.

It does not matter whether your permanent home is a 

house, an apartment, or a furnished room. It also does not 

matter whether you rent or own it. It is important, however, 

that your home be available at all times, continuously, and 

not solely for short stays.

When you cannot have a closer connection. You cannot claim you have a closer connection to a foreign country if either of the following applies.

• You personally applied, or took other steps during the 

year, to change your status to that of a permanent resident.

• You had an application pending for adjustment of status during the current year.

Steps to change your status to that of a permanent resident include, but are not limited to, the filing of the following forms.

• Form I-508, Request for Waiver of Certain Rights, 

Privileges, Exemptions, and Immunities.

• Form I-485, Application to Register Permanent Residence or Adjust Status.

• Form I-130, Petition for Alien Relative.

• Form I-140, Immigrant Petition for Alien Workers.

• Form ETA-9089, Application for Permanent Employment Certification.

• Form ETA-9089, Appendix A.

• Form DS-230, Application for Immigrant Visa and 

Alien Registration.

Form 8840. You must attach a fully completed Form 8840 

to your income tax return to claim you have a closer connection to a foreign country or countries.

If you do not have to file a return, send the form to:

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

You must file Form 8840 by the due date for filing Form 

1040-NR. The due date for filing is discussed later in 

chapter 7.

If you do not timely file Form 8840, you cannot claim a 

closer connection to a foreign country or countries. This 

does not apply if you can show by clear and convincing 

evidence that you took reasonable actions to become 

aware of the filing requirements and significant steps to 

comply with those requirements.

Effect of Tax Treaties

Dual residents. The rules given here to determine if you 

are a U.S. resident do not override tax treaty definitions of 

residency. If you are a dual-resident taxpayer, you can still 

claim the benefits under an income tax treaty. A dual-resident taxpayer is one who is a resident of both the United 

States and another country under each country's tax laws. 

The income tax treaty between the two countries must 

contain a provision that provides for resolution of conflicting claims of residence (tiebreaker rule). If you are treated 

as a resident of a foreign country under a tax treaty, you 

are treated as a nonresident alien in figuring your U.S. income tax. For purposes other than figuring your tax, you 

will be treated as a U.S. resident. For example, the rules 

discussed here do not affect your residency time periods, 

as discussed under Dual-Status Aliens, later.

Note. In certain instances when an individual is treated 

as a nonresident alien pursuant to a tiebreaker rule in a 

relevant tax treaty, it can trigger section 877A expatriation 

tax. See Expatriation Tax, later.

Information to be reported. If you are a dual-resident 

taxpayer and you claim treaty benefits, you must file a return using Form 1040-NR with Form 8833 attached, and 

compute your tax as a nonresident alien. A dual-resident 

taxpayer may also be eligible for U.S. competent authority 

assistance. See Revenue Procedure 2015-40, 2015-35 

I.R.B. 236, available at IRS.gov/irb/

2015-35_IRB#RP-2015-40, or its successor.

See Reporting Treaty Benefits Claimed in chapter 9 for 

more information on reporting treaty benefits.

Publication 519 (2023) Chapter 1 Nonresident Alien or Resident Alien? 9
Certain students and trainees from Barbados, Hungary, and Jamaica. Nonresident alien students from 

Barbados, Hungary, and Jamaica, as well as trainees from 

Jamaica, may qualify for an election to be treated as a resident alien for U.S. tax purposes under the U.S. income 

tax treaties with those countries. See Pub. 901 for additional information. If you qualify for this election, you can 

make it by filing a Form 1040 and attaching a signed election statement to your return. The rules about resident aliens described in this publication apply to you. Once 

made, the election applies as long as you remain eligible, 

and you must obtain permission from the U.S. competent 

authority in order to terminate the election.

Note. As of January 8, 2023, the tax treaty between 

the United States and Hungary was terminated in accordance with the treaty's provision on termination. As a result, 

for tax years beginning January 1, 2024, this election will 

no longer be available for students and trainees from Hungary. See Termination of 1979 Tax Convention with Hungary under What's New, earlier.

Dual-Status Aliens

You can be both a nonresident alien and a resident alien 

during the same tax year. This usually occurs in the year 

you arrive in, or depart from, the United States. Aliens who 

have dual status should see chapter 6 for information on 

filing a return for a dual-status tax year.

First Year of Residency

If you are a U.S. resident for the calendar year, but you 

were not a U.S. resident at any time during the preceding 

calendar year, you are a U.S. resident only for the part of 

the calendar year that begins on the residency starting 

date. You are a nonresident alien for the part of the year 

before that date.

Residency starting date under substantial presence 

test. If you meet the substantial presence test for a calendar year, your residency starting date is generally the first 

day you are present in the United States during that calendar year. However, you do not have to count up to 10 days 

of actual presence in the United States if on those days 

you establish that:

• You had a closer connection to a foreign country than 

to the United States, and

• Your tax home was in that foreign country.

See Closer Connection to a Foreign Country, earlier.

In determining whether you can exclude up to 10 days, 

the following rules apply.

• You can exclude days from more than one period of 

presence as long as the total days in all periods are 

not more than 10.

• You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded.

• Although you can exclude up to 10 days of presence 

in determining your residency starting date, you must 

include those days when determining whether you 

meet the substantial presence test.

Example. Ivan Ivanovich is a citizen of Russia. Ivan 

came to the United States for the first time on January 6, 

2023, to attend a business meeting and returned to Russia on January 10, 2023. Ivan’s tax home remained in 

Russia. On March 1, 2023, Ivan moved to the United 

States and resided here for the rest of the year. Ivan is 

able to establish a closer connection to Russia for the period January 6–10, 2023. Thus, Ivan’s residency starting 

date is March 1, 2023.

Statement required to exclude up to 10 days of 

presence. You must file a statement with the IRS if you 

are excluding up to 10 days of presence in the United 

States for purposes of your residency starting date. You 

must sign and date this statement and include a declaration that it is made under penalties of perjury. The statement must contain the following information (as applicable).

• Your name, address, U.S. taxpayer identification number (TIN) (if any), and U.S. visa number (if any).

• Your passport number and the name of the country 

that issued your passport.

• The tax year for which the statement applies.

• The first day that you were present in the United 

States during the year.

• The dates of the days you are excluding in figuring 

your first day of residency.

• Sufficient facts to establish that you have maintained 

your tax home in, and a closer connection to, a foreign 

country during the period you are excluding.

Attach the required statement to your income tax return. If you are not required to file a return, send the statement to the following address.

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

You must submit the statement on or before the due 

date for filing Form 1040-NR. The due date for filing is discussed in chapter 7.

If you do not file the required statement as explained 

above, you cannot claim that you have a closer connection 

to a foreign country or countries. Therefore, your first day 

of residency will be the first day you are present in the United States. This does not apply if you can show by clear 

and convincing evidence that you took reasonable actions 

to become aware of the requirements for filing the statement and significant steps to comply with those requirements.

Residency starting date under green card test. If you 

meet the green card test at any time during a calendar 

year, but do not meet the substantial presence test for that 

10 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
year, your residency starting date is the first day in the calendar year on which you are present in the United States 

as a lawful permanent resident.

If you meet both the substantial presence test and the 

green card test, your residency starting date is the earlier 

of the first day during the year you are present in the United States under the substantial presence test or as a lawful permanent resident.

Residency during the preceding year. If you were a 

U.S. resident during any part of the preceding calendar 

year and you are a U.S. resident for any part of the current 

year, you will be considered a U.S. resident at the beginning of the current year. This applies whether you are a 

resident under the substantial presence test or green card 

test.

Example. Robert Bach is a citizen of Switzerland. 

Robert came to the United States as a U.S. resident for 

the first time on May 1, 2022, and remained until November 5, 2022, when Robert returned to Switzerland. Robert 

came back to the United States on March 5, 2023, as a 

lawful permanent resident and still resides here. In calendar year 2023, Robert's U.S. residency is deemed to begin on January 1, 2023, because Robert qualified as a 

resident in calendar year 2022.

First-Year Choice

If you do not meet either the green card test or the substantial presence test for 2022 or 2023 and you did not 

choose to be treated as a resident for part of 2022, but 

you meet the substantial presence test for 2024, you can 

choose to be treated as a U.S. resident for part of 2023. To 

make this choice, you must:

1. Be present in the United States for at least 31 days in 

a row in 2023, and

2. Be present in the United States for at least 75% of the 

number of days beginning with the first day of the 

31-day period and ending with the last day of 2023. 

For purposes of this 75% requirement, you can treat 

up to 5 days of absence from the United States as 

days of presence in the United States.

When counting the days of presence in (1) and (2) 

above, do not count the days you were in the United 

States under any of the exceptions discussed earlier under Days of Presence in the United States.

If you make the first-year choice, your residency starting date for 2023 is the first day of the earliest 31-day period (described in (1) above) that you use to qualify for the 

choice. You are treated as a U.S. resident for the rest of 

the year. If you are present for more than one 31-day period and you satisfy condition (2) above for each of those 

periods, your residency starting date is the first day of the 

first 31-day period. If you are present for more than one 

31-day period but you satisfy condition (2) above only for 

a later 31-day period, your residency starting date is the 

first day of the later 31-day period.

Note. You do not have to be married to make this 

choice.

Example 1. Juan DaSilva is a citizen of the Philippines. Juan came to the United States for the first time on 

November 1, 2023, and was here on 31 consecutive days 

(from November 1 through December 1, 2023). Juan returned to the Philippines on December 1 and came back 

to the United States on December 17, 2023. Juan stayed 

in the United States for the rest of the year. During 2024, 

Juan is a resident of the United States under the substantial presence test. Juan can make the first-year choice for 

2023 because Juan was in the United States in 2023 for a 

period of 31 days in a row (November 1 through December 1) and for at least 75% (0.75) of the days following 

(and including) the first day of Juan’s 31-day period (46 total days of presence in the United States divided by 61 

days in the period from November 1 through December 31 

equals 75.4% (0.754)). If Juan makes the first-year 

choice, Juan’s residency starting date will be November 1, 

2023.

Example 2. The facts are the same as in Example 1, 

except that Juan was also absent from the United States 

on December 24, 25, 29, 30, and 31. Juan can make the 

first-year choice for 2023 because up to 5 days of absence are considered days of presence for purposes of 

the 75% (0.75) requirement.

Statement required to make the first-year choice 

for 2023. You must attach a statement to Form 1040 or 

1040-SR to make the first-year choice for 2023. The statement must contain your name and address and specify 

the following.

• That you are making the first-year choice for 2023.

• That you were not a resident in 2022.

• That you are a resident under the substantial presence test in 2024.

• The number of days of presence in the United States 

during 2024.

• The date or dates of your 31-day period of presence 

and the period of continuous presence in the United 

States during 2023.

• The date or dates of absence from the United States 

during 2023 that you are treating as days of presence.

You cannot file Form 1040 or 1040-SR or the statement 

until you meet the substantial presence test for 2024. If 

you have not met the test for 2024 as of April 15, 2024, 

you can request an extension of time for filing your 2023 

Form 1040 or 1040-SR until a reasonable period after you 

have met that test. To request an extension to file until October 15, 2024, use Form 4868. You can file the paper 

form or use one of the electronic filing options explained in 

the Form 4868 instructions. You should pay with this extension the amount of tax you expect to owe for 2023 figured as if you were a nonresident alien the entire year. You 

can use Form 1040-NR to figure the tax. Enter the tax on 

Form 4868. If you do not pay the tax due, you will be 

charged interest on any tax not paid by the regular due 

Publication 519 (2023) Chapter 1 Nonresident Alien or Resident Alien? 11
date of your return, and you may be charged a penalty on 

the late payment.

Once you make the first-year choice, you may not revoke it without the approval of the IRS.

If you do not follow the procedures discussed here for 

making the first-year choice, you will be treated as a nonresident alien for all of 2023. However, this does not apply 

if you can show by clear and convincing evidence that you 

took reasonable actions to become aware of the filing procedures and significant steps to comply with the procedures.

Choosing Resident Alien Status

If you are a dual-status alien, you can choose to be treated 

as a U.S. resident for the entire year if all of the following 

apply.

• You were a nonresident alien at the beginning of the 

year.

• You are a resident alien or U.S. citizen at the end of 

the year.

• You are married to a U.S. citizen or resident alien at 

the end of the year.

• Your spouse joins you in making the choice.

This includes situations in which both you and your 

spouse were nonresident aliens at the beginning of the tax 

year and both of you are resident aliens at the end of the 

tax year.

Note. If you are single at the end of the year, you cannot make this choice.

If you make this choice, the following rules apply.

• You and your spouse are treated as U.S. residents for 

the entire year for income tax purposes.

• You and your spouse are taxed on worldwide income.

• You and your spouse must file a joint return for the 

year of the choice.

• Neither you nor your spouse can make this choice for 

any later tax year, even if you are separated, divorced, 

or remarried.

• The special instructions and restrictions for dual-status taxpayers in chapter 6 do not apply to you.

Note. A similar choice is available if, at the end of the 

tax year, one spouse is a nonresident alien and the other 

spouse is a U.S. citizen or resident. See Nonresident 

Spouse Treated as a Resident, later. If you previously 

made that choice and it is still in effect, you do not need to 

make the choice explained here.

Making the choice. You should attach a statement 

signed by both spouses to your joint return for the year of 

the choice. The statement must contain the following information.

• A declaration that you both qualify to make the choice 

and that you choose to be treated as U.S. residents for 

the entire tax year.

• The name, address, and TIN (social security number 

(SSN) or individual taxpayer identification number 

(ITIN)) of each spouse. (If one spouse died, include 

the name and address of the person who makes the 

choice for the deceased spouse.)

You generally make this choice when you file your joint 

return. However, you can also make the choice by filing 

Form 1040-X, Amended U.S. Individual Income Tax Return. Attach Form 1040 or 1040-SR and enter “Amended” 

across the top of the corrected return. If you make the 

choice with an amended return, you and your spouse 

must also amend any returns that you may have filed after 

the year for which you made the choice.

You must generally file the amended joint return within 

3 years from the date you filed your original U.S. income 

tax return or 2 years from the date you paid your income 

tax for that year, whichever is later.

Last Year of Residency

If you were a U.S. resident in 2023 but are not a U.S. resident during any part of 2024, you cease to be a U.S. resident on your residency termination date. Your residency 

termination date is December 31, 2023, unless you qualify 

for an earlier date, as discussed later.

Earlier residency termination date. You may qualify for 

a residency termination date that is earlier than December 

31. This date is:

1. The last day in 2023 that you are physically present in 

the United States, if you met the substantial presence 

test;

2. The first day in 2023 that you are no longer a lawful 

permanent resident of the United States, if you met 

the green card test; or

3. The later of (1) or (2), if you met both tests.

Note. Claiming residency status under an applicable 

treaty tiebreaker provision in another country may also 

lead to a residency termination date that is earlier than 

December 31.

You can use this date only if, for the remainder of 2023, 

your tax home was in a foreign country and you had a 

closer connection to that foreign country. See Closer Connection to a Foreign Country, earlier.

An LTR who ceases to be a lawful permanent resident may be subject to special reporting requirements and tax provisions. See Expatriation Tax in 

chapter 4.

Termination of residency. For information on your 

residency termination date, see Former LTR under Expatriation After June 16, 2008 in chapter 4.

De minimis presence. If you are a U.S. resident because of the substantial presence test and you qualify to 

use the earlier residency termination date, you can exclude up to 10 days of actual presence in the United 

States in determining your residency termination date. In 

CAUTION

!

12 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
determining whether you can exclude up to 10 days, the 

following rules apply.

• You can exclude days from more than one period of 

presence as long as the total days in all periods are 

not more than 10.

• You cannot exclude any days in a period of consecutive days of presence if all the days in that period cannot be excluded.

• Although you can exclude up to 10 days of presence 

in determining your residency termination date, you 

must include those days when determining whether 

you meet the substantial presence test.

Example. Lola Bovary is a citizen of Malta. Lola came 

to the United States for the first time on March 1, 2023, 

and resided here until August 25, 2023. On December 12, 

2023, Lola came to the United States for vacation and returned to Malta on December 16, 2023. Lola is able to establish a closer connection to Malta for the rest of 2023 

beginning August 25, 2023, when she leaves the United 

States. Lola is a resident under the substantial presence 

test because Lola was present in the United States for 183 

days (178 days for the period March 1 to August 25 plus 5 

days in December). However, Lola is able to exclude her 

visit to the United States in December in determining her 

residency termination date and therefore Lola's residency 

termination date is August 25, 2023.

Residency during the next year. If you are a U.S. resident during any part of 2024 and you are a resident during 

any part of 2023, you will be treated as a resident through 

the end of 2023. This applies whether you have a closer 

connection to a foreign country than the United States 

during 2023, and whether you are a resident under the 

substantial presence test or green card test.

Statement required to establish your residency termination date. You must file a statement with the IRS to 

establish your residency termination date. You must sign 

and date this statement and include a declaration that it is 

made under penalties of perjury. The statement must contain the following information (as applicable).

• Your name, address, U.S. TIN (if any), and U.S. visa 

number (if any).

• Your passport number and the name of the country 

that issued your passport.

• The tax year for which the statement applies.

• The last day that you were present in the United 

States during the year.

• Sufficient facts to establish that you have maintained 

your tax home in, and that you have a closer connection to, a foreign country following your last day of 

presence in the United States during the year or following the abandonment or rescission of your status 

as a lawful permanent resident during the year.

• The date that your status as a lawful permanent resident was abandoned or rescinded.

• Sufficient facts (including copies of relevant documents) to establish that your status as a lawful permanent resident has been abandoned or rescinded.

• If you can exclude days, as discussed earlier under De 

minimis presence, include the dates of the days you 

are excluding and sufficient facts to establish that you 

have maintained your tax home in, and that you have a 

closer connection to, a foreign country during the period you are excluding.

Attach the required statement to your income tax return. If you are not required to file a return, send the statement to the following address.

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

You must submit the statement on or before the due 

date for filing Form 1040-NR. The due date for filing is discussed in chapter 7.

If you do not file the required statement as explained 

above, you cannot claim that you have a closer connection 

to a foreign country or countries. This does not apply if 

you can show by clear and convincing evidence that you 

took reasonable actions to become aware of the requirements for filing the statement and significant steps to comply with those requirements.

Nonresident Spouse Treated 

as a Resident

If, at the end of your tax year, you are married and one 

spouse is a U.S. citizen or a resident alien and the other 

spouse is a nonresident alien, you can choose to treat the 

nonresident spouse as a U.S. resident. This includes situations in which one spouse is a nonresident alien at the 

beginning of the tax year, but a resident alien at the end of 

the year, and the other spouse is a nonresident alien at 

the end of the year.

If you make this choice, you and your spouse are treated for income tax purposes as residents for your entire 

tax year. Neither you nor your spouse can claim under any 

tax treaty not to be a U.S. resident. You are both taxed on 

worldwide income. You must file a joint income tax return 

for the year you make the choice, but you and your spouse 

can file joint or separate returns in later years.

If you file a joint return under this provision, the 

special instructions and restrictions for dual-status 

taxpayers in chapter 6 do not apply to you.

Example. Bob and Sharon Williams are married and 

both are nonresident aliens at the beginning of the year. In 

June, Bob became a resident alien and remained a resident for the rest of the year. Bob and Sharon both choose 

to be treated as resident aliens by attaching a statement 

to their joint return. Bob and Sharon must file a joint return 

CAUTION

!

Publication 519 (2023) Chapter 1 Nonresident Alien or Resident Alien? 13
for the year they make the choice, but they can file either 

joint or separate returns for later years.

How To Make the Choice

Attach a statement, signed by both spouses, to your joint 

return for the first tax year for which the choice applies. It 

should contain the following information.

• A declaration that one spouse was a nonresident alien 

and the other spouse a U.S. citizen or resident alien 

on the last day of your tax year, and that you choose to 

be treated as U.S. residents for the entire tax year.

• The name, address, and TIN of each spouse. (If one 

spouse died, include the name and address of the 

person making the choice for the deceased spouse.)

Amended return. You generally make this choice when 

you file your joint return. However, you can also make the 

choice by filing a joint amended return on Form 1040-X. 

Attach Form 1040 or 1040-SR and enter “Amended” 

across the top of the corrected return. If you make the 

choice with an amended return, you and your spouse 

must also amend any returns that you may have filed after 

the year for which you made the choice.

You must generally file the amended joint return within 

3 years from the date you filed your original U.S. income 

tax return or 2 years from the date you paid your income 

tax for that year, whichever is later.

Suspending the Choice

The choice to be treated as a resident alien is suspended 

for any tax year (after the tax year you made the choice) if 

neither spouse is a U.S. citizen or resident alien at any 

time during the tax year. This means each spouse must 

file a separate return as a nonresident alien for that year if 

either meets the filing requirements for nonresident aliens 

discussed in chapter 7.

Example. Dick Brown was a resident alien on December 31, 2020, and married to Judy, a nonresident alien. 

They chose to treat Judy as a resident alien and filed joint 

2020 and 2021 income tax returns. On January 10, 2022, 

Dick became a nonresident alien. Judy had remained a 

nonresident alien throughout the period. Dick and Judy 

could have filed joint or separate returns for 2022 because 

Dick was a resident alien for part of that year. However, 

because neither Dick nor Judy is a resident alien at any 

time during 2023, their choice is suspended for that year. 

If either meets the filing requirements for nonresident aliens discussed in chapter 7, they must file separate returns 

as nonresident aliens for 2023. If Dick becomes a resident 

alien again in 2024, their choice is no longer suspended.

Ending the Choice

Once made, the choice to be treated as a resident applies 

to all later years unless suspended (as explained earlier 

under Suspending the Choice) or ended in one of the following ways.

If the choice is ended in one of the following ways, neither spouse can make this choice in any later tax year.

1. Revocation. Either spouse can revoke the choice for 

any tax year, provided they make the revocation by 

the due date for filing the tax return for that tax year. 

The spouse who revokes the choice must attach a 

signed statement declaring that the choice is being 

revoked. The statement must include the name, address, and TIN of each spouse. (If one spouse dies, 

include the name and address of the person who is 

revoking the choice for the deceased spouse.) The 

statement must also include a list of any states, foreign countries, and territories that have community 

property laws in which either spouse is domiciled or 

where real property is located from which either 

spouse receives income. File the statement as follows.

a. If the spouse revoking the choice must file a return, attach the statement to the return for the first 

year the revocation applies.

b. If the spouse revoking the choice does not have to 

file a return, but does file a return (for example, to 

obtain a refund), attach the statement to the return.

c. If the spouse revoking the choice does not have to 

file a return and does not file a claim for refund, 

send the statement to the Internal Revenue Service Center where you filed the last joint return.

2. Death. The death of either spouse ends the choice, 

beginning with the first tax year following the year the 

spouse died. However, if the surviving spouse is a 

U.S. citizen or resident and is entitled to the joint tax 

rates as a surviving spouse, the choice will not end 

until the close of the last year for which these joint 

rates may be used. If both spouses die in the same 

tax year, the choice ends on the first day after the 

close of the tax year in which the spouses died.

3. Legal separation. A legal separation under a decree 

of divorce or separate maintenance ends the choice 

as of the beginning of the tax year in which the legal 

separation occurs.

4. Inadequate records. The IRS can end the choice for 

any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to 

provide adequate access to those records.

Aliens From American Samoa 

or Puerto Rico

If you are a nonresident alien in the United States and a 

bona fide resident of American Samoa or Puerto Rico during the entire tax year, you are taxed, with certain exceptions, according to the rules for resident aliens of the United States. For more information, see Bona Fide 

14 Chapter 1 Nonresident Alien or Resident Alien? Publication 519 (2023)
Residents of American Samoa or Puerto Rico in chapter 5.

If you are a nonresident alien from American Samoa or 

Puerto Rico who does not qualify as a bona fide resident 

of American Samoa or Puerto Rico for the entire tax year, 

you are taxed as a nonresident alien.

Resident aliens who formerly were bona fide residents 

of American Samoa or Puerto Rico are taxed according to 

the rules for resident aliens.

2.

Source of Income

Introduction

After you have determined your alien status, you must determine the source of your income. This chapter will help 

you determine the source of different types of income you 

may receive during the tax year.

Topics

This chapter discusses:

• Income source rules, and

• Community income.

This chapter also discusses special rules for married individuals who are domiciled in a country with community 

property laws.

Resident Aliens

A resident alien's income is generally subject to tax in the 

same manner as a U.S. citizen. If you are a resident alien, 

you must report all interest, dividends, wages, or other 

compensation for services, income from rental property or 

royalties, and other types of income on your U.S. tax return. You must report these amounts from sources within 

and outside the United States.

Nonresident Aliens

Nonresident aliens are taxed only on their income from 

sources within the United States and on certain income 

connected with the conduct of a trade or business in the 

United States (see chapter 4).

The general rules for determining U.S. source income 

that apply to most nonresident aliens are shown in Table 2-1. The following discussions cover the general rules 

as well as the exceptions to these rules.

Not all items of U.S. source income are taxable. 

TIP

See chapter 3.

Table 2-1. Summary of Source Rules for Income of Nonresident Aliens

Item of income Factor determining source

Salaries, wages, other compensation Where services performed

Business income:

Personal services Where services performed

Sale of inventory—purchased Where sold

Sale of inventory—produced Where produced

Interest Residence of payer

Dividends Whether a U.S. or foreign corporation*

Rents Location of property

Royalties:

Natural resources Location of property

Patents, copyrights, etc. Where property is used

Sale of real property Location of property

Sale of personal property Seller's tax home (but see Personal Property, later, for exceptions)

Pension distributions attributable to contributions Where services were performed that earned the pension

Investment earnings on pension contributions Location of pension trust

Sale of natural resources Allocation based on fair market value of product at export terminal. 

For more information, see section 1.863-1(b) of the regulations.

* Exceptions include: Part of a dividend paid by a foreign corporation is U.S. source if at least 25% of the corporation's gross income is effectively 

connected with a U.S. trade or business for the 3 tax years before the year in which the dividends are declared. Special rules apply for dividend 

equivalent payments.

Publication 519 (2023) Chapter 2 Source of Income 15
Interest Income

Generally, U.S. source interest income includes the following items.

• Interest on bonds, notes, or other interest-bearing obligations of U.S. residents or domestic corporations.

• Interest paid by a domestic or foreign partnership or 

foreign corporation engaged in a U.S. trade or business at any time during the tax year.

• Original issue discount (OID).

• Interest from a state, the District of Columbia, or the 

U.S. Government.

The place or manner of payment is immaterial in determining the source of the income.

A substitute interest payment made to the transferor of 

a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as 

the interest on the transferred security.

Exceptions. U.S. source interest income does not include the following items.

1. Interest paid by a resident alien or a domestic corporation on obligations issued before August 10, 2010, if 

for the 3-year period ending with the close of the payer's tax year preceding the interest payment, at least 

80% (0.80) of the payer's total gross income:

a. Is from sources outside the United States, and

b. Is attributable to the active conduct of a trade or 

business by the individual or corporation in a foreign country or a U.S. territory.

However, the interest will be considered U.S. 

source interest income if either of the following applies.

a. The recipient of the interest is related to the resident alien or domestic corporation. See section 

954(d)(3) for the definition of “related person.”

b. The terms of the obligation are significantly modified after August 9, 2010. Any extension of the 

term of the obligation is considered a significant 

modification.

2. Interest paid by a foreign branch of a domestic corporation or a domestic partnership on deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and 

loan associations, and other savings institutions chartered and supervised as savings and loan or similar 

associations under federal or state law if the interest 

paid or credited can be deducted by the association.

3. Interest on deposits with a foreign branch of a domestic corporation or domestic partnership, but only if the 

branch is in the commercial banking business.

Dividends

In most cases, dividend income received from domestic 

corporations is U.S. source income. Dividend income from 

foreign corporations is usually foreign source income. An 

exception to the second rule is discussed later.

A substitute dividend payment made to the transferor of 

a security in a securities lending transaction or a sale-repurchase transaction is sourced in the same manner as a 

distribution on the transferred security.

Exception. Part of the dividends received from a foreign corporation is U.S. source income if 25% or more of 

its total gross income for the 3-year period ending with the 

close of its tax year preceding the declaration of dividends 

was effectively connected with a trade or business in the 

United States. If the corporation was formed less than 3 

years before the declaration, use its total gross income 

from the time it was formed. Determine the part that is 

U.S. source income by multiplying the dividend by the following fraction.

Foreign corporation's gross income connected with 

a U.S. trade or business for the 3-year period

Foreign corporation's gross income from all sources 

for that period

Dividend equivalent payments. U.S. source dividends 

also include dividend equivalent payments. Dividend 

equivalent payments include:

• Substitute dividends paid pursuant to a securities 

lending transaction, sale-repurchase transaction, or 

substantially similar transaction;

• A payment that references a U.S. source dividend 

made pursuant to a specified notional principal contract (NPC); or

• A payment that references a U.S. source dividend 

made pursuant to a specified equity-linked instrument 

(ELI).

A payment of a dividend equivalent amount includes 

any gross amount that references a U.S. source dividend 

and that is used to compute any net amount transferred to 

or from the taxpayer under a contract, if the taxpayer is the 

long party under the contract. As a result, a taxpayer may 

be treated as having received a dividend equivalent payment even if the taxpayer makes a net payment or no 

amount is paid because the net amount is zero.

In 2023, an NPC or ELI will generally be a specified 

NPC or specified ELI, respectively, if the contract is a delta 

one transaction. Generally, delta is the ratio of change in 

the fair market value of an NPC or ELI to a small change in 

the fair market value of the number of shares of the stock 

referenced by the contract. Generally, the amount of a dividend equivalent for a specified NPC or specified ELI is 

the per share dividend amount multiplied by the number of 

shares of stock referenced by the contract multiplied by 

the delta of the contract. Special rules apply to complex 

contracts. See Regulations section 1.871-15 and Notice 

2020-03, for additional information.

16 Chapter 2 Source of Income Publication 519 (2023)
Guarantee of Indebtedness

Amounts received directly or indirectly, for the provision of 

a guarantee of indebtedness issued after September 27, 

2010, are U.S. source income if they are paid by:

1. A noncorporate resident or U.S. corporation, or

2. Any foreign person if the amounts are effectively connected with the conduct of a U.S. trade or business.

For more information, see section 861(a)(9).

Personal Services

All wages and any other compensation for services performed in the United States are considered to be from 

sources in the United States. The only exceptions to this 

rule are discussed in Employees of foreign persons, organizations, or offices, later, and in Crew members, earlier.

If you are an employee and receive compensation for 

labor or personal services performed both inside and outside the United States, special rules apply in determining 

the source of the compensation. Compensation (other 

than certain fringe benefits) is sourced on a time basis. 

Certain fringe benefits (such as housing and education) 

are sourced on a geographical basis.

Or, you may be permitted to use an alternative basis to 

determine the source of compensation. See Alternative 

Basis, later.

Multilevel marketing. Certain companies sell products 

through a multilevel marketing arrangement, such that an 

upper-tier distributor, who has sponsored a lower-tier distributor, is entitled to a payment from the company based 

on certain activities of that lower-tier distributor. Generally, 

depending on the facts, payments from such multilevel 

marketing companies to independent (nonemployee) distributors (upper-tier distributors) that are based on the 

sales or purchases of persons whom they have sponsored 

(lower-tier distributors) constitute income for the performance of personal services in recruiting, training, and supporting the lower-tier distributors. The source of such income is generally based on where the services of the 

upper-tier distributor are performed and may, depending 

on the facts, be considered multiyear compensation, with 

the source of income determined over the period to which 

such compensation is attributable.

Self-employed individuals. If you are self-employed, 

you determine the source of compensation for labor or 

personal services from self-employment on the basis that 

most correctly reflects the proper source of that income 

under the facts and circumstances of your particular case. 

In many cases, the facts and circumstances will call for an 

apportionment on a time basis, as explained next.

Time Basis

Use a time basis to figure your U.S. source compensation 

(other than the fringe benefits discussed in Geographical 

Basis). Do this by multiplying your total compensation 

(other than the fringe benefits sourced on a geographical 

basis) by the following fraction.

Number of days you performed services in the 

United States during the year

Total number of days you performed services 

during the year

You can use a unit of time less than a day in the above 

fraction, if appropriate. The time period for which the compensation is made does not have to be a year. Instead, 

you can use another distinct, separate, and continuous 

time period if you can establish to the satisfaction of the 

IRS that this other period is more appropriate.

Example 1. Christina Brooks, a resident of the Netherlands, worked 240 days for a U.S. company during the tax 

year. Christina received $80,000 in compensation. None 

of it was for fringe benefits. Christina performed services 

in the United States for 60 days and performed services in 

the Netherlands for 180 days. Using the time basis for determining the source of compensation, $20,000 ($80,000 

× 60/240) is Christina’s U.S. source income.

Example 2. Rob Waters, a resident of South Africa, is 

employed by a corporation. Rob’s annual salary is 

$100,000. None of it is for fringe benefits. During the first 

quarter of the year, Rob worked entirely within the United 

States. On April 1, Rob was transferred to Singapore for 

the remainder of the year. Rob is able to establish that the 

first quarter of the year and the last 3 quarters of the year 

are two separate, distinct, and continuous periods of time. 

Accordingly, $25,000 of Rob's annual salary is attributable 

to the first quarter of the year (0.25 × $100,000). All of it is 

U.S. source income because Rob worked entirely within 

the United States during that quarter. The remaining 

$75,000 is attributable to the last 3 quarters of the year. 

During those quarters, Rob worked 150 days in Singapore 

and 30 days in the United States. Rob’s periodic performance of services in the United States did not result in distinct, separate, and continuous periods of time. Of this 

$75,000, $12,500 ($75,000 × 30/180) is U.S. source income.

Multiyear compensation. The source of multiyear compensation is generally determined on a time basis over the 

period to which the compensation is attributable. Multiyear 

compensation is compensation that is included in your income in 1 tax year but that is attributable to a period that 

includes 2 or more tax years.

You determine the period to which the compensation is 

attributable based on the facts and circumstances of your 

case. For example, an amount of compensation that specifically relates to a period of time that includes several 

calendar years is attributable to the entire multiyear period.

The amount of compensation treated as from U.S. 

sources is figured by multiplying the total multiyear compensation by a fraction. The numerator of the fraction is 

the number of days (or unit of time less than a day, if 

Publication 519 (2023) Chapter 2 Source of Income 17
appropriate) that you performed labor or personal services 

in the United States in connection with the project. The 

denominator of the fraction is the total number of days (or 

unit of time less than a day, if appropriate) that you performed labor or personal services in connection with the 

project.

Geographical Basis

Compensation you receive as an employee in the form of 

the following fringe benefits is sourced on a geographical 

basis.

• Housing.

• Education.

• Local transportation.

• Tax reimbursement.

• Hazardous or hardship duty pay, as defined in Regulations section 1.861-4(b)(2)(ii)(D)(5).

• Moving expense reimbursement.

The amount of fringe benefits must be reasonable and you 

must substantiate them by adequate records or by sufficient evidence.

Principal place of work. The above fringe benefits, except for tax reimbursement and hazardous or hardship 

duty pay, are sourced based on your principal place of 

work. Your principal place of work is usually the place 

where you spend most of your working time. This could be 

your office, plant, store, shop, or other location. If there is 

no one place where you spend most of your working time, 

your main job location is the place where your work is centered, such as where you report for work or are otherwise 

required to “base” your work.

If you have more than one job at any time, your main 

job location depends on the facts in each case. The more 

important factors to be considered are:

• The total time you spend at each place,

• The amount of work you do at each place, and

• How much money you earn at each place.

Housing. The source of a housing fringe benefit is determined based on the location of your principal place of 

work. A housing fringe benefit includes payments to you or 

on your behalf (and your family's if your family resides with 

you) only for the following.

• Rent.

• Utilities (except telephone charges).

• Real and personal property insurance.

• Occupancy taxes not deductible under section 164 or 

216(a).

• Nonrefundable fees for securing a leasehold.

• Rental of furniture and accessories.

• Household repairs.

• Residential parking.

• Fair rental value of housing provided in kind by your 

employer.

A housing fringe benefit does not include:

• Deductible interest and taxes (including deductible interest and taxes of a tenant-stockholder in a cooperative housing corporation);

• The cost of buying property, including principal payments on a mortgage;

• The cost of domestic labor (maids, gardeners, etc.);

• Pay television subscriptions;

• Improvements and other expenses that increase the 

value or appreciably prolong the life of property;

• Purchased furniture or accessories;

• Depreciation or amortization of property or improvements;

• The value of meals or lodging that you exclude from 

gross income; or

• The value of meals or lodging that you deduct as moving expenses.

The deduction for moving expenses is available only if 

you are a member of the U.S. Armed Forces on active 

duty and move due to a permanent change of duty station.

Education. The source of an education fringe benefit for 

the education expenses of your dependents is determined 

based on the location of your principal place of work. An 

education fringe benefit includes payments only for the following expenses for education at an elementary or secondary school.

• Tuition, fees, academic tutoring, special needs services for a special needs student, books, supplies, and 

other equipment.

• Room and board and uniforms that are required or 

provided by the school in connection with enrollment 

or attendance.

Local transportation. The source of a local transportation fringe benefit is determined based on the location of 

your principal place of work. Your local transportation 

fringe benefit is the amount that you receive as compensation for local transportation for you or your spouse or dependents at the location of your principal place of work. 

The amount treated as a local transportation fringe benefit 

is limited to actual expenses incurred for local transportation and the fair rental value of any employer-provided vehicle used predominantly by you, your spouse, or your dependents for local transportation. Actual expenses do not 

include the cost (including interest) of any vehicle purchased by you or on your behalf.

Tax reimbursement. The source of a tax reimbursement 

fringe benefit is determined based on the location of the 

jurisdiction that imposed the tax for which you are reimbursed.

18 Chapter 2 Source of Income Publication 519 (2023)
Moving expense reimbursement. The source of a moving expense reimbursement is generally based on the location of your new principal place of work. However, the 

source is determined based on the location of your former 

principal place of work if you provide sufficient evidence 

that such determination of source is more appropriate under the facts and circumstances of your case. Sufficient 

evidence generally requires an agreement between you 

and your employer, or a written statement of company policy, which is reduced to writing before the move and which 

is entered into or established to induce you or other employees to move to another country. The written statement 

or agreement must state that your employer will reimburse 

you for moving expenses that you incur to return to your 

former principal place of work regardless of whether you 

continue to work for your employer after returning to that 

location. It may contain certain conditions upon which the 

right to reimbursement is determined as long as those 

conditions set forth standards that are definitely ascertainable and can only be fulfilled prior to, or through completion of, your return move to your former principal place of 

work.

Alternative Basis

If you are an employee, you can determine the source of 

your compensation under an alternative basis if you establish to the satisfaction of the IRS that, under the facts and 

circumstances of your case, the alternative basis more 

properly determines the source of your compensation 

than the time or geographical basis. If you use an alternative basis, you must keep (and have available for inspection) records to document why the alternative basis more 

properly determines the source of your compensation. 

Also, if your total compensation from all sources is 

$250,000 or more, check “Yes” to both questions on line K 

of Schedule OI (Form 1040-NR), and attach a written 

statement to your tax return that sets forth all of the following.

1. Your name and SSN (entered across the top of the 

statement).

2. The specific compensation income, or the specific 

fringe benefit, for which you are using the alternative 

basis.

3. For each item in (2), the alternative basis of allocation 

of source used.

4. For each item in (2), a computation showing how the 

alternative allocation was computed.

5. A comparison of the dollar amount of the U.S. compensation and foreign compensation sourced under 

both the alternative basis and the time or geographical basis, discussed earlier.

Transportation Income

Transportation income is income from the use of a vessel 

or aircraft or for the performance of services directly related to the use of any vessel or aircraft. This is true whether 

the vessel or aircraft is owned, hired, or leased. The term 

“vessel or aircraft” includes any container used in connection with a vessel or aircraft.

All income from transportation that begins and ends in 

the United States is treated as derived from sources in the 

United States. If the transportation begins or ends in the 

United States, 50% of the transportation income is treated 

as derived from sources in the United States.

For transportation income from personal services, 50% 

of the income is U.S. source income if the transportation is 

between the United States and a U.S. territory. For nonresident aliens, this only applies to income derived from, 

or in connection with, an aircraft.

For information on how U.S. source transportation income is taxed, see chapter 4.

Scholarships, Grants, Prizes, and 

Awards

Generally, the source of scholarships, fellowship grants, 

grants, prizes, and awards is the residence of the payer regardless of who actually disburses the funds. However, 

see Activities to be performed outside the United States, 

later.

For example, payments for research or study in the United States made by the United States, a noncorporate 

U.S. resident, or a domestic corporation are from U.S. 

sources. Similar payments from a foreign government or 

foreign corporation are foreign source payments even 

though the funds may be disbursed through a U.S. agent.

Payments made by an entity designated as a public international organization under the International Organizations Immunities Act are from foreign sources.

Activities to be performed outside the United States. 

Scholarships, fellowship grants, targeted grants, and achievement awards received by nonresident aliens for activities performed, or to be performed, outside the United 

States are not U.S. source income.

These rules do not apply to amounts paid as salary or other compensation for services. See Personal Services, earlier, for the source rules that 

apply.

Pensions and Annuities

If you receive a pension from a domestic trust for services 

performed both in and outside the United States, part of 

the pension payment is from U.S. sources. That part is the 

amount attributable to earnings of the pension plan and 

the employer contributions made for services performed in 

the United States. This applies whether the distribution is 

made under a qualified or nonqualified stock bonus, pension, profit-sharing, or annuity plan (whether or not funded).

If you performed services as an employee of the United 

States, you may receive a distribution from the U.S. Government under a plan, such as the Civil Service 

CAUTION

!

Publication 519 (2023) Chapter 2 Source of Income 19
Retirement System, that is treated as a qualified pension 

plan. Your U.S. source income is the otherwise taxable 

amount of the distribution that is attributable to your total 

U.S. Government basic pay other than tax-exempt pay for 

services performed outside the United States.

Disaster tax relief. If you are required to file a U.S. 

federal income tax return, you may be entitled to some 

special disaster-related rules regarding the use of retirement funds. For more information, see Pub. 590-B. Also, 

go to IRS.gov/DisasterTaxRelief.

Tax relief for qualified disaster distributions and 

repayments. Special rules provide for tax-favored withdrawals and repayments to certain retirement plans (including IRAs) for taxpayers who suffered economic losses 

because of certain major disasters. For information about 

reporting qualified disaster distributions and repayments, 

see Form 8915-F, Qualified Disaster Retirement Plan Distributions and Repayments, and its instructions.

Rents or Royalties

Your U.S. source income includes rent and royalty income 

received during the tax year from property located in the 

United States or from any interest in that property.

U.S. source income also includes rents or royalties for 

the use of, or for the privilege of using, in the United 

States, intangible property such as patents, copyrights, 

secret processes and formulas, goodwill, trademarks, 

franchises, and similar property.

Real Property

Real property is land and buildings and generally anything 

built on, growing on, or attached to land.

Gross income from sources in the United States includes gains, profits, and income from the sale or other 

disposition of real property located in the United States.

Natural resources. The income from the sale of products of any farm, mine, oil or gas well, other natural deposit, or timber located in the United States and sold in a 

foreign country, or located in a foreign country and sold in 

the United States, is partly from sources in the United 

States. For information on determining that part, see Regulations section 1.863-1(b).

Personal Property

Personal property is property, such as machinery, equipment, or furniture, that is not real property.

Gain or loss from the sale or exchange of personal 

property generally has its source in the United States if 

you have a tax home in the United States. If you do not 

have a tax home in the United States, the gain or loss is 

generally considered to be from sources outside the United States.

Tax home. Your tax home is the general area of your 

main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax 

home is the place where you permanently or indefinitely 

work as an employee or a self-employed individual. If you 

do not have a regular or main place of business because 

of the nature of your work, then your tax home is the place 

where you regularly live. If you do not fit either of these 

categories, you are considered an itinerant and your tax 

home is wherever you work.

Inventory property. Inventory property is personal property that is stock in trade or that is held primarily for sale to 

customers in the ordinary course of your trade or business. Income from the sale of inventory that you purchased is sourced where the property is sold. Generally, 

this is where title to the property passes to the buyer. For 

example, income from the sale of inventory in the United 

States is U.S. source income, whether you purchased it in 

the United States or in a foreign country.

Income from the sale of inventory property that you produced in the United States and sold outside the United 

States (or vice versa) is sourced where the property is 

produced.

These rules apply even if your tax home is not in the 

United States.

Depreciable property. To determine the source of any 

gain from the sale of depreciable personal property, you 

must first figure the part of the gain that is not more than 

the total depreciation adjustments on the property. You allocate this part of the gain to sources in the United States 

based on the ratio of U.S. depreciation adjustments to total depreciation adjustments. The rest of this part of the 

gain is considered to be from sources outside the United 

States.

For this purpose, “U.S. depreciation adjustments” are 

the depreciation adjustments to the basis of the property 

that are allowable in figuring taxable income from U.S. 

sources. However, if the property is used predominantly in 

the United States during a tax year, all depreciation deductions allowable for that year are treated as U.S. depreciation adjustments. But there are some exceptions for 

certain transportation, communications, and other property used internationally.

Gain from the sale of depreciable property that is more 

than the total depreciation adjustments on the property is 

sourced as if the property were inventory property, as discussed above.

A loss is sourced in the same way as the depreciation 

deductions were sourced. However, if the property was 

used predominantly in the United States, the entire loss 

reduces U.S. source income. 

The basis of property usually means the cost (money 

plus the fair market value of other property or services) of 

property you acquire. Depreciation is an amount deducted 

to recover the cost or other basis of a trade or business 

asset. The amount you can deduct depends on the property's cost, when you began using the property, how long it 

will take to recover your cost, and which depreciation 

method you use. A depreciation deduction is any deduction for depreciation or amortization or any other allowable 

deduction that treats a capital expenditure as a deductible 

expense.

20 Chapter 2 Source of Income Publication 519 (2023)
Intangible property. Intangible property includes patents, copyrights, secret processes or formulas, goodwill, 

trademarks, trade names, or other like property. The gain 

from the sale of amortizable or depreciable intangible 

property, up to the previously allowable amortization or depreciation deductions, is sourced in the same way as the 

original deductions were sourced. This is the same as the 

source rule for gain from the sale of depreciable property. 

See Depreciable property, earlier, for details on how to apply this rule.

Gain in excess of the amortization or depreciation deductions is sourced in the country where the property is 

used if the income from the sale is contingent on the productivity, use, or disposition of that property. If the income 

is not contingent on the productivity, use, or disposition of 

the property, the income is sourced according to your tax 

home (discussed earlier). If payments for goodwill do not 

depend on its productivity, use, or disposition, their source 

is the country in which the goodwill was generated.

Sales through offices or fixed places of business. 

Despite any of the earlier rules, if you do not have a tax 

home in the United States, but you maintain an office or 

other fixed place of business in the United States, treat the 

income from any sale of personal property (including inventory property) that is attributable to that office or place 

of business as U.S. source income. However, this rule 

does not apply to sales of inventory property for use, disposition, or consumption outside the United States if your 

office or other fixed place of business outside the United 

States materially participated in the sale.

If you have a tax home in the United States but maintain 

an office or other fixed place of business outside the United States, income from sales of personal property, other 

than inventory, depreciable property, or intangibles, that is 

attributable to that foreign office or place of business may 

be treated as U.S. source income. The income is treated 

as U.S. source income if an income tax of less than 10% 

of the income from the sale is paid to a foreign country. 

This rule also applies to losses if the foreign country would 

have imposed an income tax of less than 10% had the 

sale resulted in a gain.

Community Income

If you are married and you or your spouse is subject to the 

community property laws of a foreign country, U.S. state, 

or U.S. territory, you must generally follow those laws to 

determine the income of yourself and your spouse for U.S. 

tax purposes. But you must disregard certain community 

property laws if:

• Both you and your spouse are nonresident aliens, or

• One of you is a nonresident alien and the other is a 

U.S. citizen or resident and you do not both choose to 

be treated as U.S. residents as explained in Nonresident Spouse Treated as a Resident, earlier.

In these cases, you and your spouse must report community income as explained later.

Earned income. Earned income of a spouse, other than 

trade or business income and a partner's distributive 

share of partnership income, is treated as the income of 

the spouse whose services produced the income. That 

spouse must report all of it on their separate return.

Trade or business income. Trade or business income, 

other than a partner's distributive share of partnership income, is treated as the income of the spouse carrying on 

the trade or business. That spouse must report all of it on 

their separate return.

Partnership income (or loss). A partner's distributive 

share of partnership income (or loss) is treated as the income (or loss) of the partner. The partner must report all 

of it on their separate return.

Separate property income. Income derived from the 

separate property of one spouse (and which is not earned 

income, trade or business income, or partnership distributive share income) is treated as the income of that spouse. 

That spouse must report all of it on their separate return. 

Use the appropriate community property law to determine 

what is separate property.

Other community income. All other community income 

is treated as provided by the applicable community property laws.

3.

Exclusions From Gross 

Income

Introduction

Resident and nonresident aliens are allowed exclusions 

from gross income if they meet certain conditions. An exclusion from gross income is generally income you receive 

that is not included in your U.S. income and is not subject 

to U.S. tax. This chapter covers some of the more common exclusions allowed to resident and nonresident aliens.

Topics

This chapter discusses:

• Nontaxable interest,

• Nontaxable dividends,

• Certain compensation paid by a foreign employer,

• Gain from sale of home, and

• Scholarships and fellowship grants.

Publication 519 (2023) Chapter 3 Exclusions From Gross Income 21
Useful Items

You may want to see:

Publication

Tax Guide for U.S. Citizens and Resident Aliens 

Abroad

Selling Your Home

See chapter 12 for information about getting these publications.

Resident Aliens

Resident aliens may be able to exclude the following items 

from their gross income.

Foreign Earned Income and Housing 

Amount

If you are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months, you may qualify for the foreign earned income exclusion. The exclusion is $120,000 in 2023. In 

addition, you may be able to exclude or deduct certain foreign housing amounts. You may also qualify if you are a 

bona fide resident of a foreign country and you are a citizen or national of a country with which the United States 

has an income tax treaty. For more information, see Pub. 

54.

Foreign country. A foreign country is any territory under 

the sovereignty of a government other than that of the United States.

The term “foreign country” includes the country's territorial waters and airspace, but not international waters and 

the airspace above them. It also includes the seabed and 

subsoil of those submarine areas adjacent to the country's 

territorial waters over which it has exclusive rights under 

international law to explore and exploit the natural resources.

The term “foreign country” does not include U.S. territories. It does not include the Antarctic region.

Nonresident Aliens

Nonresident aliens can exclude the following items from 

their gross income.

Interest Income

Interest income that is not connected with a U.S. trade or 

business is excluded from income if it is from:

• Deposits (including certificates of deposit) with persons in the banking business;

• Deposits or withdrawable accounts with mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, and other savings 

 54 

 523

institutions chartered and supervised as savings and 

loan or similar associations under federal or state law 

(if the interest paid or credited can be deducted by the 

association); and

• Amounts held by an insurance company under an 

agreement to pay interest on them.

State and local government obligations. Interest on 

obligations of a state or political subdivision, the District of 

Columbia, or a U.S. territory is generally not included in income. However, interest on certain private activity bonds, 

arbitrage bonds, and certain bonds not in registered form 

is included in income.

Portfolio interest. Interest and OID that qualifies as portfolio interest is not subject to chapter 3 (of the Internal 

Revenue Code) withholding under sections 1441 through 

1443. However, such interest may be subject to withholding if it is a withholdable payment, and there is no exception to chapter 4 (of the Internal Revenue Code) withholding under sections 1471 through 1474. For more 

information, see the discussion of portfolio interest under 

Withholding on Specific Income in Pub. 515.

To qualify as portfolio interest, the interest must be paid 

on obligations issued after July 18, 1984, and otherwise 

subject to withholding. For obligations issued after March 

18, 2012, portfolio interest does not include interest paid 

on debt that is not in registered form. Before March 19, 

2012, portfolio interest included interest on certain registered and nonregistered (bearer) bonds if the obligations 

meet the requirements described below.

Obligations in registered form. Portfolio interest includes interest paid on an obligation that is in registered 

form, and for which you have received documentation that 

the beneficial owner of the obligation is not a U.S. person.

Generally, an obligation is in registered form if:

• The obligation is registered as to both principal and 

any stated interest with the issuer (or its agent) and 

any transfer of the obligation may be effected only by 

surrender of the old obligation and reissuance to the 

new holder;

• The right to principal and stated interest with respect 

to the obligation may be transferred only through a 

book entry system maintained by the issuer or its 

agent; or

• The obligation is registered as to both principal and 

stated interest with the issuer or its agent and can be 

transferred both by surrender and reissuance and 

through a book entry system.

An obligation that would otherwise be considered to be 

in registered form is not considered to be in registered 

form as of a particular time if it can be converted at any 

time in the future into an obligation that is not in registered 

form. For more information on whether obligations are 

considered to be in registered form, see the discussion of 

portfolio interest under Withholding on Specific Income in 

Pub. 515.

Obligations not in registered form. For obligations 

issued before March 19, 2012, interest on an obligation 

22 Chapter 3 Exclusions From Gross Income Publication 519 (2023)
that is not in registered form (bearer obligation) is portfolio 

interest if the obligation is foreign targeted. A bearer obligation is foreign targeted if:

• There are arrangements to ensure that the obligation 

will be sold, or resold in connection with the original issue, only to a person who is not a U.S. person;

• Interest on the obligation is payable only outside the 

United States and its territories; and

• The face of the obligation contains a statement that 

any U.S. person who holds the obligation will be subject to limits under the U.S. income tax laws.

Documentation is not required for interest on bearer obligations to qualify as portfolio interest. In some cases, 

however, you may need documentation for purposes of 

Form 1099 reporting and backup withholding.

Interest that does not qualify as portfolio interest. 

Payments to certain persons and payments of contingent 

interest do not qualify as portfolio interest. You must withhold at the statutory rate on such payments unless some 

other exception, such as a treaty provision, applies.

Contingent interest. Portfolio interest does not include contingent interest. Contingent interest is either of 

the following.

1. Interest that is determined by reference to:

• Any receipts, sales, or other cash flow of the 

debtor or related person;

• Income or profits of the debtor or related person;

• Any change in value of any property of the debtor 

or a related person; or

• Any dividend, partnership distributions, or similar 

payments made by the debtor or a related person.

For exceptions, see section 871(h)(4)(C).

2. Any other type of contingent interest that is identified 

by the Secretary of the Treasury in regulations.

Related persons. Related persons include the following.

• Members of a family, including only brothers, sisters, 

half brothers, half sisters, spouse, ancestors (parents, 

grandparents, etc.), and lineal descendants (children, 

grandchildren, etc.).

• Any person who is a party to any arrangement undertaken for the purpose of avoiding the contingent interest rules.

• Certain corporations, partnerships, and other entities. 

For details, see Nondeductible Loss in chapter 2 of 

Pub. 544.

Exception for existing debt. Contingent interest 

does not include interest paid or accrued on any debt with 

a fixed term that was issued:

• On or before April 7, 1993; or

• After April 7, 1993, pursuant to a written binding contract in effect on that date and at all times thereafter 

before that debt was issued.

Dividend Income

The following dividend income is exempt from the 30% 

tax.

Certain dividends paid by foreign corporations. 

There is no 30% tax on U.S. source dividends you receive 

from a foreign corporation. See Exception under Dividends in chapter 2 for how to figure the amount of U.S. 

source dividends. This exemption does not apply to dividend equivalent payments.

Certain interest-related dividends. There is no 30% 

tax on interest-related dividends from sources within the 

United States that you receive from a mutual fund or other 

regulated investment company (RIC). The mutual fund will 

designate in writing which dividends are interest-related 

dividends.

Certain short-term capital gain dividends. There may 

not be any 30% tax on certain short-term capital gain dividends from sources within the United States that you receive from a mutual fund or other RIC. The mutual fund 

will designate in writing which dividends are short-term 

capital gain dividends. This tax relief will not apply to you if 

you are present in the United States for 183 days or more 

during your tax year.

Services Performed for Foreign 

Employer

If you were paid by a foreign employer, your U.S. source 

income may be exempt from U.S. tax, but only if you meet 

one of the situations discussed next.

Employees of foreign persons, organizations, or offices. Income for personal services performed in the United States as a nonresident alien is not considered to be 

from U.S. sources and is tax exempt if you meet all three 

of the following conditions.

1. You perform personal services as an employee of or 

under a contract with a nonresident alien individual, 

foreign partnership, or foreign corporation not engaged in a trade or business in the United States; or 

you work for an office or place of business maintained 

in a foreign country or territory of the United States by 

a U.S. corporation, U.S. partnership, or U.S. citizen or 

resident.

2. You perform these services while you are a nonresident alien temporarily present in the United States for 

a period or periods of not more than a total of 90 days 

during the tax year.

3. Your pay for these services is not more than $3,000.

If you do not meet all three conditions, your income from 

personal services performed in the United States is U.S. 

source income and is taxed according to the rules in chapter 4.

If your pay for these services is more than $3,000, the 

entire amount is income from a trade or business within 

Publication 519 (2023) Chapter 3 Exclusions From Gross Income 23
the United States. To find if your pay is more than $3,000, 

do not include any amounts you get from your employer 

for advances or reimbursements of business travel expenses, if you were required to and did account to your employer for those expenses. If the advances or reimbursements are more than your expenses, include the excess in 

your pay for these services.

A “day” means a calendar day during any part of which 

you are physically present in the United States.

Example 1. During 2023, Henry Smythe, a nonresident alien from a nontreaty country, worked for an overseas office of a U.S. partnership. Henry, who uses the calendar year as Henry’s tax year, was temporarily present in 

the United States for 60 days during 2023 performing personal services for the overseas office of the partnership. 

That office paid Henry a total gross salary of $2,800 for 

those services. During 2023, Henry was not engaged in a 

trade or business in the United States. The salary is not 

considered U.S. source income and is exempt from U.S. 

tax.

Example 2. The facts are the same as in Example 1, 

except that Henry's total gross salary for the services performed in the United States during 2023 was $4,500. 

Henry received $2,875 in 2023, and $1,625 in 2024. During 2023, Henry was engaged in a trade or business in the 

United States because the compensation for Henry’s personal services in the United States was more than $3,000. 

Henry's salary is U.S. source income and is taxed under 

the rules in chapter 4.

Crew members. Compensation for services performed 

by a nonresident alien in connection with the individual's 

temporary presence in the United States as a regular crew 

member of a foreign vessel (for example, a boat or ship) 

engaged in transportation between the United States and 

a foreign country or U.S. territory is not U.S. source income and is exempt from U.S. tax. This exemption does 

not apply to compensation for services performed on foreign aircraft.

Students and exchange visitors. Nonresident alien students and exchange visitors present in the United States 

under “F,” “J,” “M,” or “Q” visas can exclude from gross income pay received from a foreign employer.

This group includes bona fide students, scholars, trainees, teachers, professors, research assistants, specialists, 

or leaders in a field of specialized knowledge or skill, or 

persons of similar description. It also includes the alien's 

spouse and minor children if they come with the alien or 

come later to join the alien.

A nonresident alien temporarily present in the United 

States under a “J” visa includes an alien individual entering the United States as an exchange visitor under the 

Mutual Educational and Cultural Exchange Act of 1961.

Foreign employer. A foreign employer is:

• A nonresident alien individual, foreign partnership, or 

foreign corporation; or

• An office or place of business maintained in a foreign 

country or in a U.S. territory by a U.S. corporation, a 

U.S. partnership, or an individual who is a U.S. citizen 

or resident.

The term “foreign employer” does not include a foreign 

government. Pay from a foreign government that is exempt 

from U.S. income tax is discussed in chapter 10.

Income from certain annuities. Do not include in income any annuity received under a qualified annuity plan 

or from a qualified trust exempt from U.S. income tax if you 

meet both of the following conditions.

1. You receive the annuity only because:

a. You performed personal services outside the United States while you were a nonresident alien; or

b. You performed personal services inside the United 

States while you were a nonresident alien and you 

met the three conditions, described earlier, under 

Employees of foreign persons, organizations, or 

offices.

2. At the time the first amount is paid as an annuity under the plan (or by the trust), 90% or more of the employees for whom contributions or benefits are provided under the annuity plan (or under the plan of which 

the trust is a part) are U.S. citizens or residents.

If the annuity qualifies under condition (1) but not condition (2) above, you do not have to include the amount in 

income if:

• You are a resident of a country that gives a substantially equal exclusion to U.S. citizens and residents, or

• You are a resident of a beneficiary developing country 

under Title V of the Trade Act of 1974.

If you are not sure whether the annuity is from a qualified annuity plan or qualified trust, ask the person who 

made the payment.

Income affected by treaties. Income of any kind that is 

exempt from U.S. tax under a treaty to which the United 

States is a party is excluded from your gross income. Income on which the tax is only limited by treaty, however, is 

included in gross income. See chapter 9.

Gambling Winnings From Dog or 

Horse Racing

You can exclude from your gross income winnings from legal wagers initiated outside the United States in a pari-mutuel pool with respect to a live horse or dog race in the 

United States.

Gain From the Sale of Your 

Main Home

If you sold your main home, you may be able to exclude 

up to $250,000 of the gain on the sale of your home. If you 

24 Chapter 3 Exclusions From Gross Income Publication 519 (2023)
are married and file a joint return, you may be able to exclude up to $500,000. For information on the requirements 

for this exclusion, see Pub. 523.

This exclusion does not apply if you are subject to 

the expatriation tax rules discussed in chapter 4.

Scholarships and Fellowship 

Grants

If you are a candidate for a degree, you may be able to exclude from your income part or all of the amounts you receive as a qualified scholarship. The rules discussed here 

apply to both resident and nonresident aliens.

If a nonresident alien receives a grant that is not 

from U.S. sources, it is not subject to U.S. tax. 

See Scholarships, Grants, Prizes, and Awards in 

chapter 2 to determine whether your grant is from U.S. 

sources.

A scholarship or fellowship is excludable from income 

only if:

1. You are a candidate for a degree at an eligible educational institution, and

2. You use the scholarship or fellowship to pay qualified 

education expenses.

Candidate for a degree. You are a candidate for a degree if you:

1. Attend a primary or secondary school or are pursuing 

a degree at a college or university; or

2. Attend an accredited educational institution that is authorized to provide:

a. A program that is acceptable for full credit toward 

a bachelor's or higher degree, or

b. A program of training to prepare students for gainful employment in a recognized occupation.

Eligible educational institution. An eligible educational institution is one that maintains a regular faculty and 

curriculum and normally has a regularly enrolled body of 

students in attendance at the place where it carries on its 

educational activities.

Qualified education expenses. These are expenses 

for:

• Tuition and fees required to enroll at or attend an eligible educational institution; and

• Course-related expenses, such as fees, books, supplies, and equipment that are required for the courses 

at the eligible educational institution. These items 

must be required of all students in your course of instruction.

However, in order for these to be qualified education expenses, the terms of the scholarship or fellowship cannot 

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require that it be used for other purposes, such as room 

and board, or specify that it cannot be used for tuition or 

course-related expenses.

Expenses that do not qualify. Qualified education 

expenses do not include the cost of:

• Room and board,

• Travel,

• Research,

• Clerical help, or

• Equipment and other expenses that are not required 

for enrollment in or attendance at an eligible educational institution.

This is true even if the fee must be paid to the institution as 

a condition of enrollment or attendance. Scholarship or 

fellowship amounts used to pay these costs are taxable.

Amounts used to pay expenses that do not qualify. A 

scholarship amount used to pay any expense that does 

not qualify is taxable, even if the expense is a fee that 

must be paid to the institution as a condition of enrollment 

or attendance.

Payment for services. You cannot exclude from income 

the portion of any scholarship, fellowship, or tuition reduction that represents payment for past, present, or future 

teaching, research, or other services. This is true even if 

all candidates for a degree are required to perform the 

services as a condition for receiving the degree.

Example. On January 7, Maria Gomez is notified of a 

scholarship of $2,500 for the spring semester. As a condition for receiving the scholarship, Maria must serve as a 

part-time teaching assistant. Of the $2,500 scholarship, 

$1,000 represents payment for Maria’s services. Assuming that Maria meets all other conditions, Maria can exclude no more than $1,500 from income as a qualified 

scholarship.

4.

How Income of Aliens Is 

Taxed

Introduction

Resident and nonresident aliens are taxed in different 

ways. Resident aliens are generally taxed in the same way 

as U.S. citizens. Nonresident aliens are taxed based on 

the source of their income and whether or not their income 

is effectively connected with a U.S. trade or business. The 

following discussions will help you determine if income 

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 25
you receive during the tax year is effectively connected 

with a U.S. trade or business and how it is taxed.

Topics

This chapter discusses:

• Income that is effectively connected with a U.S. trade 

or business,

• Income that is not effectively connected with a U.S. 

trade or business,

• Interrupted period of residence, and

• Expatriation tax.

Useful Items

You may want to see:

Publication

Sales and Other Dispositions of Assets

Guide to Original Issue (OID) Instruments

Form (and Instructions)

Alternative Minimum Tax—Individuals

cdu(o) Capital Gains and Losses

See chapter 12 for information about getting these publications and forms.

Resident Aliens

Resident aliens are generally taxed in the same way as 

U.S. citizens. This means that their worldwide income is 

subject to U.S. tax and must be reported on their U.S. tax 

return. Income of resident aliens is subject to the graduated tax rates that apply to U.S. citizens. Resident aliens 

use the Tax Table or Tax Computation Worksheets located 

in the Instructions for Form 1040, which apply to U.S. citizens.

Nonresident Aliens

A nonresident alien's income that is subject to U.S. income tax must be divided into two categories.

1. Income that is effectively connected with a trade or 

business in the United States, and

2. Income that is not effectively connected with a trade 

or business in the United States (discussed under 

The 30% Tax, later).

The difference between these two categories is that effectively connected income, after allowable deductions, is 

taxed at graduated rates. These are the same rates that 

apply to U.S. citizens and residents. Income that is not effectively connected is taxed at a flat 30% (or lower treaty) 

rate.

 544 

 1212 

 6251

 Schedule D (Form 1040)

If you were formerly a U.S. citizen or resident 

alien, these rules may not apply. See Expatriation 

Tax, later, in this chapter.

Trade or Business in the United 

States

Generally, you must be engaged in a trade or business 

during the tax year to be able to treat income received in 

that year as effectively connected with that trade or business. Whether you are engaged in a trade or business in 

the United States depends on the nature of your activities. 

The discussions that follow will help you determine 

whether you are engaged in a trade or business in the 

United States.

Personal Services

If you perform personal services in the United States at 

any time during the tax year, you are usually considered 

engaged in a trade or business in the United States.

Certain compensation paid to a nonresident alien 

by a foreign employer is not included in gross income. For more information, see Services Performed for Foreign Employer in chapter 3.

Other Trade or Business Activities

Other examples of being engaged in a trade or business 

in the United States follow.

Students and trainees. If you are temporarily present in 

the United States as a nonimmigrant under an “F,” “J,” “M,” 

or “Q” visa, and not otherwise engaged in a trade or business, you are considered to be engaged in a trade or business in the United States if you have taxable income from 

participation in a scholarship or fellowship described in 

section 1441(b). The taxable part of any scholarship or fellowship grant that is U.S. source income is treated as effectively connected with a trade or business in the United 

States.

Note. A nonresident alien temporarily present in the 

United States under a “J” visa includes a nonresident alien 

individual admitted to the United States as an exchange 

visitor under the Mutual Educational and Cultural Exchange Act of 1961.

Business operations. If you own and operate a business in the United States selling services, products, or 

merchandise, you are, with certain exceptions, engaged in 

a trade or business in the United States.

Partnerships. If you are a member of a partnership that 

at any time during the tax year is engaged in a trade or 

business in the United States, you are considered to be 

engaged in a trade or business in the United States.

Beneficiary of an estate or trust. If you are the beneficiary of an estate or trust that is engaged in a trade or 

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26 Chapter 4 How Income of Aliens Is Taxed Publication 519 (2023)
business in the United States, you are treated as being 

engaged in the same trade or business.

Trading in stocks, securities, and commodities. If 

your only U.S. business activity is trading in stocks, securities, or commodities (including hedging transactions) 

through a U.S. resident broker or other agent, you are not 

engaged in a trade or business in the United States.

For transactions in stocks or securities, this applies to 

any nonresident alien, including a dealer or broker in 

stocks and securities.

For transactions in commodities, this applies to commodities that are usually traded on an organized commodity exchange and to transactions that are usually carried 

out at such an exchange.

This discussion does not apply if you have a U.S. office 

or other fixed place of business at any time during the tax 

year through which, or by the direction of which, you carry 

out your transactions in stocks, securities, or commodities.

Trading for a nonresident alien's own account. 

You are not engaged in a trade or business in the United 

States if trading for your own account in stocks, securities, 

or commodities is your only U.S. business activity. This 

applies even if the trading takes place while you are 

present in the United States or is done by your employee 

or your broker or other agent.

This does not apply to trading for your own account if 

you are a dealer in stocks, securities, or commodities. 

This does not necessarily mean, however, that as a dealer 

you are considered to be engaged in a trade or business 

in the United States. Determine that based on the facts 

and circumstances in each case or under the rules given 

above in Trading in stocks, securities, and commodities.

Effectively Connected Income

If you are engaged in a U.S. trade or business, all income, 

gain, or loss for the tax year that you get from sources 

within the United States (other than certain investment income) is treated as effectively connected income. This applies whether or not there is any connection between the 

income and the trade or business being carried on in the 

United States during the tax year.

Two tests, described under Investment Income, later, 

determine whether certain items of investment income 

(such as interest, dividends, and royalties) are treated as 

effectively connected with that business.

In limited circumstances, some kinds of foreign source 

income may be treated as effectively connected with a 

trade or business in the United States. For a discussion of 

these rules, see Foreign Income, later.

Investment Income

Investment income from U.S. sources that may or may not 

be treated as effectively connected with a U.S. trade or 

business generally falls into the following three categories.

1. Fixed or determinable income (interest, dividends, 

rents, royalties, premiums, annuities, etc.).

2. Gains (some of which are considered capital gains) 

from the sale or exchange of the following types of 

property.

• Timber, coal, or domestic iron ore with a retained 

economic interest.

• Patents, copyrights, and similar property on which 

you receive contingent payments after October 4, 

1966.

• Patents transferred before October 5, 1966.

• OID obligations.

3. Capital gains (and losses).

Use the two tests described next to determine whether 

an item of U.S. source income falling in one of the three 

categories above and received during the tax year is effectively connected with your U.S. trade or business. If the 

tests indicate that the item of income is effectively connected, you must include it with your other effectively connected income. If the item of income is not effectively connected, include it with all other income discussed under The 

30% Tax, later, in this chapter.

Asset-use test. This test usually applies to income that 

is not directly produced by trade or business activities. Under this test, if an item of income is from assets (property) 

used in, or held for use in, the trade or business in the United States, it is considered effectively connected.

An asset is used in, or held for use in, the trade or business in the United States if the asset is:

• Held for the principal purpose of promoting the conduct of a trade or business in the United States;

• Acquired and held in the ordinary course of the trade 

or business conducted in the United States (for example, an account receivable or note receivable arising 

from that trade or business); or

• Otherwise held to meet the present needs of the trade 

or business in the United States and not its anticipated 

future needs.

Generally, stock of a corporation is not treated as an asset 

used in, or held for use in, a trade or business in the United States.

Business-activities test. This test usually applies when 

income, gain, or loss comes directly from the active conduct of the trade or business. The business-activities test 

is most important when:

• Dividends or interest are received by a dealer in 

stocks or securities,

• Royalties are received in the trade or business of licensing patents or similar property, or

• Service fees are earned by a servicing business.

Under this test, if the conduct of the U.S. trade or business 

was a material factor in producing the income, the income 

is considered effectively connected.

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 27
Personal Service Income

You are usually engaged in a U.S. trade or business when 

you perform personal services in the United States. Personal service income you receive in a tax year in which 

you are engaged in a U.S. trade or business is effectively 

connected with a U.S. trade or business. Income received 

in a year other than the year you performed the services is 

also effectively connected if it would have been effectively 

connected if received in the year you performed the services. Personal service income includes wages, salaries, 

commissions, fees, per diem allowances, and employee 

allowances and bonuses. The income may be paid to you 

in the form of cash, services, or property.

If you are engaged in a U.S. trade or business only because you perform personal services in the United States 

during the tax year, income and gains from assets, and 

gains and losses from the sale or exchange of capital assets, are generally not effectively connected with your 

trade or business. However, if there is a direct economic 

relationship between your holding of the asset and your 

trade or business of performing personal services, the income, gain, or loss is effectively connected. 

Pensions. If you performed personal services in the United States after 1986, and in a later tax year, you receive 

pension or retirement distributions attributable to these 

services when you are a nonresident alien, such distributions are effectively connected income to the extent attributable to contributions. This is true whether or not you are 

engaged in a U.S. trade or business in the year you receive the pension or retirement distributions.

Transportation Income

Transportation income (defined in chapter 2) is effectively 

connected if you meet both of the following conditions.

1. You had a fixed place of business in the United States 

involved in earning the income.

2. At least 90% of your U.S. source transportation income is attributable to regularly scheduled transportation.

“Fixed place of business” generally means a place, site, 

structure, or other similar facility through which you engage in a trade or business. “Regularly scheduled transportation” means that a ship or aircraft follows a published 

schedule with repeated sailings or flights at regular intervals between the same points for voyages or flights that 

begin or end in the United States. This definition applies to 

both scheduled and chartered air transportation.

If you do not meet the two conditions above, the income 

is not effectively connected and is taxed at a 4% rate. See 

Transportation Tax, later in this chapter.

Business Profits and Losses and Sales 

Transactions

All profits or losses from U.S. sources that are from the operation of a business in the United States are effectively 

connected with a trade or business in the United States. 

For example, profit from the sale in the United States of inventory property purchased either in this country or in a 

foreign country is effectively connected trade or business 

income. A share of U.S. source profits or losses of a partnership that is engaged in a trade or business in the United States is also effectively connected with a trade or 

business in the United States.

Real Property Gain or Loss

Gains and losses from the sale or exchange of U.S. real 

property interests (whether or not they are capital assets) 

are taxed as if you are engaged in a trade or business in 

the United States. You must treat the gain or loss as effectively connected with that trade or business.

U.S. real property interest. This is any interest in real 

property located in the United States or the U.S. Virgin Islands or any interest (other than as a creditor) in a domestic corporation that is a U.S. real property holding corporation. Real property includes the following.

1. Land and unsevered natural products of the land, 

such as growing crops and timber, and mines, wells, 

and other natural deposits.

2. Improvements on land, including buildings, other permanent structures, and their structural components.

3. Personal property associated with the use of real 

property, such as equipment used in farming, mining, 

forestry, or construction or property used in lodging facilities or rented office space, unless the personal 

property is:

a. Disposed of more than 1 year before or after the 

disposition of the real property, or

b. Separately sold to persons unrelated either to the 

seller or to the buyer of the real property.

U.S. real property holding corporation. A corporation is a U.S. real property holding corporation if the fair 

market value of the corporation's U.S. real property interests are at least 50% of the total fair market value of:

• The corporation's U.S. real property interests; plus

• The corporation's interests in real property located 

outside the United States; plus

• The corporation's other assets that are used in, or 

held for use in, a trade or business.

Stock in any domestic corporation is treated as stock in 

a U.S. real property holding corporation unless you establish that the corporation is not a U.S. real property holding 

corporation.

Publicly traded exception. A U.S. real property interest does not include a class of stock of a corporation that 

28 Chapter 4 How Income of Aliens Is Taxed Publication 519 (2023)
is regularly traded on an established securities market, 

unless you hold more than 5% of the fair market value of 

that class of stock (or more than 10% of that stock in the 

case of real estate investment trusts (REITs). An interest in 

a foreign corporation owning U.S. real property is generally not a U.S. real property interest unless the corporation 

chooses to be treated as a domestic corporation.

Qualified investment entities (QIEs). Special rules apply to QIEs. A QIE is any REIT or any RIC that is treated 

as a U.S. real property holding corporation (after applying 

certain rules in section 897(h)(4)(A)(ii)). See U.S. Real 

Property Interest in Pub. 515 for more information.

Look-through rule for QIEs. In most cases, any distribution from a QIE to a nonresident alien, foreign corporation, or other QIE that is attributable to the QIE’s gain 

from the sale or exchange of a U.S. real property interest 

is treated as gain recognized by the nonresident alien, foreign corporation, or other QIE from the sale or exchange 

of a U.S. real property interest.

Certain exceptions apply to the look-through rule for 

distributions by QIEs. A distribution by a QIE with respect 

to stock regularly traded on an established securities market in the United States is not treated as gain from the sale 

or exchange of a U.S. real property interest if the shareholder owns 5% or less of that stock (or 10% or less of 

that stock in the case of a REIT) at any time during the 

1-year period ending on the date of the distribution.

A distribution made by a REIT is generally not treated 

as gain from the sale or exchange of a U.S. real property 

interest if the shareholder is a qualified shareholder (as 

described in section 897(k)(3)).

A distribution that you do not treat as gain from the sale 

or exchange of a U.S. real property interest may be included in your gross income as a regular dividend.

Disposition of REIT stock. Dispositions of stock in a 

REIT that is held directly (or indirectly through one or more 

partnerships) by a qualified shareholder will not be treated 

as a U.S. real property interest. See sections 897(k)(2) 

through (4) for more information.

Domestically controlled QIE. The sale of an interest 

in a domestically controlled QIE is not the sale of a U.S. 

real property interest. The entity is domestically controlled 

if at all times during the testing period less than 50% in 

value of its stock was held, directly or indirectly, by foreign 

persons. The testing period is the shorter of the:

• 5-year period ending on the date of disposition, or

• Period during which the entity was in existence.

For the purpose of determining whether a QIE is domestically controlled, the following rules apply.

1. A person holding less than 5% of any class of stock of 

the QIE, which is regularly traded on an established 

securities market in the United States at all times during the testing period, would be treated as a U.S. person unless the QIE has actual knowledge that such 

person is not a U.S. person.

2. Any stock in a QIE that is held by another QIE will be 

treated as held by a foreign person if:

a. Any class of stock of such other QIE is regularly 

traded on an established securities market, or

b. Such other QIE is a RIC that issues certain redeemable securities.

Notwithstanding the above, the stock of the QIE will 

be treated as held by a U.S. person if such other QIE 

is domestically controlled.

3. Stock in a QIE held by any other QIE not described 

above will be treated as held by a U.S. person in proportion to the stock of such other QIE that is (or is 

treated as) held by a U.S. person.

Wash sale. If you dispose of an interest in a domestically controlled QIE in an applicable wash sale transaction, special rules apply. An applicable wash sale transaction is one in which you:

1. Dispose of an interest in the domestically controlled 

QIE during the 30-day period before the ex-dividend 

date of a distribution that you would (but for the disposition) have treated as gain from the sale or exchange 

of a U.S. real property interest; and

2. Acquire, or enter into a contract or option to acquire, a 

substantially identical interest in that entity during the 

61-day period that began on the first day of the 30-day 

period.

If this occurs, you are treated as having a gain from the 

sale or exchange of a U.S. real property interest in an 

amount equal to the distribution that would have been 

treated as such gain. This also applies to any substitute 

dividend payment.

A transaction is not treated as an applicable wash sale 

transaction if:

• You actually receive the distribution from the domestically controlled QIE related to the interest disposed of, 

or acquired, in the transaction; or

• You dispose of any class of stock in a QIE that is regularly traded on an established securities market in the 

United States but only if you did not own more than 

5% of that class of stock at any time during the 1-year 

period ending on the date of the distribution.

Alternative minimum tax. There may be a minimum tax 

on your net gain from the disposition of U.S. real property 

interests. Figure the amount of this tax, if any, on Form 

6251.

Withholding of tax. If you dispose of a U.S. real property 

interest, the buyer may have to withhold tax. See the discussion of Tax withheld on real property sales in chapter 8.

Gain or Loss of Foreign Persons From the 

Sale or Exchange of Certain Partnership 

Interests

If you are a direct or indirect foreign partner in a U.S. or 

foreign partnership that is engaged (or is treated as engaged) in a trade or business within the United States and 

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 29
you directly or indirectly dispose of that interest, then the 

gain or loss from the disposition of that partnership interest may affect your federal tax liability. Under section 

864(c)(8), your gain or loss from the sale, exchange, or 

other disposition of that partnership interest is treated as 

effectively connected with the conduct of a trade or business within the United States (“effectively connected gain” 

or “effectively connected loss”). However, the amount of 

effectively connected gain or effectively connected loss is 

limited to the portion of what your distributive share of effectively connected gain or loss would have been had the 

partnership sold all of its assets at fair market value as of 

the date of the disposition.

Section 864(c)(8) applies to sales, exchanges, or other 

dispositions occurring on or after November 27, 2017. On 

November 6, 2020, final regulations under section 864(c)

(8) were issued applicable to transfers occurring on or after December 26, 2018. See Regulations section 1.864(c)

(8)-1(j).

Foreign Income

You must treat three kinds of foreign source income as effectively connected with a trade or business in the United 

States if:

• You have an office or other fixed place of business in 

the United States to which the income can be attributed,

• That office or place of business is a material factor in 

producing the income, and

• The income is produced in the ordinary course of the 

trade or business carried on through that office or 

other fixed place of business.

An office or other fixed place of business is a material 

factor if it significantly contributes to, and is an essential 

economic element in, the earning of the income.

The three kinds of foreign source income are listed below.

1. Rents and royalties for the use of, or for the privilege 

of using, intangible personal property located outside 

the United States or from any interest in such property. Included are rents or royalties for the use, or for 

the privilege of using, outside the United States, patents, copyrights, secret processes and formulas, 

goodwill, trademarks, trade brands, franchises, and 

similar properties if the rents or royalties are from the 

active conduct of a trade or business in the United 

States.

2. Dividends, interest, or amounts received for the provision of a guarantee of indebtedness issued after September 27, 2010, from the active conduct of a banking, financing, or similar business in the United States. 

A substitute dividend or interest payment received under a securities lending transaction or a sale-repurchase transaction is treated the same as the amounts 

received on the transferred security.

3. Income, gain, or loss from the sale outside the United 

States, through the U.S. office or other fixed place of 

business, of:

a. Stock in trade,

b. Property that would be included in inventory if on 

hand at the end of the tax year, or

c. Property held primarily for sale to customers in the 

ordinary course of business.

Item (3) will not apply if you sold the property for 

use, consumption, or disposition outside the United 

States and an office or other fixed place of business in 

a foreign country was a material factor in the sale.

Any foreign source income that is equivalent to any 

item of income described above is treated as effectively 

connected with a U.S. trade or business. For example, foreign source interest and dividend equivalents are treated 

as U.S. effectively connected income if the income is derived by a foreign person in the active conduct of a banking, financing, or similar business within the United States.

Tax on Effectively Connected Income

Income you receive during the tax year that is effectively 

connected with your trade or business in the United States 

is, after allowable deductions, taxed at the rates that apply 

to U.S. citizens and residents.

Generally, you can receive effectively connected income only if you are a nonresident alien engaged in a 

trade or business in the United States during the tax year. 

However, if you receive payments from the sale or exchange of property, the performance of services, or any 

other transaction during a tax year in which you are not 

engaged in a U.S. trade or business, but such payments 

would have been treated as effectively connected income 

in the year the transaction took place or you performed the 

services, then they are treated as effectively connected income in the tax year you received them.

Example. Ted Richards entered the United States in 

August 2022 to perform personal services in the U.S. office of an overseas employer. Ted worked in the U.S. office 

until December 25, 2022, but did not leave this country 

until January 11, 2023. On January 8, 2023, Ted received 

the final paycheck for services performed in the United 

States during 2022. All of Ted's income during Ted’s stay 

here is U.S. source income.

During 2022, Ted was engaged in the trade or business 

of performing personal services in the United States. 

Therefore, all amounts paid to him in 2022 for services 

performed in the United States during 2022 are effectively 

connected with that trade or business during 2022.

The salary payment Ted received in January 2023 is 

U.S. source income to Ted in 2023. It is effectively connected income because Ted performed the services that 

earned the income in the United States in 2022 and, 

therefore, Ted would have been treated as engaged in a 

trade or business in the United States during 2022.

30 Chapter 4 How Income of Aliens Is Taxed Publication 519 (2023)
Real property income. You may be able to choose to 

treat all income from real property as effectively connected. See Income From Real Property, later, in this chapter.

The 30% Tax

Tax at a 30% (or lower treaty) rate applies to certain items 

of income or gains from U.S. sources but only if the items 

are not effectively connected with your U.S. trade or business.

Fixed or Determinable Income

The 30% (or lower treaty) rate applies to the gross amount 

of U.S. source fixed, determinable, annual, or periodical 

(FDAP) gains, profits, or income.

Income is fixed when it is paid in amounts known ahead 

of time. Income is determinable whenever there is a basis 

for figuring the amount to be paid. Income can be periodic 

if it is paid from time to time. It does not have to be paid 

annually or at regular intervals. Income can be determinable or periodic even if the length of time during which the 

payments are made is increased or decreased.

Items specifically included as fixed or determinable income are interest (other than OID), dividends, dividend 

equivalent payments (defined in chapter 2), rents, premiums, annuities, salaries, wages, and other compensation. 

A substitute dividend or interest payment received under a 

securities lending transaction or a sale-repurchase transaction is treated the same as the amounts received on the 

transferred security. Other items of income, such as royalties, may also be subject to the 30% tax.

Some fixed or determinable income may be exempt from U.S. tax. See chapter 3 if you are not 

sure whether the income is taxable.

Original issue discount (OID). If you sold, exchanged, 

or received a payment on a bond or other debt instrument 

that was issued at a discount, all or part of the OID (other 

than portfolio interest) may be subject to the 30% tax. The 

amount of OID is the difference between the stated redemption price at maturity and the issue price of the debt 

instrument. The 30% tax applies in the following circumstances.

1. You received a payment on a debt instrument. In this 

case, the amount of OID subject to tax is the OID that 

accrued while you held the debt instrument minus the 

OID previously taken into account. But the tax on the 

OID cannot be more than the payment minus the tax 

on the interest payment on the debt instrument.

2. You sold or exchanged the debt instrument. The 

amount of OID subject to tax is the OID that accrued 

while you held the debt instrument minus the amount 

already taxed in (1) above.

Report on your return the amount of OID shown on 

Form 1042-S if you bought the debt instrument at original 

TIP

issue. However, you must recompute your proper share of 

OID shown on Form 1042-S if any of the following apply.

• You bought the debt instrument at a premium or paid 

an acquisition premium.

• The debt instrument is a stripped bond or a stripped 

coupon (including zero coupon instruments backed by 

U.S. Treasury securities).

• The debt instrument is a contingent payment or inflation-indexed debt instrument.

For the definition of premium and acquisition premium and 

instructions on how to recompute OID, see Pub. 1212.

Gambling Winnings

In general, nonresident aliens are subject to the 30% tax 

on the gross proceeds from gambling won in the United 

States if that income is not effectively connected with a 

U.S. trade or business and is not exempted by treaty. 

However, no tax is imposed on nonbusiness gambling income a nonresident alien wins playing blackjack, baccarat, craps, roulette, or big-6 wheel in the United States.

Nonresident aliens are taxed at graduated rates on net 

gambling income won in the United States that is effectively connected with a U.S. trade or business.

Social Security Benefits

A nonresident alien must include 85% of any U.S. social 

security benefit (and the social security equivalent part of 

a tier 1 railroad retirement benefit) in U.S. source FDAP income. Social security benefits include monthly retirement, 

survivor, and disability benefits. This income is exempt under some tax treaties. See Table 1 in the Tax Treaty Tables, available at IRS.gov/TreatyTables for a list of tax treaties that exempt U.S. social security benefits from U.S. tax. 

For more information, see Pub. 915.

Sales or Exchanges of Capital Assets

These rules apply only to those capital gains and losses 

from sources in the United States that are not effectively 

connected with a trade or business in the United States. 

They apply even if you are engaged in a trade or business 

in the United States. These rules do not apply to the sale 

or exchange of a U.S. real property interest or to the sale 

of any property that is effectively connected with a trade or 

business in the United States. See Real Property Gain or 

Loss, earlier, under Effectively Connected Income.

A capital asset is everything you own except:

• Inventory;

• Business accounts or notes receivable;

• Depreciable property used in a trade or business;

• Real property used in a trade or business;

• Supplies regularly used in a trade or business;

• Certain copyrights, literary or musical or artistic compositions, letters or memoranda, or similar property;

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 31
• Certain U.S. Government publications;

• Certain commodities derivative financial instruments 

held by a commodities derivatives dealer; or

• Hedging transactions.

A capital gain is a gain on the sale or exchange of a 

capital asset. A capital loss is a loss on the sale or exchange of a capital asset.

If the sale is in foreign currency, for the purpose of determining gain, the cost and selling price of the property 

should be expressed in U.S. currency at the rate of exchange prevailing as of the date of the purchase and date 

of the sale, respectively.

You can use Pub. 544 to determine what is a sale or exchange of a capital asset, or what is treated as such. Specific tax treatment that applies to U.S. citizens or residents 

generally does not apply to you.

The following gains are subject to the 30% (or lower 

treaty) rate without regard to the 183-day rule, discussed 

later.

1. Gains on the disposal of timber, coal, or domestic iron 

ore with a retained economic interest.

2. Gains on contingent payments received from the sale 

or exchange of patents, copyrights, and similar property after October 4, 1966.

3. Gains on certain transfers of all substantial rights to, 

or an undivided interest in, patents if the transfers 

were made before October 5, 1966.

4. Gains on the sale or exchange of OID obligations.

Gains in (1) are not subject to the 30% (or lower treaty) 

rate if you choose to treat the gains as effectively connected with a U.S. trade or business. See Income From Real 

Property, later.

183-day rule. If you were in the United States for 183 

days or more during the tax year, your net gain from sales 

or exchanges of capital assets is taxed at a 30% (or lower 

treaty) rate. For purposes of the 30% (or lower treaty) rate, 

net gain is the excess of your capital gains from U.S. sources over your capital losses from U.S. sources. This rule 

applies even if any of the transactions occurred while you 

were not in the United States.

To determine your net gain, consider the amount of 

your gains and losses that would be recognized and taken 

into account only if, and to the extent that, they would be 

recognized and taken into account if you were in a U.S. 

trade or business during the year and the gains and losses were effectively connected with that trade or business 

during the tax year.

In arriving at your net gain, do not take the following into 

consideration.

• The four types of gains listed earlier.

• The deduction for a capital loss carryover.

• Capital losses in excess of capital gains.

• Exclusion for gain from the sale or exchange of qualified small business stock (section 1202 exclusion).

• Losses from the sale or exchange of property held for 

personal use. However, losses resulting from casualties or thefts attributable to a federally declared disaster may be deductible on Schedule A (Form 

1040-NR). See Itemized Deductions in chapter 5.

If you are not engaged in a trade or business in the United States and have not established a tax year for a prior 

period, your tax year will be the calendar year for purposes of the 183-day rule. Also, you must file your tax return 

on a calendar year basis.

If you were in the United States for less than 183 days 

during the tax year, capital gains (other than gains listed 

earlier) are tax exempt unless they are effectively connected with a trade or business in the United States during 

your tax year.

Reporting. Report your gains and losses from the sales 

or exchanges of capital assets that are not effectively connected with a trade or business in the United States on 

Schedule NEC (Form 1040-NR). Report gains and losses 

from sales or exchanges of capital assets (including real 

property) that are effectively connected with a trade or 

business in the United States on a separate Schedule D 

(Form 1040) or Form 4797, or both. Attach them to Form 

1040-NR.

Income From Real Property

If you have income from real property located in the United 

States that you own or have an interest in and hold for the 

production of income, you can choose to treat all income 

from that property as income effectively connected with a 

trade or business in the United States. The choice applies 

to all income from real property located in the United 

States and held for the production of income and to all income from any interest in such property. This includes income from rents, royalties from mines, oil or gas wells, or 

other natural resources. It also includes gains from the 

sale or exchange of timber, coal, or domestic iron ore with 

a retained economic interest.

You can make this choice only for real property income 

that is not otherwise effectively connected with your U.S. 

trade or business.

If you make the choice, you can claim deductions attributable to the real property income and only your net income from real property is taxed.

This choice does not treat a nonresident alien, who is 

not otherwise engaged in a U.S. trade or business, as being engaged in a trade or business in the United States 

during the year.

Example. You are a nonresident alien and are not engaged in a U.S. trade or business. You own a single-family 

house in the United States that you rent out. Your rental income for the year is $10,000. This is your only U.S. source 

income. As discussed earlier under The 30% Tax, the 

rental income is subject to a tax at a 30% (or lower treaty) 

32 Chapter 4 How Income of Aliens Is Taxed Publication 519 (2023)
rate. You received a Form 1042-S showing that your tenants properly withheld this tax from the rental income. You 

do not have to file a U.S. tax return (Form 1040-NR) because your U.S. tax liability is satisfied by the withholding 

of tax.

If you make the choice discussed earlier, you can offset 

the $10,000 income by certain rental expenses. (See Pub. 

527.) Any resulting net income is taxed at graduated rates.

If you make this choice, report the rental income and 

expenses on Schedule E (Form 1040). Enter the net rental 

income or loss from Schedule E (Form 1040) on Schedule 

1 (Form 1040), Part I, line 5. Attach Schedule 1 (Form 

1040) and Schedule E (Form 1040) to Form 1040-NR. For 

the first year you make the choice, also attach the statement, discussed next.

Making the choice. Make the initial choice by attaching 

a statement to your return, or amended return, for the year 

of the choice. Include the following in your statement.

• That you are making the choice.

• Whether the choice is under section 871(d) (explained 

earlier) or a tax treaty.

• A complete list of all your real property, or any interest 

in real property, located in the United States. Give the 

legal identification of U.S. timber, coal, or iron ore in 

which you have an interest.

• The extent of your ownership in the property.

• The location of the property.

• A description of any major improvements to the property.

• The dates you owned the property.

• Your income from the property.

• Details of any previous choices and revocations of the 

real property income choice.

This choice stays in effect for all later tax years unless 

you revoke it.

Revoking the choice. You can revoke the choice without IRS approval by filing Form 1040-X for the year you 

made the choice and for later tax years. You must file 

Form 1040-X within 3 years from the date your return was 

filed or 2 years from the time the tax was paid, whichever 

is later. If this time period has expired for the year of 

choice, you cannot revoke the choice for that year. However, you may revoke the choice for later tax years only if 

you have IRS approval. For information on how to get IRS 

approval, see Regulations section 1.871-10(d)(2).

Note. You can file your Form 1040-X electronically beginning with the 2019 tax year. For more information, see 

IR-2020-107.

Transportation Tax

A 4% tax rate applies to transportation income that is not 

effectively connected because it does not meet the two 

conditions listed earlier under Transportation Income. If 

you receive transportation income subject to the 4% tax, 

you should figure the tax and show it on line 23c of Form 

1040-NR. Attach a statement to your return that includes 

the following information (if applicable).

• Your name, TIN, and tax year.

• A description of the types of services performed 

(whether on or off board).

• Names of vessels or registration numbers of aircraft 

on which you performed the services.

• Amount of U.S. source transportation income derived 

from each type of service for each vessel or aircraft for 

the calendar year.

• Total amount of U.S. source transportation income derived from all types of services for the calendar year.

This 4% tax applies to your U.S. source gross transportation income. This only includes transportation income 

that is treated as derived from sources in the United 

States if the transportation begins or ends in the United 

States. For transportation income from personal services, 

the transportation must be between the United States and 

a U.S. territory. For personal services of a nonresident 

alien, this only applies to income derived from, or in connection with, an aircraft.

Interrupted Period of 

Residence

You are subject to tax under a special rule if you interrupt 

your period of U.S. residence with a period of nonresidence. The special rule applies if you meet all of the following conditions.

1. You were a U.S. resident for a period that includes at 

least 3 consecutive calendar years.

2. You were a U.S. resident for at least 183 days in each 

of those years.

3. You ceased to be treated as a U.S. resident.

4. You then again became a U.S. resident before the end 

of the third calendar year after the end of the period 

described in (1) above.

Under this special rule, you are subject to tax on your 

U.S. source gross income and gains on a net basis at the 

graduated rates applicable to individuals (with allowable 

deductions) for the period you were a nonresident alien, 

unless you would be subject to a higher tax under section 

871 (rules that normally apply to taxation of a nonresident 

alien’s income, discussed earlier) after taking into account 

any applicable treaty benefit. For information on how to 

figure the special tax, see Expatriation Tax, later.

Example. John Willow, a citizen of New Zealand, entered the United States on April 1, 2018, as a lawful permanent resident. On August 1, 2020, John ceased to be a 

lawful permanent resident and returned to New Zealand. 

During John’s period of residence, John was present in 

the United States for at least 183 days in each of 3 

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 33
consecutive years (2018, 2019, and 2020). John returned 

to the United States on October 5, 2023, as a lawful permanent resident. John became a resident before the close 

of the third calendar year (2023) beginning after the end of 

John’s first period of residence (August 1, 2020). Therefore, John is subject to tax under the special rule for the 

period of nonresidence (August 2, 2020, through October 

4, 2023) if it is more than the tax that would normally apply 

to John as a nonresident alien.

Reporting requirements. If you are subject to this tax 

for any year in the period you were a nonresident alien, 

you must file Form 1040-NR for that year. The return is 

due by the due date (including extensions) for filing your 

U.S. income tax return for the year that you again become 

a U.S. resident. If you already filed returns for that period, 

you must file amended returns. You must attach a statement to your return that identifies the source of all of your 

U.S. and foreign gross income and the items of income 

subject to this special rule.

Expatriation Tax

The expatriation tax provisions apply to U.S. citizens who 

have renounced their citizenship and LTRs who have 

ended their residency. The following section describes the 

expatriation rules under section 877A, which applies to individuals who expatriated on or after June 17, 2008. See 

Expatriation After June 16, 2008, later. If you expatriated 

before June 17, 2008, refer to Expatriation After June 3, 

2004, and Before June 17, 2008 in chapter 4 of the 2018 

Pub. 519, and the 2018 Instructions for Form 8854.

If you renounced your citizenship or terminated 

your long-term residency after June 3, 2004, and 

before June 17, 2008, you will still be considered 

a U.S. citizen or a U.S. resident for tax purposes until you 

notify the Department of State or Department of Homeland Security (as applicable) of your expatriation and file 

Form 8854 with the IRS.

Long-term resident (LTR) defined. You are an LTR if 

you were a lawful permanent resident of the United States 

in at least 8 of the last 15 tax years ending with the year 

your residency ends. In determining if you meet the 8-year 

requirement, do not count any year that you are treated as 

a resident of a foreign country under a tax treaty and do 

not waive treaty benefits.

Expatriation After June 16, 2008

Expatriation date. Your expatriation date is the date you 

relinquish U.S. citizenship (in the case of a former citizen) 

or terminate your long-term residency (in the case of a former U.S. resident).

Former U.S. citizen. You are considered to have relinquished your U.S. citizenship on the earliest of the following dates.

CAUTION

!

1. The date you renounced U.S. citizenship before a diplomatic or consular officer of the United States (provided that the voluntary renouncement was later confirmed by the issuance of a certificate of loss of 

nationality).

2. The date you furnished to the State Department a 

signed statement of voluntary relinquishment of U.S. 

nationality confirming the performance of an expatriating act (provided that the voluntary relinquishment 

was later confirmed by the issuance of a certificate of 

loss of nationality).

3. The date the State Department issued a certificate of 

loss of nationality.

4. The date that a U.S. court canceled your certificate of 

naturalization.

Former LTR. You are considered to have terminated 

your long-term residency on the earliest of the following 

dates.

1. The date you voluntarily relinquished your lawful permanent resident status by filing Department of Homeland Security Form I-407 with a U.S. consular or immigration officer.

2. The date you became subject to a final administrative 

order that you abandoned your lawful permanent resident status (or, if such order has been appealed, the 

date of a final judicial order issued in connection with 

such administrative order).

3. The date you became subject to a final administrative 

order for your removal from the United States under 

the Immigration and Nationality Act.

4. If you were a dual resident of the United States and a 

country with which the United States has an income 

tax treaty, the date you began to be treated as a resident of that country under the provisions of the treaty 

and notified the IRS of that treatment on Forms 8833 

and 8854. See Effect of Tax Treaties in chapter 1 for 

more information about dual residents.

Covered expatriate. If you expatriated after June 16, 

2008, you are treated as a covered expatriate, and the expatriation rules under section 877A apply to you if you 

meet any of the following conditions.

1. Your average annual net income tax for the 5 years 

ending before the date of expatriation or termination 

of residency is more than the following.

a. $139,000 if you expatriated or terminated residency in 2008.

b. $145,000 if you expatriated or terminated residency in 2009 or 2010.

c. $147,000 if you expatriated or terminated residency in 2011.

d. $151,000 if you expatriated or terminated residency in 2012.

e. $155,000 if you expatriated or terminated residency in 2013.

34 Chapter 4 How Income of Aliens Is Taxed Publication 519 (2023)
f. $157,000 if you expatriated or terminated residency in 2014.

g. $160,000 if you expatriated or terminated residency in 2015.

h. $161,000 if you expatriated or terminated residency in 2016.

i. $162,000 if you expatriated or terminated residency in 2017.

j. $165,000 if you expatriated or terminated residency in 2018.

k. $168,000 if you expatriated or terminated residency in 2019.

l. $171,000 if you expatriated or terminated residency in .

m. $172,000 if you expatriated or terminated residency in 2021.

n. $178,000 if you expatriated or terminated residency in 2022.

o. $190,000 if you expatriated or terminated residency in 2023.

2. Your net worth is $2 million or more on the date of 

your expatriation or termination of residency.

3. You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 

years preceding the date of your expatriation or termination of residency.

Relief procedures for certain former citizens. If you 

were a U.S. citizen who expatriated after March 18, 2010, 

you may be eligible for certain relief procedures that provide an alternative means for satisfying the tax compliance certification process. For more information, see Relief Procedures for Certain Former Citizens, available at 

IRS.gov/Individuals/International-Taxpayers/ReliefProcedures-for-Certain-Former-Citizens.

Exception for dual-citizens and certain minors. Certain dual-citizens and certain minors (defined next) are not 

subject to the expatriation tax even if they meet (1) or (2) 

above. However, they must still provide the certification required in (3) above.

Certain dual-citizens. You may qualify for the exception described above if both of the following apply.

• You became at birth a U.S. citizen and a citizen of another country and, as of the expatriation date, you 

continue to be a citizen of, and are taxed as a resident 

of, that other country.

• You have been a resident of the United States for not 

more than 10 years during the 15-year tax period ending with the tax year during which the expatriation occurs. For the purpose of determining U.S. residency, 

use the substantial presence test described in chapter 1.

Certain minors. You may qualify for the exception described earlier if you meet both of the following requirements.

• You expatriated before you were age 181/2.

• You have been a resident of the United States for not 

more than 10 tax years before the expatriation occurs. 

For the purpose of determining U.S. residency, use the 

substantial presence test described in chapter 1.

How To Figure the Expatriation Tax if You 

Are a Covered Expatriate

In the year you expatriate, you are subject to income tax 

on the net unrealized gain (or loss) in your property as if 

the property had been sold for its fair market value on the 

day before your expatriation date (“mark-to-market tax”). 

This applies to most types of property interests you held 

on the date of relinquishment of citizenship or termination 

of residency. But see Exceptions, later.

Gains arising from deemed sales must be taken into 

account for the tax year of the deemed sale without regard 

to other U.S. Internal Revenue laws. Losses from deemed 

sales must be taken into account to the extent otherwise 

provided under U.S. Internal Revenue laws. However, section 1091 (relating to the disallowance of losses on wash 

sales of stock and securities) does not apply. The net gain 

that you must otherwise include in your income is reduced 

(but not below zero) by the following.

1. $600,000 if you expatriated or terminated residency 

before January 1, 2009.

2. $626,000 if you expatriated or terminated residency in 

2009.

3. $627,000 if you expatriated or terminated residency in 

2010.

4. $636,000 if you expatriated or terminated residency in 

2011.

5. $651,000 if you expatriated or terminated residency in 

2012.

6. $668,000 if you expatriated or terminated residency in 

2013.

7. $680,000 if you expatriated or terminated residency in 

2014.

8. $690,000 if you expatriated or terminated residency in 

2015.

9. $693,000 if you expatriated or terminated residency in 

2016.

10. $699,000 if you expatriated or terminated residency in 

2017.

11. $711,000 if you expatriated or terminated residency in 

2018.

12. $725,000 if you expatriated or terminated residency in 

2019.

Publication 519 (2023) Chapter 4 How Income of Aliens Is Taxed 35
13. $737,000 if you expatriated or terminated residency 

in .

14. $744,000 if you expatriated or terminated residency in 

2021.

15. $767,000 if you expatriated or terminated residency in 

2022.

16. $821,000 if you expatriated or terminated residency in 

2023.

Exceptions. The mark-to-market tax does not apply to 

the following.

1. Eligible deferred compensation items.

2. Ineligible deferred compensation items.

3. Interests in nongrantor trusts.

4. Specified tax deferred accounts.

Instead, items (1) and (3) may be subject to withholding at 

source. In the case of item (2), you are treated as receiving the present value of your accrued benefit as of the day 

before your expatriation date. In the case of item (4), you 

are treated as receiving a distribution of your entire interest in the account on the day before your expatriation 

date. See Notice 2009-85 and the Instructions for Form 

8854 for more information.

Expatriation Tax Return

You must file an initial Form 8854 in the year you relinquish 

your U.S. citizenship or terminate your long-term residency, even if you are not a covered expatriate. In addition, you must file a Form 8854 annually after you expatriate if you are a covered expatriate and you:

1. Deferred the payment of mark-to-market tax (see Deferral of payment of mark-to-market tax, later),

2. Have an item of eligible deferred compensation, or

3. Have an interest in a nongrantor trust.

Deferral of payment of mark-to-market tax. You can 

make an irrevocable election to defer payment of the 

mark-to-market tax imposed on the deemed sale of property. If you make this election, the following rules apply.

1. You can make the election on a property-by-property 

basis.

2. The deferred tax attributable to a particular property is 

due on the return for the tax year in which you dispose 

of the property.

3. Interest is charged for the period the tax is deferred.

4. The due date for the payment of the deferred tax cannot be extended beyond the earlier of the following 

dates.

a. The due date of the return required for the year of 

death.

b. The time that the security provided for the property 

fails to be adequate. See item (6) below.

5. You make the election on Form 8854.

6. You must provide adequate security (such as a bond).

7. You must make an irrevocable waiver of any right under any treaty of the United States that would preclude assessment or collection of the mark-to-market 

tax.

For more information about the deferral of payment, 

see the Instructions for Form 8854.

5.

Figuring Your Tax

Introduction

After you have determined your alien status, the source of 

your income, and if and how that income is taxed in the 

United States, your next step is to figure your tax. The information in this chapter is not as comprehensive for resident aliens as it is for nonresident aliens. Resident aliens 

should get publications, forms, and instructions for U.S. 

citizens because the information for filing returns for resident aliens is generally the same as for U.S. citizens.

If you are both a nonresident alien and a resident alien 

in the same tax year, see chapter 6 for a discussion of 

dual-status aliens.

Topics

This chapter discusses:

• Identification numbers,

• Filing status,

• Deductions,

• Dependents,

• Itemized deductions,

• Tax credits and payments, and

• Special rules for bona fide residents of American 

Samoa and Puerto Rico.

Useful Items

You may want to see:

Publication

463 Travel, Gift, and Car Expenses

501 Dependents, Standard Deduction, and Filing 

Information

521 Moving Expenses

526 Charitable Contributions

 463 

 501 

 521 

 526 

36 Chapter 5 Figuring Your Tax Publication 519 (2023)
Information on the United States–Canada 

Income Tax Treaty

Form (and Instructions)

Application for IRS Individual Taxpayer 

Identification Number

U.S. Individual Income Tax Return

U.S. Tax Return For Seniors

U.S. Nonresident Alien Income Tax Return

Employee Business Expenses

Moving Expenses

Exclusion of Income for Bona Fide Residents 

of American Samoa

Additional Medicare Tax

Limitation on Business Interest Expense Under 

Section 163(j)

See chapter 12 for information about getting these publications and forms.

Tax Year

You must figure your income and file a tax return on the 

basis of an annual accounting period called a tax year. If 

you have not previously established a fiscal tax year, your 

tax year is the calendar year. A calendar year is 12 consecutive months ending on December 31. If you have previously established a regular fiscal year (12 consecutive 

months ending on the last day of a month other than December or a 52-53 week year) and are considered to be a 

U.S. resident for any calendar year, you will be treated as 

a U.S. resident for any part of your fiscal year that falls 

within that calendar year.

Identification Number

A taxpayer identification number (TIN) must be furnished 

on returns, statements, and other tax-related documents. 

For an individual, this is a social security number (SSN). If 

you do not have and are not eligible to get an SSN, you 

must apply for an individual taxpayer identification number 

(ITIN). An employer identification number (EIN) is required 

if you are engaged in a trade or business as a sole proprietor and have employees or a qualified retirement plan.

You must furnish a TIN if you are:

• An alien who has income effectively connected with 

the conduct of a U.S. trade or business at any time 

during the year;

• An alien who has a U.S. office or place of business at 

any time during the year;

• A nonresident spouse treated as a resident, as discussed in chapter 1; or

• Any other alien who files a tax return, an amended return, or a refund claim (but not information returns).

 597 

 W-7

 1040

 1040-SR

 1040-NR

 2106

 3903

 4563

 8959

 8990 

Social security number (SSN). Generally, you can get 

an SSN if you have been lawfully admitted to the United 

States for permanent residence or under other immigration categories that authorize U.S. employment.

To apply for a new SSN, you must submit Form SS-5, 

Application for a Social Security Card, and the required 

documents in person at your local Social Security Administration (SSA) office. To get Form SS-5, you can download it at SSA.gov/forms, call the SSA at 800-772-1213, or 

go to your local SSA office. For more information, go to 

Social Security Number and Card.

International students. If you have an F-1, M-1, or 

J-1 visa, see SSA Pub. 05-10181, available at SSA.gov/

Pubs/10181.html, for more information about the documents you must provide to prove your immigrant status.

Individual taxpayer identification number (ITIN). If 

you already have an ITIN, enter it wherever an SSN is required on your tax return. If you do not have an ITIN and 

are not eligible to get an SSN, you must apply for an ITIN. 

For details on how to do so, see Form W-7 and its instructions.

If you qualify for an ITIN and your application is complete, you will receive a letter from the IRS assigning your 

tax identification number, usually within 7 weeks. If you 

have not received your ITIN or other correspondence 7 

weeks after applying, call the IRS toll-free number at 

800-829-1040 to request the status of your application if 

you are in the United States. If you are outside the United 

States, call 267-941-1000 (not a toll-free number).

An ITIN is for tax use only. It does not entitle you to social security benefits or change your employment or immigration status under U.S. law.

In addition to those aliens who are required to furnish a 

TIN and are not eligible for an SSN, a Form W-7 must be 

filed for alien spouses or dependents who qualify for an allowable tax benefit and are not eligible for an SSN.

Additional information on obtaining an ITIN is available 

in the Instructions for Form W-7 and at IRS.gov/ITIN.

Expired ITIN. Some ITINs must be renewed. If you 

haven't used your ITIN on a federal tax return at least once 

for tax year 2020, 2021, or 2022, it will expire on December 31, 2023, and must be renewed if you need to file a 

federal tax return for tax year 2023. You do not need to renew your ITIN if you do not need to file a federal tax return. 

To renew your ITIN, see Form W-7 and its instructions at 

IRS.gov/FormW7. For more information, go to IRS.gov/

ITIN.

ITINs assigned before 2013 have expired and 

must be renewed if you need to file a tax return for 

tax year 2023. If you previously submitted a renewal application and it was approved, you do not need to 

renew again unless you haven't used your ITIN on a federal tax return at least once for tax year 2020, 2021, or 

2022.

Employer identification number (EIN). An individual 

may use an SSN (or ITIN) for individual taxes and an EIN 

for business taxes. To apply for an EIN, file Form SS-4 

with the IRS.

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Publication 519 (2023) Chapter 5 Figuring Your Tax 37
Filing Status

The amount of your tax depends on your filing status. Your 

filing status is important in determining whether you can 

take certain deductions and credits. The rules for determining your filing status are different for resident aliens 

and nonresident aliens.

Resident Aliens

Resident aliens can use the same filing statuses available 

to U.S. citizens. See your form instructions or Pub. 501 for 

more information on filing status.

Married filing jointly. Generally, you can file as married 

filing jointly only if both you and your spouse were U.S. 

citizens or resident aliens for the entire tax year, or if you 

choose to be a nonresident spouse treated as a resident, 

as discussed in chapter 1.

Qualifying surviving spouse. If your spouse died in 

2021 or 2022 and you did not remarry before the end of 

2023, you may qualify to file as a qualifying surviving 

spouse and use the joint return tax rates. This applies only 

if you could have filed a joint return with your spouse for 

the year your spouse died.

For more information on the qualifying surviving spouse 

filing status, see Qualifying Surviving Spouse under Filing 

Status in the 2023 Instructions for Form 1040.

Head of household. You can qualify as head of household if you are unmarried or considered unmarried on the 

last day of the year and you pay more than half the cost of 

keeping up a home for you and a qualifying person. You 

must be a resident alien for the entire tax year.

You are considered unmarried for this purpose if your 

spouse was a nonresident alien at any time during the 

year and your spouse doesn’t choose to be treated as a 

resident, as discussed in chapter 1 under Nonresident 

Spouse Treated as a Resident.

Note. Even if you are considered unmarried for head of 

household purposes because you are married to a nonresident alien, you may still be considered married for purposes of the earned income credit (EIC). In that case, you 

will need to meet the special rule for separated spouses to 

claim the credit. See Pub. 596 for more information.

Nonresident Aliens

If you are a nonresident alien filing Form 1040-NR, you 

may be able to use one of the filing statuses discussed 

later.

Married nonresident alien. Married nonresident aliens 

who are not married to U.S. citizens or residents must 

generally use the Tax Table column or the Tax Computation Worksheet for married filing separate returns when 

determining the tax on income effectively connected with 

a U.S. trade or business. 

Exceptions. Married nonresident aliens normally cannot use the Tax Table column or the Tax Computation 

Worksheet for single individuals. However, you may be 

able to file as single if you lived apart from your spouse 

during the last 6 months of the year and you are a married 

resident of Canada, Mexico, or South Korea, or are a married U.S. national. See the Instructions for Form 1040-NR 

to see if you qualify. “U.S. national” is defined later in this 

section.

A nonresident alien generally cannot file as married filing jointly. However, a nonresident alien who is married to 

a U.S. citizen or resident can choose to be treated as a 

resident and file a joint return on Form 1040 or 1040-SR. 

For information on these choices, see chapter 1. If you do 

not make the choice to file jointly, file Form 1040-NR and 

use the Tax Table column or the Tax Computation Worksheet for married individuals filing separately.

U.S. national. An individual who, although not a U.S. 

citizen, owes their allegiance to the United States is considered a U.S. national. Also, U.S. nationals include American Samoans and Northern Mariana Islanders who 

choose to become U.S. nationals instead of U.S. citizens.

Qualifying surviving spouse. If your spouse died in 

2021 or 2022 and you did not remarry before the end of 

2023, you may be eligible to file as a qualifying surviving 

spouse and use the joint return tax rates.

For more information on the qualifying surviving spouse 

filing status, see Qualifying Surviving Spouse under Filing 

Status in the 2023 Instructions for Form 1040-NR.

Head of household. You cannot file as head of household if you are a nonresident alien at any time during the 

tax year. However, if you are married, your spouse can 

qualify as a head of household if:

• Your spouse is a resident alien or U.S. citizen for the 

entire tax year;

• You do not choose to be treated as a resident alien; 

and

• Your spouse meets the other requirements for this filing status, as discussed earlier under Resident Aliens.

Note. Even if your spouse is considered unmarried for 

head of household purposes because you are a nonresident alien, your spouse may still be considered married for 

purposes of the EIC. In that case, your spouse will not be 

entitled to the credit unless they meet the special rule for 

separated spouses to claim the credit. See Pub. 596 for 

more information.

Estates and trusts. A nonresident alien estate or trust 

using Form 1040-NR must use the Tax Rate Schedule W 

in the Instructions for Form 1040-NR when determining 

the tax on income effectively connected with a U.S. trade 

or business.

Special rules for aliens from certain U.S. territories. 

A nonresident alien who is a bona fide resident of American Samoa or Puerto Rico for the entire tax year and who 

is temporarily working in the United States should see 

38 Chapter 5 Figuring Your Tax Publication 519 (2023)
Bona Fide Residents of American Samoa or Puerto Rico 

at the end of this chapter for information about special 

rules.

Reporting Your Income

You must report each item of income that is taxable according to the rules in chapters 2, 3, and 4. For resident 

aliens, this includes income from sources both within and 

outside the United States. For nonresident aliens, this includes both income that is effectively connected with a 

trade or business in the United States (subject to graduated tax rates) and income from U.S. sources that is not 

effectively connected (subject to a flat 30% tax rate or 

lower tax treaty rate).

Deductions

Resident and nonresident aliens can claim similar deductions on their U.S. tax returns. However, nonresident aliens can generally claim only deductions related to income 

that is effectively connected with their U.S. trade or business.

Resident Aliens

You can claim the same deductions allowed to U.S. citizens if you are a resident alien for the entire tax year. 

While the discussion under Nonresident Aliens, later, contains some of the same general rules and guidelines that 

apply to you, it is specifically directed toward nonresident 

aliens. You should get the Instructions for Form 1040 for 

more information on how to claim your allowable deductions.

Nonresident Aliens

You can claim deductions to figure your effectively connected taxable income (ECTI). You generally cannot claim 

deductions related to income that is not connected with 

your U.S. business activities. Except for certain itemized 

deductions, discussed later, you can claim deductions 

only to the extent they are connected with your effectively 

connected income.

Ordinary and necessary business expenses. You can 

deduct all ordinary and necessary expenses in the operation of your U.S. trade or business to the extent they relate 

to income effectively connected with that trade or business. For information about other business expenses, see 

Guide to Business Expense Resources at IRS.gov/

Pub535.

Qualified business income deduction. If you have income effectively connected with a U.S. trade or business, 

you may be able to deduct up to 20% of your qualified 

business income from your qualified trade or business, 

plus 20% of your qualified REIT dividends and qualified 

publicly traded partnership (PTP) income. For more information, see Line 13a in the Instructions for Form 

1040-NR.

For more information on the qualified business income 

deduction, see Form 8995, Form 8995-A and its schedules, and the related instructions for the forms and schedules.

Losses. You can deduct losses resulting from transactions that you entered into for profit and that you were not 

reimbursed for by insurance, etc., to the extent that they 

relate to income that is effectively connected with a trade 

or business in the United States.

Note. Beginning in 2021, and before 2026, you may 

not deduct excess business losses. For 2023, an excess 

business loss is the amount of losses from trades or businesses of a noncorporate taxpayer that is more than the 

threshold amount of $289,000 ($578,000 for married taxpayers filing a joint return).

Educator expenses. If you were an eligible educator in 

2023, you can deduct as an adjustment to income up to 

$300 in unreimbursed qualified expenses you paid or incurred during 2023 for certain professional development 

courses, and for books, supplies (other than nonathletic 

supplies for courses of instruction in health or physical education), computer equipment (including related software 

and services), and other supplementary equipment and 

materials you use in the classroom. For more information, 

see your tax form instructions.

Qualified expenses include amounts paid or incurred in 2023 for personal protective equipment, 

disinfectant, and other supplies used for the prevention of the spread of coronavirus.

Individual retirement arrangement (IRA). If you made 

contributions to a traditional IRA for 2023, you may be 

able to take an IRA deduction. But you must have taxable 

compensation effectively connected with a U.S. trade or 

business to do so. A Form 5498 should be sent to you by 

May 31, 2024, that shows all contributions to your traditional IRA for 2023. If you were covered by a retirement 

plan (qualified pension, profit-sharing (including 401(k)), 

annuity, SEP, SIMPLE, etc.) at work or through self-employment, your IRA deduction may be reduced or eliminated. But you can still make contributions to a traditional 

IRA even if you cannot deduct them. If you made nondeductible contributions to a traditional IRA for 2023, you 

must report them on Form 8606.

For more information, see Pub. 590-A.

Moving expenses. The deduction for moving expenses 

is only available if you are a member of the U.S. Armed 

Forces on active duty and, due to a military order, you 

move because of a permanent change of station. For 

more information, see Pub. 3. If you qualify, use Form 

3903 to figure the amount to deduct.

Services or reimbursements provided by government to members of the U.S. Armed Forces. Do not 

include in income the value of moving and storage 

TIP

Publication 519 (2023) Chapter 5 Figuring Your Tax 39
services provided by the government because of a move 

pursuant to a military order incident to a permanent 

change of station. Similarly, do not include in income 

amounts received as a dislocation allowance, temporary 

lodging expense, temporary lodging allowance, or 

move-in housing allowance. For more information, see 

Pub. 3.

Self-employed SEP, SIMPLE, and qualified retirement 

plans. If you are self-employed, you may be able to deduct contributions to a SEP, SIMPLE, or qualified retirement plan that provides retirement benefits for yourself 

and your common-law employees, if any. To make deductible contributions for yourself, you must have net earnings 

from self-employment that are effectively connected with 

your U.S. trade or business.

See Pub. 560 for further information.

Penalty on early withdrawal of savings. You must include in income all effectively connected interest income 

you receive or that is credited to your account during the 

year. Do not reduce it by any penalty you must pay on an 

early withdrawal from a time savings account. However, if 

the interest income is effectively connected with your U.S. 

trade or business during the year, you can deduct on 

line 18 of Schedule 1 (Form 1040) the amount of the early 

withdrawal penalty that the banking institution charged. Attach Schedule 1 (Form 1040) to your Form 1040-NR.

Student loan interest deduction. If you paid interest in 

2023 on a qualified student loan, you may be able to deduct up to $2,500 of the interest you paid. Generally, you 

can claim the deduction if all the requirements are met.

The deduction is taken on line 21 of Schedule 1 (Form 

1040). Attach Schedule 1 (Form 1040) to your Form 

1040-NR.

To figure the deduction, see the Instructions for Form 

1040-NR. For more information, see Pub. 970.

Dependents

Resident aliens can claim their dependents in the same 

way as U.S. citizens. However, only nonresident aliens 

who are U.S. nationals; residents of Canada, Mexico, and 

South Korea; or residents of India who were students or 

business apprentices can have a qualifying dependent. 

See Nonresident Aliens, later.

In general, a dependent is a qualifying child or a 

qualifying relative. However, the following exceptions 

apply.

1. An individual who is a dependent of a taxpayer is treated as having no dependents.

2. An individual who is married at the end of the year 

can't be claimed as a dependent if the individual files 

a joint return, unless the joint return is filed only to 

claim a refund of withheld income taxes or estimated 

tax paid.

3. An individual claimed as a dependent must be a citizen, national, or resident of the United States, or a 

resident of Canada or Mexico.

If you do not show the dependent's SSN, ITIN, or 

adoption taxpayer identification number (ATIN) in 

the Dependents section of your tax return, or if 

you show an incorrect number, certain tax benefits may be 

disallowed. See Identification Number, earlier.

Resident Aliens

If you are a resident alien, a qualifying dependent includes 

your qualifying child or qualifying relative. Five tests must 

be met for a child to be your qualifying child. Four tests 

must be met for a person to be your qualifying relative. For 

more information, see the Instructions for Form 1040.

If you do not show the dependent's SSN, ITIN, or 

ATIN in the Dependents section of your tax return, 

or if you show an incorrect number, certain tax 

benefits may be disallowed. See Identification Number, 

earlier.

Nonresident Aliens

See Pub. 501 for more information.

Residents of Mexico or Canada, or U.S. nationals. If 

you are a resident of Mexico or Canada, or a national of 

the United States, you can claim each of your dependents 

who meets certain tests. Residents of Mexico or Canada, 

or nationals of the United States, must use the same rules 

as U.S. citizens to determine who is a dependent. See 

Pub. 501 for these rules.

Residents of South Korea. A nonresident alien who is a 

resident of South Korea (other than an employee of the 

South Korean government) may be able to claim their 

child as a qualifying dependent. In addition to using the 

same rules as U.S. citizens to determine who is a dependent, under the income tax treaty with South Korea, the 

child must have lived with the nonresident alien in the United States at some time during the tax year.

Students and business apprentices from India. Students and business apprentices who are eligible for the 

benefits of Article 21(2) of the United States-India Income 

Tax Treaty can claim their dependents if they meet the 

same rules that apply to U.S. citizens.

Itemized Deductions

Nonresident aliens can claim some of the same itemized 

deductions that resident aliens can claim. However, nonresident aliens can claim itemized deductions only if they 

have income effectively connected with their U.S. trade or 

business.

There may be limitations that impact the amount of 

itemized deductions you can claim on Schedule A. See 

CAUTION

!

CAUTION

!

40 Chapter 5 Figuring Your Tax Publication 519 (2023)
the Instructions for Schedule A (Form 1040) or Instructions for Schedule A (Form 1040-NR)—Itemized Deductions in the Instructions for Form 1040-NR.

Resident Aliens

You can claim the same itemized deductions as U.S. citizens using Schedule A (Form 1040). See the Instructions 

for Schedule A (Form 1040) for more information.

If you do not itemize your deductions, you can claim the 

standard deduction for your particular filing status. For further information, see the Instructions for Form 1040.

Nonresident Aliens

You can deduct certain itemized deductions if you receive 

income effectively connected with your U.S. trade or business. You can generally only include deductions and losses that are properly allocated and apportioned to income 

effectively connected with a U.S. trade or business. You 

cannot include deductions and/or losses that relate to exempt income or to income that is not effectively connected 

with a U.S. trade or business. However, you can deduct 

certain charitable contributions and casualty and theft losses even if they do not relate to your effectively connected 

income. Use Schedule A (Form 1040-NR) to claim itemized deductions. See the Instructions for Form 1040-NR 

for more information.

Standard deduction. Nonresident aliens cannot claim 

the standard deduction. However, there is a special rule, 

described next, for certain nonresident aliens from India.

Students and business apprentices from India. A 

special rule applies to students and business apprentices 

who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty. You can claim the 

standard deduction, provided you do not claim itemized 

deductions.

Use Worksheet 5-1 to figure your standard deduction 

for 2023. If you are married and your spouse files a return 

and itemizes deductions, you cannot take the standard 

deduction.

Disaster tax relief. If you are a student or business 

apprentice eligible for the benefits of Article 21(2) of the 

United States-India Income Tax Treaty who was affected 

by certain major federally declared disasters in 2023 (see 

IRS.gov/DisasterTaxRelief and FEMA.gov/Disasters), you 

may be able to elect to increase your standard deduction 

by any qualified disaster-related personal casualty losses 

on your 2023 tax return. Use Worksheet 5-1 to calculate 

your standard deduction for 2023. See the 2023 Form 

4684 and its instructions for more information on the tax 

benefits for qualified disaster-related personal casualty 

losses.

State and local income taxes. You can deduct state 

and local income taxes you paid on income that is effectively connected with a trade or business in the United 

States. Your deduction is limited to a combined total deduction of $10,000 ($5,000 if married filing separately). If 

you received a refund or rebate in 2023 of taxes you paid 

in an earlier year, do not reduce your deduction by that 

amount. Instead, you must include the refund or rebate in 

income if you deducted the taxes in the earlier year and 

the deduction reduced your tax. See Recoveries in Pub. 

525 for details on how to figure the amount to include in income.

Charitable contributions. You can deduct your charitable contributions or gifts to qualified organizations subject 

to certain limits. Qualified organizations include organizations that are religious, charitable, educational, scientific, 

or literary in nature, or that work to prevent cruelty to children or animals. Certain organizations that promote national or international amateur sports competition are also 

qualified organizations.

For more information on deducting charitable contributions, see Gifts to U.S. Charities under Instructions for 

Schedule A (Form 1040-NR)—Itemized Deductions in the 

Instructions for Form 1040-NR.

Foreign organizations. Contributions made directly 

to a foreign organization are not deductible. However, you 

can deduct contributions to a U.S. organization that transfers funds to a charitable foreign organization if the U.S. 

organization controls the use of the funds or if the foreign 

organization is only an administrative arm of the U.S. organization.

Under a limited number of income tax treaties, you may 

be eligible to deduct contributions to a charitable foreign 

organization. See Pub. 526 for details.

Casualty and theft losses. You may be able to deduct 

casualty and theft losses on your tax return.

You can only deduct a nonbusiness casualty or 

theft loss if it is attributable to a federally declared 

disaster.

If your casualty or theft loss is attributable to a federally 

declared disaster, you can deduct your loss even though 

your property is not connected with a U.S. trade or business. The property can be personal-use property or income-producing property not connected with a U.S. trade 

or business. The property must be located in the United 

States at the time of the casualty or theft. You can deduct 

theft losses only in the year in which you discover the loss. 

Use Form 4684 and its instructions to figure your deductible casualty and theft losses. For more information, see 

Pub. 547.

Other itemized deductions. You may be allowed to deduct some other itemized deductions not discussed earlier. These include the following.

• Net qualified disaster losses.

• Casualty and theft losses of income-producing property.

• Deduction for repayment of amounts under a claim of 

right if over $3,000. See Pub. 525 for details.

• Certain unrecovered investment in a pension.

CAUTION

!

Publication 519 (2023) Chapter 5 Figuring Your Tax 41
• Impairment-related work expenses of a disabled person.

For more information, see the instructions for line 7 under Instructions for Schedule A (Form 1040-NR)—Itemized Deductions in the Instructions for Form 1040-NR. 

Also see Pub. 529.

Net qualified disaster losses. See the Instructions 

for Form 4684 for more information on net qualified disaster losses. To determine if you were affected by a major 

federally declared disaster, go to IRS.gov/

DisasterTaxRelief.

Losses from income-producing property. These 

losses are not subject to the limitations that apply to personal-use property. Use Section B of Form 4684 to figure 

your deduction for these losses.

Tax Credits and Payments

This discussion covers tax credits and payments for resident aliens, followed by a discussion of the credits and 

payments for nonresident aliens.

Resident Aliens

Resident aliens generally claim tax credits and report tax 

payments, including withholding, using the same rules 

that apply to U.S. citizens.

The following items are some of the credits you may be 

able to claim.

Foreign tax credit. You can claim a credit, subject to certain limits, for income tax you paid or accrued to a foreign 

country on foreign source income. You cannot claim a 

credit for taxes paid or accrued on excluded foreign 

earned income. To claim a credit for income taxes paid or 

accrued to a foreign country, you will generally file Form 

1116 with your Form 1040 or 1040-SR.

For more information, see Pub. 514.

Child and dependent care credit. You may be able to 

take this credit if you pay someone to care for your dependent qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work 

or look for work.

For more information, see Form 2441 and Pub. 503.

Credit for the elderly or the disabled. You may qualify 

for this credit if you are age 65 or older or if you retired on 

permanent and total disability. For more information on 

this credit, see Pub. 524 and Schedule R (Form 1040).

Education credits. You may qualify for these credits if 

you paid qualified education expenses for yourself, your 

spouse, or your dependent. There are two education credits: the American opportunity credit and the lifetime learning credit. You cannot claim these credits if you are married filing separately. Use Form 8863 to figure the credit. 

For more information, see Pub. 970.

2023 Standard Deduction Worksheet for 

Students and Business Apprentices From 

India

Worksheet 5-1.

Keep for Your Records

Caution. If you are married filing a separate return and your spouse itemizes deductions, do not complete this worksheet. You cannot take the 

standard deduction even if you were born before January 2, 1958, or are blind. 

1. Enter the amount shown below for your filing status.

• Single or married filing separately—$13,850

• Qualifying surviving spouse—$27,700 .............................. 1.

2. Can you be claimed as a dependent on someone else's U.S. income tax 

return?

No. Enter the amount from line 1 on line 4. Skip line 3 and go to line 5.

Yes. Go to line 3.

3. Is your earned income* more than $750?

Yes. Add $400 to your earned income. Enter the total. 

No. Enter $1,250 ............................................... 3.

4. Enter the smaller of line 1 or line 3 ...................................................... 4.

5. If born before January 2, 1959, OR blind, enter $1,500 ($1,850 if single). If born before January 2, 

1959, AND blind, enter $3,000 ($3,700 if single). Otherwise, enter -0- ........................ 5.

6. Enter any net disaster loss from the 2023 Form 4684, line 15 ................................ 6.

7. Add lines 4, 5, and 6. Enter the total here and on Form 1040-NR, line 12. Enter “Standard Deduction 

Allowed Under U.S.-India Income Tax Treaty” in the space to the left of the line. This is your 

standard deduction for 2023 ......................................................... 7.

* Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also 

includes any amount received as a scholarship that you must include in your income. Generally, your earned income is the total of the amount(s) 

you reported on Form 1040-NR, line 1z, plus Schedule 1 (Form 1040), lines 3, 6, and 8r, minus Schedule 1 (Form 1040), line 15.

42 Chapter 5 Figuring Your Tax Publication 519 (2023)
Nonresident aliens, see Education credits under Nonresident Aliens, later.

Retirement savings contributions credit. You may 

qualify for this credit (also known as the saver’s credit) if 

you made eligible contributions to an employer-sponsored 

retirement plan or to an IRA in 2023. Use Form 8880 and 

its instructions to figure the credit. For more information 

about the requirements to claim the credit, see Pub. 590-

A.

Child tax credit and the additional child tax credit. 

“Qualifying child,” for purposes of the child tax credit and 

the additional child tax credit, is a child who:

• Was under age 17 at the end of 2023;

• Is your son, daughter, stepchild, eligible foster child, 

brother, sister, stepbrother, stepsister, half brother, half 

sister, or a descendant of any of them (for example, 

your grandchild, niece, or nephew);

• Is a U.S. citizen, U.S. national, or resident alien;

• Did not provide over half of their own support for 2023;

• Lived with you more than half of 2023 (temporary absences, such as for school, vacation, or medical care, 

count as time lived in the home);

• Is claimed as a dependent on your return; and

• Does not file a joint return for the year (or files it only to 

claim a refund of withheld income tax or estimated tax 

paid).

An adopted child is always treated as your own child. 

An adopted child includes a child lawfully placed with you 

for legal adoption.

If you did not have an SSN (or ITIN) issued on or before 

the due date of your 2023 return (including extensions), 

you cannot claim the child tax credit on either your original 

or an amended 2023 return.

If your child did not have an SSN valid for employment 

issued before the due date of the 2023 return (including 

extensions), you cannot claim the child tax credit for this 

child, but may be able to claim the credit for other dependents for this child. See Credit for other dependents, discussed below.

Use Schedule 8812 (Form 1040) and its instructions to 

figure the credits.

Credit for other dependents. The credit for other dependents is for people who have dependents who cannot 

be claimed for the child tax credit. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident 

alien and must have an SSN, ITIN, or ATIN issued on or 

before the due date of your 2023 return (including extensions). See Schedule 8812 (Form 1040) and its instructions for more information.

Adoption credit. You may qualify to take a tax credit of 

up to $15,950 for qualifying expenses paid to adopt an eligible child. This amount may be allowed for the adoption 

of a child with special needs regardless of whether you 

have qualifying expenses. To claim the adoption credit, file 

Form 8839 with your Form 1040 or 1040-SR.

Earned income credit (EIC). The EIC, or earned income tax credit (EITC), is a benefit for working people with 

low to moderate income. To qualify for the EIC, you must 

have earned income from working for someone or from 

running or owning a business or farm and meet basic 

rules. Also, you must either meet additional rules for workers without a qualifying child or have a child who meets all 

the qualifying child rules. The EIC reduces the amount of 

tax you owe and may give you a refund. For more information, go to IRS.gov/EIC.

If you (and your spouse, if filing a joint return) did not 

have an SSN issued on or before the due date of the 2023 

return (including extensions), you cannot claim the EIC on 

either your original or an amended 2023 return. Also, if a 

child did not have an SSN issued on or before the due 

date of your return (including extensions), you cannot 

count that child as a qualifying child in figuring the EIC on 

either your original or an amended 2023 return.

If a social security card has a legend that says 

“Not Valid for Employment” and the number was 

issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you 

cannot claim the EIC. An example of a federally funded 

benefit is Medicaid. If a card has this legend and the individual's immigration status has changed so that the individual is now a U.S. citizen or lawful permanent resident, 

ask the SSA to issue a new social security card without 

the legend.

To find out if you are eligible for the EIC, go to IRS.gov/

EITCAssistant.

Other information. There are other eligibility rules 

that are not discussed here. For more information, see 

Pub. 596.

Nonresident Aliens

You can claim some of the same credits that resident aliens can claim. You can also report certain taxes you paid, 

are considered to have paid, or that were withheld from 

your income.

Credits

Credits are allowed only if you receive effectively connected income. You may be able to claim some of the following credits.

Foreign tax credit. If you receive foreign source income 

that is effectively connected with a trade or business in the 

United States, you can claim a credit for any income taxes 

paid or accrued to any foreign country or U.S. territory on 

that income.

If you do not have foreign source income effectively 

connected with a U.S. trade or business, you cannot claim 

credits against your U.S. tax for taxes paid or accrued to a 

foreign country or U.S. territory.

You cannot take any credit for taxes imposed by a foreign country or U.S. territory on your U.S. source income if 

those taxes were imposed only because you are a citizen 

or resident of the foreign country or territory.

CAUTION

!

Publication 519 (2023) Chapter 5 Figuring Your Tax 43
If you claim a foreign tax credit, you will generally have 

to attach to your return a Form 1116. See Pub. 514 for 

more information.

Child and dependent care credit. You may qualify for 

this credit if you pay someone to care for your dependent 

qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look 

for work. For definitions of these terms, see Pub. 503.

Married nonresident aliens can claim the credit only if 

they choose to file a joint return with a U.S. citizen or resident spouse, as discussed in How To Make the Choice in 

chapter 1, or if they qualify as certain married individuals 

living apart (see Joint Return Test in Pub. 503).

The amount of your child and dependent care expense 

that qualifies for the credit in any tax year cannot be more 

than your earned income from the United States for that 

tax year. Earned income generally means wages, salaries, 

and professional fees for personal services performed.

For more information, see Pub. 503.

Education credits. If you are a nonresident alien for any 

part of the year, you generally cannot claim the education 

credits. However, you may be able to claim an education 

credit under the following circumstances.

1. You are married and choose to file a joint return with a 

U.S. citizen or resident spouse, as discussed under 

Nonresident Spouse Treated as a Resident in chapter 1.

2. You are a dual-status alien, and choose to be treated 

as a U.S. resident for the entire year. See Choosing 

Resident Alien Status in chapter 1.

Additional information on the American opportunity tax 

credit is available at IRS.gov/AOTC.

Retirement savings contributions credit. You may 

qualify for this credit (also known as the saver’s credit) if 

you made eligible contributions to an employer-sponsored 

retirement plan or to an IRA in 2023. You cannot claim this 

credit if:

• You were born after January 1, 2006;

• You were a full-time student;

• You were claimed as a dependent on someone else's 

2023 tax return; or

• Your adjusted gross income is more than $36,500.

Use Form 8880 to figure the credit. For more information, 

see Pub. 590-A.

Child tax credit and the additional child tax credit. 

Only nonresident aliens who are U.S. nationals; residents 

of Canada, Mexico, or South Korea; or students and business apprentices from India who qualify for benefits under 

Article 21(2) of the income tax treaty with India can claim 

the child tax credit.

“Qualifying child,” for purposes of the child tax credit 

and the additional child tax credit, is a child who:

• Was under age 17 at the end of 2023;

• Is your son, daughter, stepchild, eligible foster child, 

brother, sister, stepbrother, stepsister, half brother, half 

sister, or a descendant of any of them (for example, 

your grandchild, niece, or nephew);

• Is a U.S. citizen, U.S. national, or resident alien;

• Did not provide over half of their own support for 2023;

• Lived with you more than half of 2023 (temporary absences, such as for school, vacation, or medical care, 

count as time lived in the home);

• Is claimed as a dependent on your return; and

• Does not file a joint return for the year (or files it only to 

claim a refund of withheld income tax or estimated tax 

paid).

An adopted child is always treated as your own child. 

An adopted child includes a child lawfully placed with you 

for legal adoption.

If you did not have an SSN (or ITIN) issued on or before 

the due date of your 2023 return (including extensions), 

you may not claim the child tax credit on either your original or an amended tax return.

If your child did not have an SSN valid for employment 

issued before the due date of the 2023 return (including 

extensions), you cannot claim the child tax credit for this 

child, but may be able to claim the credit for other dependents for this child. See Credit for other dependents, discussed below.

Use Schedule 8812 (Form 1040) and its instructions to 

figure the credits.

Credit for other dependents. Dependents who cannot 

be claimed for the child tax credit may still qualify you for 

the credit for other dependents. This is a nonrefundable 

tax credit of $500 per qualifying person. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident alien. See the Instructions for Form 1040-NR. To 

claim the credit for other dependents, your dependent 

must have an SSN, ITIN, or ATIN issued on or before the 

due date of your 2023 return (including extensions).

Only nonresident aliens who are U.S. nationals; 

residents of Canada, Mexico, or South Korea; or 

students and business apprentices from India 

who qualify for benefits under Article 21(2) of the income 

tax treaty with India can claim the credit for other dependents.

Adoption credit. You may qualify to take a tax credit of 

up to $15,950 for qualifying expenses paid to adopt an eligible child. This amount may be allowed for the adoption 

of a child with special needs regardless of whether you 

have qualifying expenses. To claim the adoption credit, file 

Form 8839 with your Form 1040-NR.

Married nonresident aliens can claim the credit only if 

they choose to file a joint return with a citizen or resident 

spouse, as discussed in Nonresident Spouse Treated as a 

Resident in chapter 1, or if they qualify as certain married 

individuals living apart (see Married Persons Not Filing 

Jointly in the Instructions for Form 8839).

CAUTION

!

44 Chapter 5 Figuring Your Tax Publication 519 (2023)
Credit for prior-year alternative minimum tax. If you 

paid alternative minimum tax in a prior year, use Form 

8801 and its instructions to see if you qualify for this credit.

Earned income credit (EIC). If you are a nonresident 

alien for any part of the tax year, you generally cannot 

claim the EIC. However, if you are married and choose to 

file a joint return with a U.S. citizen or resident spouse, as 

discussed in Nonresident Spouse Treated as a Resident 

in chapter 1, you may be eligible for the credit.

If you and your spouse did not have an SSN issued on 

or before the due date of the 2023 return (including extensions), you cannot claim the EIC on either your original or 

an amended 2023 return. Also, if a child did not have an 

SSN issued on or before the due date of your return (including extensions), you cannot count that child as a qualifying child in figuring the EIC on either your original or an 

amended 2023 return.

If a social security card has a legend that says 

“Not Valid for Employment” and the number was 

issued so that you (or your spouse or your qualifying child) could receive a federally funded benefit, you 

cannot claim the EIC. An example of a federally funded 

benefit is Medicaid. If a card has this legend and the individual's immigration status has changed so that the individual is now a U.S. citizen or lawful permanent resident, 

ask the SSA to issue a new social security card without 

the legend.

See Pub. 596 for more information on the credit.

Tax Withheld

You can claim the tax withheld during the year as a payment against your U.S. tax. You claim it on lines 25a 

through 25g of Form 1040-NR. The tax withheld reduces 

any tax you owe with Form 1040-NR.

Withholding from wages. Any federal income tax withheld from your wages during the tax year while you were a 

nonresident alien is allowed as a payment against your 

U.S. income tax liability for the same year. You can claim 

the income tax withheld whether or not you were engaged 

in a trade or business in the United States during the year, 

and whether or not the wages (or any other income) were 

connected with a trade or business in the United States.

Excess social security tax withheld. If you have two or 

more employers, you may be able to claim a credit against 

your U.S. income tax liability for social security tax withheld in excess of the maximum required. See Social Security and Medicare Taxes in chapter 8 for more information.

Additional Medicare Tax. Your employer is responsible 

for withholding the 0.9% (0.009) Additional Medicare Tax 

on Medicare wages or Railroad Retirement Tax Act 

(RRTA) compensation it pays to you in excess of 

$200,000 in 2023. If you do not owe Additional Medicare 

Tax, you can claim a credit for any withheld Additional 

Medicare Tax against the total tax liability shown on your 

tax return by filing Form 8959.

CAUTION

!

Tax paid on undistributed long-term capital gains. If 

you are a shareholder in a mutual fund (or other RIC) or 

REIT, you can claim a credit for your share of any taxes 

paid by the company on its undistributed long-term capital 

gains. You will receive information on Form 2439, which 

you must attach to your return.

Tax withheld at the source. You can claim as a payment 

any tax withheld at the source on investment and other 

FDAP income paid to you. Fixed or determinable income 

includes interest, dividend, rental, and royalty income that 

you do not claim to be effectively connected income. 

Wage or salary payments can be fixed or determinable income to you, but are usually subject to withholding, as discussed above. Taxes on fixed or determinable income are 

withheld at a 30% rate or at a lower treaty rate.

Tax withheld on partnership income. If you are a foreign partner in a partnership, the partnership will withhold 

tax on your share of ECTI from the partnership. The partnership will give you a statement on Form 8805 showing 

the tax withheld. A partnership that is publicly traded may 

withhold on your actual distributions of effectively connected income. In this case, the partnership will give you a 

statement on Form 1042-S. Claim the tax withheld as a 

payment on line 25e or 25g of Form 1040-NR, as appropriate.

Tax withheld on gain from the sale or exchange of 

certain partnership interests. If you are a direct or indirect foreign partner in a U.S. or foreign partnership that is 

engaged (or is treated as engaged) in a trade or business 

within the United States and you directly or indirectly dispose of that interest for a gain, then for transfers occurring 

after 2017, the transferee will generally withhold and pay 

into the IRS on your behalf a tax equal to 10% of the 

amount realized on the sale. The rules for withholding and 

paying over this amount are similar to sales of U.S. real 

property interests. You will receive a Form 8288-A reflecting the amount withheld that you may then claim on 

line 25f of your Form 1040-NR as a credit against the tax 

you owe on the gain. You may be able to provide certain 

information to the transferee to reduce or eliminate withholding. For example, if a nonrecognition provision of the 

Internal Revenue Code applies to all of the gain realized 

on a transfer, the transferee does not need to withhold if 

you provide a notice describing the application of a nonrecognition provision. If you are a transferee that failed to 

withhold, under section 1446(f)(4), the partnership may 

withhold on distributions to you.

T.D. 9926 (85 FR 76910), available at IRS.gov/irb/

2020-51_IRS#TD-9926, published on November 30, 2020 

(as corrected at 86 FR 13191), contains final regulations 

(section 1446(f) regulations) relating to the withholding 

and reporting required under section 1446(f) on transfers 

of interests in certain partnership interests, which include 

withholding requirements that apply to brokers effecting 

transfers of interests in PTPs. While section 1446(f) withholding generally applies to transfers occurring on or after 

January 1, 2018, certain provisions of the section 1446(f) 

regulations apply to transfers on or after January 1, 2023. 

For more information, see Pub. 515.

Publication 519 (2023) Chapter 5 Figuring Your Tax 45
For additional guidance on certain issues related to the 

1446(f) regulations, see Notice 2023-8.

Tax withheld on dispositions of U.S. real property interests. You can claim as a payment any tax withheld 

with respect to a disposition of a U.S. real property interest 

(or income treated as derived from the disposition of a 

U.S. real property interest). See Real Property Gain or 

Loss in chapter 4. The buyer will give you a statement of 

the amount withheld on Form 8288-A. Claim the tax withheld as a payment on line 25f of Form 1040-NR.

Claiming tax withheld on your return. When you fill out 

your tax return, take extra care to enter the correct amount 

of any tax withheld shown on your information documents. 

The following table lists some of the more common information documents and shows where to find the amount of 

tax withheld.

Form number

Location

 of tax 

withheld

RRB-1042S ........................ Box 13 

SSA-1042S ......................... Box 9 

W-2 .............................. Box 2 

W-2c ............................. Box 2 

1042-S ............................ Box 10

8805 ............................. Line 10

8288-A ............................ Box 4

Bona Fide Residents of 

American Samoa or Puerto 

Rico

If you are a nonresident alien who is a bona fide resident 

of American Samoa or Puerto Rico for the entire tax year, 

you are generally taxed the same as resident aliens. You 

should file Form 1040 or 1040-SR and report all income 

from sources both in and outside the United States. However, you can exclude the income discussed in the following paragraphs.

For tax purposes other than reporting income, however, 

you will be treated as a nonresident alien. For example, 

you are not allowed the standard deduction, you cannot 

file a joint return, and you cannot claim a dependent unless that person is a citizen or national of the United 

States. There are also limits on what deductions and credits are allowed. See Nonresident Aliens under Deductions, 

Itemized Deductions, and Tax Credits and Payments in 

this chapter.

Residents of Puerto Rico. If you are a bona fide resident of Puerto Rico for the entire year, you can exclude 

from gross income all income from sources in Puerto Rico 

(other than amounts for services performed as an employee of the United States or any of its agencies).

If you report income on a calendar year basis and you 

do not have wages subject to withholding for 2023, file 

your return and pay your tax by June 15, 2024. You must 

also make your first payment of estimated tax for 2024 by 

June 15, 2024. You cannot file a joint income tax return or 

make joint payments of estimated tax. However, if you are 

married to a U.S. citizen or resident, see Nonresident 

Spouse Treated as a Resident in chapter 1.

If you earn wages subject to withholding, your U.S. income tax return is due by April 15, 2024. You must also 

make your first payment of estimated tax for 2024 by April 

15, 2024. For information on withholding and estimated 

tax, see chapter 8.

Residents of American Samoa. If you are a bona fide 

resident of American Samoa for the entire year, you can 

exclude from gross income all income from sources in 

American Samoa (other than amounts for services performed as an employee of the U.S. Government or any of 

its agencies). An employee of the American Samoan Government is not considered an employee of the U.S. Government or any of its agencies for purposes of the exclusion. For more information about this exclusion, see Form 

4563 and Pub. 570.

6.

Dual-Status Tax Year

Introduction

You have a dual-status tax year when you have been both 

a resident alien and a nonresident alien in the same year. 

Dual status does not refer to your citizenship; it refers only 

to your resident status in the United States. In determining 

your U.S. income tax liability for a dual-status tax year, different rules apply for the part of the year you are a resident 

of the United States and the part of the year you are a 

nonresident.

The most common dual-status tax years are the years 

of arrival and departure. See Dual-Status Aliens in chapter 1.

If you are married and choose to be a nonresident 

spouse treated as a resident, as explained in chapter 1, 

the rules of this chapter do not apply to you for that year.

Topics

This chapter discusses:

• Income subject to tax,

• Restrictions for dual-status taxpayers,

• How to figure the tax,

• Forms to file,

• When and where to file, and

• How to fill out a dual-status return.

46 Chapter 6 Dual-Status Tax Year Publication 519 (2023)
Useful Items

You may want to see:

Publication

Child and Dependent Care Expenses

Foreign Tax Credit for Individuals

Pension and Annuity Income

Form (and Instructions)

U.S. Individual Income Tax Return

U.S. Tax Return for Seniors

U.S. Departing Alien Income Tax Return

stimated Tax for Individuals

U.S. Estimated Tax for Nonresident 

Alien Individuals

U.S. Nonresident Alien Income Tax Return

Foreign Tax Credit

See chapter 12 for information about getting these publications and forms.

Tax Year

You must file your tax return on the basis of an annual accounting period called a tax year. If you have not previously established a fiscal tax year, your tax year is the calendar year. A calendar year is 12 consecutive months 

ending on December 31. If you have previously established a regular fiscal year (12 consecutive months ending 

on the last day of a month other than December, or a 

52-53 week year) and are considered to be a U.S. resident 

for any calendar year, you will be treated as a U.S. resident for any part of your fiscal year that falls within that calendar year.

Income Subject to Tax

For the part of the year you are a resident alien, you are 

taxed on income from all sources. Income from sources 

outside the United States is taxable if you receive it while 

you are a resident alien. The income is taxable even if you 

earned it while you were a nonresident alien or if you became a nonresident alien after receiving it and before the 

end of the year.

For the part of the year you are a nonresident alien, you 

are taxed on income from U.S. sources and on certain foreign source income treated as effectively connected with 

a U.S. trade or business. The rules for treating foreign 

source income as effectively connected are discussed in 

chapter 4 under Foreign Income.

Income from sources outside the United States that is 

not effectively connected with a trade or business in the 

United States is not taxable if you receive it while you are 

a nonresident alien. The income is not taxable even if you 

 503 

 514 

 575 

 1040

 1040-SR

 1040-C

 1040-ES

 1040-ES (NR)

 1040-NR

 1116

earned it while you were a resident alien or if you became 

a resident alien or a U.S. citizen after receiving it and before the end of the year.

Income from U.S. sources is taxable whether you receive it while a nonresident alien or a resident alien unless 

specifically exempt under the Internal Revenue Code or a 

tax treaty provision. Generally, tax treaty provisions apply 

only to the part of the year you were a nonresident. In certain cases, however, treaty provisions may apply while you 

were a resident alien. See chapter 9 for more information.

When determining what income is taxed in the United 

States, you must consider exemptions under U.S. tax law 

as well as the reduced tax rates and exemptions provided 

by tax treaties between the United States and certain foreign countries. For a further discussion of tax treaties, see 

chapter 9.

Restrictions for Dual-Status 

Taxpayers

The following restrictions apply if you are filing a tax return 

for a dual-status tax year.

Standard deduction. You cannot use the standard deduction allowed on Form 1040 or 1040-SR. However, you 

can itemize any allowable deductions.

Head of household. You cannot use the head of household Tax Table column or Tax Computation Worksheet.

Joint return. You cannot file a joint return. However, see 

Choosing Resident Alien Status under Dual-Status Aliens 

in chapter 1.

Tax rates. If you are married and a nonresident of the 

United States for all or part of the tax year and you do not 

choose to file jointly, as discussed in chapter 1, you must 

use the Tax Table column or Tax Computation Worksheet 

for married filing separately to figure your tax on income 

effectively connected with a U.S. trade or business. You 

cannot use the Tax Table column or Tax Computation 

Worksheet for married filing jointly or single. However, you 

may be able to file as single if you lived apart from your 

spouse during the last 6 months of the year and you are a:

• Married resident of Canada, Mexico, or South Korea; 

or

• Married U.S. national.

See the Instructions for Form 1040-NR to see if you qualify.

A U.S. national is an individual who, although not a U.S. 

citizen, owes their allegiance to the United States. U.S. 

nationals include American Samoans and Northern Mariana Islanders who chose to become U.S. nationals instead of U.S. citizens.

Publication 519 (2023) Chapter 6 Dual-Status Tax Year 47
Dependents

As a dual-status taxpayer, you may be able to claim a dependent on your tax return. In general, a dependent is a 

qualifying child or a qualifying relative. You may be entitled 

to claim additional deductions and credits if you have a 

qualifying dependent. See the Instructions for Form 1040 

or the Instructions for Form 1040-NR for more information.

If you were a U.S. national or a resident of Canada or 

Mexico, you can claim a dependent on the same terms as 

U.S. citizens. If you are a resident of South Korea or India, 

see chapter 5.

How To Figure Your Tax

When you figure your U.S. tax for a dual-status year, you 

are subject to different rules for the part of the year you are 

a resident and the part of the year you are a nonresident.

Income

All income for your period of residence and all income that 

is effectively connected with a trade or business in the 

United States for your period of nonresidence, after allowable deductions, are added and taxed at the rates that apply to U.S. citizens and residents. Income that is not connected with a trade or business in the United States for 

your period of nonresidence is subject to the flat 30% rate 

or lower treaty rate. You cannot take any deductions 

against this income.

Social security and railroad retirement benefits. During the part of the year you are a nonresident alien, 85% of 

any U.S. social security benefits (and the equivalent part 

of tier 1 railroad retirement benefits) you receive is subject 

to the flat 30% tax, unless exempt, or subject to a lower 

treaty rate. (See The 30% Tax in chapter 4.)

During the part of the year you are a resident alien, part 

of the social security and the equivalent part of tier 1 railroad retirement benefits will be taxed at graduated rates if 

your modified adjusted gross income plus half of these 

benefits are more than a certain base amount.

Use the Social Security Benefits Worksheet in the Instructions for Form 1040 to help you figure the taxable part 

of your social security and equivalent tier 1 railroad retirement benefits for the part of the year you were a resident 

alien.

If you received U.S. social security benefits while you 

were a nonresident alien, the SSA will send you Form 

SSA-1042S showing your combined benefits for the entire 

year and the amount of tax withheld. You will not receive 

separate statements for the benefits received during your 

periods of U.S. residence and nonresidence. Therefore, it 

is important for you to keep careful records of these 

amounts. You will need this information to properly complete your return and figure your tax liability.

If you received railroad retirement benefits while you 

were a nonresident alien, the U.S. Railroad Retirement 

Board (RRB) will send you Form RRB-1042S, Statement 

for Nonresident Alien Recipients of Payments by the Railroad Retirement Board, and/or Form RRB-1099-R, Annuities or Pensions by the Railroad Retirement Board. If your 

country of legal residence changed or your rate of tax 

changed during the tax year, you may receive more than 

one form.

Tax Credits and Payments

This discussion covers tax credits and payments for 

dual-status aliens.

Credits

As a dual-status alien, you can generally claim tax credits 

using the same rules that apply to resident aliens. There 

are certain restrictions that may apply. These restrictions 

are discussed here, along with a brief explanation of credits often claimed by individuals.

You cannot claim the education credits, EIC, or 

credit for the elderly or the disabled unless you 

are married and you choose to be treated as a 

resident for all of 2023 by filing a joint return with your 

spouse who is a U.S. citizen or resident, as discussed in 

chapter 1.

Foreign tax credit. If you have paid, or are liable for the 

payment of, income tax to a foreign country on income 

from foreign sources, you may be able to claim a credit for 

the foreign taxes.

If you claim the foreign tax credit, you must generally 

file Form 1116 with your income tax return. For more information, see the Instructions for Form 1116 and Pub. 514.

Child and dependent care credit. You may qualify for 

this credit if you pay someone to care for your dependent 

qualifying child who is under age 13, or your disabled dependent or disabled spouse, so that you can work or look 

for work.

Married dual-status aliens can claim the credit only if 

they choose to file a joint return, as discussed in chapter 1, or if they qualify as certain married individuals living 

apart.

The amount of your child and dependent care expense 

that qualifies for the credit in any tax year cannot be more 

than your earned income for that tax year.

For more information, see Pub. 503 and Form 2441.

Retirement savings contributions credit. You may 

qualify for this credit (also known as the saver’s credit) if 

you made eligible contributions to an employer-sponsored 

retirement plan or to an IRA in 2023. You cannot claim this 

credit if:

• You were born after January 1, 2006,

• You were a full-time student,

• You were claimed as a dependent on someone else's 

2023 tax return, or

CAUTION

!

48 Chapter 6 Dual-Status Tax Year Publication 519 (2023)
• Your adjusted gross income is more than $36,500.

Use Form 8880 to figure the credit. For more information, 

see Pub. 590-A.

Child tax credit and the additional child tax credit. 

“Qualifying child,” for purposes of the child tax credit and 

the additional child tax credit, is a child who:

• Was under age 17 at the end of 2023;

• Is your son, daughter, stepchild, eligible foster child, 

brother, sister, stepbrother, stepsister, half brother, half 

sister, or a descendant of any of them (for example, 

your grandchild, niece, or nephew);

• Is a U.S. citizen, U.S. national, or resident alien;

• Did not provide over half of their own support for 2023;

• Lived with you more than half of 2023 (temporary absences, such as for school, vacation, or medical care, 

count as time lived in the home);

• Is claimed as a dependent on your return; and

• Does not file a joint return for the year (or files it only to 

claim a refund of withheld income tax or estimated tax 

paid).

An adopted child is always treated as your own child. 

An adopted child includes a child lawfully placed with you 

for legal adoption.

If you did not have an SSN (or ITIN) issued on or before 

the due date of your 2023 return (including extensions), 

you may not claim the child tax credit on either your original or an amended 2023 return.

If your child did not have an SSN valid for employment 

issued before the due date of the 2023 return (including 

extensions), you cannot claim the child tax credit for this 

child, but may be able to claim the credit for other dependents for this child. See Credit for other dependents, discussed below.

Use Schedule 8812 (Form 1040) and its instructions to 

figure the credits.

Credit for other dependents. The credit for other dependents is for people who have dependents who cannot 

be claimed for the child tax credit. The qualifying dependent must be a U.S. citizen, U.S. national, or U.S. resident 

alien and must have an SSN, ITIN, or ATIN issued on or 

before the due date of your 2023 return (including extensions).

Adoption credit. You may qualify to take a tax credit of 

up to $15,950 for qualifying expenses paid to adopt an eligible child. This amount may be allowed for the adoption 

of a child with special needs regardless of whether you 

have qualifying expenses. To claim the adoption credit, file 

Form 8839 with the U.S. income tax return that you file.

Married dual-status aliens can claim the credit only if 

they choose the Nonresident Spouse Treated as a Resident status, as discussed in chapter 1, or if they qualify as 

certain married individuals living apart (see Married Persons Not Filing Jointly in the Instructions for Form 8839).

Payments

You can report as payments against your U.S. income tax 

liability certain taxes you paid, are considered to have 

paid, or that were withheld from your income. These include:

• Tax withheld from wages earned in the United States,

• Taxes withheld at the source from various items of income from U.S. sources other than wages,

• Estimated tax paid with Form 1040-ES or Form 

1040-ES (NR), and

• Tax paid with Form 1040-C at the time of departure 

from the United States.

Forms To File

The U.S. income tax return you must file as a dual-status 

alien depends on whether you are a resident alien or a 

nonresident alien at the end of the tax year.

Resident at end of year. You must file Form 1040 or 

1040-SR if you are a dual-status taxpayer who becomes a 

resident during the year and who is a U.S. resident on the 

last day of the tax year. Enter “Dual-Status Return” across 

the top of the return. Attach a statement to your return to 

show the income for the part of the year you are a nonresident. You can use Form 1040-NR as the statement, but be 

sure to enter “Dual-Status Statement” across the top.

Nonresident at end of year. You must file Form 

1040-NR if you are a dual-status taxpayer who gives up 

residence in the United States during the year and who is 

not a U.S. resident on the last day of the tax year. Enter 

“Dual-Status Return” across the top of the return. Attach a 

statement to your return to show the income for the part of 

the year you are a resident. You can use Form 1040 or 

1040-SR as the statement, but be sure to enter “Dual-Status Statement” across the top.

If you expatriated or terminated your residency in 2023, 

you may be required to file an expatriation statement 

(Form 8854) with your tax return. For more information, 

see Expatriation Tax in chapter 4.

Statement. Any statement must have your name, address, and TIN on it. You do not need to sign a separate 

statement or schedule accompanying your return because 

your signature on the return also applies to the supporting 

statements and schedules.

When and Where To File

If you are a resident alien on the last day of your tax year 

and report your income on a calendar year basis, you 

must file no later than April 15 of the year following the 

close of your tax year (but see the TIP, later). If you report 

your income on other than a calendar year basis, file your 

return no later than the 15th day of the 4th month following 

Publication 519 (2023) Chapter 6 Dual-Status Tax Year 49
the close of your tax year. In either case, file your return 

with the address for dual-status aliens shown on the back 

of the Instructions for Form 1040.

If you are a nonresident alien on the last day of your tax 

year and you report your income on a calendar year basis, 

you must file no later than April 15 of the year following the 

close of your tax year if you receive wages subject to withholding. If you report your income on other than a calendar year basis, file your return no later than the 15th day of 

the 4th month following the close of your tax year. If you 

did not receive wages subject to withholding and you report your income on a calendar year basis, you must file 

no later than June 15 of the year following the close of 

your tax year. If you report your income on other than a 

calendar year basis, file your return no later than the 15th 

day of the 6th month following the close of your tax year. In 

any case, mail your return to:

Department of the Treasury

Internal Revenue Service

Austin, TX 73301-0215

If enclosing a payment, mail your return to:

Internal Revenue Service

P.O. Box 1303

Charlotte, NC 28201-1303

If the regular due date for filing falls on a Saturday, 

Sunday, or legal holiday, the due date is the next 

day that is not a Saturday, Sunday, or legal holiday.

7.

Filing Information

Introduction

This chapter provides the basic filing information that you 

may need.

Topics

This chapter discusses:

• Forms aliens must file,

• When and where to file,

• Penalties, and

• Amended returns and claims for refund.

TIP

Useful Items

You may want to see:

Forms (and Instructions)

U.S. Individual Income Tax Return

U.S. Tax Return for Seniors

U.S. Nonresident Alien Income Tax Return

See chapter 12 for information about getting these forms.

What, When, and Where To File

What return you must file, as well as when and where you 

file that return, depend on your status at the end of the tax 

year as a resident or a nonresident alien.

Resident Aliens

Resident aliens should file Form 1040 or 1040-SR at the 

address shown in the Instructions for Form 1040. The due 

date for filing your return and paying any tax due is April 

15 of the year following the year for which you are filing a 

return (but see the TIP, earlier).

Under U.S. immigration law, a lawful permanent resident who is required to file a tax return as a resident and 

fails to do so may be regarded as having abandoned status and may lose permanent resident status.

Extensions of time to file. You can get an automatic 

6-month extension (October 15 for calendar year taxpayers) if, no later than the date your return is due, you file 

Form 4868. For more information, see Form 4868.

An automatic 6-month extension to file does not 

extend the time to pay your tax. If you do not pay 

your tax by the original due date of your return, 

you will owe interest on the unpaid tax and may owe penalties.

You are allowed an automatic extension to file until 

June 15 if your main place of business and the home you 

live in are outside the United States and Puerto Rico on 

April 15. If you need more time by the end of the 2-month 

period, you can get an additional 4 months until October 

15 if, no later than June 15, you file Form 4868.

In addition to the 6-month extension, taxpayers who are 

out of the country (as defined in the Instructions for Form 

4868) can request a discretionary 2-month additional extension of time to file their returns (December 15 for calendar year taxpayers). To request this extension, you must 

send the IRS a letter explaining the reasons why you need 

the additional 2 months. Send the letter by the extended 

due date (October 15 for calendar year taxpayers) to the 

following address.

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

You will not receive any notification from the IRS unless 

your request is denied for being untimely.

 1040

 1040-SR

 1040-NR

CAUTION

!

50 Chapter 7 Filing Information Publication 519 (2023)
The discretionary 2-month additional extension is not 

available to taxpayers who have an approved extension of 

time to file on Form 2350 (for U.S. citizens and resident aliens abroad who expect to qualify for special tax treatment).

If the due date for filing falls on a Saturday, Sunday, or legal holiday, the due date is the next day 

that is not a Saturday, Sunday, or legal holiday.

You may be able to file your return electronically. Go to IRS.gov/Efile for more 

information.

Nonresident Aliens

Nonresident aliens who are required to file an income tax 

return should use Form 1040-NR.

If you are any of the following, you must file a return.

1. A nonresident alien individual engaged or considered 

to be engaged in a trade or business in the United 

States during 2023. (But see Exceptions, later.)

You must file even if:

a. Your income did not come from a trade or business conducted in the United States,

b. You have no income from U.S. sources, or

c. Your income is exempt from income tax.

2. A nonresident alien individual not engaged in a trade 

or business in the United States with U.S. income on 

which the tax liability was not satisfied by the withholding of tax at the source.

3. A representative or agent responsible for filing the return of an individual described in (1) or (2).

4. A fiduciary for a nonresident alien estate or trust.

You must also file if you want to:

• Claim a refund of overwithheld or overpaid tax, or

• Claim the benefit of any deductions or credits. For example, if you have no U.S. business activities but have 

income from real property that you choose to treat as 

effectively connected income (discussed in chapter 4), you must timely file a true and accurate return to 

take any allowable deductions against that income. 

For information on what is timely, see When to file for 

deductions and credits under When To File, later.

Exceptions. You do not need to file Form 1040-NR if you 

meet any of the following conditions.

The exception that previously allowed nonresident 

aliens whose only U.S. trade or business was the 

performance of personal services and whose 

wage income did not exceed the personal exemption 

amount to not file a Form 1040-NR is no longer available. 

You must meet (1), (2), or (3) below to be exempt from filing a 2023 Form 1040-NR.

TIP

CAUTION

!

1. You were a nonresident alien student, teacher, or 

trainee who was temporarily present in the United 

States under an “F,” “J,” “M,” or “Q” visa, and you have 

no income that is subject to tax, such as wages, tips, 

scholarship and fellowship grants, dividends, etc.

2. You were a student or business apprentice who was 

eligible for the benefits of Article 21(2) of the United 

States-India Income Tax Treaty, you are single or a 

qualifying surviving spouse, and your gross income 

for 2023 was less than or equal to $13,850 if single 

($27,700 if a qualifying surviving spouse).

3. You were a partner in a U.S. partnership that was not 

engaged in a trade or business in the United States 

during 2023 and your Schedule K-1 (Form 1065) includes only income from U.S. sources that is not effectively connected with a U.S. trade or business.

Even if you have left the United States and filed a 

Form 1040-C on departure, you must still file an 

annual U.S. income tax return. If you are married 

and both you and your spouse are required to file, you 

must each file a separate return.

Foreign-owned domestic disregarded entities. If a 

foreign person wholly owns a domestic disregarded entity 

(DE), the domestic DE is treated as a domestic corporation separate from its owner (the foreign person) for the 

limited purposes of the requirements under section 6038A 

that apply to 25% foreign-owned domestic corporations. 

The foreign-owned domestic DE must file a pro forma 

Form 1120 with Form 5472 attached by the due date (including extensions) of the return. The only information required to be completed on Form 1120 is the name and address of the foreign-owned domestic DE and items B and 

E on the first part. A foreign-owned domestic DE may 

have had a reporting requirement before 2017 if it had a 

U.S. trade or business or other activity that otherwise required reporting. See the Instructions for Form 5472 for 

additional information and coordination with Form 5472 filing by the domestic DE. Also note that because the domestic DE is generally a transparent entity, the foreign person will include (or continue to include) on Form 1040-NR 

any of the domestic DE's tax items that are subject to reporting. A DE (foreign or domestic) may also have a separate reporting requirement related to employment or excise taxes. See Regulations sections 301.7701-2(c)(2)(iv) 

and (v).

When To File

If you are an employee and you receive wages subject to 

U.S. income tax withholding, you will generally file by the 

15th day of the 4th month after your tax year ends. For the 

2023 calendar year, file your return by April 15, 2024.

If you are not an employee who receives wages subject 

to U.S. income tax withholding, you must file by the 15th 

day of the 6th month after your tax year ends. For the 

2023 calendar year, file your return by June 17, 2024.

CAUTION

!

Publication 519 (2023) Chapter 7 Filing Information 51
Extensions of time to file. If you cannot file your return 

by the due date, file Form 4868 or use one of the electronic filing options explained in the Instructions for Form 

4868. For the 2023 calendar year, this will extend the due 

date to October 15, 2024. If your regular due date is June 

17, 2024, this will extend the due date to December 15, 

2024. You must file the extension by the regular due date 

of your return.

An automatic 6-month extension to file does not 

extend the time to pay your tax. If you do not pay 

your tax by the original due date of your return, 

you will owe interest on the unpaid tax and may owe penalties. See Form 4868.

When to file for deductions and credits. To get the 

benefit of any allowable deductions or credits, you must 

timely file a true and accurate return. For this purpose, a 

return is timely if it is filed within 16 months of the due date 

just discussed. However, if you did not file a 2022 tax return and 2023 is not the first year for which you are required to file one, your 2023 return is timely for this purpose if it is filed by the earlier of:

• The date that is 16 months after the due date for filing 

your 2023 return, or

• The date the IRS notifies you that your 2023 return 

has not been filed and that you cannot claim certain 

deductions and credits.

The allowance of the following credits is not affected by 

this time requirement.

• Credit for withheld taxes.

• Credit for excise tax on certain uses of gasoline and 

special fuels.

• Credit for tax paid by a mutual fund (or other RIC) or a 

REIT on undistributed long-term capital gains.

Protective return. If your activities in the United 

States were limited and you do not believe that you had 

any gross income effectively connected with a U.S. trade 

or business during the year, you can file a protective return 

(Form 1040-NR) by the deadline explained above. By filing a protective return, you protect your right to receive the 

benefit of deductions and credits in the event it is later determined that some or all of your income is effectively connected. You are not required to report any effectively connected income or any deductions on the protective return, 

but you must give the reason the return is being filed.

If you believe some of your activities resulted in effectively connected income, file your return reporting that income and related deductions by the regular due date. To 

protect your right to claim deductions or credits resulting 

from other activities, attach a statement to that return explaining that you wish to protect your right to claim deductions and credits if it is later determined that the other activities produced effectively connected income.

You can follow the same procedure if you believe you 

have no U.S. tax liability because of a U.S. tax treaty. Be 

sure to also complete item L on Schedule OI (Form 

1040-NR).

CAUTION

!

Waiver of filing deadline. The IRS may waive the filing deadline if you establish that, based on the facts and 

circumstances, you acted reasonably and in good faith in 

failing to file a U.S. income tax return (including a protective return) and you cooperate with the IRS in determining 

your U.S. income tax liability for the tax year for which you 

did not file a return.

Where To File

If you are not enclosing a payment, file Form 

1040-NR at the following address.

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301-0215

If enclosing a payment, mail your return to:

Internal Revenue Service

P.O. Box 1303

Charlotte, NC 28201-1303

Aliens from the U.S. Virgin Islands. Report all income 

from U.S. sources, as well as income from other sources, 

on your return. For information on filing U.S. Virgin Islands 

returns, contact the U.S. Virgin Islands Bureau of Internal 

Revenue.

If you are a bona fide resident of the U.S. Virgin Islands during your entire tax year and work temporarily in the United States, you must pay your income taxes to the U.S. Virgin Islands and file your income 

tax returns at the following address.

Virgin Islands Bureau of Internal Revenue

6115 Estate Smith Bay

Suite 225

St. Thomas, VI 00802

Chapter 8 discusses withholding from U.S. wages of residents of the U.S. Virgin Islands.

Aliens from Guam or the Commonwealth of the 

Northern Mariana Islands (CNMI). If you are a bona 

fide resident of Guam or the CNMI during your entire tax 

year, you must file your return with, and pay any tax due 

to, Guam or the CNMI. Report all income, including income from U.S. sources, on your return. It is not necessary to file a separate U.S. income tax return.

Bona fide residents of Guam should file their 

Guam returns at the following address.

Department of Revenue and Taxation

Government of Guam

P.O. Box 23607

Barrigada, GU 96921

52 Chapter 7 Filing Information Publication 519 (2023)
Bona fide residents of the CNMI should file their 

CNMI income tax returns at the following address. 

Department of Finance

Division of Revenue and Taxation

Commonwealth of the Northern Mariana Islands

P.O. Box 5234 CHRB

Saipan, MP 96950

If you are not a bona fide resident of Guam or the 

CNMI, see Pub. 570 for information on where to file your 

return.

Amended Returns and Claims for 

Refund

If you find changes in your income, deductions, or credits 

after you mail your return, file Form 1040-X. Also use Form 

1040-X if you should have filed Form 1040 or 1040-SR instead of Form 1040-NR, or vice versa.

If you amend Form 1040-NR or file the correct return, 

enter “Amended” across the top, and attach the corrected 

return (Form 1040, 1040-SR, or 1040-NR) to Form 

1040-X. Ordinarily, an amended return claiming a refund 

must be filed within 3 years from the date your return was 

filed or within 2 years from the time the tax was paid, 

whichever is later. A return filed before the final due date is 

considered to have been filed on the due date.

Note. You can now file Form 1040-X electronically 

with tax filing software to amend 2019 or later Forms 1040 

and 1040-SR, and 2021 or later Forms 1040-NR. For 

more information, go to IRS.gov/Form1040X.

Other Forms You May Have To File

You may be required to file information returns to report 

certain foreign income or assets, or monetary transactions.

FinCEN Form 105, Report of International 

Transportation of Currency or Monetary 

Instruments (CMIR)

FinCEN Form 105 is required by 31 U.S.C. 5316 and 

Treasury Department regulations (31 CFR, chapter X).

The following persons must file FinCEN Form 105. 

1. Each person who physically transports, mails, or 

ships, or causes to be physically transported, mailed, 

or shipped, currency or other monetary instruments 

totaling more than $10,000 at one time from the United States to any place outside the United States or 

into the United States from any place outside the United States.

2. Each person who receives in the United States currency or other monetary instruments totaling more 

than $10,000 at one time from any place outside the 

United States.

A transfer of funds through normal banking procedures, 

which does not involve the physical transportation of currency or monetary instruments, is not required to be reported.

Penalties. Civil and criminal penalties are provided for 

failing to file a report, filing a report containing material 

omissions or misstatements, or filing a false or fraudulent 

report. Also, the entire amount of the currency or monetary instrument may be subject to seizure and forfeiture.

More information. The form is available at FINCEN.gov/

resources/filing-information. For more information about 

BSA E-Filing, see the E-Filing Section at 

BSAefiling.fincen.treas.gov/main.html.

Form 8938

You may have to file Form 8938 to report the ownership of 

a specified foreign financial asset(s) if you are one of the 

following individuals.

• A resident alien of the United States for any part of the 

tax year.

• A nonresident alien who makes an election to be treated as a resident for purposes of filing a joint income 

tax return. See chapter 1 for information about this 

election.

• A nonresident alien who is a bona fide resident of 

American Samoa or Puerto Rico. See Pub. 570 for a 

definition of bona fide resident.

You must file Form 8938 if the total value of those assets exceeds an applicable threshold (the “reporting 

threshold”). The reporting threshold varies depending on 

whether you live in the United States, are married, or file a 

joint income tax return with your spouse. Specified foreign 

financial assets include any financial account maintained 

by a foreign financial institution and, to the extent held for 

investment, any stock, securities, or any other interest in a 

foreign entity and any financial instrument or contract with 

an issuer or counterparty that is not a U.S. person.

You may have to pay penalties if you are required to file 

Form 8938 and fail to do so, or if you have an understatement of tax due to any transaction involving an undisclosed foreign financial asset.

More information about filing Form 8938 can be found 

in the Instructions for Form 8938.

Penalties

The law provides penalties for failure to file returns or pay 

taxes as required.

Publication 519 (2023) Chapter 7 Filing Information 53
Civil Penalties

If you do not file your return and pay your tax by the due 

date, you may have to pay a penalty. You may also have to 

pay a penalty if you substantially understate your tax, file a 

frivolous tax submission, or fail to supply your TIN. If you 

provide fraudulent information on your return, you may 

have to pay a civil fraud penalty.

Filing late. If you do not file your return by the due date 

(including extensions), you may have to pay a failure-to-file penalty. The penalty is based on the tax not 

paid by the due date (without regard to extensions). The 

penalty is usually 5% for each month or part of a month 

that a return is late, but not more than 25%.

Fraud. If your failure to file is due to fraud, the penalty 

is 15% for each month or part of a month that your return 

is late, up to a maximum of 75%.

Return over 60 days late. If you file your return more 

than 60 days after the due date or extended due date, the 

minimum penalty is the smaller of $485 or 100% of the unpaid tax.

Exception. You will not have to pay the penalty if you 

show that you failed to file on time because of reasonable 

cause and not because of willful neglect.

Paying tax late. You will have to pay a failure-to-pay penalty of 1/2 of 1% (0.005) of your unpaid taxes for each 

month, or part of a month, after the due date that the tax is 

not paid. This penalty does not apply during the automatic 

6-month extension of time to file period if you paid at least 

90% of your actual tax liability on or before the due date of 

your return and pay the balance when you file the return.

The monthly rate of the failure-to-pay penalty is half the 

usual rate, 1/4% (0.0025 instead of 1/2% (0.005)), if an installment agreement is in effect for that month. You must 

have filed your return by the due date (including extensions) to qualify for this reduced penalty.

If a notice of intent to levy is issued, the rate will increase to 1% at the start of the first month beginning at 

least 10 days after the day that the notice is issued. If a 

notice and demand for immediate payment is issued, the 

rate will increase to 1% at the start of the first month beginning after the day that the notice and demand is issued.

This penalty cannot be more than 25% of your unpaid 

tax. You will not have to pay the penalty if you can show 

that you had a good reason for not paying your tax on 

time.

Combined penalties. If both the failure-to-file penalty 

and the failure-to-pay penalty (discussed earlier) apply in 

any month, the 5% (or 15%) failure-to-file penalty is reduced by the failure-to-pay penalty. However, if you file 

your return more than 60 days after the due date or extended due date, the minimum penalty is the smaller of $485 

or 100% of the unpaid tax.

Accuracy-related penalty. You may have to pay an accuracy-related penalty if you underpay your tax because:

• You show negligence or disregard of rules or regulations,

• You substantially understate your income tax,

• You claim tax benefits for a transaction that lacks economic substance, or

• You fail to disclose a foreign financial asset.

The penalty is equal to 20% of the underpayment. The 

penalty is 40% of any portion of the underpayment that is 

attributable to an undisclosed noneconomic substance 

transaction or an undisclosed foreign financial asset transaction. The penalty will not be figured on any part of an 

underpayment on which the fraud penalty, discussed later, 

is charged.

Negligence or disregard. The term “negligence” includes a failure to make a reasonable attempt to comply 

with the tax law or to exercise ordinary and reasonable 

care in preparing a return. Negligence also includes failure 

to keep adequate books and records. You will not have to 

pay a negligence penalty if you have a reasonable basis 

for a position you took, or if you can show a reasonable 

cause and acted in good faith.

The term “disregard” includes any careless, reckless, or 

intentional disregard.

Adequate disclosure. You can avoid the penalty for 

disregard of rules or regulations if you adequately disclose 

on your return a position that has at least a reasonable basis. See Disclosure statement, later.

This exception will not apply to an item that is attributable to a tax shelter. In addition, it will not apply if you fail to 

keep adequate books and records or to substantiate items 

properly.

Substantial understatement of income tax. You understate your tax if the tax shown on your return is less 

than the correct tax. The understatement is substantial if it 

is more than the larger of 10% of the correct tax or $5,000. 

However, the amount of the understatement is reduced to 

the extent the understatement is due to:

1. Substantial authority,

2. Adequate disclosure and a reasonable basis, or

3. Reasonable cause and good faith.

If an item on your return is attributable to a tax shelter, 

there is no reduction for an adequate disclosure. However, 

there is a reduction for a position with substantial authority, 

but only if you reasonably believed that your tax treatment 

was more likely than not the proper treatment.

Substantial authority. Whether there is or was substantial authority for the tax treatment of an item depends 

on the facts and circumstances. Consideration will be 

given to court opinions, Treasury regulations, revenue rulings, revenue procedures, and notices and announcements issued by the IRS and published in the Internal 

Revenue Bulletin that involve the same or similar circumstances as yours.

54 Chapter 7 Filing Information Publication 519 (2023)
Disclosure statement. To adequately disclose the 

relevant facts about your tax treatment of an item, use 

Form 8275, Disclosure Statement. You must also have a 

reasonable basis for treating the item the way you did.

In cases of substantial understatement, only items that 

meet the requirements of Revenue Procedure 2023-40, 

available at IRS.gov/irb/2023-51_IRB#REVPROC-2023-40 (or its successor) are considered adequately disclosed on your return.

Revenue Procedure 2023-40 does not take into account the effect of tax law changes effective for tax years 

beginning after December 31, 2023. If a line referenced in 

this revenue procedure is affected by such a change and 

requires additional reporting, a taxpayer may have to file 

Form 8275; or Form 8275-R, Regulation Disclosure Statement, until regulations or other guidance has been issued 

to comply with the requirement.

A complete and accurate disclosure of a tax position on 

the appropriate year’s Schedule UTP (Form 1120), Uncertain Tax Position Statement, will be treated as if the corporation filed a Form 8275 or Form 8275-R regarding the tax 

position. The filing of a Form 8275 or Form 8275-R, however, will not be treated as if the corporation filed a Schedule UTP (Form 1120).

Use Form 8275-R to disclose items or positions contrary to regulations.

Transaction lacking economic substance. For more 

information on economic substance, see section 7701(o).

Foreign financial asset. For more information on undisclosed foreign financial assets, see section 6662(j) or 

the Instructions for Form 8938.

Reasonable cause. You will not have to pay a penalty 

if you show a good reason (reasonable cause) for the way 

you treated an item. You must also show that you acted in 

good faith. This does not apply to a transaction that lacks 

economic substance.

Filing erroneous claim for refund or credit. You may 

have to pay a penalty if you file an erroneous claim for refund or credit. The penalty is equal to 20% of the disallowed amount of the claim, unless you can show that you 

had reasonable cause for filing your claim. However, any 

disallowed amount due to a transaction that lacks economic substance will not be treated as due to reasonable 

cause. The penalty will not be figured on any part of the 

disallowed amount of the claim that is subject to accuracy-related or fraud penalties.

Frivolous tax submission. You may have to pay a penalty of $5,000 if you file a frivolous tax return or other frivolous submissions. A frivolous tax return is one that does 

not include enough information to figure the correct tax or 

that contains information clearly showing that the tax you 

reported is substantially incorrect. For more information on 

frivolous returns, frivolous submissions, and a list of positions that are identified as frivolous, see IRS.gov/irb/

2010-17_IRB#NOT-2010-33 (or its successor).

You will have to pay the penalty if you filed this kind of 

return or submission based on a frivolous position or a desire to delay or interfere with the administration of federal 

tax laws. This includes altering or striking out the preprinted language above the space provided for your signature.

This penalty is added to any other penalty provided by 

law.

Fraud. If there is any underpayment of tax on your return 

due to fraud, a penalty of 75% of the underpayment due to 

fraud will be added to your tax.

Failure to supply TIN. If you do not include your SSN or 

ITIN or the SSN or ITIN of another person where required 

on a return, statement, or other document, you may be 

subject to a penalty of $50 for each failure. You may also 

be subject to a penalty of $50 if you do not give your SSN 

or ITIN to another person when it is required on a return, 

statement, or other document.

For example, if you have a bank account that earns interest, you must give your SSN or ITIN to the bank. The 

number must be shown on the Form 1099-INT or other 

statement the bank sends you. If you do not give the bank 

your SSN or ITIN, you will be subject to the $50 penalty. 

(You may also be subject to backup withholding of income 

tax.)

You will not have to pay the penalty if you are able to 

show that the failure was due to reasonable cause and not 

willful neglect.

Criminal Penalties

You may be subject to criminal prosecution (brought to 

trial) for actions such as:

1. Tax evasion;

2. Willful failure to file a return, supply information, or pay 

any tax due;

3. Fraud and false statements; or

4. Preparing and filing a fraudulent return.

8.

Paying Tax Through 

Withholding or Estimated 

Tax

Introduction

This chapter discusses how to pay your U.S. income tax 

as you earn or receive income during the year. In general, 

the federal income tax is a pay-as-you-go tax. There are 

two ways to pay as you go.

Publication 519 (2023) Chapter 8 Paying Tax Through Withholding or Estimated 

Tax 

55
1. Withholding. If you are an employee, your employer 

probably withholds income tax from your pay. Tax may 

also be withheld from certain other income—including 

pensions, bonuses, commissions, and gambling winnings. In each case, the amount withheld is paid to 

the U.S. Treasury in your name.

2. Estimated tax. If you do not pay your tax through 

withholding, or do not pay enough tax that way, you 

might have to pay estimated tax. People who are in 

business for themselves will generally have to pay 

their tax this way. You may have to pay estimated tax if 

you receive income such as dividends, interest, rent, 

and royalties. Estimated tax is used to pay not only income tax, but self-employment tax and alternative 

minimum tax as well.

Topics

This chapter discusses:

• How to notify your employer of your alien status,

• Income subject to withholding of income tax,

• Exemptions from withholding,

• Social security and Medicare taxes, and

• Estimated tax rules.

Useful Items

You may want to see:

Publication

Withholding of Tax on Nonresident Aliens and 

Foreign Entities

U.S. Tax Treaties

Form (and Instructions)

Employee's Withholding Certificate

ocSupplemental Form W-4 Instructions 

for Nonresident Aliens

Certificate of Foreign Status of Beneficial 

Owner for United States Tax Withholding and 

Reporting (Individuals)

W-8ECIertificate of Foreign Person's Claim That 

Income Is Effectively Connected With the 

Conduct of a Trade or Business in the United 

States

W-9 Request for Taxpayer Identification Number and 

Certification

1040-ES (NR) U.S. Estimated Tax for Nonresident 

Alien Individuals

8233 Exemption From Withholding on 

Compensation for Independent (and Certain 

Dependent) Personal Services of a Nonresident 

Alien Individual

8288-B Application for Withholding Certificate for 

Dispositions by Foreign Persons of U.S. Real 

Property Interests

 515 

 901 

 W-4

 Notice 1392

 W-8BEN

 W-8ECI

 W-9

 1040-ES (NR)

 8233

 8288-B

Application for Central Withholding 

Agreement

See chapter 12 for information about getting these publications and forms.

Notification of Alien Status

You must let your employer know whether you are a resident or a nonresident alien so your employer can withhold 

the correct amount of tax from your wages.

If you are a resident alien under the rules discussed in 

chapter 1, you must file Form W-9 or a similar statement 

with your employer. If you are a nonresident alien under 

those rules, you must furnish to your employer Form 8233 

or Form W-8BEN, establishing that you are a foreign person, or Form W-4, establishing that your compensation is 

subject to graduated withholding at the same rates as resident aliens or U.S. citizens.

If you are a resident alien and you receive income other 

than wages (such as dividends and royalties) from sources within the United States, file Form W-9 or similar 

statement with the withholding agent (generally, the payer 

of the income) so the agent will not withhold tax on the income at the 30% (or lower treaty) rate. If you receive this 

type of income as a nonresident alien, file Form W-8BEN 

with the withholding agent so that the agent will withhold 

tax at the 30% (or lower treaty) rate. However, if the income is effectively connected with a U.S. trade or business, file Form W-8ECI instead.

Withholding From 

Compensation

The following discussion generally applies only to nonresident aliens. Tax is withheld from resident aliens in the 

same manner as U.S. citizens.

Wages and other compensation paid to a nonresident 

alien for services performed as an employee are usually 

subject to graduated withholding at the same rates as resident aliens and U.S. citizens. Therefore, your compensation, unless it is specifically excluded from the term “wages” by law, or is exempt from tax by treaty, is subject to 

graduated withholding.

Withholding on Wages

If you are an employee and you receive wages subject to 

graduated withholding, you will be required to fill out a 

Form W-4. Also fill out Form W-4 for a scholarship or fellowship grant to the extent it represents payment for past, 

present, or future services and for which you are not 

claiming a tax treaty withholding exemption on Form 8233 

(discussed later under Income Entitled to Tax Treaty Benefits). These are services you are required to perform as 

an employee and as a condition of receiving the 

scholarship or fellowship (or tuition reduction).

 13930

56 Chapter 8 Paying Tax Through Withholding or Estimated 

Tax 

Publication 519 (2023)
Nonresident aliens must follow the special instructions 

in Notice 1392 when completing Form W-4 for compensation paid as employees performing dependent personal 

services in the United States. Compensation for dependent personal services includes amounts paid as wages, 

salaries, fees, bonuses, commissions, compensatory 

scholarships, fellowship income, and similar designations 

for amounts paid to an employee.

To see if you need to have your withholding increased 

or decreased, use the IRS Tax Withholding Estimator.

See Withholding on Scholarships and Fellowship 

Grants, later, for how to fill out Form W-4 if you receive a 

U.S. source scholarship or fellowship grant that is not a 

payment for services.

Students and business apprentices from India. If you 

are eligible for the benefits of Article 21(2) of the United 

States-India Income Tax Treaty, you may claim an additional withholding allowance for the standard deduction.

Household employees. If you work as a household employee, your employer does not have to withhold income 

tax. However, you may agree to voluntarily withhold income tax by filing a Form W-4 with your employer. The 

agreement goes into effect when your employer accepts 

the agreement by beginning the withholding. You or your 

employer may end the agreement by letting the other 

know in writing.

Agricultural workers. If you are an agricultural worker 

on an H-2A visa, your employer does not have to withhold 

income tax. However, your employer will withhold income 

tax only if you and your employer agree to withhold. In that 

case, you must provide your employer with a properly 

completed Form W-4. You can find more information 

about not having tax withheld at IRS.gov/

ForeignAgriculturalWorkers.

Wages Exempt From Withholding

Wages that are exempt from U.S. income tax under an income tax treaty are generally exempt from withholding. 

For information on how to claim this exemption from withholding, see Income Entitled to Tax Treaty Benefits, later.

Wages paid to aliens who are residents of American 

Samoa, Canada, Mexico, Puerto Rico, or the U.S. Virgin 

Islands may be exempt from withholding. The following 

paragraphs explain these exemptions.

Residents of Canada or Mexico engaged in transportation-related employment. Certain residents of Canada or Mexico who enter or leave the United States at frequent intervals are not subject to withholding on their 

wages. These persons either:

• Perform duties in transportation service between the 

United States and Canada or Mexico; or

• Perform duties connected to the construction, maintenance, or operation of a waterway, viaduct, dam, or 

bridge crossed by, or crossing, the boundary between 

the United States and Canada or the boundary between the United States and Mexico.

This employment is subject to withholding of social security and Medicare taxes unless the services are performed for a railroad.

To qualify for the exemption from withholding during a 

tax year, a Canadian or Mexican resident must give the 

employer a statement in duplicate with name, address, 

and TIN, certifying that the resident:

• Is not a U.S. citizen or resident;

• Is a resident of Canada or Mexico, whichever applies; 

and

• Expects to perform duties previously described during 

the tax year in question.

The statement can be in any form, but it must be dated 

and signed by the employee and must include a written 

declaration that it is made under penalties of perjury.

Residents of American Samoa and Puerto Rico. If 

you are a nonresident alien employee who is a resident of 

American Samoa or Puerto Rico, wages for services performed in American Samoa or Puerto Rico are generally 

not subject to withholding unless you are an employee of 

the United States or any of its agencies in American Samoa or Puerto Rico.

Residents of the U.S. Virgin Islands. Nonresident aliens who are bona fide residents of the U.S Virgin Islands 

are not subject to withholding of U.S. tax on income 

earned while temporarily employed in the United States. 

This is because those persons pay their income tax to the 

U.S. Virgin Islands. To avoid having tax withheld on income earned in the United States, bona fide residents of 

the U.S. Virgin Islands should write a letter, in duplicate, to 

their employers, stating that they are bona fide residents 

of the U.S. Virgin Islands and expect to pay tax on all income to the U.S. Virgin Islands.

Withholding on Pensions

If you receive a pension distribution from the United 

States, the payment is generally subject to the 30% (or 

lower treaty) rate of withholding. You may, however, have 

tax withheld at graduated rates on the portion of the pension that arises from the performance of services in the 

United States after 1986. You must fill out Form W-8BEN 

or Form 8233 and give it to the withholding agent or payer 

before the income is paid or credited to you.

Withholding on Tip Income

Tips you receive during the year for services performed in 

the United States are subject to U.S. income tax. Include 

them in taxable income. In addition, tips received while 

working for one employer, amounting to $20 or more in a 

month, are subject to graduated withholding.

CAUTION

!

Publication 519 (2023) Chapter 8 Paying Tax Through Withholding or Estimated 

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57
Independent Contractors

If there is no employee-employer relationship between you 

and the person for whom you perform services, your compensation is subject to the 30% (or lower treaty) rate of 

withholding. However, if you are engaged in a trade or 

business in the United States during the tax year, your 

compensation for personal services as an independent 

contractor (independent personal services) may be entirely or partly exempt from withholding if you reach an 

agreement with the IRS on the amount of withholding required. An agreement that you reach with the IRS regarding withholding from your compensation for independent 

personal services is effective for payments covered by the 

agreement after it is agreed to by all parties. You must 

agree to timely file an income tax return for the current tax 

year.

Central withholding agreements (CWA). If you are a 

nonresident alien entertainer or athlete performing or participating in athletic events in the United States, you may 

be able to enter into a CWA with the IRS for reduced withholding, provided certain requirements are met. Under no 

circumstances will such a withholding agreement reduce 

taxes withheld to less than the anticipated amount of income tax liability.

Use Form 13930 to apply for a CWA, for a nonresident 

alien entertainer or athlete that has calendar year-to-date 

U.S. gross income of at least $10,000. Form 13930 must 

be mailed to the address listed below.

Central Withholding Agreement Program

Internal Revenue Service

24000 Avila Road, MS 6040

Laguna Niguel, CA 92677

We have temporarily waived the income requirement for which form to use when applying for a 

CWA. Form 13930-A is currently unavailable. 

While the waiver is in effect, individuals with income below 

$10,000 can apply for a CWA using Form 13930, Instructions on how to apply for a Central Withholding Agreement. For more information on how to apply for a CWA, 

see Form 13930. For more information, go to IRS.gov/

Individuals/International-Taxpayers/Central-WithholdingAgreements.

A request for a CWA must be received by the IRS at 

least 45 days before the agreement is to take effect to ensure it is in place before the tour begins or the first event 

occurs, and it must contain all supporting documentation 

specified in the instructions, or no consideration will be 

given to entering into a CWA. Exceptions will be considered on a case-by-case basis.

Final payment exemption. Your final payment of compensation during the tax year for independent personal 

services may be entirely or partly exempt from withholding. This exemption (does not apply to wages) is available 

only once during your tax year and applies to a maximum 

of $5,000 of compensation. To obtain this exemption, you 

CAUTION

!

or your agent must give the following statements and information to the Commissioner or Commissioner’s delegate.

• A statement by each withholding agent from whom 

you have received gross income effectively connected 

with a trade or business in the United States during 

the tax year, showing the amount of income paid and 

the tax withheld. Each statement must be signed by 

the withholding agent and verified by a declaration 

that it is made under penalties of perjury.

• A statement by the withholding agent from whom you 

expect to receive the final payment of compensation, 

showing the amount of the payment and the amount of 

tax that would be withheld if a final payment exemption 

were not granted. This statement must also be signed 

by the withholding agent and verified by a declaration 

that it is made under penalties of perjury.

• A statement by you that you do not intend to receive 

any other income effectively connected with a trade or 

business in the United States during the current tax 

year.

• The amount of tax that has been withheld or paid under any other provision of the Internal Revenue Code 

or regulations for any income effectively connected 

with your trade or business in the United States during 

the current tax year.

• The amount of your outstanding tax liabilities, if any, 

including interest and penalties, from the current tax 

year or prior tax periods.

• Any provision of an income tax treaty under which a 

partial or complete exemption from withholding may 

be claimed, the country of your residence, and a statement of sufficient facts to justify an exemption under 

the treaty.

• A statement signed by you, and verified by a declaration that it is made under penalties of perjury, that all 

the information given is true and that to your knowledge no relevant information has been omitted.

If satisfied with the information, the IRS will determine 

the amount of your tentative income tax for the tax year on 

gross income effectively connected with your trade or 

business in the United States. Ordinary and necessary 

business expenses can be taken into account if proven to 

the satisfaction of the Commissioner or Commissioner’s 

delegate.

The Commissioner or Commissioner’s delegate will 

send you a letter, directed to the withholding agent, showing the amount of the final payment of compensation that 

is exempt from withholding and the amount that can be 

paid to you because of the exemption. You must give two 

copies of the letter to the withholding agent and must also 

attach a copy of the letter to your income tax return for the 

tax year for which the exemption is effective. For more information, see Pub. 515.

Refund of Taxes Withheld in Error

Multilevel marketing. If you are a distributor for a multilevel marketing company who had taxes withheld in error, 

58 Chapter 8 Paying Tax Through Withholding or Estimated 

Tax 

Publication 519 (2023)
file a U.S. income tax return (Form 1040-NR or Form 

1120-F) or, if a tax return has already been filed, a claim 

for refund (Form 1040-X or amended Form 1120-F) to recover the amount withheld in error. You must also attach to 

the U.S. income tax return or claim for refund supporting 

information that includes, but is not limited to, the following 

items.

• A copy of your Form W-2, Form 1042-S, or Form 1099 

to prove the amount of taxes withheld.

• A statement explaining why income reported on your 

Form W-2, Form 1042-S, or Form 1099 is not subject 

to U.S. taxation.

• A statement listing all the dates you entered and left 

the United States during the tax year. If the compensation is multiyear compensation, the statement must list 

all the dates you entered and left the United States 

during each of the tax years to which the compensation is attributable.

• A copy of any documents or records that show the 

number of days you actually were present in the United States during the years listed.

• A statement providing (a) the number of days (or unit 

of time less than a day, if appropriate) that personal 

services were performed in the United States in connection with recruiting, training, and supporting your 

lower-tier distributors; and (b) the total number of days 

(or unit of time less than a day, if appropriate) that personal services were performed globally in connection 

with recruiting, training, and supporting your lower-tier 

distributors.

• Any further relevant document or record supporting 

your claim that the taxes were withheld in error.

Refund of taxes withheld in error on social security 

benefits paid to resident aliens. Social security benefits paid to a lawful permanent resident (green card 

holder) are not subject to 30% withholding. For U.S. income tax purposes, green card holders continue to be 

resident aliens until their lawful permanent resident status 

under immigration laws is either taken away or is administratively or judicially determined to have been abandoned. 

See Green Card Test in chapter 1. If you are a green card 

holder and tax was withheld in error on your social security benefits because you have a foreign address, the withholding tax is refundable by the IRS. To obtain a refund, 

you must file a Form 1040 or 1040-SR. To determine if you 

are entitled to a refund, send your return to:

Department of the Treasury

Internal Revenue Service Center

Austin, TX 73301

You must also attach the following to your Form 1040 or 

1040-SR.

• A copy of Form SSA-1042S, Social Security Benefit 

Statement.

• A copy of the green card.

• A signed declaration that includes the following statements: “The SSA should not have withheld income tax 

from my social security benefits because I am a U.S. 

lawful permanent resident and my green card has 

been neither revoked nor administratively or judicially 

determined to have been abandoned. I am filing a U.S. 

income tax return for the tax year as a resident alien 

reporting all of my worldwide income. I have not 

claimed benefits for the tax year under an income tax 

treaty as the resident of a country other than the United States.”

Withholding From Other 

Income

Other income subject to 30% withholding generally includes fixed or determinable income such as interest 

(other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. It also includes 85% of social security 

benefits paid to nonresident aliens.

Other income not subject to withholding of 30% (or 

lower treaty) rate. The following income is not subject to 

withholding at the 30% (or lower treaty) rate if you file 

Form W-8ECI with the payer of the income.

• Income (other than compensation) that is effectively 

connected with your U.S. trade or business.

• Income from real property that you choose to treat as 

effectively connected with a U.S. trade or business. 

See Income From Real Property in chapter 4 for details about this choice.

Special rules for withholding on partnership income, 

scholarships, and fellowships are explained next.

Tax Withheld on Partnership Income

If you are a foreign partner in a U.S. or foreign partnership, 

the partnership will withhold tax on your share of ECTI 

from the partnership. Your partnership may be able to reduce withholding on your share of ECTI by considering 

certain partner-level deductions. Generally, you must submit Form 8804-C for this purpose. For more information, 

see the Instructions for Form 8804-C.

The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 (37%). However, the partnership may 

withhold at the highest rate that applies to a particular type 

of income allocable to you if you gave the partnership the 

appropriate documentation. Long-term capital gain is an 

example of a particular type of income to which the highest tax rate applies. Claim the tax withheld as a credit on 

your 2023 Form 1040-NR.

Publication 519 (2023) Chapter 8 Paying Tax Through Withholding or Estimated 

Tax 

59
The partnership will give you a statement on Form 8805 

showing the tax withheld. A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. In this case, the partnership will 

give you a statement on Form 1042-S.

Tax withheld on gain from the sale or exchange of 

certain partnership interests. If you are a direct or indirect foreign partner in a U.S. or foreign partnership that is 

engaged (or is treated as engaged) in a trade or business 

within the United States and you directly or indirectly dispose of that interest for a gain, then for transfers occurring 

after 2017 the transferee will generally withhold and pay to 

the IRS on your behalf a tax equal to 10% of the amount 

realized on the sale. The rules for withholding and paying 

over this amount are similar to the rules for sales of U.S. 

real property interests. You will receive a Form 8288-A reflecting the amount withheld that you may then claim on 

line 25f of your Form 1040-NR as a credit against the tax 

you owe on the gain. You may be able to provide certain 

information to the transferee to reduce or eliminate withholding. For example, if a nonrecognition provision of the 

Internal Revenue Code applies to all of the gain realized 

on a transfer, the transferee does not need to withhold if 

you provide a notice describing the application of a nonrecognition provision. If you are a transferee that failed to 

withhold, under section 1446(f)(4) the partnership is required to withhold on distributions to you an amount equal 

to the tax you failed to withhold (plus interest, if applicable).

On November 30, 2020, the Department of the Treasury and the IRS issued final regulations under section 

1446(f) in T.D. 9926 (85 FR 76910) for transfers of both 

non-PTP and PTP interests. The final regulations require 

any transferee to withhold a tax equal to 10% of the 

amount realized on any transfer of a partnership interest 

(other than certain PTP interests) under section 1446(f)

(1), unless an exception to withholding applies. These regulations generally apply to transfers that occur on or after 

January 29, 2021. However, in accordance with Notice 

2021-51, 2021-36 I.R.B. 361, the rules related to withholding under section 1446(f)(4) and to transfers of PTP interests apply to transfers occurring on or after January 1, 

2023. Additionally, the final regulations revised certain 

provisions in Regulations section 1.1446-4 for withholding 

under section 1446(a) on PTP distributions. Also in accordance with Notice 2021-51, these revisions apply to 

PTP distributions made on or after January 1, 2023. Notices 2018-8 and 2018-29 apply to transfers that occur before the effective date of the final regulations or, as previously described, taxpayers may apply the proposed 

regulations to transfers of non-PTP interests during this 

time.

For additional guidance on certain issues related to the 

1446(f) regulations, see Notice 2023-8.

Withholding on Scholarships and 

Fellowship Grants

There is no withholding on a qualified scholarship received by a candidate for a degree. See chapter 3.

If you are a nonresident alien student or grantee with an 

“F,” “J,” “M,” or “Q” visa and you receive a U.S. source grant 

or scholarship that is not fully exempt, the withholding 

agent (usually the payer of the scholarship) withholds tax 

at 14% (or lower treaty rate) of the taxable part of the grant 

or scholarship that is not a payment for services. However, 

if you are not a candidate for a degree and the grant does 

not meet certain requirements, tax will be withheld at the 

30% (or lower treaty) rate.

Any part of a scholarship or fellowship grant that is a 

payment for services is subject to graduated withholding, 

as discussed earlier under Withholding on Wages.

Alternate Withholding Procedure

Your withholding agent may choose to use an alternate 

procedure by asking you to fill out Form W-4. See below 

for items that may reduce your withholding.

Expenses. Include expenses that will be deductible on 

your return. These include the IRA deduction discussed 

under Deductions in chapter 5.

Nontaxable grant or scholarship. You can exclude the 

part of your grant or scholarship that is not taxable under 

U.S. law or under a tax treaty.

Standard deduction. If you are a student who qualifies 

under Article 21(2) of the United States-India Income Tax 

Treaty, you can take the standard deduction. The standard 

deduction amount for 2023 is $13,850.

Form W-4. Complete the appropriate lines of Form W-4. 

Sign and date the form and give it to your withholding 

agent.

If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U.S. income tax return to be allowed any deductions 

you claimed on that form. If you are in the United States 

during more than 1 tax year, you must attach a statement 

to your yearly Form W-4 indicating that you have filed a 

U.S. income tax return for the previous year. If you have 

not been in the United States long enough to be required 

to file a return, you must attach a statement to your Form 

W-4 saying you will file a U.S. income tax return when required.

After the withholding agent has accepted your Form 

W-4, tax will be withheld on your scholarship or grant at 

the graduated rates that apply to wages. The gross 

amount of the income is reduced by the applicable 

amount(s) on Form W-4, and the withholding tax is figured 

on the remainder.

You will receive a Form 1042-S from the withholding 

agent (usually the payer of your grant) showing the gross 

amount of your taxable scholarship or fellowship grant 

less any withholding allowance amount, the tax rate, and 

the amount of tax withheld. Use this form to prepare your 

annual U.S. income tax return.

For more information, go to IRS.gov/FormW4.

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Income Entitled to Tax Treaty 

Benefits

If a tax treaty between the United States and your country 

of residence provides an exemption from, or a reduced 

rate of, tax for certain items of income, you should notify 

the payer of the income (the withholding agent) of your foreign status to claim a tax treaty withholding exemption. 

Generally, you do this by filing either Form W-8BEN or 

Form 8233 with the withholding agent.

File Form W-8BEN for income that is not personal services income. File Form 8233 for personal services income, 

as discussed next.

If you qualify for an exemption under a tax treaty 

but did not submit a Form 8233 to your withholding agent to claim an exemption from withholding, 

you can still get the benefit of the exemption by filing a 

Form 1040-NR. Follow the instructions for line 1a of the 

Form 1040-NR.

Employees and independent contractors. If you perform personal services as an employee or as an independent contractor and you can claim an exemption from 

withholding on that personal service income because of a 

tax treaty, give Form 8233 to each withholding agent from 

whom amounts will be received.

Even if you submit Form 8233, the withholding agent 

may have to withhold tax from your income. This is because the factors on which the treaty exemption is based 

may not be determinable until after the close of the tax 

year. In this case, you must file Form 1040-NR to recover 

any overwithheld tax and to provide the IRS with proof that 

you are entitled to the treaty exemption.

Students, teachers, and researchers. Students, 

teachers, and researchers must attach the appropriate 

statement shown in Appendix A (for students) or Appendix 

B (for teachers and researchers) at the end of this publication to the Form 8233 and give it to the withholding agent. 

For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties.

If you received a scholarship or fellowship grant, as well 

as personal services income, from the same withholding 

agent, use Form 8233 to claim an exemption from withholding based on a tax treaty for both types of income.

Note. Form 8233 can be used when you are claiming 

an exemption for scholarship or fellowship income (that is 

not compensation) only if you are also claiming a treaty 

withholding exemption for personal services income. Otherwise, you must use Form W-8BEN.

Special events and promotions. Withholding at the full 

30% rate is required for payments made to a nonresident 

alien or foreign corporation for gate receipts (or television 

or other receipts) from music festivals, boxing promotions, 

and other entertainment or sporting events, unless the 

withholding agent has been specifically advised otherwise 

by letter from the IRS. Depending on the calendar year in 

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which the U.S. gross income is earned, Form 13930 can 

be used to request a reduction in withholding. Withholding 

may be required even if the income may be exempt from 

taxation by provisions of a tax treaty. One reason for this is 

that the partial or complete exemption is usually based on 

factors that cannot be determined until after the close of 

the tax year.

We have temporarily waived the income requirement for which form to use when applying for a 

CWA. Form 13930-A is currently unavailable. 

While the waiver is in effect, individuals with income below 

$10,000 can apply for a CWA using Form 13930, Instructions on how to apply for a Central Withholding Agreement. For more information on how to apply for a CWA, 

see Form 13930. For more information, go to IRS.gov/

Individuals/International-Taxpayers/Central-WithholdingAgreements.

You will be required to pay U.S. tax at the time of 

your departure from the United States on any income for which you incorrectly claimed a treaty 

exemption. For more details on treaty provisions that apply 

to compensation, see Pub. 901.

Tax withheld on real property sales. If you are a nonresident alien and you disposed of a U.S. real property interest, the transferee (buyer) of the property must generally withhold a tax equal to 15% of the amount realized on 

the disposition.

However, if the property is acquired by the buyer for use 

as a residence and the amount realized does not exceed 

$1 million, the rate of withholding is 10%.

The amount realized is the sum of:

• The cash paid, or to be paid (principal only);

• The fair market value of other property transferred, or 

to be transferred; and

• The amount of any liability assumed by the transferee 

or to which the property is subject immediately before 

and after the transfer.

If the property transferred was owned jointly by U.S. 

and foreign persons, the amount realized is allocated between the transferors based on the capital contribution of 

each transferor.

A distribution by a QIE to a nonresident alien shareholder that is treated as gain from the sale or exchange of 

a U.S. real property interest by the shareholder is subject 

to withholding at 21%. Withholding is also required on certain distributions and other transactions by domestic or 

foreign corporations, partnerships, trusts, and estates. 

These rules are covered in Pub. 515 and in the Instructions for Form 8288.

For information on the tax treatment of dispositions of 

U.S. real property interests, see Real Property Gain or 

Loss in chapter 4.

If you are a partner in a domestic partnership, and the 

partnership disposes of a U.S. real property interest at a 

gain, the partnership will withhold tax on the amount of 

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gain allocable to its foreign partners. Your share of the income and tax withheld will be reported to you on Form 

8805 or Form 1042-S (in the case of a PTP).

Withholding is not required in the following situations.

1. The property is acquired by the buyer for use as a residence and the amount realized is not more than 

$300,000.

2. The property disposed of is an interest in a domestic 

corporation if any class of stock of the corporation is 

regularly traded on an established securities market. 

However, this exception does not apply to certain dispositions of substantial amounts of nonpublicly traded 

interests in publicly traded corporations.

3. The property disposed of is an interest in a U.S. corporation that is not regularly traded on an established 

market and you (the seller) give the buyer a copy of a 

statement issued by the corporation certifying that the 

interest is not a U.S. real property interest.

4. You (the seller) give the buyer a certification stating, 

under penalties of perjury, that you are not a foreign 

person, and containing your name, U.S. TIN, and 

home address.

You can give the certification to a qualified substitute. The qualified substitute gives the buyer a statement, under penalties of perjury, that the certification 

is in the possession of the qualified substitute. For this 

purpose, a “qualified substitute” is:

a. The person (including any attorney or title company) responsible for closing the transaction, 

other than your agent; or

b. The buyer's agent.

5. The buyer receives a withholding certificate from the 

IRS.

6. You give the buyer written notice that you are not required to recognize any gain or loss on the transfer 

because of a nonrecognition provision in the Internal 

Revenue Code or a provision in a U.S. tax treaty. The 

buyer must file a copy of the notice with the Ogden 

Service Center, P.O. Box 409101, Ogden, UT 84409. 

You must verify the notice as true and sign it under 

penalties of perjury.

See Regulations section 1.1445-2(d)(2) for more 

information on the transferor's notice of nonrecognition.

You may not give the buyer a written notice for any 

of the following transfers.

a. The sale of your main home on which you exclude 

gain.

b. A like-kind exchange that does not qualify for nonrecognition treatment in its entirety.

c. A deferred like-kind exchange that has not been 

completed at the time the buyer must file Form 

8288.

Instead, you must get a withholding certificate (described next).

7. The amount you realize on the transfer of a U.S. real 

property interest is zero.

8. The property is acquired by the United States, a U.S. 

state or territory, a political subdivision, or the District 

of Columbia.

9. The distribution is from a domestically controlled QIE 

and is treated as a distribution of a U.S. real property 

interest only because an interest in the entity was disposed of in an applicable wash sale transaction. For 

the definition of a QIE, see Qualified investment entities under Real Property Gain or Loss, earlier. See 

Wash sale under Real Property Gain or Loss in chapter 4.

The certifications in (3) and (4) must be disregarded by 

the buyer if the buyer or qualified substitute has actual 

knowledge, or receives notice from a seller's or buyer's 

agent (or substitute), that they are false. This also applies 

to the qualified substitute's statement under (4).

Withholding certificates. The tax required to be withheld on a disposition can be reduced or eliminated under 

a withholding certificate issued by the IRS. In most cases, 

either you or the buyer can request a withholding certificate.

A withholding certificate can be issued due to any of 

the following.

1. The IRS determines that reduced withholding is appropriate because either:

a. The amount required to be withheld would exceed 

your maximum tax liability, or

b. Withholding of the reduced amount would not 

jeopardize collection of the tax.

2. All of your realized gain is exempt from U.S. tax and 

you have no unsatisfied withholding liability.

3. You or the buyer enters into an agreement with the 

IRS for the payment of tax and provides security for 

the tax liability.

See Pub. 515 and IRS.gov/Individuals/InternationalTaxpayers/Withholding-Certificates for information on procedures to request a withholding certificate.

Credit for tax withheld. The buyer must report and pay 

over the withheld tax within 20 days after the transfer using Form 8288. This form is filed with the IRS with copies 

A and B of Form 8288-A. Copy B of this statement will be 

stamped received by the IRS and returned to you (the 

seller) if the statement is complete and includes your TIN. 

You must file Copy B with your tax return to take credit for 

the tax withheld.

A stamped copy of Form 8288-A will not be provided to 

you if your TIN is not included on that form. The IRS will 

send you a letter requesting the TIN and provide instructions for how to get a TIN. When you provide the IRS with 

a TIN, the IRS will provide you with a stamped Copy B of 

Form 8288-A.

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Refunds of certain withholding tax delayed. Refund 

requests for tax withheld and reported on Form 1042-S, 

Form 8288-A, or Form 8805 may require additional time 

for processing. Allow up to 6 months for these refunds to 

be issued.

Social Security and Medicare 

Taxes

If you work as an employee in the United States, you must 

pay social security and Medicare taxes in most cases. 

Your payments of these taxes contribute to your coverage 

under the U.S. social security system. Social security coverage provides retirement benefits, survivors and disability 

benefits, and medical insurance (Medicare) benefits to individuals who meet certain eligibility requirements.

In most cases, the first $160,200 of taxable wages received in 2023 for services performed in the United States 

is subject to social security tax. All taxable wages are subject to Medicare tax. Your employer deducts these taxes 

from each wage payment. Your employer must deduct 

these taxes even if you do not expect to qualify for social 

security or Medicare benefits. You can claim a credit for 

excess social security tax on your income tax return if you 

have more than one employer and the amount deducted 

from your combined wages for 2023 is more than 

$9,932.40.

If any one employer deducted more than $9,932.40, 

you cannot claim a credit for that amount. Ask your employer to refund the excess. If your employer does not refund the excess, you can file a claim for refund using Form 

843.

In general, U.S. social security and Medicare taxes apply to payments of wages for services performed as an 

employee in the United States, regardless of the citizenship or residence of either the employee or the employer. 

In limited situations, these taxes apply to wages for services performed outside the United States. Your employer 

should be able to tell you if social security and Medicare 

taxes apply to your wages. You cannot make voluntary 

payments if no taxes are due.

Additional Medicare Tax. In addition to the Medicare 

tax, a 0.9% (0.009) Additional Medicare Tax applies to 

Medicare wages, RRTA compensation, and self-employment income that are more than:

• $250,000 if married filing jointly,

• $125,000 if married filing separately, or

• $200,000 for any other filing status.

There are no special rules for nonresident aliens for 

purposes of Additional Medicare Tax. Wages, RRTA compensation, and self-employment income that are subject 

to Medicare tax will also be subject to Additional Medicare 

Tax if in excess of the applicable threshold.

Your employer is responsible for withholding the 0.9% 

(0.009) Additional Medicare Tax on Medicare wages or 

RRTA compensation it pays to you in excess of $200,000 

in the calendar year. If you intend to file a joint return and 

you anticipate that you and your spouse's individual wages are not going to be more than $200,000 but your combined wages and self-employment income are going to be 

more than $250,000, you may want to request additional 

withholding on Form W-4 and/or make estimated tax payments.

If you file Form 1040-NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (you 

checked the Married filing separately box at the top of 

page 1 of Form 1040-NR), or $200,000 if single or qualifying surviving spouse (you checked the Single or Qualifying surviving spouse box at the top of page 1 of Form 

1040-NR).

See Form 8959 and its instructions to determine 

whether you are required to pay Additional Medicare Tax. 

For more information on Additional Medicare Tax, go to 

IRS.gov/ADMTfaqs.

Self-employed individuals may also be required to pay 

Additional Medicare Tax. See Self-Employment Tax, later.

Students and Exchange Visitors

Generally, services performed by you as a nonresident 

alien temporarily in the United States as a nonimmigrant 

under subparagraph (F), (J), (M), or (Q) of section 101(a)

(15) of the Immigration and Nationality Act are not covered 

under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. This means that there will be no 

withholding of social security or Medicare taxes from the 

pay you receive for these services. These types of services are very limited and generally include only on-campus work, practical training, and economic hardship employment.

Social security and Medicare taxes will be withheld 

from your pay for these services if you are considered a 

resident alien, as discussed in chapter 1, even though 

your nonimmigrant classification (“F,” “J,” “M,” or “Q”) remains the same.

Services performed by a spouse or minor child of nonimmigrant aliens with the classification of “F-2,” “J-2,” 

“M-2,” and “Q-3” are covered under social security.

Nonresident Alien Students

If you are a nonresident alien temporarily admitted to the 

United States as a student, you are generally not permitted to work for a wage or salary or to engage in business 

while you are in the United States. In some cases, a student admitted to the United States in “F-1,” “M-1,” or “J-1” 

status is granted permission to work. Social security and 

Medicare taxes are not withheld from pay for the work unless the student is considered a resident alien.

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Any student who is enrolled and regularly attending classes at a school may be exempt from social 

security and Medicare taxes on pay for services 

performed for that school.

The USCIS permits on-campus work for students in 

“F-1” status if it does not displace a U.S. resident. 

“On-campus work” means work performed on the school's 

premises. On-campus work includes work performed at 

an off-campus location that is educationally affiliated with 

the school. On-campus work under the terms of a scholarship, fellowship, or assistantship is considered part of the 

academic program of a student taking a full course of 

study and is permitted by the USCIS. Social security and 

Medicare taxes are not withheld from pay for this work unless the student is considered a resident alien.

If services performed by a nonresident alien student 

are not considered as performed to carry out the purpose 

for which the student was admitted to the United States, 

social security and Medicare taxes will be withheld from 

pay for the services unless the pay is exempt under the Internal Revenue Code.

Exchange Visitors

Exchange visitors are temporarily admitted to the United 

States under section 101(a)(15)(J) of the Immigration and 

Nationality Act. Social security and Medicare taxes are not 

withheld on pay for services of an exchange visitor who 

has been given permission to work and who possesses or 

obtains a letter of authorization from the sponsor unless 

the exchange visitor is considered a resident alien.

If services performed by an exchange visitor are not 

considered as performed to carry out the purpose for 

which the visitor was admitted to the United States, social 

security and Medicare taxes are withheld from pay for the 

services unless the pay is exempt under the Internal Revenue Code.

Nonresident aliens temporarily admitted to the United 

States as participants in international cultural exchange 

programs under section 101(a)(15)(Q) of the Immigration 

and Nationality Act may be exempt from social security 

and Medicare taxes. The employer must be the petitioner 

through whom the alien obtained the “Q” visa. Social security and Medicare taxes are not withheld from pay for 

this work unless the alien is considered a resident alien.

Refund of Taxes Withheld in Error

If social security or Medicare taxes were withheld in error 

from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to get a full refund of the amount from your employer, 

file a claim for refund with the IRS on Form 843. Attach the 

following items to Form 843.

• A copy of your Form W-2 to prove the amount of social 

security and Medicare taxes withheld.

• A copy of your visa.

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• Form I-94 (or other documentation showing your dates 

of arrival or departure).

• If you have a J-1 visa, attach a copy of your Form 

DS-2019.

• If you have an F-1 or M-1 visa, attach a complete copy 

of your Form I-20.

• If you are engaged in optional practical training, attach 

Form I-766.

• If you are engaged in employment due to severe economic necessity, documentation showing permission 

to work in the United States.

• A statement from your employer indicating the amount 

of the reimbursement your employer provided and the 

amount of the credit or refund your employer claimed 

or you authorized your employer to claim. If you cannot obtain this statement from your employer, you 

must provide this information on your own statement 

and explain why you are not attaching a statement 

from your employer or on Form 8316 claiming your 

employer will not issue the refund.

• If you were exempt from social security and Medicare 

tax for only part of the year, pay statements showing 

the tax paid during the period you were exempt.

Send Form 843 (with attachments) to:

Department of the Treasury

Internal Revenue Service Center

Ogden, UT 84201-0038

Do not use Form 843 to request a refund of Additional Medicare Tax. If Additional Medicare Tax 

was withheld from your pay in error, you can claim 

a credit for any withheld Additional Medicare Tax against 

the total tax liability shown on your tax return by filing Form 

8959 with Form 1040, 1040-SR, or 1040-NR. If Additional 

Medicare Tax was withheld in error in a prior year for 

which you already filed Form 1040, 1040-SR, or 1040-NR, 

you must file Form 1040-X for the prior year in which the 

wages or compensation was originally received to recover 

the Additional Medicare Tax withheld in error. See the Instructions for Form 1040-X.

Agricultural Workers

Agricultural workers temporarily admitted into the United 

States on H-2A visas are exempt from social security and 

Medicare taxes on compensation paid to them for services performed in connection with the H-2A visa. You can 

find more information about not having tax withheld at 

IRS.gov/ForeignAgriculturalWorkers.

Self-Employment Tax

Self-employment tax is the social security and Medicare 

taxes for individuals who are self-employed. Nonresident 

aliens are not subject to self-employment tax unless an international social security agreement in effect determines 

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that they are covered under the U.S. social security system. Residents of the U.S. Virgin Islands, Puerto Rico, 

Guam, the CNMI, or American Samoa are considered 

U.S. residents for this purpose and are subject to the 

self-employment tax. You can find more information about 

international social security agreements, later.

Resident aliens must pay self-employment tax under 

the same rules that apply to U.S. citizens. However, a resident alien employed by an international organization, a 

foreign government, or a wholly owned instrumentality of a 

foreign government is not subject to the self-employment 

tax on income earned in the United States.

Self-employment income you receive while you are a 

resident alien is subject to self-employment tax even if it 

was paid for services you performed as a nonresident 

alien.

Example. Bill Jones is an author. Bill had several 

books published in a foreign country while Bill was a citizen and resident of that country. During 2023, Bill entered 

the United States as a resident alien. After becoming a 

U.S. resident, Bill continued to receive royalties from Bill’s 

foreign publisher. Bill reports Bill’s income and expenses 

on the cash basis (income is reported on the tax return 

when received and expenses are deducted when paid). 

Bill's 2023 self-employment income includes the royalties 

received after becoming a U.S. resident even though the 

books were published while still being a nonresident alien. 

This royalty income is subject to self-employment tax.

Reporting self-employment tax. Use Schedule SE 

(Form 1040) to report and figure your self-employment 

tax. Then, enter the tax on Schedule 2 (Form 1040), line 4. 

Attach Schedule SE (Form 1040) to Form 1040, 1040-SR, 

or 1040-NR.

Deferral of employment tax deposits and payments. 

Section 2302 of the CARES Act permits self-employed individuals to defer payment of a portion of their 2020 

self-employment tax until 2021 and 2022. All amounts 

were due to be paid by December 31, 2022.

Note. This deferral is no longer in effect for tax year 

2023.

Additional Medicare Tax. Self-employed individuals 

must pay a 0.9% (0.009) Additional Medicare Tax on 

self-employment income that exceeds one of the following 

threshold amounts (based on your filing status).

• Married filing jointly—$250,000.

• Married filing separately—$125,000.

• Single, Head of household, or Qualifying surviving 

spouse—$200,000.

If you have both wages and self-employment income, 

the threshold amount for applying the Additional Medicare 

Tax on the self-employment income is reduced (but not 

below zero) by the amount of wages subject to Additional 

Medicare Tax. A self-employment loss should not be considered for purposes of this tax.

If you file Form 1040-NR, you must pay Additional Medicare Tax if the total of your wages and your self-employment income was more than $125,000 if married (you 

checked the Married filing separately box at the top of 

page 1 of Form 1040-NR), or $200,000 if single or qualifying surviving spouse (you checked the Single or Qualifying surviving spouse box at the top of page 1 of Form 

1040-NR).

See Form 8959 and its separate instructions to determine whether you are required to pay Additional Medicare 

Tax. For more information on Additional Medicare Tax, go 

to IRS.gov/ADMTfaqs.

Deduction for employer-equivalent portion of 

self-employment tax. If you must pay self-employment 

tax, you can deduct a portion of the self-employment tax 

paid in figuring your adjusted gross income. This deduction is figured on Schedule SE (Form 1040).

Note. No portion of the Additional Medicare Tax is deductible for self-employment tax.

More information. See Pub. 334 for more information 

about self-employment tax.

International Social Security 

Agreements

The United States has entered into social security agreements, commonly referred to as “Totalization agreements,” 

with foreign countries to coordinate social security coverage and taxation of workers employed for part or all of 

their working careers in one of the countries. Under these 

agreements, dual coverage and dual contributions (taxes) 

for the same work are eliminated. The agreements generally make sure that social security taxes (including 

self-employment tax) are paid only to one country.

For a list of current international social security agreements, go to SSA.gov/international/status.html. As agreements with additional countries enter into force, they will 

be posted on this website. For more information on international social security agreements, go to SSA.gov/

international/totalization_agreements.html.

Employees. Generally, under these agreements, you are 

subject to social security taxes only in the country where 

you are working. However, if you are temporarily sent to 

work for the same employer in the United States and your 

pay would normally be subject to social security taxes in 

both countries, most agreements provide that you remain 

covered only by the social security system of the country 

from which you were sent.

To establish that your pay is subject only to foreign social security taxes and is exempt from U.S. social security 

taxes (including the Medicare tax) under an agreement, 

you or your employer should request a certificate of coverage from the appropriate agency of the foreign country. 

This will usually be the same agency to which you or your 

employer pays your foreign social security taxes. The foreign agency will be able to tell you what information is 

needed for them to issue the certificate. Your employer 

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should keep a copy of the certificate because it may be 

needed to show why you are exempt from U.S. social security taxes. Only wages paid on or after the effective date 

of the agreement can be exempt from U.S. social security 

taxes.

Note. Some of the countries with which the United 

States has agreements will not issue certificates of coverage. In this case, either you or your employer should request a statement that your wages are not covered by the 

U.S. social security system. For more information and how 

to apply for a Certificate of Coverage, go to SSA.gov/

international/CoC_link.html.

Self-employed individuals. Under most agreements, 

self-employed individuals are covered by the social security system of the country where they reside. However, under some agreements, you may be exempt from U.S. 

self-employment tax if you temporarily transfer your business activity to or from the United States.

If you believe that your self-employment income is subject only to U.S. self-employment tax and is exempt from 

foreign social security taxes, request a Certificate of Coverage from the SSA. See the link in the Note above. This 

certificate will establish your exemption from foreign social 

security taxes.

To establish that your self-employment income is subject only to foreign social security taxes and is exempt 

from U.S. self-employment tax, request a Certificate of 

Coverage from the appropriate agency of the foreign 

country.

Note. Some of the countries with which the United 

States has agreements will not issue certificates of coverage. In this case, you should request a statement that your 

self-employment income is not covered by the U.S. social 

security system. For more information and how to apply 

for a Certificate of Coverage, go to SSA.gov/international/

CoC_link.html.

Attach a photocopy of either statement to Form 1040 or 

1040-SR each year you are exempt. Also enter “Exempt, 

see attached statement” on the line for self-employment 

tax.

For questions on the coverage rules of the agreements, call 410-965-7306.

Estimated Tax Form 1040-ES 

(NR)

You may have income from which no U.S. income tax is 

withheld. Or, the amount of tax withheld may be less than 

the income tax you estimate you will owe at the end of the 

year. If so, you may have to pay estimated tax.

Generally, you must make estimated tax payments for 

2024 if you expect to owe at least $1,000 in tax and you 

expect your withholding and certain refundable credits to 

be less than the smaller of:

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1. 90% (0.90) of the tax to be shown on your 2024 income tax return, or

2. 100% (1.00) of the tax shown on your 2023 income 

tax return (if your 2023 return covered all 12 months of 

the year).

If your adjusted gross income for 2023 was more than 

$150,000 ($75,000 if your filing status for 2024 is Married 

filing separately), substitute 110% (1.10) for 100% (1.00) 

in (2) above if you are not a farmer or fisherman. Item (2) 

does not apply if you did not file a 2023 return.

A nonresident alien should use Form 1040-ES (NR) to 

figure and pay estimated tax. If you pay by check, make it 

payable to "United States Treasury."

How to estimate your tax for 2024. If you filed a 2023 

return on Form 1040-NR and expect your income and total 

deductions for 2024 to be nearly the same, you should 

use your 2023 return as a guide to complete the Estimated Tax Worksheet in the Form 1040-ES (NR) instructions. 

If you did not file a return for 2023, or if your income, deductions, or credits will be different for 2024, you must estimate these amounts. Figure your estimated tax liability 

using the Tax Rate Schedule in the 2024 Form 1040-ES 

(NR) instructions for your filing status.

Note. If you expect to be a resident of Puerto Rico during the entire year, use Form 1040-ES or Formulario 

1040-ES (PR).

When to pay estimated tax. Make your first estimated 

tax payment by the due date for filing the previous year's 

Form 1040-NR. If you have wages subject to the same 

withholding rules that apply to U.S. citizens, you must file 

Form 1040-NR and make your first estimated tax payment 

by April 15, 2024. If you do not have wages subject to 

withholding, file your income tax return and make your first 

estimated tax payment by June 17, 2024.

If your first estimated tax payment is due April 15, 2024, 

you can pay your estimated tax in full at that time or in four 

equal installments by the dates shown next.

1st installment ................. April 15, 2024

2nd installment ................. June 17, 2024

3rd installment ................. Sept. 16, 2024

4th installment ................. Jan. 15, 2025

If your first payment is not due until June 17, 2024, you 

can pay your estimated tax in full at that time or pay:

1. 1/2 of your estimated tax by June 17, 2024;

2. 1/4 of the tax by September 16, 2024; and

3. 1/4 by January 15, 2025.

You do not have to make the payment due January 15, 2025, if you file your 2024 Form 1040-NR 

by January 31, 2025, and pay the entire balance 

due with your return.

Fiscal year. If your return is not on a calendar year basis, your due dates are the 15th day of the 4th, 6th, and 

TIP

66 Chapter 8 Paying Tax Through Withholding or Estimated 

Tax 

Publication 519 (2023)
9th months of your fiscal year, and the 1st month of the following fiscal year. If any date falls on a Saturday, Sunday, 

or legal holiday, use the next day that is not a Saturday, 

Sunday, or legal holiday.

Changes in income or deductions. Even if you are not 

required to make an estimated tax payment in April or 

June, your circumstances may change so that you will 

have to make estimated tax payments later. This can happen if you receive additional income or if any of your deductions are reduced or eliminated. If so, see the Form 

1040-ES (NR) instructions and Pub. 505 for information on 

figuring your estimated tax.

Amended estimated tax. If, after you have made estimated tax payments, you find your estimated tax is substantially increased or decreased because of a change in 

your income or exemptions, you should adjust your remaining estimated tax payments. To do this, see the Form 

1040-ES (NR) instructions and Pub. 505.

Penalty for failure to pay estimated income tax. You 

will be subject to a penalty for underpayment of installments of estimated tax except in certain situations. These 

situations are explained on Form 2210.

9.

Tax Treaty Benefits

Introduction

A nonresident alien (and certain resident aliens) from a 

country with which the United States has an income tax 

treaty may qualify for certain benefits. Most treaties require that the nonresident alien be a resident of the treaty 

country to qualify in the year the benefit is claimed. However, in the case of certain students, trainees, teachers, or 

researchers, some treaties only require the nonresident 

alien to be a resident of the treaty country immediately 

prior to coming to the United States.

Tax treaty tables. You can access the tax treaty tables 

by going to IRS.gov/TreatyTables. You can access the 

texts of recently signed U.S. income tax treaties, protocols, and tax information exchange agreements (TIEAs) 

and the accompanying Treasury Department tax treaty 

technical explanations as they become publicly available, 

as well as the U.S. Model Income Tax Convention, at 

Home.Treasury.gov/Policy-Issues/Tax-Policy/InternationalTax.

Note that treaty and TIEA documents are posted 

on this site after signature and before ratification 

CAUTION

and entry into force.

!

The full text of individual tax treaties is also available at 

IRS.gov/Businesses/International-Businesses/UnitedStates-Income-Tax-Treaties-A-to-Z. For more information 

about tax treaties, go to IRS.gov/Individuals/InternationalTaxpayers/Tax-Treaties.

You can generally arrange to have withholding tax reduced or eliminated on wages and other income that are 

eligible for tax treaty benefits. See Income Entitled to Tax 

Treaty Benefits in chapter 8.

Topics

This chapter discusses:

• Typical tax treaty benefits,

• How to obtain copies of tax treaties, and

• How to claim tax treaty benefits on your tax return.

Useful Items

You may want to see:

Publication

U.S. Tax Treaties

Form (and Instructions)

U.S. Nonresident Alien Income Tax Return

Treaty-Based Return Position Disclosure 

Under Section 6114 or 7701(b)

See chapter 12 for information about getting these publications and forms.

Treaty Income

A nonresident alien's treaty income is the gross income on 

which the tax is limited by a tax treaty. Treaty income includes, for example, dividends from sources in the United 

States that are subject to tax at a tax treaty rate not to exceed 15%. Nontreaty income is the gross income of a 

nonresident alien on which the tax is not limited by an applicable tax treaty.

To determine tax on items of income subject to lower 

tax treaty rates, figure the tax on each separate item of income at the reduced rate that applies to that item under 

the treaty.

To determine tax on nontreaty income, figure the tax at 

either the flat 30% rate or the graduated rate, depending 

upon whether or not the income is effectively connected 

with your trade or business in the United States.

Your tax liability is the sum of the tax on treaty income 

plus the tax on nontreaty income, but it cannot be more 

than the tax liability figured as if the tax treaty had not 

come into effect.

Example. Arthur Banks is a nonresident alien who is 

single and a resident of a foreign country that has a tax 

treaty with the United States. Arthur received gross 

 901 

 1040-NR

 8833

Publication 519 (2023) Chapter 9 Tax Treaty Benefits 67
income of $25,900 during the tax year from sources within 

the United States, consisting of the following items.

Dividends on which the tax is limited to a 15% rate by the 

tax treaty .............................. $1,400 

Compensation for personal services on which the tax is 

not limited by the tax treaty ................... 24,500 

Total gross income ....................... $25,900

Arthur was engaged in business in the United States 

during the tax year. Arthur’s dividends are not effectively 

connected with that business. Arthur has no deductions.

Arthur’s tax liability, figured as though the tax treaty had 

not come into effect, is $3,140 determined as follows.

Total compensation ........................ $24,500 

Less: Deductions ......................... 0

Taxable income ......................... $24,500

Tax determined by graduated rate (Tax Table column for 

single taxpayers) ......................... $2,720

Plus: Tax on gross dividends ($1,400 × (0.30)) ....... 420 

Tax determined as though treaty had not come into 

effect ................................ $3,140

Arthur's tax liability, figured by taking into account the 

reduced rate on dividend income as provided by the tax 

treaty, is $2,930 determined as follows.

Tax determined by graduated rate (same as figured 

above) ................................ $2,720

Plus: Tax on gross dividends ($1,400 × (0.15)) ....... 210 

Tax on compensation and dividends ........... $2,930

Arthur’s tax liability, therefore, is limited to $2,930, the 

tax liability figured using the tax treaty rate on the dividends.

Some Typical Tax Treaty 

Benefits

The following paragraphs briefly explain the exemptions 

that are available under tax treaties for personal services 

income, remittances, scholarships, fellowships, and capital gain income. The conditions for claiming the exemptions vary under each tax treaty. For more information 

about the conditions under a particular tax treaty, download the complete text of most U.S. tax treaties at IRS.gov/

Businesses/International-Businesses/United-StatesIncome-Tax-Treaties-A-to-Z. Technical explanations for 

many of those treaties are also available at that site. Also 

see Pub. 901.

Tax treaty benefits also cover income such as dividends, interest, rentals, royalties, pensions, and annuities. 

These types of income may be exempt from U.S. tax or 

may be subject to a reduced rate of tax. For more information, see Pub. 901 or the applicable tax treaty.

Personal Services

Under most income tax treaties, nonresident aliens from 

treaty countries and dual residents who tie break in favor 

of the treaty country (see chapter 1) who are temporarily 

present in the United States to perform services may be 

eligible to exempt some or all of their personal services income from U.S. tax if they meet the requirements of the 

applicable treaty article.

Income from employment. Most income tax treaties 

have an “income from employment” article, sometimes 

called the dependent personal services article, which allows residents of the treaty country to exempt income 

earned as employees in the United States from U.S. tax if 

they satisfy the following.

• They are present in the United States for a period not 

exceeding 183 days in a 12-month period.

• The income is paid by a foreign employer.

• The income is not borne by a U.S. permanent establishment of the foreign employer.

Some income tax treaties contain different requirements, 

such as a different period of maximum presence. For 

more information, see Pub. 901.

Independent personal services. Some income tax 

treaties contain an “independent personal services” article, which allows residents of the treaty country to exempt 

income earned as an independent contractor or as a 

self-employed individual from U.S. tax if they are present 

in the United States for a period not exceeding a certain 

number of days and if they do not have a fixed base regularly available to them in the United States.

Note. Some treaties do not have an independent 

service article. Under these treaties, income for independent personal services may be covered by the business 

profits article. Under the business profits article, individuals can generally exempt their business profits from U.S. 

tax unless they have a permanent establishment in the 

United States to which the business profits are attributable. For more information, including definitions of the 

terms "fixed base" and "permanent establishment," see 

Pub. 901.

Teachers, Professors, and 

Researchers

Under many income tax treaties, nonresident alien teachers or professors who temporarily visit the United States 

for the primary purpose of teaching at a university or other 

accredited educational institution are not subject to U.S. 

income tax on compensation received for teaching for the 

first 2 or 3 years after their arrival in the United States. 

68 Chapter 9 Tax Treaty Benefits Publication 519 (2023)
Many treaties also provide an exemption for engaging in 

research.

Generally, the teacher or professor must be in the United States primarily to teach, lecture, instruct, or engage in 

research. A substantial part of that person's time must be 

devoted to those duties. The normal duties of a teacher or 

professor include not only formal classroom work involving 

regularly scheduled lectures, demonstrations, or other student-participation activities, but also the less formal 

method of presenting ideas in seminars or other informal 

groups and in joint efforts in the laboratory.

If you entered the United States as a nonresident alien, 

but are now a resident alien, the treaty exemption may still 

apply. See Students, Apprentices, Trainees, Teachers, 

Professors, and Researchers Who Became Resident Aliens, later, under Resident Aliens.

Employees of Foreign Governments

All treaties have provisions for the exemption of income 

earned by certain employees of foreign governments. 

However, a difference exists among treaties as to who 

qualifies for this benefit. Under many treaties, aliens who 

are U.S. residents do not qualify. Under most treaties, aliens who are not nationals or subjects of the foreign country do not qualify. Employees of foreign governments 

should read the pertinent treaty carefully to determine 

whether they qualify for benefits. Chapter 10 of this publication also has information for employees of foreign governments.

Students, Apprentices, and Trainees

Under some income tax treaties, students, apprentices, 

and trainees are exempt from tax on remittances received 

from abroad for study and maintenance. Also, under some 

treaties, scholarship and fellowship grants, and a limited 

amount of compensation received by students, apprentices, and trainees, may be exempt from tax.

If you entered the United States as a nonresident alien, 

but are now a resident alien, the treaty exemption may still 

apply. See Students, Apprentices, Trainees, Teachers, 

Professors, and Researchers Who Became Resident Aliens, later, under Resident Aliens.

Capital Gains

Most treaties provide for the exemption of gains from the 

sale or exchange of personal property. Generally, gains 

from the sale or exchange of real property located in the 

United States are taxable.

Resident Aliens

Resident aliens may qualify for tax treaty benefits in the 

situations discussed below.

General Rule for Resident Aliens

Resident aliens generally do not qualify for tax treaty benefits because most tax treaties contain a "saving clause" 

that preserves or "saves" the right of the United States to 

tax its citizens and residents as if the tax treaty had not 

come into effect. However, many tax treaties have exceptions to the saving clause, which may allow a resident 

alien to continue to claim treaty benefits.

Some exceptions to the saving clause apply to all resident aliens (for example, under the United States-People's 

Republic of China treaty); others apply only to resident aliens who are not lawful permanent residents of the United 

States (green card holders).

In certain cases, you don’t need to report the income on 

your Form 1040 or 1040-SR because the income will be 

exempt from U.S. tax under a treaty. However, if the income has been reported as taxable income on a Form 

W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 

1040 or 1040-SR (for example, line 1a in the case of wages or salaries reported in box 1 of Form W-2). Enter the 

amount for which treaty benefits are claimed, in parenthesis, on Schedule 1 (Form 1040), line 8z. Enter “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. Combine the amounts 

reported on lines 8a through 8z on Schedule 1 (Form 

1040) and enter on line 9. Then, combine the totals from 

Schedule 1 (Form 1040), lines 1 through 7 and 9 and enter the total on line 10. Then, enter the total from Schedule 

1 (Form 1040), line 10, on Form 1040 or 1040-SR, line 8.

For income that is subject to a reduced rate of tax, instead of an exemption, under the treaty, attach a statement to Form 1040 or 1040-SR showing a computation of 

the tax at the reduced rate, the name of the treaty country, 

and the treaty article that provides for the reduced tax rate. 

Enter this tax on Form 1040 or 1040-SR, line 16. Check 

box 3 and enter "Tax from attached statement."

Example. Jacques Dubois, who is a resident of the 

United States under Article 4 of the United States-France 

income tax treaty, receives French social security benefits. 

Under Article 18(1) of the treaty, French social security 

benefits are not taxable by the United States. Benefits 

conferred by Article 18(1) are excepted from the saving 

clause under Article 29(3) of the treaty. Jacques is not required to report the French social security benefits on 

Form 1040 or 1040-SR.

Special Rule for Canadian and German 

Social Security Benefits

Under income tax treaties with Canada and Germany, if a 

U.S. resident receives social security benefits from Canada or Germany, those benefits are treated for U.S. income tax purposes as if they were received under the social security legislation of the United States. If you receive 

social security benefits from Canada or Germany, include 

them on line 1 of your Social Security Benefits Worksheet 

Publication 519 (2023) Chapter 9 Tax Treaty Benefits 69
in the Instructions for Form 1040, for purposes of determining the taxable amount to be reported on Form 1040 or 

1040-SR, line 6b. You are not required to file a Form 8833 

for those benefits.

Students, Apprentices, Trainees, Teachers, 

Professors, and Researchers Who Became 

Resident Aliens

Generally, you must be a nonresident alien student, apprentice, trainee, teacher, professor, or researcher in order 

to claim a tax treaty exemption for remittances from 

abroad for study and maintenance in the United States, for 

scholarship, fellowship, and research grants, and for wages or other personal service compensation. Once you 

become a resident alien, you can generally no longer 

claim a tax treaty exemption for this income.

However, if you entered the United States as a nonresident alien, but you are now a resident alien for U.S. tax 

purposes, the treaty exemption will continue to apply if the 

tax treaty's saving clause (explained earlier) provides an 

exception for it and you otherwise meet the requirements 

for the treaty exemption (including any time limit for claiming treaty exemptions, explained below). This is true even 

if you are a nonresident alien electing to file a joint return, 

as explained in chapter 1.

If you qualify under an exception to the treaty's saving 

clause, you can avoid income tax withholding by giving the 

payer a Form W-9 with the statement required by the Form 

W-9 instructions.

Time limit for claiming treaty exemptions. Many treaties limit the number of years you can claim a treaty exemption. For students, apprentices, and trainees, the limit 

is usually 4–5 years; for teachers, professors, and researchers, the limit is usually 2–3 years. Once you reach 

this limit, you can no longer claim the treaty exemption. 

See the treaty or Pub. 901 for the time limits that apply.

How to report income on your tax return. In certain 

cases, you don’t need to report the income on your Form 

1040 or 1040-SR because the income will be exempt from 

U.S. tax under a treaty. However, if the income has been 

reported as taxable income on a Form W-2, Form 1042-S, 

Form 1099, or other information return, you should report 

it on the appropriate line of Form 1040 or 1040-SR (for example, line 1a, amounts reported in box 1 of Form W-2). 

Enter the amount for which treaty benefits are claimed, in 

parentheses, on Schedule 1 (Form 1040), line 8z. Enter 

“Exempt income,” the name of the treaty country, and the 

treaty article that provides the exemption. Combine the 

amounts reported on lines 8a through 8z on Schedule 1 

(Form 1040) and enter on line 9. Then, combine the totals 

from Schedule 1 (Form 1040), lines 1 through 7 and 9 and 

enter the total on line 10. Then, enter the total from Schedule 1 (Form 1040), line 10, on Form 1040 or 1040-SR, 

line 8.

Example. A citizen of the People's Republic of China 

entered the United States as a nonresident alien student 

on January 1, 2019. The student remained a nonresident 

alien through 2023 and was able to exclude scholarship 

from U.S. tax in those years under Article 20 of the 

U.S.-People's Republic of China income tax treaty. On 

January 1, 2024, the student became a resident alien under the substantial presence test because their stay in the 

United States exceeded 5 years. Even though the student 

is now a resident alien, the provisions of Article 20 still apply because of the exception to the saving clause in paragraph 2 of the Protocol to the U.S.–People's Republic of 

China treaty dated April 30, 1984. The student should report their scholarship income shown on their Form 1042-S 

or Form 1098-T on Schedule 1 (Form 1040), line 8r. Then 

they should report the amount for which treaty benefits are 

claimed, in parentheses, on Schedule 1 (Form 1040), 

line 8z. They should enter "Exempt income," the name of 

the treaty country, and the treaty article that provides the 

exemption.

Reporting Treaty Benefits 

Claimed

If you claim treaty benefits that override or modify any provision of the Internal Revenue Code, and by claiming 

these benefits your tax is, or might be, reduced, you must 

attach a fully completed Form 8833 to your tax return. See 

Exceptions below for the situations where you are not required to file Form 8833.

Form 8833 filing requirement. You must file a U.S. tax 

return and Form 8833 if you claim the following treaty benefits.

• You claim a reduction or modification in the taxation of 

gain or loss from the disposition of a U.S. real property 

interest based on a treaty.

• You claim a credit for a specific foreign tax for which 

foreign tax credit would not be allowed by the Internal 

Revenue Code.

• You receive payments or income items totaling more 

than $100,000 and you determine your country of residence under a treaty and not under the rules for residency discussed in chapter 1.

These are the more common situations for which Form 

8833 is required. For additional provisions, see the Form 

8833 instructions.

Exceptions. You do not have to file Form 8833 for any of 

the following situations.

1. You claim a reduced rate of withholding tax under a 

treaty on interest, dividends, rent, royalties, or other 

FDAP income ordinarily subject to the 30% rate.

2. You claim that a treaty reduces or modifies the taxation of income from dependent personal services, 

pensions, annuities, social security and other public 

pensions, or income of artists, athletes, students, 

trainees, or teachers. This includes taxable scholarship and fellowship grants.

70 Chapter 9 Tax Treaty Benefits Publication 519 (2023)
3. You claim a reduction or modification of taxation of income under an International Social Security Agreement or a Diplomatic or Consular Agreement.

4. You are a partner in a partnership or a beneficiary of 

an estate or trust and the partnership, estate, or trust 

reports the required information on its return.

5. The payments or items of income that are otherwise 

required to be disclosed total no more than $10,000.

6. You are claiming treaty benefits for amounts that are:

a. Reported to you on Form 1042-S; and

b. Received by you:

i. As a related party from a reporting corporation 

within the meaning of section 6038A (relating 

to information returns on Form 5472 filed by 

U.S. corporations that are 25% owned by a foreign person), or

ii. As a beneficial owner that is a direct account 

holder of a U.S. financial institution or qualified 

intermediary, or a direct partner, beneficiary, or 

owner of a withholding foreign partnership or 

trust, from that U.S. financial institution, qualified intermediary, or withholding foreign partnership or trust.

The exception described in (6) above does not 

apply to any amounts for which a treaty-based return disclosure is specifically required by the Form 

8833 instructions.

Penalty for failure to provide required information on 

Form 8833. If you are required to report the treaty benefits but do not, you may be subject to a penalty of $1,000 

for each failure.

Additional information. For additional information, see 

Regulations section 301.6114-1(c).

10.

Employees of Foreign 

Governments and 

International 

Organizations

Introduction

Employees of foreign governments (including foreign political subdivisions) may be able to exempt their foreign government wages from U.S. income tax if they satisfy the requirements of any one of the following.

1. The applicable article in the multilateral Vienna Convention on Diplomatic Relations, the multilateral 

Vienna Convention on Consular Relations, or a bilateral consular convention, if one exists, between the 

United States and the foreign country;

2. The applicable article in a bilateral tax treaty, if one exists, between the United States and the foreign country; or

3. The requirements for obtaining an exemption from 

U.S. income tax for foreign government wages provided under U.S. tax law.

Employees of international organizations may be able 

to exempt their wages under a provision, if one exists, in 

the international agreement creating the international organization, or by satisfying the requirements for obtaining 

an exemption for such wages under U.S. tax law.

An “international organization” is an organization designated by the President of the United States through Executive Order to qualify for the privileges, exemptions, and 

immunities provided in the International Organizations Immunities Act.

The exemption discussed in this chapter applies only to 

pay received for official services performed for a foreign 

government or international organization. Other U.S. 

source income received by persons who qualify for this 

exemption may be fully taxable or given favorable treatment under an applicable tax treaty provision. The proper 

treatment of this kind of income (interest, dividends, etc.) 

is discussed earlier in this publication.

Topics

This chapter discusses:

• Exemptions for employees of Foreign Governments

• Exemptions for employees of International 

Organizations

Publication 519 (2023) Chapter 10 Employees of Foreign Governments and 

International Organizations

71
Useful Items

You may want to see:

Publication

Employer's Supplemental Tax Guide

U.S. Tax Treaties

Independent Contractor or Employee

See chapter 12 for information about getting these publications.

Employees of Foreign 

Governments

Exemption under Vienna Conventions or a bilateral 

consular convention. You should first look at the tax exemption provisions under the Vienna Conventions or a bilateral consular convention, if one exists, to see if your wages qualify for exemption from U.S. income tax under 

those provisions. Generally, you are not entitled to the income tax exemption available under either of the Vienna 

Conventions or a bilateral consular convention if you are a 

U.S. citizen or resident alien. For further information regarding the Vienna Conventions and bilateral consular 

conventions, email the Department of State Office of Foreign Missions at OFMAssistants@state.gov.

Exemption under tax treaty. If you do not qualify for the 

tax exemption provided under the Vienna Conventions or 

a bilateral consular convention but are from a country that 

has a tax treaty with the United States, you should look at 

the tax treaty to see if there is a provision that exempts 

your wages from U.S. income tax. If you are a U.S. citizen 

or resident alien working in the United States for a foreign 

government, your wages are usually not exempt. For more 

information, see Wages and Pensions Paid by a Foreign 

Government in Pub. 901.

Exemption under U.S. tax law. Employees of foreign 

governments who do not qualify under the tax exemption 

provisions of either of the Vienna Conventions, a bilateral 

consular convention, or a tax treaty may be able to exempt 

their foreign government wages from U.S. income tax if 

they satisfy the following requirements for obtaining an exemption for such wages under U.S. tax law.

The exemption under U.S. tax law applies only to 

current foreign government employees and not to 

former employees. Pensions received by former 

employees of foreign governments living in the United 

States do not qualify for the exemption discussed here.

This exemption does not apply to independent 

contractors. Common law rules apply to determine whether you are an employee or an independent contractor. See Pub. 1779 and Pub. 15-A.

 15-A 

 901 

 1779 

CAUTION

!

CAUTION

!

Your wages are not eligible for exemption under 

U.S. tax law if you are employed by a “controlled 

commercial entity” or your services are primarily 

in connection with a commercial activity of the foreign government (within or outside the United States). A controlled 

commercial entity is an entity that is 50% (0.50) or more 

owned by a foreign government that is engaged in commercial activity within or outside the United States.

Requirements. If you are not a U.S. citizen (or if you are 

a U.S. citizen but also a citizen of the Republic of the Philippines) and you work for a foreign government in the United States, your foreign government wages are exempt 

from U.S. income tax if:

1. You perform services of a similar character to those 

performed by U.S. Government employees in foreign 

countries, and

2. The country of your foreign government employer 

grants an equivalent tax exemption to U.S. Government employees performing similar services in its 

country.

However, see Aliens who keep immigrant (lawful permanent resident) status, later, for a special rule that may affect your qualifying for this exemption.

To claim the tax exemption, you must be able to demonstrate that you satisfy both U.S. tax law requirements.

Certification. A Department of State certification, if one 

has been issued, is the simplest method to establish that 

you meet the similar services and equivalent tax exemption requirements but is not required to qualify for the U.S. 

tax law exemption. For information about whether a certification has been issued and whether such certification is 

currently valid and applicable to you, email the Department of State Office of Foreign Missions at 

OFMAssistants@state.gov.

Where no valid certification exists, you must establish 

with other written evidence that you perform services of a 

similar character to those performed by U.S. Government 

employees in foreign countries and that the country of 

your foreign government employer grants an equivalent 

exemption to U.S. Government employees performing 

similar services in its country.

Employees of International 

Organizations

Exemption under international organization agreement. Many agreements that establish international organizations contain a provision that may exempt your wages from U.S. income tax. If you are employed by an 

international organization in the United States, first look to 

see if the international agreement establishing the international organization you work for has such a provision and 

whether you qualify under it. Generally, these provisions 

will not exempt wages of U.S. citizen and resident alien 

employees.

CAUTION

!

72 Chapter 10 Employees of Foreign Governments and 

International Organizations

Publication 519 (2023)
Exemption under U.S. tax law. If the international 

agreement creating the international organization you 

work for does not contain a tax exemption provision and 

you are not a U.S. citizen (or if you are a U.S. citizen but 

also a citizen of the Republic of the Philippines), you may 

be able to exempt your wages under U.S. law. However, 

see Aliens who keep immigrant (lawful permanent resident) status, later, for a special rule that may affect your 

qualifying for this exemption.

The exemption under U.S. tax law applies only to 

current international organization employees and 

not to former employees. Pensions received by 

former employees of international organizations living in 

the United States do not qualify for the exemption discussed here.

This exemption does not apply to independent 

contractors. Common law rules apply to determine whether you are an employee or an independent contractor. See Pub. 1779 and Pub. 15-A.

To claim the exemption, you must be able to demonstrate that you meet the requirements of either the international organization agreement provision or U.S. tax law. 

You should know the article number of the international organization agreement tax exemption provision, if one exists, and the number of the Executive Order designating 

the organization as an international organization.

Aliens who keep immigrant (lawful permanent resident) status. If you sign the waiver provided by section 

247(b) of the Immigration and Nationality Act (USCIS 

Form I-508) to keep your lawful permanent resident status 

(green card), you no longer qualify for the tax exemption 

under U.S. tax law from the date of filing the waiver.

If you are an employee of a foreign government or 

international organization who holds a green card, 

to claim the exemption under U.S. tax law you 

must also be able to demonstrate with written evidence 

from the USCIS that you have not signed and filed USCIS 

Form I-508.

Note. The filing of Form I-508 has no effect on a tax 

exemption that is not dependent upon the provisions of 

U.S. tax law. You do not lose the tax exemption if you file 

the waiver and meet either of the following conditions.

• You work for a foreign government and are exempt 

from U.S. tax under an income tax treaty, consular 

convention, Vienna Conventions, or any other international agreement between the United States and your 

foreign government employer.

• You work for an international organization and the international organization agreement creating the international organization provides that alien employees 

are exempt from U.S. income tax. Two international organizations that have such a provision are the International Monetary Fund (IMF) and the International Bank 

for Reconstruction and Development (World Bank).

CAUTION

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CAUTION

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CAUTION

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11.

Departing Aliens and the 

Sailing or Departure 

Permit

Introduction

Before leaving the United States, all aliens (except those 

listed under Aliens Not Required To Obtain Sailing or Departure Permits) must obtain a certificate of compliance. 

This document, also popularly known as the sailing permit 

or departure permit, is part of the income tax form you 

must file before leaving. You will receive a sailing or departure permit after filing a Form 1040-C or Form 2063. These 

forms are discussed in this chapter.

To find out if you need a sailing or departure permit, first 

read Aliens Not Required To Obtain Sailing or Departure 

Permits, later. If you do not fall into one of the categories in 

that discussion, you must obtain a sailing or departure 

permit. Read Aliens Required To Obtain Sailing or Departure Permits, later.

Topics

This chapter discusses:

• Who needs a sailing permit,

• How to get a sailing permit, and

• Forms you file to get a sailing permit.

Useful Items

You may want to see:

Form (and Instructions)

U.S. Departing Alien Income Tax Return

2063 U.S. Departing Alien Income Tax Statement

See chapter 12 for information about getting these forms.

Aliens Not Required To Obtain 

Sailing or Departure Permits

If you are included in one of the following categories, you 

do not have to get a sailing or departure permit before 

leaving the United States.

If you are in one of these categories and do not have to 

get a sailing or departure permit, you must be able to support your claim for exemption with proper identification or 

give the authority for the exemption.

 1040-C 

 2063 

Publication 519 (2023) Chapter 11 Departing Aliens and the Sailing or Departure 

Permit

73
Category 1. Representatives of foreign governments 

with diplomatic passports, whether accredited to the United States or other countries, members of their households, and servants accompanying them. Servants who 

are leaving, but not with a person with a diplomatic passport, must get a sailing or departure permit. However, they 

can get a sailing or departure permit on Form 2063 without examination of their income tax liability by presenting a 

letter from the chief of their diplomatic mission certifying 

that:

• Their name appears on the “White List” (a list of employees of diplomatic missions); and

• They do not owe to the United States any income tax, 

and will not owe any tax up to and including the intended date of departure.

The statement must be presented to an IRS office.

Category 2. Employees of international organizations 

and foreign governments (other than diplomatic representatives exempt under category 1) and members of their 

households:

• Whose compensation for official services is exempt 

under U.S. tax law (described in chapter 10), and

• Who receive no other income from U.S. sources.

If you are an alien in category (1) or (2) above who 

filed the waiver under section 247(b) of the Immigration and Nationality Act, you must get a sailing 

or departure permit. This is true even if your income is exempt from U.S. tax because of an income tax treaty, consular agreement, or international agreement.

Category 3. Alien students, industrial trainees, and exchange visitors, including their spouses and children, who 

enter on an “F-1,” “F-2,” “H-3,” “H-4,” “J-1,” “J-2,” or “Q” visa 

only and who receive no income from U.S. sources while 

in the United States under those visas other than:

• Allowances to cover expenses incident to study or 

training in the United States, such as expenses for 

travel, maintenance, and tuition;

• The value of any services or food and lodging connected with this study or training;

• Income from employment authorized by the U.S. USCIS; or

• Interest income on deposits that is not effectively connected with a U.S. trade or business. (See Interest Income in chapter 3.)

Category 4. Alien students, including their spouses and 

children, who enter on an “M-1” or “M-2” visa only and 

who receive no income from U.S. sources while in the United States under those visas, other than:

• Income from employment authorized by the USCIS, or

• Interest income on deposits that is not effectively connected with a U.S. trade or business. (See Interest Income in chapter 3.)

CAUTION

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Category 5. Certain other aliens temporarily in the United States who have received no taxable income during 

the tax year up to and including the date of departure or 

during the preceding tax year. If the IRS has reason to believe that an alien has received income subject to tax and 

that the collection of income tax is jeopardized by departure, it may then require the alien to obtain a sailing or departure permit. Aliens in this category are:

1. Alien military trainees who enter the United States for 

training under the sponsorship of the Department of 

Defense and who leave the United States on official 

military travel orders;

2. Alien visitors for business on a “B-1” visa, or on both a 

“B-1” visa and a “B-2” visa, who do not remain in the 

United States or a U.S. territory for more than 90 days 

during the tax year;

3. Alien visitors for pleasure on a “B-2” visa;

4. Aliens in transit through the United States or any of its 

territories on a “C-1” visa, or under a contract, such as 

a bond agreement, between a transportation line and 

the Attorney General; and

5. Aliens who enter the United States on a border-crossing identification card or for whom passports, visas, 

and border-crossing identification cards are not required, if they are:

a. Visitors for pleasure,

b. Visitors for business who do not remain in the United States or a U.S. territory for more than 90 days 

during the tax year, or

c. In transit through the United States or any of its 

territories.

Category 6. Alien residents of Canada or Mexico who 

frequently commute between that country and the United 

States for employment, and whose wages are subject to 

the withholding of U.S. tax.

Aliens Required To Obtain 

Sailing or Departure Permits

If you do not fall into one of the categories listed earlier under Aliens Not Required To Obtain Sailing or Departure 

Permits, you must obtain a sailing or departure permit. To 

obtain a permit, file Form 1040-C or Form 2063 (whichever applies) with your local IRS office before you leave 

the United States. See Forms To File, later. You must also 

pay all the tax shown as due on Form 1040-C and any 

taxes due for past years. See Paying Taxes and Obtaining 

Refunds, later.

Getting a Sailing or Departure Permit

The following discussion covers how to get your sailing 

permit.

74 Chapter 11 Departing Aliens and the Sailing or Departure 

Permit

Publication 519 (2023)
When and Where To Get a Sailing or 

Departure Permit

To get a certificate of compliance, you must go to an IRS 

office at least 2 weeks before you leave the United States 

and file either Form 2063 or Form 1040-C and any other 

required tax returns that have not been filed. The certificate may not be issued more than 30 days before you 

leave. If both you and your spouse are aliens and both of 

you are leaving the United States, both of you must go to 

the IRS office.

To find an IRS office, go to IRS.gov/Help/Contact-YourLocal-IRS-Office, click on Find a Taxpayer Assistance 

Center Office, and find “Local Services” at the nearest 

Taxpayer Assistance Center (TAC) to see if the Departing 

Alien Clearances service is available at that office. Note 

that all TACs operate by appointment. Services are limited 

and not all services are available at every TAC office.

Call 844-545-5640 to schedule an appointment. 

Remember that you must visit an IRS office at 

least 2 weeks (but no more than 30 days) before 

you leave the United States, so make sure you call for an 

appointment well before those time frames. Be prepared 

to furnish your anticipated date of departure and bring all 

necessary documentation with you.

Documents To Submit

Getting your sailing or departure permit will go faster if you 

bring to the IRS office documents and papers related to 

your income and your stay in the United States. Bring the 

following records with you if they apply.

1. Your passport and alien registration card or visa.

2. Copies of your U.S. income tax returns filed for the 

past 2 years. If you were in the United States for less 

than 2 years, bring the income tax returns you filed for 

that period.

3. Receipts for income taxes paid on these returns.

4. Receipts, bank records, canceled checks, and other 

documents that prove your deductions, business expenses, and dependents claimed on your returns.

5. A statement from each employer showing wages paid 

and tax withheld from January 1 of the current year to 

the date of departure if you were an employee. If you 

were self-employed, you must bring a statement of income and expenses up to the date you plan to leave.

6. Proof of estimated tax payments for the past year and 

this year.

7. Documents showing any gain or loss from the sale of 

personal property and/or real property, including capital assets and merchandise.

8. Documents relating to scholarship or fellowship 

grants, including:

a. Verification of the grantor, source, and purpose of 

the grant.

CAUTION

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b. Copies of the application for, and approval of, the 

grant.

c. A statement of the amount paid, and your duties 

and obligations under the grant.

d. A list of any previous grants.

9. Documents indicating you qualify for any special tax 

treaty benefits claimed.

10. Document verifying your date of departure from the 

United States, such as an airline ticket.

11. Document verifying your U.S. TIN, such as a social 

security card or an IRS-issued Notice CP 565 showing your ITIN.

Note. If you are married and reside in a community 

property state, also bring the above-listed documents for 

your spouse. This applies whether or not your spouse requires a permit.

Forms To File

If you must get a sailing or departure permit, you must file 

Form 2063 or Form 1040-C. Employees in the IRS office 

can assist in filing these forms. Both forms have a “certificate of compliance” section. When the certificate of compliance is signed by an agent of the Field Assistance Area 

Director, it certifies that your U.S. tax obligations have 

been satisfied according to available information. Your 

Form 1040-C copy of the signed certificate, or the one detached from Form 2063, is your sailing or departure permit.

Form 2063

This is a short form that asks for certain information but 

does not include a tax computation. The following departing aliens can get their sailing or departure permits by filing Form 2063.

• Aliens, whether resident or nonresident, who have had 

no taxable income for the tax year up to and including 

the date of departure and for the preceding year, if the 

period for filing the income tax return for that year has 

not expired.

• Resident aliens who have received taxable income 

during the tax year or preceding year and whose departure will not hinder the collection of any tax. However, if the IRS has information indicating that the aliens are leaving to avoid paying their income tax, they 

must file a Form 1040-C.

Aliens in either of these categories who have not filed 

an income tax return or paid income tax for any tax year 

must file the return and pay the income tax before they 

can be issued a sailing or departure permit on Form 2063.

The sailing or departure permit detached from Form 

2063 can be used for all departures during the current 

year. However, the IRS may cancel the sailing or departure permit for any later departure if it believes the 

Publication 519 (2023) Chapter 11 Departing Aliens and the Sailing or Departure 

Permit

75
collection of income tax is jeopardized by that later departure.

Form 1040-C

If you must get a sailing or departure permit and you do 

not qualify to file Form 2063, you must file Form 1040-C.

Ordinarily, all income received, or reasonably expected 

to be received, during the tax year up to and including the 

date of departure must be reported on Form 1040-C, and 

the tax on it must be paid. When you pay any tax shown 

as due on the Form 1040-C, and you file all returns and 

pay all tax due for previous years, you will receive a sailing 

or departure permit. However, the IRS may permit you to 

furnish a bond guaranteeing payment instead of paying 

the taxes for certain years. See Bond To Ensure Payment, 

later. The sailing or departure permit issued under the 

conditions in this paragraph is only for the specific departure for which it is issued.

Returning to the United States. If you furnish the IRS 

with information showing, to the satisfaction of the IRS, 

that you intend to return to the United States and that your 

departure does not jeopardize the collection of income 

tax, you can get a sailing or departure permit by filing 

Form 1040-C without having to pay the tax shown on it. 

You must, however, file all income tax returns that have not 

yet been filed as required, and pay all income tax that is 

due on these returns.

Your Form 1040-C must include all income received, 

and reasonably expected to be received, during the entire 

year of departure. The sailing or departure permit issued 

with this Form 1040-C can be used for all departures during the current year. However, the IRS may cancel the sailing or departure permit for any later departure if the payment of income tax appears to be in jeopardy.

Joint return on Form 1040-C. Departing husbands and 

wives who are nonresident aliens cannot file joint returns. 

However, if both spouses are resident aliens, they can file 

a joint return on Form 1040-C if:

• Both spouses can reasonably be expected to qualify 

to file a joint return at the normal close of their tax 

year, and

• The tax years of the spouses end at the same time.

Paying Taxes and Obtaining Refunds

You must pay all tax shown as due on the Form 1040-C at 

the time of filing it, except when a bond is furnished, or the 

IRS is satisfied that your departure does not jeopardize 

the collection of income tax. You must also pay any taxes 

due for past years. If the tax computation on Form 1040-C 

results in an overpayment, there is no tax to pay at the 

time you file that return. However, the IRS cannot provide 

a refund at the time of departure. If you are due a refund, 

you must file Form 1040-NR at the end of the tax year. 

Bond To Ensure Payment

Usually, you must pay the tax shown as due on Form 

1040-C when you file it. However, if you pay all taxes due 

that you owe for prior years, you can furnish a bond guaranteeing payment instead of paying the income taxes 

shown as due on the Form 1040-C or the tax return for the 

preceding year if the period for filing that return has not expired.

The bond must equal the tax due plus interest to the 

date of payment as figured by the IRS. Information about 

the form of bond and security on it can be obtained from 

your IRS office.

Filing Annual U.S. Income Tax 

Returns

Form 1040-C is not an annual U.S. income tax return. If an 

income tax return is required by law, that return must be 

filed even though a Form 1040-C has already been filed. 

Chapter 5 and chapter 7 discuss filing an annual U.S. income tax return. The tax paid with Form 1040-C should be 

taken as a credit against the tax liability for the entire tax 

year on your annual U.S. income tax return.

12.

How To Get Tax Help

Assistance for overseas taxpayers is available in the U.S 

and certain foreign locations.

Taxpayer Assistance Inside the 

United States

If you have questions about a tax issue; need help preparing your tax return; or want to download free publications, 

forms, or instructions, go to IRS.gov to find resources that 

can help you right away.

Preparing and filing your tax return. After receiving all 

your wage and earnings statements (Forms W-2, W-2G, 

1099-R, 1099-MISC, 1099-NEC, etc.); unemployment 

compensation statements (by mail or in a digital format) or 

other government payment statements (Form 1099-G); 

and interest, dividend, and retirement statements from 

banks and investment firms (Forms 1099), you have several options to choose from to prepare and file your tax return. You can prepare the tax return yourself, see if you 

qualify for free tax preparation, or hire a tax professional to 

prepare your return.

76 Chapter 12 How To Get Tax Help Publication 519 (2023)
Free options for tax preparation. Your options for preparing and filing your return online or in your local community, if you qualify, include the following.

• Free File. This program lets you prepare and file your 

federal individual income tax return for free using software or Free File Fillable Forms. However, state tax 

preparation may not be available through Free File. Go 

to IRS.gov/FreeFile to see if you qualify for free online 

federal tax preparation, e-filing, and direct deposit or 

payment options.

• VITA. The Volunteer Income Tax Assistance (VITA) 

program offers free tax help to people with 

low-to-moderate incomes, persons with disabilities, 

and limited-English-speaking taxpayers who need 

help preparing their own tax returns. Go to IRS.gov/

VITA, download the free IRS2Go app, or call 

800-906-9887 for information on free tax return preparation.

• TCE. The Tax Counseling for the Elderly (TCE) program offers free tax help for all taxpayers, particularly 

those who are 60 years of age and older. TCE volunteers specialize in answering questions about pensions and retirement-related issues unique to seniors. 

Go to IRS.gov/TCE or download the free IRS2Go app 

for information on free tax return preparation.

• MilTax. Members of the U.S. Armed Forces and qualified veterans may use MilTax, a free tax service offered by the Department of Defense through Military 

OneSource. For more information, go to 

MilitaryOneSource (MilitaryOneSource.mil/MilTax).

Also, the IRS offers Free Fillable Forms, which can 

be completed online and then e-filed regardless of income.

Using online tools to help prepare your return. Go to 

IRS.gov/Tools for the following.

• The Earned Income Tax Credit Assistant (IRS.gov/

EITCAssistant) determines if you’re eligible for the 

earned income credit (EIC).

• The Online EIN Application (IRS.gov/EIN) helps you 

get an employer identification number (EIN) at no 

cost.

• The Tax Withholding Estimator (IRS.gov/W4App) 

makes it easier for you to estimate the federal income 

tax you want your employer to withhold from your paycheck. This is tax withholding. See how your withholding affects your refund, take-home pay, or tax due.

• The First-Time Homebuyer Credit Account Look-up 

(IRS.gov/HomeBuyer) tool provides information on 

your repayments and account balance.

• The Sales Tax Deduction Calculator (IRS.gov/

SalesTax) figures the amount you can claim if you 

itemize deductions on Schedule A (Form 1040).

Getting answers to your tax questions. On 

IRS.gov, you can get up-to-date information on 

current events and changes in tax law.

• IRS.gov/Help: A variety of tools to help you get answers to some of the most common tax questions.

• IRS.gov/ITA: The Interactive Tax Assistant, a tool that 

will ask you questions and, based on your input, provide answers on a number of tax topics.

• IRS.gov/Forms: Find forms, instructions, and publications. You will find details on the most recent tax 

changes and interactive links to help you find answers 

to your questions.

• You may also be able to access tax information in your 

e-filing software.

Need someone to prepare your tax return? There are 

various types of tax return preparers, including enrolled 

agents, certified public accountants (CPAs), accountants, 

and many others who don’t have professional credentials. 

If you choose to have someone prepare your tax return, 

choose that preparer wisely. A paid tax preparer is:

• Primarily responsible for the overall substantive accuracy of your return,

• Required to sign the return, and

• Required to include their preparer tax identification 

number (PTIN).

Although the tax preparer always signs the return, 

you're ultimately responsible for providing all the 

information required for the preparer to accurately 

prepare your return and for the accuracy of every item reported on the return. Anyone paid to prepare tax returns 

for others should have a thorough understanding of tax 

matters. For more information on how to choose a tax preparer, go to Tips for Choosing a Tax Preparer on IRS.gov.

Employers can register to use Business Services Online. The Social Security Administration (SSA) offers online service at SSA.gov/employer for fast, free, and secure 

W-2 filing options to CPAs, accountants, enrolled agents, 

and individuals who process Form W-2, Wage and Tax 

Statement, and Form W-2c, Corrected Wage and Tax 

Statement.

IRS social media. Go to IRS.gov/SocialMedia to see the 

various social media tools the IRS uses to share the latest 

information on tax changes, scam alerts, initiatives, products, and services. At the IRS, privacy and security are our 

highest priority. We use these tools to share public information with you. Don’t post your social security number 

(SSN) or other confidential information on social media 

sites. Always protect your identity when using any social 

networking site.

The following IRS YouTube channels provide short, informative videos on various tax-related topics in English, 

Spanish, and ASL.

• Youtube.com/irsvideos.

• Youtube.com/irsvideosmultilingua.

• Youtube.com/irsvideosASL.

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Publication 519 (2023) Chapter 12 How To Get Tax Help 77
Watching IRS videos. The IRS Video portal 

(IRSVideos.gov) contains video and audio presentations 

for individuals, small businesses, and tax professionals.

Online tax information in other languages. You can 

find information on IRS.gov/MyLanguage if English isn’t 

your native language.

Free Over-the-Phone Interpreter (OPI) Service. The 

IRS is committed to serving taxpayers with limited-English 

proficiency (LEP) by offering OPI services. The OPI Service is a federally funded program and is available at Taxpayer Assistance Centers (TACs), most IRS offices, and 

every VITA/TCE tax return site. The OPI Service is accessible in more than 350 languages.

Accessibility Helpline available for taxpayers with 

disabilities. Taxpayers who need information about accessibility services can call 833-690-0598. The Accessibility Helpline can answer questions related to current and 

future accessibility products and services available in alternative media formats (for example, braille, large print, 

audio, etc.). The Accessibility Helpline does not have access to your IRS account. For help with tax law, refunds, or 

account-related issues, go to IRS.gov/LetUsHelp.

Note. Form 9000, Alternative Media Preference, or 

Form 9000(SP) allows you to elect to receive certain types 

of written correspondence in the following formats.

• Standard Print.

• Large Print.

• Braille.

• Audio (MP3).

• Plain Text File (TXT).

• Braille Ready File (BRF).

Disasters. Go to IRS.gov/DisasterRelief to review the 

available disaster tax relief.

Getting tax forms and publications. Go to IRS.gov/

Forms to view, download, or print all the forms, instructions, and publications you may need. Or, you can go to 

IRS.gov/OrderForms to place an order.

Getting tax publications and instructions in eBook 

format. Download and view most tax publications and instructions (including the Instructions for Form 1040) on 

mobile devices as eBooks at IRS.gov/eBooks.

IRS eBooks have been tested using Apple's iBooks for 

iPad. Our eBooks haven’t been tested on other dedicated 

eBook readers, and eBook functionality may not operate 

as intended.

Access your online account (individual taxpayers 

only). Go to IRS.gov/Account to securely access information about your federal tax account.

• View the amount you owe and a breakdown by tax 

year.

• See payment plan details or apply for a new payment 

plan.

• Make a payment or view 5 years of payment history 

and any pending or scheduled payments.

• Access your tax records, including key data from your 

most recent tax return, and transcripts.

• View digital copies of select notices from the IRS.

• Approve or reject authorization requests from tax professionals.

• View your address on file or manage your communication preferences.

Get a transcript of your return. With an online account, 

you can access a variety of information to help you during 

the filing season. You can get a transcript, review your 

most recently filed tax return, and get your adjusted gross 

income. Create or access your online account at IRS.gov/

Account.

Tax Pro Account. This tool lets your tax professional 

submit an authorization request to access your individual 

taxpayer IRS online account. For more information, go to 

IRS.gov/TaxProAccount.

Using direct deposit. The safest and easiest way to receive a tax refund is to e-file and choose direct deposit, 

which securely and electronically transfers your refund directly into your financial account. Direct deposit also 

avoids the possibility that your check could be lost, stolen, 

destroyed, or returned undeliverable to the IRS. Eight in 

10 taxpayers use direct deposit to receive their refunds. If 

you don’t have a bank account, go to IRS.gov/

DirectDeposit for more information on where to find a bank 

or credit union that can open an account online.

Reporting and resolving your tax-related identity 

theft issues. 

• Tax-related identity theft happens when someone 

steals your personal information to commit tax fraud. 

Your taxes can be affected if your SSN is used to file a 

fraudulent return or to claim a refund or credit.

• The IRS doesn’t initiate contact with taxpayers by 

email, text messages (including shortened links), telephone calls, or social media channels to request or 

verify personal or financial information. This includes 

requests for personal identification numbers (PINs), 

passwords, or similar information for credit cards, 

banks, or other financial accounts.

• Go to IRS.gov/IdentityTheft, the IRS Identity Theft 

Central webpage, for information on identity theft and 

data security protection for taxpayers, tax professionals, and businesses. If your SSN has been lost or 

stolen or you suspect you’re a victim of tax-related 

identity theft, you can learn what steps you should 

take.

• Get an Identity Protection PIN (IP PIN). IP PINs are 

six-digit numbers assigned to taxpayers to help prevent the misuse of their SSNs on fraudulent federal income tax returns. When you have an IP PIN, it prevents someone else from filing a tax return with your 

SSN. To learn more, go to IRS.gov/IPPIN.

78 Chapter 12 How To Get Tax Help Publication 519 (2023)
Ways to check on the status of your refund. 

• Go to IRS.gov/Refunds.

• Download the official IRS2Go app to your mobile device to check your refund status.

• Call the automated refund hotline at 800-829-1954.

The IRS can’t issue refunds before mid-February 

for returns that claimed the EIC or the additional 

child tax credit (ACTC). This applies to the entire 

refund, not just the portion associated with these credits.

Making a tax payment. Payments of U.S. tax must be 

remitted to the IRS in U.S. dollars. Digital assets are not 

accepted. Go to IRS.gov/Payments for information on how 

to make a payment using any of the following options.

• IRS Direct Pay: Pay your individual tax bill or estimated 

tax payment directly from your checking or savings account at no cost to you.

• Debit Card, Credit Card, or Digital Wallet: Choose an 

approved payment processor to pay online or by 

phone.

• Electronic Funds Withdrawal: Schedule a payment 

when filing your federal taxes using tax return preparation software or through a tax professional.

• Electronic Federal Tax Payment System: Best option 

for businesses. Enrollment is required.

• Check or Money Order: Mail your payment to the address listed on the notice or instructions.

• Cash: You may be able to pay your taxes with cash at 

a participating retail store.

• Same-Day Wire: You may be able to do same-day 

wire from your financial institution. Contact your financial institution for availability, cost, and time frames.

Note. The IRS uses the latest encryption technology to 

ensure that the electronic payments you make online, by 

phone, or from a mobile device using the IRS2Go app are 

safe and secure. Paying electronically is quick, easy, and 

faster than mailing in a check or money order.

What if I can’t pay now? Go to IRS.gov/Payments for 

more information about your options.

• Apply for an online payment agreement (IRS.gov/

OPA) to meet your tax obligation in monthly installments if you can’t pay your taxes in full today. Once 

you complete the online process, you will receive immediate notification of whether your agreement has 

been approved.

• Use the Offer in Compromise Pre-Qualifier to see if 

you can settle your tax debt for less than the full 

amount you owe. For more information on the Offer in 

Compromise program, go to IRS.gov/OIC.

Filing an amended return. Go to IRS.gov/Form1040X 

for information and updates.

CAUTION

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Checking the status of your amended return. Go to 

IRS.gov/WMAR to track the status of Form 1040-X amended returns.

It can take up to 3 weeks from the date you filed 

your amended return for it to show up in our system, and processing it can take up to 16 weeks.

Understanding an IRS notice or letter you’ve received. Go to IRS.gov/Notices to find additional information about responding to an IRS notice or letter.

Responding to an IRS notice or letter. You can now 

upload responses to all notices and letters using the 

Document Upload Tool. For notices that require additional 

action, taxpayers will be redirected appropriately on 

IRS.gov to take further action. To learn more about the 

tool, go to IRS.gov/Upload.

Note. You can use Schedule LEP (Form 1040), Request for Change in Language Preference, to state a preference to receive notices, letters, or other written communications from the IRS in an alternative language. You may 

not immediately receive written communications in the requested language. The IRS’s commitment to LEP taxpayers is part of a multi-year timeline that began providing 

translations in 2023. You will continue to receive communications, including notices and letters, in English until they 

are translated to your preferred language.

Contacting your local TAC. Keep in mind, many questions can be answered on IRS.gov without visiting a TAC. 

Go to IRS.gov/LetUsHelp for the topics people ask about 

most. If you still need help, TACs provide tax help when a 

tax issue can’t be handled online or by phone. All TACs 

now provide service by appointment, so you’ll know in advance that you can get the service you need without long 

wait times. Before you visit, go to IRS.gov/TACLocator to 

find the nearest TAC and to check hours, available services, and appointment options. Or, on the IRS2Go app, 

under the Stay Connected tab, choose the Contact Us option and click on “Local Offices.”

The Taxpayer Advocate Service (TAS) 

Is Here To Help You

What Is TAS?

TAS is an independent organization within the IRS that 

helps taxpayers and protects taxpayer rights. TAS strives 

to ensure that every taxpayer is treated fairly and that you 

know and understand your rights under the Taxpayer Bill 

of Rights.

How Can You Learn About Your Taxpayer 

Rights?

The Taxpayer Bill of Rights describes 10 basic rights that 

all taxpayers have when dealing with the IRS. Go to 

TaxpayerAdvocate.IRS.gov to help you understand what 

these rights mean to you and how they apply. These are 

your rights. Know them. Use them.

CAUTION

!

Publication 519 (2023) Chapter 12 How To Get Tax Help 79
What Can TAS Do for You?

TAS can help you resolve problems that you can’t resolve 

with the IRS. And their service is free. If you qualify for 

their assistance, you will be assigned to one advocate 

who will work with you throughout the process and will do 

everything possible to resolve your issue. TAS can help 

you if:

• Your problem is causing financial difficulty for you, 

your family, or your business;

• You face (or your business is facing) an immediate 

threat of adverse action; or

• You’ve tried repeatedly to contact the IRS but no one 

has responded, or the IRS hasn’t responded by the 

date promised.

How Can You Reach TAS?

TAS has offices in every state, the District of Columbia, 

and Puerto Rico. To find your advocate’s number:

• Go to TaxpayerAdvocate.IRS.gov/Contact-Us;

• Download Pub. 1546, The Taxpayer Advocate Service 

Is Your Voice at the IRS, available at IRS.gov/pub/irspdf/p1546.pdf;

• Call the IRS toll free at 800-TAX-FORM 

(800-829-3676) to order a copy of Pub. 1546;

• Check your local directory; or

• Call TAS toll free at 877-777-4778.

How Else Does TAS Help Taxpayers?

TAS works to resolve large-scale problems that affect 

many taxpayers. If you know of one of these broad issues, 

report it to TAS at IRS.gov/SAMS. Be sure to not include 

any personal taxpayer information.

Low Income Taxpayer Clinics (LITCs)

LITCs are independent from the IRS and TAS. LITCs represent individuals whose income is below a certain level 

and who need to resolve tax problems with the IRS. LITCs 

can represent taxpayers in audits, appeals, and tax collection disputes before the IRS and in court. In addition, 

LITCs can provide information about taxpayer rights and 

responsibilities in different languages for individuals who 

speak English as a second language. Services are offered 

for free or a small fee. For more information or to find an 

LITC near you, go to the LITC page at 

TaxpayerAdvocate.IRS.gov/LITC or see IRS Pub. 4134, 

Low Income Taxpayer Clinic List, at IRS.gov/pub/irs-pdf/

p4134.pdf.

Taxpayer Assistance Outside 

the United States

If you are outside the United States, you can call 

267-941-1000 (English-speaking only). This number is not toll free.

If you wish to write instead of calling, address your 

letter to:

Internal Revenue Service

International Accounts

Philadelphia, PA 19255-0725

U.S.A.

Additional contacts for taxpayers who live outside the United States are available at IRS.gov/uac/Contact-My-LocalOffice-Internationally.

Taxpayer Advocate Service (TAS). If you live outside 

the United States, you can call TAS at +15.15.56.46.827. 

Your call will be automatically routed to Hawaii or Puerto 

Rico depending on your location. If you select Spanish, 

your call will be routed to the Puerto Rico office for assistance. You can contact the Taxpayer Advocate at:

Internal Revenue Service

Taxpayer Advocate Service

City View Plaza, 48 Carr 165,

Guaynabo, P.R. 00968-8000

You can call TAS toll free at 877-777-4778. For more information on TAS and contacts if you are outside of the 

United States, go to TaxpayerAdvocate.IRS.gov/Get-Help/

International/.

80 Chapter 12 How To Get Tax Help Publication 519 (2023)
Frequently Asked Questions

This section answers tax-related 

questions commonly asked by aliens.

What is the difference between a 

resident alien and a nonresident 

alien for tax purposes?

For tax purposes, an alien is an individual who is not a U.S. citizen. Aliens 

are classified as resident aliens and 

nonresident aliens. Resident aliens 

are taxed on their worldwide income, 

the same as U.S. citizens. Nonresident aliens are taxed only on their U.S. 

source income and certain foreign 

source income that is effectively connected with a U.S. trade or business.

What is the difference between the 

taxation of income that is 

effectively connected with a trade 

or business in the United States 

and income that is not effectively 

connected with a trade or business 

in the United States?

The difference between these two categories is that effectively connected 

income, after allowable deductions, is 

taxed at graduated rates. These are 

the same rates that apply to U.S. citizens and residents. Income that is not 

effectively connected is taxed at a flat 

30% (or lower treaty) rate.

I am a student with an F-1 visa. I 

was told that I was an exempt 

individual. Does this mean I am 

exempt from paying U.S. tax?

The term “exempt individual” does not 

refer to someone exempt from U.S. 

tax. You were referred to as an “exempt individual” because as a student 

temporarily in the United States on an 

F visa, you do not have to count the 

days you were present in the United 

States as a student during the first 5 

years in determining if you are a resident alien under the substantial presence test. See chapter 1.

I am a resident alien. Can I claim 

any treaty benefits?

Generally, you cannot claim tax treaty 

benefits as a resident alien. However, 

there are exceptions. See Effect of Tax 

Treaties in chapter 1. See also Resident Aliens under Some Typical Tax 

Treaty Benefits in chapter 9.

I am a nonresident alien with no 

dependents. I am working 

temporarily for a U.S. company. 

What return do I file?

You must file Form 1040-NR if you are 

engaged in a trade or business in the 

United States, or have any other U.S. 

source income on which tax was not 

fully paid by the amount withheld.

I came to the United States on 

June 30 of last year. I have an H-1B 

visa. What is my tax status, 

resident alien or nonresident 

alien? What tax return do I file?

You were a dual-status alien last year. 

As a general rule, because you were 

in the United States for 183 days or 

more, you have met the substantial 

presence test and you are taxed as a 

resident. However, for the part of the 

year that you were not present in the 

United States, you are a nonresident. 

File Form 1040 or 1040-SR. Enter 

“Dual-Status Return” across the top. 

Attach a statement showing your U.S. 

source income for the part of the year 

you were a nonresident. You may use 

Form 1040-NR as the statement. Enter “Dual-Status Statement” across the 

top. See First Year of Residency in 

chapter 1 for rules on determining 

your residency starting date.

When is my Form 1040-NR due?

If you are an employee and you receive wages subject to U.S. income 

tax withholding, you must generally file 

by the 15th day of the 4th month after 

your tax year ends. If you file for the 

2023 calendar year, your return is due 

April 15, 2024.

If you are not an employee who receives wages subject to U.S. income 

tax withholding, you must file by the 

15th day of the 6th month after your 

tax year ends. For the 2023 calendar 

year, file your return by June 17, 2024. 

For more information on when to file 

and where to file, see chapter 7.

My spouse is a nonresident alien. 

Do they need a social security 

number?

A social security number (SSN) must 

be furnished on returns, statements, 

and other tax-related documents. If 

your spouse does not have and is not 

eligible to get an SSN, they must apply for an individual taxpayer identification number (ITIN).

If you are a U.S. citizen or resident 

and you choose to treat your nonresident spouse as a resident and file a 

joint tax return, your nonresident 

spouse needs an SSN or an ITIN. 

Alien spouses who are claimed as dependents are also required to furnish 

an SSN or ITIN.

See Identification Number in chapter 5 for more information.

I am a nonresident alien. Can I file 

a joint return with my spouse?

Generally, you cannot file as married 

filing jointly if either spouse was a nonresident alien at any time during the 

tax year.

However, nonresident aliens married to U.S. citizens or residents can 

choose to be treated as U.S. residents 

and file joint returns. For more information on this choice, see Nonresident Spouse Treated as a Resident in 

chapter 1.

I have an H-1B visa and my spouse 

has an F-1 visa. We both lived in 

the United States all of last year 

and had income. What kind of form 

should we file? Do we file separate 

returns or a joint return?

Assuming both of you had these visas 

for all of last year and you are a resident alien, your spouse is a nonresident alien if they have not been in the 

United States as a student for more 

Publication 519 (2023) 81
than 5 years. You and your spouse 

can file a joint tax return on Form 1040 

or 1040-SR if your spouse makes the 

choice to be treated as a resident for 

the entire year. See Nonresident 

Spouse Treated as a Resident in 

chapter 1. If your spouse does not 

make this choice, you must file a separate return on Form 1040 or 

1040-SR. Your spouse must file Form 

1040-NR.

Is a “dual-resident taxpayer” the 

same as a “dual-status taxpayer”?

No. A dual-resident taxpayer is one 

who is a resident of both the United 

States and another country under 

each country's tax laws. See Effect of 

Tax Treaties in chapter 1. You are a 

dual-status alien when you are both a 

resident alien and a nonresident alien 

in the same year. For information on 

determining the U.S. income tax liability for a dual-status tax year, see chapter 6.

I am a nonresident alien and 

invested money in the U.S. stock 

market through a U.S. brokerage 

company. Are the dividends and 

the capital gains taxable? If yes, 

how are they taxed?

The following rules apply if the dividends and capital gains are not effectively connected with a U.S. trade or 

business.

• Capital gains are generally not 

taxable if you were in the United 

States for less than 183 days during the year. See Sales or Exchanges of Capital Assets in 

chapter 4 for more information and 

exceptions.

• Dividends are generally taxed at a 

30% (or lower treaty) rate. The 

brokerage company or payer of 

the dividends should withhold this 

tax at source. If tax is not withheld 

at the correct rate, you must file 

Form 1040-NR to receive a refund 

or pay any additional tax due.

If the capital gains and dividends 

are effectively connected with a U.S. 

trade or business, they are taxed according to the same rules and at the 

same rates that apply to U.S. citizens 

and residents.

I am a nonresident alien. I receive 

U.S. social security benefits. Are 

my benefits taxable?

If you are a nonresident alien, 85% of 

any U.S. social security benefits (and 

the equivalent portion of tier 1 railroad 

retirement benefits) you receive is 

subject to the flat 30% tax, unless exempt, or subject to a lower treaty rate. 

See The 30% Tax in chapter 4.

Do I have to pay taxes on my 

scholarship?

If you are a nonresident alien and the 

scholarship is not from U.S. sources, it 

is not subject to U.S. tax. See Scholarships, Grants, Prizes, and Awards in 

chapter 2 to determine whether your 

scholarship is from U.S. sources.

If your scholarship is from U.S. 

sources or you are a resident alien, 

your scholarship is subject to U.S. tax 

according to the following rules.

• If you are a candidate for a degree, you may be able to exclude 

from your income the part of the 

scholarship you use to pay for tuition, fees, books, supplies, and 

equipment required by the educational institution. However, the part 

of the scholarship you use to pay 

for other expenses, such as room 

and board, is taxable. See Scholarships and Fellowship Grants in 

chapter 3 for more information.

• If you are not a candidate for a degree, your scholarship is taxable.

I am a nonresident alien. Can I 

claim the standard deduction?

Nonresident aliens cannot claim the 

standard deduction. However, see 

Students and business apprentices 

from India, under Itemized Deductions 

in chapter 5, for an exception.

I am a dual-status taxpayer. Can I 

claim the standard deduction?

You cannot claim the standard deduction allowed on Form 1040 or 

1040-SR. However, you can itemize 

any allowable deductions.

I am filing Form 1040-NR. Can I 

claim itemized deductions?

Nonresident aliens can claim some of 

the same itemized deductions that 

resident aliens can claim. However, 

nonresident aliens can claim itemized 

deductions only if they have income 

effectively connected with their U.S. 

trade or business. See Itemized Deductions in chapter 5.

I am single with a dependent child. 

I was a dual-status alien in 2023. 

Can I claim the earned income 

credit on my 2023 tax return?

If you are a nonresident alien for any 

part of the year, you cannot claim the 

earned income credit. See chapter 6 

for more information on dual-status aliens.

I am a nonresident alien student. 

Can I claim an education credit on 

my Form 1040-NR?

If you are a nonresident alien for any 

part of the year, you generally cannot 

claim the education credits. However, 

if you are married and choose to file a 

joint return with a U.S. citizen or resident spouse, you may be eligible for 

these credits. See Nonresident 

Spouse Treated as a Resident in 

chapter 1.

I am a nonresident alien, 

temporarily working in the U.S. 

under a J visa. Am I subject to 

social security and Medicare 

taxes?

Generally, services you perform as a 

nonresident alien temporarily in the 

United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) 

of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program 

if you perform the services to carry out 

the purpose for which you were admitted to the United States. See Social 

Security and Medicare Taxes in chapter 8.

I am a nonresident alien student. 

Social security taxes were withheld 

from my pay in error. How do I get 

a refund of these taxes?

If social security or Medicare taxes 

were withheld in error from pay that is 

not subject to these taxes, contact the 

82 Publication 519 (2023)
employer who withheld the taxes for a 

refund. If you are unable to get a full 

refund of the amount from your employer, file a claim for refund with the 

IRS on Form 843. Do not use Form 

843 to request a refund of Additional 

Medicare Tax. See Refund of Taxes 

Withheld in Error in chapter 8.

I am an alien who will be leaving 

the United States. What forms do I 

have to file before I leave?

Before leaving the United States, aliens must generally obtain a certificate 

of compliance. This document, also 

popularly known as the “sailing permit” 

or “departure permit,” is part of the income tax form you must file before 

leaving. You will receive a sailing or 

departure permit after filing a Form 

1040-C or Form 2063. These forms 

are discussed in chapter 11.

I filed a Form 1040-C when I left the 

United States. Do I still have to file 

an annual U.S. tax return?

Form 1040-C is not an annual U.S. income tax return. If an income tax return is required by law, you must file 

that return even though you already 

filed a Form 1040-C. Chapter 5 and 

chapter 7 discuss filing an annual U.S. 

income tax return.

Publication 519 (2023) 83
Appendix A—Tax Treaty Exemption Procedure for Students

This appendix contains the statements 

nonresident alien students and trainees must file with Form 8233 to claim a 

tax treaty exemption from withholding 

of tax on compensation for dependent 

personal services. For treaty countries 

not listed, attach a statement in a format similar to those for other treaties. 

See chapter 8 for more information on 

withholding.

Belgium

1. I was a resident of Belgium on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am present in the United States 

for the purpose of my education or 

training.

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Belgium in an 

amount not in excess of $9,000 for 

any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study or training]. 

For a trainee who is temporarily 

present in the United States for the 

purpose of securing training required to practice a profession or 

professional specialty, the treaty 

exemption is available only for 

compensation paid during a period 

of 2 years.

Bulgaria

1. I was a resident of Bulgaria on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study] or securing training to practice a profession or professional specialty.

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Bulgaria in an 

amount not in excess of $9,000 for 

any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study or training]. 

The treaty exemption for training is 

available only for compensation 

paid during a period of 2 years.

China, People's Republic 

of

1. I was a resident of the People's 

Republic of China on the date of 

my arrival in the United States. I 

am not a U.S. citizen.

2. I am present in the United States 

solely for the purpose of my education or training.

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and the People's 

Republic of China in an amount 

not in excess of $5,000 for any tax 

year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study or training]. I 

am claiming this exemption only for 

such period of time as is reasonably necessary to complete the education or training.

Cyprus

1. I was a resident of Cyprus on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Cyprus in an 

amount not in excess of $2,000 

($10,000 if you are a participant in 

a government sponsored program 

of study not exceeding 1 year) for 

any tax year. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a student before the 

date of my arrival in the United 

States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The 

$2,000 treaty exemption is available only for compensation paid 

during a period of 5 tax years beginning with the tax year that includes my arrival date, and for 

such additional period of time as is 

necessary to complete, as a 

full-time student, educational requirements as a candidate for a 

postgraduate or professional degree from a recognized educational institution.

84 Publication 519 (2023)
Czech Republic, Estonia, 

Latvia, Lithuania, and 

Slovak Republic

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying or training at 

[insert the name of the university or 

other recognized educational institution at which you study]; or, I am 

temporarily present in the United 

States as a recipient of a grant, allowance, or award from 

[insert the name of the nonprofit 

organization or government institution providing the grant, allowance, 

or award].

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and [insert the name of 

the country] in the amount not in 

excess of $5,000 ($10,000 if you 

are a participant in a government 

sponsored program of study not 

exceeding 1 year) for any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The 

$5,000 treaty exemption is available only for compensation paid 

during a period of 5 tax years beginning with the tax year that includes my arrival date.

Egypt

1. I was a resident of Egypt on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Egypt in an amount 

not in excess of $3,000 ($10,000 if 

you are a participant in a government sponsored program of study 

not exceeding 1 year) for any tax 

year. I have not previously claimed 

an income tax exemption under 

that treaty for income received as a 

teacher, researcher, or student before the date of my arrival in the 

United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The 

$3,000 treaty exemption is available only for compensation paid 

during a period of 5 tax years beginning with the tax year that includes my arrival date, and for 

such period of time as is necessary to complete, as a full-time student, educational requirements as 

a candidate for a postgraduate or 

professional degree from a recognized educational institution.

France

1. I was a resident of France on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the accredited university, 

college, school or other educational institution].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and France in an 

amount not in excess of $5,000 for 

any taxable year. I have not previously claimed an income tax exemption under this treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. I will be present in the United 

States only for such period of time 

as may be reasonably or customarily required to effectuate the purpose of this visit.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years.

Germany

1. I was a resident of Germany on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States as a student or business apprentice for the purpose of 

full-time study or training at 

[insert the name of the 

accredited university, college, 

school or other educational institution]; or, I am temporarily present 

in the United States as a recipient 

of a grant, allowance, or award 

from [insert the name of 

the nonprofit organization or government institution providing the 

grant, allowance, or award].

3. I will receive compensation for dependent personal services performed in the United States. This 

compensation qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and 

Germany in an amount not in excess of $9,000 for any tax year, 

provided that such services are 

Publication 519 (2023) 85
performed for the purpose of supplementing funds otherwise available for my maintenance, education, 

or training.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 4 tax years beginning with the 

tax year that includes my arrival 

date.

Iceland

1. I was a resident of Iceland on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study]; or, I am temporarily present in the United States to 

obtain professional training or to 

study or do research as a recipient 

of a grant, allowance, or award 

from [insert the name of 

the nonprofit organization or government institution providing the 

grant, allowance, or award].

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and Iceland in the amount not in 

excess of $9,000 for any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

Indonesia

1. I was a resident of Indonesia on 

the date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States solely for the purpose of 

study at [insert the name 

of the university or other accredited educational institution at which 

you study]; or, I am temporarily 

present in the United States as a 

recipient of a grant, allowance or 

award from [insert the 

name of the nonprofit organization 

or government institution providing 

the grant, allowance, or award] for 

the primary purpose of study, research, or training.

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and Indonesia in an amount not in 

excess of $2,000 for my tax year, 

provided such services are performed in connection with my studies or are necessary for my maintenance.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

Israel, Philippines, and 

Thailand

1. I was a resident of the 

[insert the name of the country under whose treaty you claim exemption] on the date of my arrival in the 

United States. I am not a U.S. citizen. I have not been lawfully accorded the privilege of residing permanently in the United States as 

an immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and [insert the 

name of the country under whose 

treaty you claim exemption] in an 

amount not in excess of $3,000 for 

any tax year. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

Korea, Norway, Poland, 

and Romania

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and [insert the 

name of the country under whose 

86 Publication 519 (2023)
treaty you claim exemption] in an 

amount not in excess of $2,000 for 

any tax year. I have not previously 

claimed an income tax exemption 

under this treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

Morocco

1. I was a resident of Morocco on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other recognized educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Morocco in an 

amount not in excess of $2,000 for 

any tax year. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a student before the 

date of my arrival in the United 

States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years, beginning with the 

tax year that includes my arrival 

date.

Netherlands

1. I was a resident of the Netherlands 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of full time study at [insert the name of the recognized 

university, college, or school in the 

United States at which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and the Netherlands in 

an amount not in excess of $2,000 

for any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. I am claiming this exemption only for such 

period of time as is reasonably 

necessary to complete my education.

Pakistan

1. I am a resident of Pakistan. I am 

not a U.S. citizen. I have not been 

lawfully accorded the privilege of 

residing permanently in the United 

States as an immigrant and would 

not otherwise be considered a resident alien for the relevant tax year.

2. I am temporarily present in the United States solely as a student at 

[insert the name of the 

recognized university, college, or 

school in the United States at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Pakistan in an 

amount not in excess of $5,000 for 

any tax year.

Portugal and Spain

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying or training at 

[insert the name of the university or 

other recognized educational institution at which you study]; or, I am 

temporarily present in the United 

States as a recipient of a grant, allowance, or award from 

[insert the name of the nonprofit 

organization or government institution providing the grant, allowance, 

or award].

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and [Insert the name of 

the country] in the amount not in 

excess of $5,000 for any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

Slovenia and Venezuela

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying or training at 

[insert the name of the university or 

Publication 519 (2023) 87
other accredited educational institution at which you study or train].

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and [insert the name of 

the country under whose treaty 

you claim exemption] in an amount 

not in excess of $5,000 for any tax 

year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date, and for such period of time 

as is necessary to complete, as a 

full-time student, educational requirements as a candidate for a 

postgraduate or professional degree from a recognized educational institution.

Trinidad and Tobago

1. I was a resident of Trinidad and Tobago on the date of my arrival in 

the United States. I am not a U.S. 

citizen. I have not been lawfully accorded the privilege of residing 

permanently in the United States 

as an immigrant.

2. I am temporarily present in the United States for the primary purpose 

of studying at [insert the 

name of the university or other accredited educational institution at 

which you study].

3. I will receive compensation for personal services performed in the 

United States. This compensation 

qualifies for exemption from withholding of federal income tax under the tax treaty between the United States and Trinidad and 

Tobago in an amount not in excess 

of $2,000 (or, if you are securing 

training required to qualify you to 

practice a profession or a professional specialty, not in excess of 

$5,000) for any tax year. I have not 

previously claimed an income tax 

exemption under this treaty for income received as a teacher, researcher, or student before the 

date of my arrival in the United 

States.

4. I will be present in the United 

States only for such period of time 

as may be reasonably or customarily required to effectuate the purpose of this visit.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years.

Tunisia

1. I was a resident of Tunisia on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the purpose of 

full-time study, training, or research 

at [insert the name of the 

university or other accredited educational institution at which you 

study, train, or perform research].

3. I will receive compensation for 

services performed in the United 

States. This compensation qualifies for exemption from withholding 

of federal income tax under the tax 

treaty between the United States 

and Tunisia in an amount not in excess of $4,000 for any tax year.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning study at the U.S. 

educational institution]. The treaty 

exemption is available only for 

compensation paid during a period 

of 5 tax years beginning with the 

tax year that includes my arrival 

date.

88 Publication 519 (2023)
Appendix B—Tax Treaty Exemption Procedure for Teachers and 

Researchers

This appendix contains the statements 

nonresident alien teachers and researchers must file with Form 8233 to 

claim a tax treaty exemption from withholding of tax on compensation for dependent personal services. For treaty 

countries not listed, attach a statement 

in a format similar to those for other 

treaties. See chapter 8 for more information on withholding.

Belgium

1. I am a resident of Belgium. I am 

not a U.S. citizen. I have not been 

lawfully accorded the privilege of 

residing permanently in the United 

States as an immigrant.

2. I am visiting the United States for 

the purpose of teaching or engaging in research at [insert 

the name of the educational or research institution at which you 

teach or perform research] for a 

period not exceeding 2 years. I will 

receive compensation for my 

teaching or research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) for these activities qualifies for exemption from 

withholding of federal tax under the 

tax treaty between the United 

States and Belgium.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research for which exemption is 

claimed]. The treaty exemption is 

available only for compensation received during a period of 2 years 

beginning on that date.

Bulgaria

1. I was a resident of Bulgaria on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am visiting the United States for 

the purpose of teaching or conducting research at [insert the name of the university, college, or other recognized 

educational or research institution]. 

I will receive compensation for my 

teaching or research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) for these activities qualifies for exemption from 

withholding of federal tax under the 

tax treaty between the United 

States and Bulgaria.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the services for 

which the exemption is claimed]. 

The treaty exemption is available 

only for compensation paid during 

a period of 2 years beginning on 

that date.

China, People's Republic 

of

1. I was a resident of the People's 

Republic of China on the date of 

my arrival in the United States. I 

am not a U.S. citizen.

2. I am visiting the United States for 

the primary purpose of teaching, 

giving lectures, or conducting research at [insert the 

name of the educational institution 

or scientific research institution at 

which you teach, lecture, or conduct research], which is an accredited educational institution or 

scientific research institution. I will 

receive compensation for my 

teaching, lecturing, or research activities.

3. The teaching, lecturing, or research compensation received 

during the entire tax year (or during 

the period from to ) 

qualifies for exemption from withholding of federal tax under the tax 

treaty between the United States 

and the People's Republic of 

China. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, lecturer, researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning your teaching, lecturing, or research activities]. The 

treaty exemption is available only 

for compensation received during 

a maximum aggregate period of 2 

years.

Commonwealth of 

Independent States

The treaty with the former Union of Soviet Socialist Republics remains in effect for the following countries: Armenia, Azerbaijan, Belarus, Georgia, 

Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and Uzbekistan.

1. I am a resident of [insert 

the name of country]. I am not a 

U.S. citizen.

2. I have accepted an invitation by a 

governmental agency or institution 

in the United States, or by an educational or scientific research institution in the United States, to come 

to the United States for the primary 

purpose of teaching, engaging in 

research, or participating in scientific, technical, or professional conferences at [insert the 

Publication 519 (2023) 89
name of governmental agency or 

institution, educational or scientific 

institution, or organization sponsoring professional conference], 

which is a governmental agency or 

institution, an educational or scientific institution, or an organization 

sponsoring a professional conference. I will receive compensation 

for my teaching, research, or conference activities.

3. The teaching, research, or conference compensation received the 

entire tax year (or for the period 

from to ) qualifies for 

exemption from withholding of federal tax under the tax treaty between the United States and the 

former Union of Soviet Socialist 

Republics. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, 

conference participant, or student 

before the date of my arrival in the 

United States.

4. Any research I perform will not be 

undertaken primarily for the benefit 

of a private person or commercial 

enterprise of the United States or a 

foreign trade organization of 

[insert the name of country], unless the research is conducted on the basis of intergovernmental agreements on 

cooperations.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Czech Republic and 

Slovak Republic

1. I was a resident of the 

[insert the name of the country under whose treaty you claim exemption] on the date of my arrival in the 

United States. I am not a U.S. citizen. I have not been lawfully accorded the privilege of residing permanently in the United States as 

an immigrant.

2. I am visiting the United States for 

the primary purpose of teaching or 

conducting research at 

[insert the name of the educational 

or scientific institution], which is an 

accredited educational or research 

institution. I will receive compensation for my teaching or research 

activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and the 

[insert the name of the 

country under whose treaty you 

claim exemption]. I have not previously claimed an income tax exemption under that treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching, research, or conference services for 

which exemption is claimed]. The 

treaty exemption is available only 

for compensation received during 

a period of 2 years beginning on 

that date.

Egypt, Hungary, Korea, 

Philippines, Poland, and 

Romania

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I have accepted an invitation by the 

U.S. Government (or by a political 

subdivision or local authority 

thereof), or by a university or other 

recognized educational institution 

in the United States for a period 

not expected to exceed 2 years for 

the purpose of teaching or engaging in research at [insert 

the name of the educational institution], which is a recognized educational institution. I will receive compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or for the portion of the 

year from to ) qualifies for exemption from withholding 

of federal tax under the tax treaty 

between the United States and 

[insert the name of the 

country under whose treaty you 

claim exemption]. I have not previously claimed an income tax exemption under this treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Note. See Termination of 1979 Tax 

Convention with Hungary under What’s 

New, earlier.

France

1. I was a resident of France on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I have accepted an invitation by the 

U.S. Government, or by a university or other recognized educational or research institution in the 

United States for the primary purpose of teaching or engaging in 

90 Publication 519 (2023)
research at [insert the 

name of the educational or research institution]. I will receive 

compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or for the portion of the 

year from to ) qualifies for exemption from withholding 

of federal tax under the tax treaty 

between the United States and 

France. I have not previously 

claimed an income tax exemption 

under this treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Germany

1. I am a resident of Germany. I am 

not a U.S. citizen. I have not been 

lawfully accorded the privilege of 

residing permanently in the United 

States as an immigrant.

2. I am a professor or teacher visiting 

the United States for the purpose 

of advanced study, teaching, or research at [insert the 

name of the accredited university, 

college, school, or other educational institution, or a public research institution or other institution engaged in research for the 

public benefit]. I will receive compensation for my teaching, research, or study activities.

3. The compensation received during 

the entire tax year (or during the 

period from to ) 

for these activities qualifies for exemption from withholding of federal tax under the tax treaty 

between the United States and 

Germany. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a student, apprentice, or 

trainee during the immediately preceding period. (If, however, following the period in which the alien 

claimed benefits as a student, apprentice, or trainee, that person returned to Germany and resumed 

residence and physical presence 

before returning to the United 

States as a teacher or researcher, 

that person may claim the benefits 

of this treaty.)

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the services for 

which the exemption is claimed]. 

The treaty exemption is available 

only for compensation paid during 

a period of 2 years beginning on 

that date.

Greece

1. I am a resident of Greece. I am not 

a U.S. citizen. I have not been lawfully accorded the privilege of residing permanently in the United 

States as an immigrant (and would 

not otherwise be considered a resident alien for the relevant tax 

year).

2. I am a professor or teacher visiting 

the United States for the purpose 

of teaching at [insert the 

name of the other educational institution at which you teach], which 

is an educational institution. I will 

receive compensation for my 

teaching activities.

3. The teaching compensation received during the entire tax year 

(or during the period from to 

) qualifies for exemption 

from withholding of federal tax under the tax treaty between the United States and Greece. I have not 

previously claimed an income tax 

exemption under that treaty for income received as a teacher or student before the date of my arrival 

in the United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching services for which exemption is 

claimed]. The treaty exemption is 

available only for compensation received during a period of 3 years 

beginning on that date.

India

1. I was a resident of India on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am visiting the United States for 

the purpose of teaching or conducting research at [insert the name of the university, college, or other recognized 

educational institution]. I will receive compensation for my teaching or research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) for these activities qualifies for exemption from 

withholding of federal tax under the 

tax treaty between the United 

States and India.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the services for 

which the exemption is claimed]. 

The treaty exemption is available 

only for compensation paid during 

a period of 2 years beginning on 

that date.

Indonesia

1. I was a resident of Indonesia on 

the date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

Publication 519 (2023) 91
2. I have accepted an invitation by 

[insert the name of the 

university, college, school, or other 

similar educational institution] to 

come to the United States solely 

for the purpose of teaching or engaging in research at that educational institution. I will receive compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for 

exemption from withholding of federal tax under the tax treaty between the United States and Indonesia. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher or researcher 

before the date specified in the 

next paragraph.

4. I arrived in the United States on 

[insert the date of your 

arrival into the United States before beginning the teaching or research services for which the exemption is claimed]. The treaty 

exemption is available only for 

compensation paid during a period 

of 2 years beginning on that date.

5. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

Israel

1. I was a resident of Israel on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I have accepted an invitation by the 

U.S. Government (or by a political 

subdivision or local authority 

thereof), or by a university or other 

recognized educational institution 

in the United States, to come to the 

United States for a period not expected to exceed 2 years for the 

purpose of teaching or engaging in 

research at [insert the 

name of the educational institution], which is a recognized educational institution. I will receive 

compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or for the portion of the 

year from to ) qualifies for exemption from withholding 

of federal tax under the tax treaty 

between the United States and Israel. I have not previously claimed 

an income tax exemption under 

this treaty for income received as a 

teacher, researcher, or student before the date of my arrival in the 

United States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Italy

1. I was a resident of Italy on the date 

of my arrival in the United States. I 

am not a U.S. citizen. I have not 

been accorded the privilege of residing permanently in the United 

States as an immigrant.

2. I am a professor or teacher visiting 

the United States for the purpose 

of teaching or performing research 

at [insert the name of the 

educational institution or medical 

facility at which you teach or perform research], which is a recognized educational institution or a 

medical facility primarily funded 

from governmental sources. I will 

receive compensation for my 

teaching or research activities.

3. The compensation received during 

the entire tax year (or during the 

period from to ) 

qualifies for exemption from withholding of federal tax under the tax 

treaty between the United States 

and Italy. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. Any research I perform will be undertaken in the general interest 

and not primarily for the private 

benefit of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Jamaica

1. I was a resident of Jamaica on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am visiting the United States for 

the purpose of teaching or conducting research for a period not 

expected to exceed 2 years at 

[insert the name of the 

educational institution at which you 

teach or conduct research], which 

is a recognized educational institution. I will receive compensation for 

my teaching or research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and 

Jamaica. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

92 Publication 519 (2023)
compensation paid during a period 

of 2 years beginning on that date.

Luxembourg

1. I am a resident of Luxembourg. I 

am not a U.S. citizen. I have not 

been lawfully accorded the privilege of residing permanently in the 

United States as an immigrant.

2. I have accepted an invitation by 

[insert the name of the 

educational institution at which you 

teach or perform research], which 

is a recognized educational institution, to come to the United States 

for the purpose of teaching or engaging in research at that institution. I will receive compensation for 

my teaching or research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and 

Luxembourg. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. Any research I perform will not be 

carried on for the benefit of any 

person using or disseminating the 

results for purposes of profit.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the teaching 

services for which exemption is 

claimed]. The treaty exemption is 

available only for compensation received during a period of 2 years 

beginning on that date.

Netherlands

1. I am a resident of the Netherlands. 

I am not a U.S. citizen. I have not 

been lawfully accorded the privilege of residing permanently in the 

United States as an immigrant.

2. I am visiting the United States for 

the purpose of teaching or engaging in research at [insert 

the name of the educational 

institution at which you teach or 

perform research] for a period not 

exceeding 2 years. I will receive 

compensation for my teaching or 

research activities.

3. The compensation received during 

the entire tax year (or during the 

period from to ) for 

these activities qualifies for exemption from withholding of federal tax 

under the tax treaty between the 

United States and the Netherlands. I have not previously 

claimed an income tax exemption 

under that treaty for income received as a teacher, researcher, or 

student before the date of my arrival in the United States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the benefit of a 

specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the teaching or 

research services for which exemption is claimed]. The treaty exemption is available for compensation received during a period of 2 

years beginning on that date only if 

my visit does not exceed 2 years.

Norway

1. I was a resident of Norway on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I have accepted an invitation by the 

U.S. Government, or by a university or other recognized educational institution in the United 

States for a period not expected to 

exceed 2 years for the purpose of 

teaching or engaging in research 

at [insert the name of the 

educational institution], which is a 

recognized educational institution. 

I will receive compensation for my 

teaching or research activities.

3. The teaching or research compensation qualifies for exemption from 

withholding of federal tax under the 

tax treaty between the United 

States and Norway. I have not previously claimed an income tax exemption under this treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will not be 

undertaken primarily for the private 

benefit of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

Pakistan

1. I am a resident of Pakistan. I am 

not a U.S. citizen. I have not been 

lawfully accorded the privilege of 

residing permanently in the United 

States as an immigrant and would 

not otherwise be considered a resident alien for the relevant tax year.

2. I am a professor or teacher visiting 

the United States for the purpose 

of teaching at [insert the 

name of the educational institution 

at which you teach], which is a recognized educational institution. I 

will receive compensation for my 

teaching activities.

3. The teaching compensation received during the entire tax year 

(or during the period from to 

) qualifies for exemption 

from withholding of federal tax under the tax treaty between the United States and Pakistan. I have not 

previously claimed an income tax 

exemption under this treaty for income received as a teacher or student before the date of my arrival 

in the United States.

4. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the teaching 

services for which exemption is 

claimed]. The treaty exemption is 

available only for compensation 

Publication 519 (2023) 93
paid during a period of 2 years beginning on that date.

Portugal

1. I was a resident of Portugal on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I have accepted an invitation by 

[insert the name of the 

university, college, school, or other 

similar educational institution] to 

come to the United States solely 

for the purpose of teaching or engaging in research at that educational institution. I will receive compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for 

exemption from withholding of federal tax under the tax treaty between the United States and Portugal. I have not previously claimed 

an income tax exemption under 

that treaty for income received as a 

teacher or researcher before the 

date specified in paragraph 5.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

arrival into the United States before beginning the teaching or research services for which the exemption is claimed]. The treaty 

exemption is available only for 

compensation paid during a period 

of 2 years beginning on that date.

Slovenia and Venezuela

1. I was a resident of [insert 

the name of the country under 

whose treaty you claim exemption] 

on the date of my arrival in the United States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am temporarily present in the United States for the purpose of 

teaching or carrying on research at 

[insert the name of the 

educational or research institution], 

which is a recognized educational 

or research institution. I will receive 

compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and 

[insert the name of the 

country under whose treaty you 

claim exemption]. I have not previously claimed an income tax exemption under this treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the general interest 

and not primarily for the private 

benefit of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date. In no event have I claimed an 

exemption under this treaty for income received as a teacher or researcher for more than 5 years.

Thailand

1. I was a resident of Thailand on the 

date of my arrival in the United 

States. I am not a U.S. citizen. I 

have not been lawfully accorded 

the privilege of residing permanently in the United States as an 

immigrant.

2. I am visiting the United States for 

the purpose of teaching or engaging in research at [insert 

the name of the educational or research institution at which you 

teach or perform research] for a 

period not exceeding 2 years. I will 

receive compensation for my 

teaching or research activities.

3. The compensation received during 

the entire tax year (or during the 

period from to ) for 

these activities qualifies for exemption from withholding of federal tax 

under the tax treaty between the 

United States and Thailand. I have 

not previously claimed an income 

tax exemption under that treaty for 

income received as a teacher, researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the benefit of a 

specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival into the United States 

before beginning the teaching or 

research services for which exemption is claimed]. The treaty exemption is available only for compensation received during a period 

of 2 years beginning on that date.

Trinidad and Tobago

1. I was a resident of Trinidad and Tobago on the date of my arrival in 

the United States. I am not a U.S. 

citizen. I have not been lawfully accorded the privilege of residing 

permanently in the United States 

as an immigrant.

2. I have accepted an invitation by the 

U.S. Government, or by a university or other educational institution 

in the United States, to come to the 

United States for the purpose of 

teaching or engaging in research 

at [insert the name of the 

educational institution], which is an 

educational institution approved by 

an appropriate governmental education authority. No agreement exists between the government of the 

United States and the government 

of Trinidad and Tobago for the provision of my services. I will receive 

compensation for my teaching or 

research services.

3. The teaching or research compensation received during the entire 

tax year (or for the period from 

94 Publication 519 (2023)
to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and 

Trinidad and Tobago. I have not 

previously claimed an income tax 

exemption under that treaty for income received as a teacher, researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the private benefit 

of a specific person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date.

United Kingdom

1. I was a resident of the United Kingdom on the date of my arrival in the 

United States. I am not a U.S. citizen. I have not been accorded the 

privilege of residing permanently in 

the United States as an immigrant.

2. I am a professor or teacher visiting 

the United States for a period of 

not more than 2 years for the purpose of teaching or engaging in research at [insert the 

name of the educational institution], which is a recognized educational institution. I will receive compensation for my teaching or 

research activities.

3. The teaching or research compensation received during the entire 

tax year (or during the period from 

to ) qualifies for exemption from withholding of federal tax under the tax treaty between the United States and the 

United Kingdom. I have not previously claimed an income tax exemption under that treaty for income received as a teacher, 

researcher, or student before the 

date of my arrival in the United 

States.

4. Any research I perform will be undertaken in the public interest and 

not primarily for the benefit of any 

private person or persons.

5. I arrived in the United States on 

[insert the date of your 

last arrival in the United States before beginning the teaching or research services for which exemption is claimed]. The treaty 

exemption is available only for 

compensation received during a 

period of 2 years beginning on that 

date. The entire treaty exemption 

is lost retroactively if my stay in the 

United States exceeds 2 years.

Publication 519 (2023) 95
To help us develop a more useful index, please let us know if you have ideas for index entries.

Index See “Comments and Suggestions” in the “Introduction” for the ways you can reach us.

30% Tax 31

A

Accuracy-related penalties 54

Additional Medicare Tax 63, 65

Adoption credit:

Dual-status alien 49

Nonresident alien 44

Resident alien 43

Agricultural workers 57, 64

Alien:

Nonresident 4, 15, 26

Resident 4, 15, 26

Alien status, employer notification 

of 56

Amended returns 53

American Samoa, residents of 14, 

38, 46

Annuities:

Income 24

Source rule 19

Assistance (See Tax help)

Athletes, professional 8

Awards 19

B

Basis of property 20

Beneficiary of estate or trust 26

Business expenses, ordinary and 

necessary 39

Business operations 26

Business, U.S. 26

C

Canada:

Commuters 5

Dependents 48

Qualifying surviving spouse filing 

status 38

Social security benefits 69

Transportation-related 

employment 57

Capital assets, sales or 

exchanges 31

Casualty and theft losses 41

Central withholding agreements 58

Charitable contributions 41

Child and dependent care credit:

Dual-status alien 48

Nonresident alien 44

Resident alien 42

Child tax credit:

Dual-Staus alien 49

Nonresident alien 44

Resident alien 43

Claims for refund 53

Commodities, trading in 27

Community income 21

Commuters from Canada or 

Mexico 5

Compensation for labor or 

personal services:

Geographical basis 18

Contingent interest 23

Credit for the elderly or the 

disabled:

Resident alien 42

Credits against tax:

Child and dependent care 

credit 44, 48

Child tax credit 43, 44, 49

Dual-status alien 48

Earned income credit 45

Education credits 42, 44

Excess social security tax 

withheld 45

Foreign tax credit 43, 48

Hope credit 42, 44

Lifetime learning credit 42, 44

Retirement savings 

contributions 43, 44, 48

Tax paid on undistributed long-term 

capital gains 45

Tax withheld at source 45

Tax withheld on partnership 

income 45

Withholding from wages 45

Crew members:

Alien status 6

Compensation 24

Currency, transporting 53

D

De minimis presence 12

Deductions 39, 40

Dependents:

Dual-status taxpayer 48

Nonresident alien 40

Resident alien 40

Depreciable property 20

Diplomats (See Foreign government 

employees)

Disclosure statement 55

Dividends, U.S. source income 16

Dual-status aliens 10

Dual-status tax year 10, 46

Child care credit 48

Computation of tax 48

Foreign tax credit 48

Forms to file 49

Head of household. 47

Income subject to tax 47

Joint return 47

Residency ending date 10

Residency starting date 10

Restrictions 47

Standard deduction 47

Tax rates 47

When and where to file 49

E

Earned income credit:

Nonresident alien 45

Earned income credit (EIC):

Resident alien 43

Education credits:

Nonresident alien 44

Resident alien 42

Effectively connected income 27

Alternative minimum tax 29

Asset-use test 27

Business profits and losses and 

sales transactions 28

Business-activities test 27

Direct economic relationship 28

Disposition of REIT stock. 29

Domestically controlled QIE. 29

Foreign income 30

Gain or Loss of Foreign Persons 

from the Sale or Exchange of 

Certain Partnership Interests 29

Investment income 27

Look-through rule for QIEs. 29

Pensions 28

Publicly traded exception 28

Qualified investment entity 29

Real property gain or loss 28

Real property income choice 32

Tax on 30

Transportation income 28

U.S. real property holding 

corporation 28

U.S. real property interest 28

Wash sale 29

Withholding of tax 29

Employees, household 57

Employees, withholding exemption 

under tax treaty 61

Employer identification number 37

Estate, beneficiary 26

Estimated tax 55, 66

Excess social security tax 45

Exchange visitors 64

Income from foreign employer 24

Social security and Medicare 

taxes 63

Exclusions from gross income 21

Annuities 24

Compensation from a foreign 

employer 24

Gambling winnings, dog or horse 

racing 24

Students and exchange visitors 24

Treaty income 24, 67

Exempt individual 6

96 Publication 519 (2023)
Exemption from withholding:

Employees 61

Independent contractors 61

Students, teachers, and 

researchers 61

Expatriation tax:

Certain dual-citizens 35

Certain minors 35

Covered expatriate 34

Deferral of payment of 

mark-to-market tax 36

Exception for dual-citizens and 

certain minors 35

Exceptions. 36

Expatriation After June 16, 2008 34

Expatriation date. 34

Expatriation Tax Return 36

Former LTR 34

Former U.S. citizen. 34

How To Figure the Expatriation Tax 

If You Are a Covered Expatriate (If 

You Expatriate After June 16, 

2008) 35

Long-term resident (LTR) 

defined 34

F

Fellowship grant:

Excludable 25

Source rule 19

Withholding tax 60

Filing requirements 51

Filing returns 36

Amended returns 53

Claims for refund 53

Commonwealth of the Northern 

Mariana Islands 52

Dual-status taxpayer 49

Estimated tax 66

Form 1040-C 76

Form 1040-NR 36, 51

Form 1040-NR-EZ 36

Form 2063 75

Guam 52

Nonresident alien 36

U.S. Virgin Islands 52

Who must file 51

Filing status 38

First-year choice 11

Fixed or determinable income 31

Foreign country 8

Foreign earned income 

exclusion 22

Foreign employer 23, 24

Foreign government employees:

Alien status 6

Exempt from U.S. tax 71

Tax treaty exemption 69

Foreign income subject to U.S. 

tax 30

Foreign tax credit:

Dual-status alien 48

Nonresident alien 43

Resident alien 42

Form 8833 9

Form 8840 9

Forms 8

1040-C 76

1040-ES(NR) 66

1040-NR 51

1040-X 53

1042-S 61

1116 42, 43, 48

2063 75

2210 67

3903 39

4563 46

4790 (See FinCEN 105)

8233 61

8275 55

8288 62

8288-A 62

8288-B 62

8801 45

8805 59, 61

8833 69

8843 8

FinCEN 105 53

W-4 56, 60

W-7 37

W-8BEN 61

W-8ECI 57

W-9 56

Forms to file:

Dual-status alien 49

Nonresident aliens 51

Resident alien 50

Sailing permits 75

Frequently Asked Questions 81

G

Gambling winnings, dog or horse 

racing 24

German social security benefits 69

Green card test 4

H

Head of household:

Nonresident alien 38

Resident alien 38

Home, sale of 24

Household employees 57

I

Identification number, taxpayer:

Defined 37

Penalty for failure to supply 55

Income:

Community 21

Effectively connected 27

Exclusions 21

Fixed or determinable 31

Foreign 30

From real property 32

Income affected by treaties 24

Interest 22

Investment 27

Personal services 28

Reporting 39

Sale of home 24

Tip 57

Income code:

28 31

Income from U.S. sources 15

Dividends 16

Interest 16

Pensions and annuities 19

Personal property 20

Personal services 17

Real property 20

Rents or royalties 20

Independent contractors:

Withholding exemption under tax 

treaty 61

Withholding rules 58

India, students and business 

apprentices from:

Standard deduction 41

Withholding allowances 57

Individual retirement arrangement 

(IRA) 39

Individual taxpayer identification 

number (ITIN) 37

Intangible property 21

Interest:

Portfolio 22, 23

Interest income:

Contingent 23

Excludable 22

Source rule 16

International organization 

employees 72

Alien status 7

Exempt from U.S. tax 71

International social security 

agreements 65

Interrupted period of residence 33

Inventory 20

Investment income 27

Itemized deductions 40

K

Korea, South:

Dependents 48

Married filing separately 38

Qualifying surviving spouse filing 

status 38

L

Last year of residency 12

Long-term U.S. resident:

Defined 34

Expatriation tax 34

Losses:

Capital Assets 31

Publication 519 (2023) 97
Casualty and theft 41

Of nonresident aliens 39

Real property 28

M

Married filing jointly:

Nonresident alien 38

Resident alien 38

Medical condition:

Travel exception 6

Medicare tax 63

Mexico:

Commuters 5

Dependents 48

Qualifying surviving spouse filing 

status 38

Transportation-related 

employment 57

Monetary instruments, 

transporting 53

Moving expenses 39

Services or reimbursements 

provided by government to 

members of the U.S. Armed 

Forces 39

Multi-level marketing 17, 58

Municipal bonds 22

N

National of the United States 47

Natural resources (See Real 

property)

Non-registered obligations 22

Nonresident alien 4

Annuity income 24

Business expenses 39

Casualty and theft losses 41

Charitable contributions 41

Child care credit 44

Child tax credit and the additional 

child tax credit 44

Credit for excess social security tax 

withheld 45

Credit for income tax withheld 45

Credit for other dependents 44

Credit for prior-year minimum 

tax 45

Defined 4

Earned income credit 45

Education credits 44

Effectively connected income, tax 

on 30

Filing Form 1040-NR 36

Filing Form 1040-NR-EZ 36

Foreign tax credit 43

Gambling winnings, dog or horse 

racing 24

Head of household 38

How income is taxed 26

Individual retirement arrangement 

(IRA) 39

Interest income 16

Losses 39

Married filing jointly 38

Qualified business income 

deduction. 39

Qualifying surviving spouse 38

Standard deduction 41

State and local income taxes 41

Students 63

Tax paid on undistributed long-term 

capital gains 45

Tax withheld at source 45

Withholding from partnership 

income 45

Withholding tax 55

Nonresident alien dependents:

Canada, Mexico. South Korea, 

Residents of India 40

Nonresident spouse treated as a 

resident 13

O

Obligations:

Not in registered form 22

Registered 22

Original issue discount 31

P

Partnership Income, tax withheld 

on 59

Partnerships 26

Payment against U.S. tax 49

Tax withheld at the source 45

Withholding from wages 45

Penalties 53

Accuracy-related 54

Failure to file 54

Failure to pay 54

Failure to supply taxpayer 

identification number 55

Fraud 55

Frivolous tax submission 55

Negligence 54

Substantial understatement of 

income tax 54

Penalty for failure to pay estimated 

income tax 67

Penalty on early withdrawal of 

savings 40

Pensions:

Disaster tax relief 19

Source rule 19

Withholding on 57

Personal property 20

Personal services income:

Connected with U.S. business 28

Paid by foreign employer 23

Source rule 17

Tax treaty exemption 68

Withholding on wages 56

Portfolio interest 22, 23

Prizes 19

Professional athletes 8

Property:

Depreciable 20

Intangible 21

Inventory 20

Personal 20

Real 20, 28

Protective return 52

Publications (See Tax help)

Puerto Rico, residents of 14, 38, 46, 

57

Q

Qualified business income 

deduction. 39

R

Railroad retirement benefits 31, 48

Real estate (See Real property)

Real property:

Definition 20

Income from 32

Natural resources 20

Sale or exchange of 28

Source rule 20

Real property income 31

Refunds, claims for 53

Registered obligations 22

Rents 20

Researchers, wage withholding 

exemption under tax treaty 61, 

89

Residence, interrupted 33

Residency:

First year 10

Last year 12

Starting date 10

Termination date 12

Tests 4

Resident alien 4

Child tax credit 49

Child tax credit and the additional 

child tax credit 43

Credit for other dependents 43

Defined 4

Education credits 42

Head of household 38

Married filing jointly 38

Qualifying surviving spouse 38

Resident aliens:

Dependents 40

Retirement savings contributions 

credit:

Dual-status alien 48

Nonresident alien 44

Resident alien 43

Royalties 20

S

Sailing permits, departing aliens:

Aliens not requiring 73

Bond furnished, insuring tax 

payment 76

98 Publication 519 (2023)
Form 1040-C 76

Form 2063 75

Forms to file 75

When and Where To Get a Sailing 

or Departure Permit. 75

Salary (See Personal services 

income)

Sale of home, income from 24

Sales or exchanges, capital 

assets 31

Scholarship:

Excludable 25

Source rule 19

Withholding tax 60

Securities, trading in 27

Self-employed retirement plans 40

Self-employment tax 64

Social security benefits:

Dual-status alien 48

Nonresident alien 31

Social security number 37

Social security tax:

Credit for excess tax withheld 63

Excess withheld 45

Foreign students and exchange 

visitors 63

International agreements 65

Self-employment tax 64

Totalization agreements 65

Withheld in error 64

Source of compensation for labor 

or personal services:

Alternative basis 19

Multi-year compensation 17

Time basis 17

Source of income 15

Standard deduction 41

State and local income taxes 41

Stocks, trading in 27

Student loan interest deduction 40

Students:

Alien status 7

Engaged in U.S. business 26

Fellowship grant 19, 60

Income from foreign employer 24

Scholarship 19, 60

Social security and Medicare 

taxes 63

Tax treaty exemption 69

Wage withholding exemption under 

tax treaty 61, 84

Students and business apprentices 

from India 41, 57

Substantial presence test 5

T

Tax credits and payments:

Nonresident aliens 43

Resident aliens 42

Tax help 76

Tax home 8, 20

Tax paid on undistributed 

long-term capital gains 45

Tax treaties:

Benefits 67, 68

Capital gains 69

Employees of foreign 

governments 69

Exclusions from income 24

Income affected by 24

Reporting benefits claimed 70

Teachers and professors 68

Trainees, students, and 

apprentices 69

Tax Treaties:

Effect of 9

Income entitled to benefits 61

Tax withheld on gain from the sale 

or exchange of certain 

partnership interests 45

Tax year 37, 47

Tax, transportation 33

Taxpayer identification number:

Defined 37

Penalty for failure to supply 55

Teachers:

Alien status 7

Tax treaty exemption 68

Wage withholding exemption under 

tax treaty 61, 89

Tie-breaker rule 9

Tip income 57

Totalization agreements 65

Trade or business, U.S. 26

Beneficiary of estate or trust 26

Business operations 26

Income from U.S. sources 27

Partnerships 26

Personal services 26

Students and trainees 26

Trading in stocks, securities, and 

commodities 27

Trading in stocks, securities, and 

commodities 27

Trainees 7, 26

Transportation income:

Connected with U.S. business 28

Source rule 19

Transportation of currency or 

monetary instruments 53

Transportation tax 33

Transportation-related 

employment, residents of 

Canada or Mexico 57

Treaties, income affected by 24

Treaty benefits for resident 

aliens 69

Treaty benefits, reporting benefits 

claimed 70

Trust, beneficiary 26

U

U.S Virgin Islands, residents of:

Withholding on wages 57

U.S. Armed Forces:

Moving expenses 39

U.S. national 47

U.S. Virgin Islands, residents of:

Where to file 52

W

Wages (See Personal services 

income)

Wages exempt from withholding 57

Wages, withholding on 56

Waiver of filing deadline 52

When to file 51, 52

Where to file 51

Who must file 51

Withholding 55, 59

Withholding tax:

Central withholding agreements 58

Notification of alien status 56

Pensions 57

Puerto Rico, residents of 57

Real property sales 61

Scholarships and grants 60

Social security taxes 63

Tax treaty benefits 61

Tip income 57

U.S. Virgin Islands, residents of 57

Wages 56

Wages exempt from 57

Where to report on the return 45

Withholding from compensation 56

Publication 519 (2023) 99