FOREIGN STUDENT AND SCHOLAR TEXT

For Use in Preparing Tax Year 2003 Returns

VOLUNTEERASSISTOR'SGUIDE

FOR USE IN IRS VOLUNTEER PROGRAMS

VITA Volunteer Income Tax Assistance

TCE Tax Counseling for the Elderly

Department of the Treasury

Internal Revenue Service

Publication 678-FS (Rev. 12-2003)

IRSCatalog Number 13740 R www.irs.gov

IRS VOLUNTEERS
Provide America’s taxpayers

top quality service by helping

them understand and meet

their tax responsibilities and

by applying the tax law with

integrity and fairness to all.

IRS

Department of the Treasury

Internal Revenue Service

www.irs.gov

TaxWise® is a copyrighted software program owned by Universal Tax Systems, Inc.® (UTS). All 

screen shots that appear throughout the official Volunteer Income Tax Assistance (VITA) and Tax 

Counseling for the Elderly (TCE) training materials are used with the permission of UTS. The 

screen shots used in this publication—or any other screen shots from TaxWise or its affiliated 

programs—may not be extracted, copied, or distributed without written approval from the IRS 

SPEC Office of Education and Product Development. 

Confidentiality Statement:

All tax information you receive from taxpayers in your VOLUNTEER capacity is strictly 

confidential and should not, under any circumstances, be disclosed to unauthorized individuals.
Introduction I-1

INTRODUCTION

This International Student and Scholar Supplement is designed to 

provide assistance to volunteers who will be working at Volunteer 

Income Tax Assistance (VITA) sites that assist International 

Students and Scholars. This text can be used in conjunction with 

IRS Publication 678, Volunteer Assistor’s Guide.

Over 500,000 international students and scholars are at American 

colleges and universities to study, teach and do research. Due to 

problems with English, the complexity of the federal tax laws 

applying to nonresidents, and scarcity of assistance, many of them 

have difficulty meeting their tax obligations. Failure of non-residents to comply with U.S. tax laws can lead to monetary penalties 

and immigration problems, and even destroy eligibility for citizenship.

We want to thank you for answering the call to help international 

students and scholars. We also want to answer the call from you. A 

phone number is available for nonresident alien issues. The number (not toll-free) is (215) 516-2000 and is available from 6:00 a.m. 

to 2:00 a.m., Eastern Time.

This book is designed to let learners teach themselves and monitor 

how well they have learned. To do that, read each lesson carefully. 

Work the exercises as you go along to confirm what you learned. 

After completing the chapters, work the comprehensive problems 

in Appendix C, and compare your answers to those provided. Selfgrade using the answers provided. If your answers were not correct, 

go back to the sections on those topics and find out why.

This year a comprehensive test and certification have been added 

at the end of the book. Site coordinators may wish to remove the 

answer key before giving the text to the volunteers. Additional 

instructions precede the test.

OBJECTIVES

At the end of this course, you will be able to:

1. Distinguish between

■ resident aliens and

■ nonresident aliens.

2. Determine whether a nonresident alien is required to file.

3. Determine the correct form(s) to file.

4. Determine whether a tax treaty applies.

5. Using an applicable treaty, determine which income is

■ taxable, and which is

■ excludable from income.
I-2 Introduction

6. Determine

■ what income is “effectively connected” and what is not;

■ what income must be reported; and

■ where an international taxpayer’s return should be sent.

7. Correctly complete Form 8843.

8. Correctly complete Forms 1040NR and 1040NR-EZ.

The most important terms in this book are in boldface the first 

time they are used. They are explained shortly after that first use, 

and are defined in the glossary.

9. Establish an International VITA site.

SITE, SPONSOR AND VOLUNTEERS LIABILITY ISSUES

Some colleges and universities are reluctant to sponsor an international VITA site because of the potential liability they feel it causes 

them. This section is intended to serve as a reference. It does not 

constitute legal guidance. Legal counsel should be consulted if you 

have questions.

Volunteers at all VITA sites (including international sites) appear 

to be covered by the federal Volunteer Protection Act of 1997, Public 

Law 105-19 (42 U.S. Code sections 14501 et seq.). The Act applies 

to volunteers who perform services for a nonprofit organization or 

governmental entity, and receive no compensation other than reasonable reimbursement or allowance for expenses actually incurred 

(or any other thing of value in lieu of compensation over $500 per 

year), and to a volunteer serving as a director, officer, trustee, or 

direct service volunteer.

The Act generally protects volunteers from liability for negligent 

acts they perform within the scope of their responsibilities in the 

organization for whom they volunteer. The Act excludes conduct 

that is willful or criminal, grossly negligent, or reckless, or that 

constitutes a conscious, flagrant indifference to the rights or safety 

of the individual harmed by the volunteer. The Act does not protect 

volunteers from liability for harm arising from the operation of a 

motor vehicle, vessel, aircraft, or other vehicle for which a license 

and insurance are required; or from crimes of violence, hate crimes, 

sexual offenses, civil rights violations, or acts committed under the 

influence of alcohol or drugs. Volunteers are not liable for punitive 

damages for harm caused by acts they perform within the scope 

of their responsibilities, unless a claimant establishes by clear 

and convincing evidence that the harm was proximately caused 

by an action constituting willful or criminal misconduct, or a conscious, flagrant indifference to the rights or safety of the individual 

harmed.

The Act provides that certain conditions imposed in state laws limiting the liability of volunteers will not be considered inconsistent 

with the Act. In other words, those limitations are not invalidated 

by the Act, and may limit the effects of the Volunteer Protection 
Introduction I-3

Act. The state conditions that remain in force are listed in subsection 4(d) of the Act. Most significant among the conditions that 

may apply in some states are: (1) volunteers may be subject to 

liability if the civil action was brought by a state or local government official pursuant to state or local law; (2) volunteers may be 

protected only if the sponsoring organization has provided a secure 

alternate source of compensation for those harmed; and (3) some 

states waive liability only if sponsors adhere to risk-management 

procedures, including providing mandatory training of volunteers. 

State limitations will vary, so protection of volunteers may vary 

also.

In conclusion, it is the opinion of the Internal Revenue Service 

that the Volunteer Protection Act of 1997 offers significant protections from liability for those meeting its requirements. The most 

significant requirement is that the volunteer’s sponsor must be a 

nonprofit organization, or governmental entity, and that the act 

causing harm is performed within the scope of the volunteer’s 

responsibilities. It is also important to note that the Act’s best 

protection covers only negligent acts—not willful, criminal, 

reckless, or conscious, flagrantly indifferent acts; and that state 

limitations on volunteer protection may apply.

ESTABLISHING INTERNATIONAL VITA SITES

The following information is intended for International VITA site 

coordinators. If you are just forming your International VITA site, 

you may have many questions about how to establish the site. This 

section provides suggestions and guidance that you may find helpful, including liability protection for VITA site sponsors and volunteers. Keep in mind, that no two sites are exactly the same.

Talk to the School Officials

Possibly the first step that you need to take is informing the school 

officials that you plan to offer this service. They can help you with 

publicity and they may be able to provide the space for the site. 

The foreign student advisor can help you develop the site. In some 

schools, the foreign student advisor serves as the site coordinator. If 

possible, talk to school officials during the summer.

Find a Location

You also need to start searching for a location for your site. Keep 

in mind that many students have limited transportation. If you 

cannot find a spot on campus for the site, consider asking a nearby 

religious organization or library for space. Be prepared to tell them 

the amount of space that you will need and how long you will need 

the space. The amount of space will depend on the number of volunteers you will have working at the same time. Don’t forget to think 

about space for people to wait in line. Since International Students 

and Scholars have very few places to turn for help on their taxes, 

you may have a very good turn out at your site.
I-4 Introduction

Find Site Sponsors

It is a good idea to find multiple site sponsors. For example, maybe 

the local office supply store will sponsor all of your office needs 

(staplers, pens, paper, and calculator). Try to see if the local pizza 

places will donate some food for your training class. Better yet, see 

if the local food places will take turns providing food for your volunteers while they are working at the site. Keep good records of the 

businesses which have helped you. Make sure that you send them a 

thank you note at the end of the season. See if the local paper will 

run a free thank you ad for you.

Recruit Volunteers

In the fall, start recruiting volunteers. There are many places that 

you can look for volunteers. If the school has an accounting club, 

approach the club president and see if the club would be willing 

to take on the VITA site as a service project. Explain that training 

will be provided and that the volunteers do not need to be multilingual. You might also want to contact the professor that teaches 

the Income Tax class in the Accounting Department. Some students 

from that class may be available to help.

You can look to sources outside of the campus for volunteers. In 

some communities, all of the International VITA site volunteers 

are senior citizens. They have a desire to help the International 

Students and Scholars and they have the time to volunteer. 

In other communities, the local accountants volunteer at the 

International VITA site. In a couple of locations, the Rotary Club 

provides the volunteers. Use your connections and don’t be afraid 

to ask.

Not all of your volunteers need to prepare taxes. You could have 

someone who is the greeter or receptionist at your site. Someone 

else might watch the children while married students and scholars 

get help with their returns. If you have someone willing to help 

you, find something for them to do.

Plan for Training

You need to determine what type of training you will offer to the 

volunteers. The tools that the IRS will provide for your training 

include this book and an instructional web cast. The web cast will 

most likely take place in February. It allows volunteers to watch a 

live training session on the computer. The IRS will also provide you 

with all of the forms that you need for your training.

If you plan to have a class for your volunteers, you will need to 

recruit an instructor. The IRS does not have the resources to provide instructors for individual VITA sites. You may wish to have the 

volunteers self-study this book.
Introduction I-5

Testing and Certification

At the end of this book, there is a comprehensive test. All volunteers who plan to prepare tax returns must complete the test. 

You can fill in the certificate for the volunteer after the test has 

been successfully completed.

Keeping Records

VITA sites are not allowed to keep copies of the returns that they 

prepare. No records can be kept of social security numbers or 

income. You should ensure that your volunteers are familiar with 

the privacy and confidentiality rules for VITA volunteers.

Year Round Assistance

While the greatest need for International VITA sites is during the 

filing season, many International Students and Scholars need tax 

help throughout the year. If you have the resources available, you 

might consider keeping your site open after April 15. Maybe you 

could provide walk-in assistance on the first Friday of the month 

from 1-3 p.m., for example.
I-6 Introduction

STUDENT NOTES
Lesson 1 1-1

DETERMINATION OF RESIDENCY

STATUS Lesson 1

U.S. immigration laws speak of immigrants, nonimmigrants (also 

called nonresident aliens), and illegal aliens (undocumented 

aliens). But U.S. tax laws speak of resident aliens and nonresident aliens.

The basic facts to remember about taxation of aliens are that resident aliens are taxed like U.S. citizens, while nonresident aliens are 

taxed differently. The tax law applicable to aliens—although based 

on U.S. immigration law—defines residency for tax purposes differently from how it is defined in immigration law. Under the Internal 

Revenue Code, even illegal aliens (undocumented aliens) are 

treated as resident aliens if they meet the “substantial presence” 

test in the tax code.

The first step in assisting international students and scholars is 

determining their residency status for tax purposes. As described 

in future chapters, that status effects the amount of income to be 

reported, availability of deductions, and treaty benefits. 

It is important to emphasize that the following discussion of residency status is for federal income tax purposes only, because residency for immigration purposes is determined differently. Some 

state taxing agencies follow IRS residency determinations; others 

use their own criteria. If you plan to help international students 

and scholars with state income tax returns, you will need to check 

with the taxing agency of the state where they live and/or work.

HOW TO DETERMINE RESIDENCY STATUS

All noncitizens of the U.S. are legally “aliens.” There are three types 

of aliens for tax purposes: (1) nonresident; (2) dual-status; and (3) 

resident. Persons in categories (2) and (3) are taxed like U.S. citizens. This book focuses almost entirely on group (1), nonresident 

aliens (“nonresidents” for short). It will help you to keep in mind 

that for many international students and scholars present in the 

U.S., nonresident tax status is more favorable than resident status.

Nonresidents become residents for federal tax purposes in one 

of two major ways. One is by receiving permanent resident status from the Department of Homeland Security, Bureau of 

Citizenship and Immigration Services (Formerly Immigration and 

Naturalization Service), as described below. The other is by having 

a substantial presence in the U.S. For nonresident aliens, having 

a substantial presence normally means being present for a total of 

more than 183 days. But most international students and scholars 

are exempt individuals (also described below) for this purpose.
1-2 Lesson 1

(Important note: Being an “exempt individual” does not mean that 

one is exempt from taxation. It merely affects how days of presence 

are counted.)

The charts in this lesson will help you determine the residency 

status of foreign students and scholars, based on the information 

they provide. Before using the charts, you need to know a few terms 

used in them.

Substantial presence

Nonresident aliens meet the substantial presence test if they 

have spent more than 183 days in the U.S. To meet the substantial 

presence test, and thus be considered a resident alien for tax purposes, an alien must at least:

1. be physically present for 31 days in the current year, and

2. be physically present for 183 days (as calculated below) during 

the 3-year period consisting of the current year and the 2 immediately prior years. The 183 days are calculated as follows:

a. all days of presence in the current year;

b. 1/3 of days of presence in the year immediately before the 

current year; and

c. 1/6 of days of presence in the year before that.

Exempt individual

Any person who is temporarily exempt from the substantial presence test. Time spent in this category does not count toward the 

183 days in the U.S. that normally will convert a nonresident alien 

into a resident alien. Being in any of the following categories will 

temporarily exempt a person from the substantial presence test:

Student

A student is anyone who is temporarily in the U.S. on an “F”, “J”, 

“M”, or “Q” visa and substantially complies with the requirements 

of that visa. A person is considered to be substantially complying 

who has not engaged in activities prohibited by the immigration 

law. Immediate family members of a student are also counted as 

students for this purpose—including a spouse, and unmarried 

children under age 21 who reside with the student. Students are 

exempt from the “substantial presence” test for 5 years. But any 

part of a calendar year in which the student is present in the U.S. 

counts as a full year. (See “Counting Years of Exemption” later in 

this lesson).
Lesson 1 1-3

Teacher or Trainee

A person who was primarily admitted to the U.S. to teach or 

research (not study); is temporarily present with “J” or “Q” visa 

status; and substantially complies with all requirements of that 

visa is considered a teacher or trainee—as is the person’s immediate family. Teachers and trainees are exempt from the “substantial 

presence” test only if they have been in the U.S. no more than 2 out 

of the last 6 years. As with the student exception, any part of a calendar year in which the person was present counts as a full year. 

(See “Counting Years of Exemption” later).

Closer Connection to Home Country

A third exception to the “substantial presence” test applies if the 

person can show a closer connection to a foreign country than to 

the U.S. To qualify for this exception, the person must file IRS Form 

8840 and be able to show that (s)he:

1. was present in a non-exempt status for less than 183 days 

during the current year;

2. has a tax home in a foreign country; and

3. has a closer connection to that country than to the U.S.

(See Form 8840 or Publication 519 for a discussion of a “closer connection” to a foreign country.) A person meeting the “closer connection” exception continues to be treated as a nonresident despite 

continuing presence in the U.S.
1-4 Lesson 1

Chart 1-A. Are you a Nonresident Alien for U.S. Income Tax Purposes?

Are you a nonresident alien for U.S.

Income Tax Purposes?

Chart 1-A

START HERE

Are you a U.S. citizen?

Do you have a “green card?”

Do you have an F, J, M, or Q Visa? (This includes 

members of the immediate family if their visa 

statuses are derived from and dependent on the 

primary visa holder’s visa classification.)

Do you have any other type Visa?

Go to Flowchart

“Figure A” in 

Pub. 519

File Form 1040,

1040A or 1040EZ

Go to “Are you an 

exempt

individual?”

Flowchart

YES

YES

YES

YES

NO

NO

NO

NO
Lesson 1 1-5

Chart 1-B. Are you an Exempt Individual?

If you are temporarily present in the United States on an “F”, “J”, “M”, or “Q” visa,

use this chart to determine if you are an exempt individual for purposes of the 

Substantial Presence Test (SPT).

Student

F, J, M, or Q Visa

Teacher or Trainee

J Visa

Are you a full time student? Are you a student?

Were you exempt as a teacher 

trainee, or student for any part of 

3 (or fewer) of the 6 preceding years,

AND Did a foreign employer pay all 

your compensation during the tax

year in questions, AND Were you

present in the U.S. as a teacher or 

trainee in any of the preceding 6

years, AND Did a foreign employer

pay all your compensation during

each of the preceding 6 years you 

were present in the U.S. as a

teacher or trainee?

Have you been in the U.S. for any

part of 2 of the preceding 6 calendar 

years?

Have you received permission from 

the IRS Field Assistance Area

Director to continue to be an exempt

individual?

Are you in substantial compliance

with your visa?

Are you in substantial compliance

with your visa?

Have you been in the U.S. for any

part of more than 5 calendar years?

You are an

exempt

individual for

the

Substantial

Presence

Test

No Yes

No Yes

No

No

Yes

Yes

Yes No

Yes No

No Yes Yes No

You MUST apply the Substantial Presence Test

ARE YOU AN EXEMPT INDIVIDUAL?

Chart 1-B
1-6 Lesson 1

Chart 1-C. Nonresident Alien or Resident Alien?

Caution: The chart for 2003 was not available when these materials went to print. However the rules used to determine substantial 

presence for 2003 will not change.

Figure 1-A. Nonresident Alien or Resident Alien?

1 If this is your first or last year of residency, you may have a dual status for the year. 

2 In some circumstances you may still be considered a nonresident alien under an income tax treaty between the U.S. and your country. Check the provisions of the treaty carefully. 

3 See Days of Presence in the United States in this chapter for days that do not count as days of presence in the United States. 

4 If you meet the substantial presence test for 2004, you may be able to choose treatment as a U.S. resident alien for part of 2003. 

Were you a lawful permanent resident of the United States (had a 

“green card”) at any time during 2003? 

Start here to determine your status for 2003

YES NO

Were you physically present in the United States on at least 31 days 

during 2003?3

Were you physically present in the United States on at least 183 days 

during the 3-year period consisting of 2001, 2002, and 2003, counting 

all days of presence in 2003, 1

/3 the days of presence in 2002, and 1/6

the days of presence in 2001?3

YES NO

Were you physically present in the United States on at least 183 days 

during 2003? 

Can you show that for 2003 you have a tax home in a foreign country 

and have a closer connection to that country than to the United States? 

NO4

YES

You are a 

nonresident

alien for U.S. 

tax purposes. 

You are a 

resident alien 

for U.S. tax 

purposes.1,2

YES NO

YES NO
Lesson 1 1-7

COUNTING YEARS OF EXEMPTION

For both the 2-year period during which a scholar can be exempt, 

and the 5-year period during which a student can be exempt, from 

the “substantial presence” test, the person’s presence in the U.S. for 

any part of a calendar year counts as a full year’s presence. Thus 

if a scholar (or student) arrived in the U.S. in December 2000, the 

year 2000 was the first of that person’s 2 (or 5) years. If the person 

stayed in the U.S. into 2001, and is subject to a 2-year limit, that 

limit was reached at the end of 2001—so the “substantial presence” 

test began to apply at the beginning of 2002.

Example 1

Julianna came to the U.S. on an F-1 visa in October 2000 to 

study American art history. She had never been in the U.S. 

before. As a student, she is exempt from counting her days 

of presence during her first 5 years— which are 2000, 2001, 

2002, 2003, and 2004. If she remains in the U.S. beyond July 

2, 2005, she will become a resident alien for tax purposes at 

the beginning of that year.

_____

Example 2

Neeni came to the U.S. on a J-1 visa in 2002 to teach for 

2 years at a state university. She knows that the cultural 

adjustment will go smoothly because she also taught in 

the U.S. in 1998 and 1999 on a J visa. To determine her 

residency status for 2003, use a 6-year “look-back” period 

(1998-2003). During that time she had been in the U.S. 

with J visa for 2 years. Thus for tax purposes, she is no 

longer an exempt individual and she must count her days 

towards the substantial presence test. She will be a resident alien for tax purposes.
1-8 Lesson 1

Example 3

Eduard is a junior in F-1 immigration status at the local 

university. He came to the U.S. in 1999 from France, his 

home country. He studied in the U.S. until the end of 2000, 

then returned home. He re-entered the U.S. as a J-1 student in 2002. For federal income tax purposes, he is still a 

nonresident alien because he has not yet been in the U.S. 

for 5 years.

Example 4

Xhao came to the U.S. on a J-1 visa in 2001 to teach at a 

university for two years. He brought his wife and three 

children (each on a J-2 visa). In November 2002 the university contracted with Xhao’s wife for her to teach there 

in fall 2003 (she had received BCIS work authorization). 

It also extended Xhao’s original contract. For the year 

2003, both Xhao and his wife will be considered resident 

aliens for tax purposes, because they have already spent 2 

years in an exempt status. Their children can be claimed 

as dependents if they meet all dependency tests (like those 

for citizens).

Exercise 1

Bridgette arrived in the U.S. as a student with an F-1 visa in 

December 1999. For tax year 2003, is she a resident or non-resident alien for federal income tax purposes?

Answer

Exercise 2

Guladua came to the U.S. on a J-1 visa in June 2001 to teach for 2 

years, starting in August 2001. For tax year 2003, is he considered 

a resident or nonresident alien for federal income tax purposes?

Answer

✔ Check your answers at the end of the chapter.
Lesson 1 1-9

RESIDENCY STARTING DATE

For a person who becomes a resident by meeting the 183-day “substantial presence” test, the starting date of residency for tax purposes is the first day the person was present in the U.S. in the tax 

year in which the person met the “substantial presence” 

test. By contrast, for a person who is granted permanent resident 

status by the BCIS (a “green card”), the starting date of residency 

for tax purposes is the first day the person was in the U.S. as a 

lawful permanent resident. That usually is the day of receipt of 

notification from the BCIS that the residency application had been 

approved. For someone who both (1) meets the “substantial presence” test and (2) has been granted permanent residency, residency 

begins on the earlier of the two dates.

Example 5

Edem has been in the U.S. continuously since 1997 on an F1 visa. He is considered a resident alien for tax purposes as 

of January 1, 2002.

Example 6

Assume the same facts as in Example 5. Edem also applied 

for resident alien status in 2002, and was notified by the 

BCIS on October 20, 2002 that his residency application 

was approved. He is still considered a resident alien for 

tax purposes as of January 1, 2002.

Example 7

Zachary who entered the U.S. in F-1 status on August 15, 

2001 received notification from BCIS on July 13, 2002 that 

his application for residency was approved. He is considered a resident alien for tax purposes as of July 13, 2002.

Exercise 3

Mike, a graduate student, is present in the U.S. temporarily on a 

J-1 visa. He arrived on June 15, 2000 to prepare for his studies 

that fall. Mike had never been in the U.S. before. For 2003, is Mike 

a resident or nonresident alien?

Answer
1-10 Lesson 1

Exercise 4

Assume the same facts as in Exercise 3. Mike’s wife accompanies 

him on a J-2 visa. She is given permission to work by the BCIS 

and begins working in July. Is she a resident or nonresident alien 

for federal tax purposes?

Answer

Exercise 5

Wei Wu, a citizen of the People’s Republic of China, is temporarily 

in the U.S. as a graduate student on an F-1 visa. He has resided 

continuously in the U.S. since arriving on August 15, 1997. His 

immigration status has not changed, and he was in the U.S. all of 

2002. When did Wei become a resident alien for federal income tax 

purposes?

Answer

Exercise 6

Kuongeza Muda Mpya, a resident of Kenya, is in the U.S. as a 

teaching scholar on a J-1 visa. He arrived in the U.S. on December 

17, 2000 and has been here continuously since. On July 7, 2002 

Kuongeza was notified by the BCIS that his application for permanent residence was approved and a permanent resident card 

would be issued by July 20, 2002. What is his residency starting 

date for federal income tax purposes?

Answer

✔ Check your answers at the end of the chapter.

RESIDENCY THROUGH MARRIAGE

A nonresident alien who does not meet the substantial presence 

test, and does not have a “green card,” may still be treated as a resident for tax purposes if the nonresident is married to a U.S. citizen, 

legal permanent resident or someone who has met the substantial 

presence test. This election can be made if:

1. at the end of the year, one spouse is a nonresident alien and the 

other is a U.S. citizen or resident, and

2. both spouses agree to file a joint return and to treat the nonresident alien as a resident alien for the entire tax year.
Lesson 1 1-11

Example 8

Norman is a student temporarily in the U.S. on an F visa. 

He is married to Pat, who is a U. S. citizen. Since Pat is a 

citizen, she and Norman can elect to treat Norman, who 

would otherwise be a nonresident alien, as a resident alien 

for the entire tax year.

To make the election, a statement must be attached to the joint 

return that is filed for the year of the election. There is no form 

for this statement; it can be handwritten or typed. It should be 

attached to the back of the tax return, after all schedules and 

forms. The statement should contain the following information:

1. A declaration that one spouse was a nonresident alien and the 

other spouse was a U.S. citizen or resident on the last day of the 

tax year, and that they choose to be treated as U.S. residents for 

the entire tax year, and

2. Each spouse’s name, address, and taxpayer identification number. 

For the year of the election to treat the spouse of a U.S. citizen as a 

resident, the spouses must file a joint return. The election continues into future years; but the spouses can file separately after that 

year if they choose. The election to treat the spouse as a resident 

is terminated by revocation, death of either spouse, or legal separation; or the IRS may terminate it for failure to keep adequate 

records or failure to allow the IRS access to records. Since one’s status as a resident or nonresident affects the income to be reported, 

availability of deductions, and treaty benefits, an election to be 

treated as a resident alien should be considered carefully.

DUAL-STATUS ALIEN

A dual-status alien is a person who is a resident alien and a nonresident alien at different times in the same tax year. This most 

commonly occurs in the year a person arrives in the U.S. or leaves 

the U.S. It may also occur if a person’s residency status changes 

during the year. More information is in IRS Publication 519, 

U.S. Tax Guide for Aliens. Completing dual-status returns is an 

advanced task and thus not covered by the volunteer program.
1-12 Lesson 1

Lesson 1 RESIDENCY STATUS ANSWERS TO EXERCISES

Exercise 1 Bridgette would still be considered a nonresident

 alien for federal income tax purposes. If she stays 

 in the U.S. past July 1, 2004, she will become a 

 resident alien for federal tax purposes effective 

 January 1, 2004.

Exercise 2 Guladua is considered a resident alien for federal

 income tax purposes in 2003. He was in an 

 exempt status in 2001 and 2002. Even though 

 he was not in the U.S. for a full year in 2001, he 

 must count that entire year toward his 2 years of 

 exempt status.

Exercise 3 Mike would be a nonresident alien for 2002. 

 Even though he is on a “J” visa, if his primary 

 purpose for coming to the U.S. was to study, he 

 is in exempt status for 5 years. He will not begin 

 counting days of presence until January 1, 2005.

Exercise 4 Mike’s wife would be a nonresident alien also. 

 Her status depends on her husband’s status. 

 While F-2 visitors are not permitted to work, 

 J-2 visitors can.(This information will be covered 

 in a later lesson.) Permission to work does not 

 change her residency status for tax purposes.

Exercise 5 Wei Wu is a resident alien for federal income tax 

 purposes in 2002. His residency starting date is 

 January 1, 2002. His 5 years of exempt status 

 were 1997, 1998, 1999, 2000, and 2001. 

Exercise 6 Kuongeza will be considered a resident alien for

 tax purposes as of January 1, 2002. He was in 

 an exempt status in 2000 and 2001. He meets 

 the substantial presence test in 2002. He also 

 received a “green card” in 2002. If both apply, the 

 earlier starting date governs.
Lesson 2 2-1

WHO MUST FILE Lesson 2

In many countries, the government assesses and collects taxes that 

are owed. But in the U.S. it is each individual’s own responsibility 

to meet his or her tax obligations.

Each student or scholar is responsible for helping his or her 

employer estimate how much income to withhold (deduct) from the 

student’s or scholar’s pay for income tax. The employer pays those 

amounts directly to the U.S. Treasury on the employee’s behalf.

A student’s or scholar’s yearly tax return must reconcile the 

amounts withheld with actual tax liability for that year, so that the 

right amount will end up being paid for that year. If too much was 

withheld from pay, the Treasury will pay a refund after receiving 

the return.

In Lesson 1 you learned that all non-citizen taxpayers fall into one 

of three statuses for tax purposes: resident alien, nonresident alien, 

or dual-status alien. Each status has different filing requirements. 

This lesson will give information on filing requirements for nonresident aliens. But first will be a brief discussion of filing requirements for resident and dual-status aliens.

RESIDENT ALIENS

Resident aliens are subject to the same federal income tax filing 

requirements as U.S. citizens. Whether they must file depends on 

their filing status and income. Filing requirements for U.S. citizens 

and resident aliens are described in IRS Publication 678, VITA

Assistor’s Guide, and Publication 17, Your Federal Income Tax 

Guide.

DUAL-STATUS ALIENS

As mentioned in Lesson 1, international VITA site volunteers do 

not assist with filing dual-status returns. The following information is for reference only. Completed examples are available in IRS 

Publication 519.

A taxpayer who is a resident alien at the end of the calendar year 

must file Form 1040 if the person is a dual-status taxpayer who 

became a resident during the year. The words “Dual-Status” should 

be written across the top of the return. Also, a statement should be 

attached to the return showing the income for the part of the year 

when the taxpayer was a nonresident. Form 1040NR or 1040NREZ can be used as that statement; across its top the words “DualStatus Statement” must be written.
2-2 Lesson 2

A taxpayer who is a nonresident alien at the end of the year must 

file Form 1040NR or 1040NR-EZ if (s)he is a dual-status taxpayer 

who gave up residency during the year. Across the top of the return 

the words “Dual-Status” should be written. Also, a statement 

should be attached to the return showing the income for the part of 

the year when the taxpayer was a resident. Form 1040 can be used 

as that statement; “Dual-Status Statement” must be written across 

its top.

NONRESIDENT ALIENS

General Rule

In general, nonresident aliens must file tax returns if they engage 

in any trade or business in the U.S. (Studying, teaching, and doing 

research are all considered to be activities in which the taxpayer is 

engaged in a trade or business.) Nonresidents must file even if they 

had no income from the U.S., or their income is exempt from U.S. 

taxes.

Student and Scholar Exception

However, an exception applies to many international students and 

scholars. Nonresident aliens who are students, teachers, or trainees, and are temporarily present in the U.S. under an F, J, M, or Q 

visa, must file a return only if they have income that is subject to 

withholding, even if no tax was withheld. (Caution: Even if they are 

exempt from filing a return, they must still file a tax form. See 

Lesson 5.) But even students and scholars who are not required to 

file returns should do so if they are eligible for refunds.

Example 1

Pedro is a junior at the state university. He is on an F-1 

visa. In 2003 he had wages of $213 from his job on-campus. 

His wage statement shows that $14 of federal income tax 

was withheld. He must file a return since he had some 

income subject to withholding. He will receive a $14 

refund.
Lesson 2 2-3

Example 2

Jose, who is from Peru, worked on campus last year. He 

earned $142 and had no withholding. He must file a return 

because wages are a type of income that is subject to withholding, although Jose had no withholding. If he does not 

file Form 1040NR-EZ, the IRS will not penalize him since 

$142 is not enough income for him to owe tax; but he may 

be considered out of compliance with the tax law.

FORM 1040NR OR 1040NR-EZ

Once you have determined that a nonresident needs to file a 

return, you should choose the best form to use. Nonresident aliens 

file either Form 1040NR or Form 1040NR-EZ. Form 1040NR is 5 

pages long and can accommodate all types of income and expenses. 

Form 1040NR-EZ is only 2 pages long and is limited to specific 

situations. Nonresidents cannot file joint returns, and are very limited in claiming dependents. You should choose the simplest and 

shortest form that will accommodate all the taxpayer’s income and 

deductions.

You can use Form 1040NR-EZ instead of Form 1040NR if all nine

of the following statements are true:

1. No dependents are claimed (rules for this are covered in Lesson 

8).

2. The taxpayer cannot be claimed as a dependent on another U.S. 

tax return.

3. The only sources of income were wages, salaries, tips, taxable 

refunds of state and local income taxes, and scholarship or fellowship grants.

4. Taxable income is under $50,000.

5. The only adjustment to income is the student loan interest 

deduction or scholarship exclusion.

6. No tax credits are claimed.

7. No exemption is claimed for the spouse.

8. The only itemized deduction is state and local income tax.

9. The only taxes owed are income tax.
2-4 Lesson 2

Example 3

Joy is a married student from China. She can’t be claimed 

as a dependent on any U.S. return. Her only income is 

$8,390 that she earned on-campus. Her only deduction is 

$96 of state income tax. She can file Form 1040NR-EZ.

Example 4

Peter is a married student from Canada. His wife meets 

all the requirements to be claimed as a personal exemption. His only income was $11,000 he earned from his assistantship. He is not entitled to the $10,000 treaty benefit 

because his income exceeded $10,000. He should file Form 

1040NR. He can take a deduction for his wife on that form, 

if she has a U.S. taxpayer identification number.

Example 5

Lee is a single student from China. He tells you that he 

gave a local church $10 every week. His total income was 

$7,950. His state income tax withholding was $65. He can 

still file a Form 1040NR-EZ, because his treaty benefit 

and allowable deductions (both covered in later chapters) 

reduce his income below $0 even without considering his 

charitable contributions.

 Income $ 7,950

 Minus:

 Treaty benefit – 5,000

 Personal exemption – 3,050

 State tax – 65

 Total income: ($165)

Example 6

Olga does not know which form to file. She had no wages, 

but she sold $50,000 of stock on-line. She made only $70 

after expenses. You should tell Olga to file Form 1040NR. 

She will also need a Schedule D (the same as used on 

domestic returns) to report the stock sales.
Lesson 2 2-5

WHEN AND WHERE TO FILE

A nonresident who received any wages must file a tax return by 

April 15, 2004. If the only income was from scholarships or other 

income not subject to withholding, the return must be filed by June 

15, 2004.

All Forms 1040NR and 1040NR-EZ must be mailed to:

Internal Revenue Service

Philadelphia, PA 19255

FAILURE TO FILE

Many students and scholars who are required to file returns either 

don’t file, or file incorrectly. Many of them would be eligible for a 

refund if they filed the required forms. They would rather forgo the 

refund than try to figure out what they should file and when. Part 

of your job is to inform them whether they need to file.

If they have no tax liability, the IRS will not penalize them for not 

filing (although they must still file Form 8843). However, the terms 

of students’ and scholars’ visas require that they stay in compliance 

with all laws of the U.S., including income tax filing. If they want to 

apply for residency at a later date, they may be asked to show proof 

of tax compliance. So they should file tax returns, even if they do 

not care about (or are not eligible for) refunds.

ALTERNATIVE METHODS OF FILING

You can use software to help you prepare nonresident returns; 

but the forms cannot be filed electronically. Very little software is 

available for preparing foreign students’ and scholars’ tax returns. 

If you can use such software (some colleges provide it), it can be of 

great help in preparing returns. The VITA program does not currently furnish software to international VITA sites. The TaxWise® 

software used in Form 1040 preparation does have Form 1040NR 

on it, but it does not help you with calculations. If you have access 

to TaxWise, you can use it as a template and type in the information for Form 1040NR; but you must still do the calculations and 

know the treaties. If you have additional software questions, talk to 

your VITA coordinator or the foreign student advisor.

Note: Returns cannot be faxed to the IRS.
2-6 Lesson 2

STUDENT NOTES
Lesson 3 3-1

TREATY OVERVIEW Lesson 3

Many countries have tax treaties with the U.S. that allow their 

residents to earn some money while temporarily in the U.S. 

without being subject to income tax on those earnings in both 

countries. These treaties will have a large impact on your 

volunteer work with international students and scholars. The 

texts of the treaties are posted on the IRS Web site 

(http://www.irs.gov), but understanding them can be a challenge. 

IRS Publication 901, U.S. Tax Treaties, has an overview of them. 

This chapter provides very general treaty information and is not 

intended to replace the governing rules of the treaties. The 

publication 901 overview appears at the end of this lesson. 

India is the only country whose international students are allowed 

to use the standard deduction in the U.S. On the other hand, all 

international students and scholars are entitled to the personal 

exemption for themselves, and in some cases for family members. 

(See Lesson 8 for more information.) 

International students and scholars may complete Form 8233, 

Exemption From Withholding on Compensation for Independent 

(and Certain Dependent) Personal Services of a Nonresident Alien 

Individual, annually and give it to their employer. This allows the 

employer to avoid withholding federal income tax on their earnings or other payments until the applicable treaty benefit amount 

is exceeded. It also enables the employer to issue the correct type of 

wage statement at the end of the year. But the students and scholars are entitled to claim their treaty benefits on their tax returns, 

even if they did not give the proper forms to their employer or college. The individual is also allowed to claim the treaty benefit even 

if the employer did not issue the correct reporting document.

Each type of income that an alien can earn is identified by a 

numeric code on Form 1042-S (which international students and 

scholars should receive in lieu of a Form W-2 for any income that 

is covered by a treaty). A code often seen is “19”— wage income for 

a student. The codes are helpful in determining the application of 

the treaty benefits. Table 1 on the next page lists these codes and 

their meanings.

The pages following the income codes give a quick guide to treaty 

benefits. However, they do not list all the restrictions on treaty 

benefits. Publication 901 provides additional information. Tables 2 

through 4 summarize treaty benefits applicable to each of the 

three major kinds of income (codes 15, 18, and 19) of students and 

scholars from each country for which a treaty gives benefits for 

that code. Countries not listed in the tables had no treaty benefi ts 

for their students or scholars when this publication went to press. 

However, new treaties are ratified from time to time. Students can 

often tell you what they think their treaty benefit should be. If you 
3-2 Lesson 3

don’t see information for their country listed in Tables 2 through 4, 

you can check the IRS Web site (http://www.irs.gov) to see whether 

a new treaty has been ratified. Treaty benefits are tied to the residency of the individual immediately before entering the U.S., not 

the country who issued the passport.

TAX RESIDENCY

As we noted in lesson 1, you must determine the residency status 

for US income tax purposes. You also learned that the residency 

status for tax purposes could be different than the residency status 

for immigration. Now we need to introduce one more residency status.

For an individual to be eligible for treaty benefits, the individual 

must be a resident in the treaty country at the time designated by 

the treaty. This requires that you determine the tax residence for 

the individual. Most of the time, the person will be both a citizen 

and resident in the treaty country. However, as we become a more 

mobile society, students who are citizens of one country may have 

been residents of a different country immediately before coming to 

the United States. The application of the treaty benefit is usually 

determined by where the person resided immediately before entering the US. This is illustrated in the following example.

Example 1

Suigita is a citizen of India. In 2001 she received her undergraduate degree from the University of Toronto. In April, 2002 

she entered the U.S. from Canada to begin work on her graduate 

degree. Since she was a resident of Canada immediately before 

entering the United States, she is governed by the Canada treaty 

not the India treaty.
Lesson 3 3-3

Table 1: Income Codes for Aliens

(This is a comprehensive list. The codes most often applying to 

international students and scholars are in boldface. Many codes 

rarely apply to students and scholars, but are shown here for reference.)

Code Description

01 Interest paid by U.S. obligors—general

02 Interest on real property mortgages

03 Interest paid to controlling foreign companies

04 Interest paid by foreign corporations

05 Interest on tax-free covenant bonds

06 Dividends paid by U.S. corporations—general

07 Dividends qualifying for direct dividend rate

08 Dividends paid by foreign corporations

09 Capital gains

10 Industrial royalties

11 Motion picture or television copyright royalties

12 Other royalties

13 Real property income and natural resources income

14 Pensions, annuities, alimony, and/or insurance premiums

15 Scholarship or fellowship grants

16 Compensation for independent personal services

17 Compensation for dependent personal services

18 Compensation for teaching and researching

19 Compensation during study and training

20 Earnings as an artist or athlete 

 . . . 

24 Real estate investment trust (REIT) distributions of 

 capital gains 

25 Trust distributions subject to Code section 1445 

26 Growing crops and timber income 

27 Publicly traded partnership distributions 

28 Gambling winnings 

29 Deposit interest 

30 Original issue discount (OID) 

31 Short-term OID 

32 Notional principal contract income 

 . . . 

50 Other income
3-4 Lesson 3

INCOME CODE 15: SCHOLARSHIP OF FELLOWSHIP GRANTS

International students and scholars often receive scholarships, fellowships, grants, and assistantships from U.S. sources. Regardless 

of the term used, the taxability of such payments (or waivers of 

charges) depends on their nature, as described below. All such 

grants and waivers fall into one of three categories:

a. Money received for (or a waiver of charges for) tuition, fees, 

books, and/or supplies. This money is not taxable if it was spent 

for the purpose intended and there was no requirement to perform services. (The same is true for domestic students.) This 

rule applies whether the payer is foreign or domestic.

b. Money received from a domestic payer for (or a waiver of 

charges for), room and board—again, if paid with no requirement to perform services. This money is normally taxable; but 

some countries have treaty provisions making it nontaxable. 

They are listed on the next page. Usually there is a maximum 

number of years of presence in the U.S. during which such 

money will be nontaxable. If those years are exceeded, the 

treaty benefit ends. The maximum years are listed in Table 2, 

along with the article number containing the provision in the 

treaty.

c. Money received (or a waiver of charges) on condition that the 

recipient perform services such as teaching or research. This 

money is treated as wages and is considered code 18 or 19 

income. Its taxation is discussed later.
Lesson 3 3-5

Table 3 Countries With Treaty Benefits for Scholarship Income 

 (income code 15)

Maximum years Treaty

Country in U.S. Amount article

Belgium 5 Unlimited 21(1)

China, People’s Rep. No limit Unlimited 20(b)

C.I.S.* 5 Limited† VI(1)

Cyprus 5 Unlimited 21(1)

Czech Rep. 5 Unlimited 21(1)

Egypt 5 Unlimited 23(1)

Estonia 5 Unlimited 20(1)

France 5 Unlimited 21(1)

Germany 5 Unlimited 20(3)

Iceland 5 Unlimited 22(1)

Indonesia 5 Unlimited 19(1)

Israel 5 Unlimited 24(1)

Japan 5 Unlimited 20(1)

Kazakhstan 5 Unlimited 19

Republic of Korea 5 Unlimited 21(1)

Latvia 5 Unlimited 20(1)

Lithuania 5 Unlimited 20(1)

Luxembourg No limit Unlimited XIV(1)

Morocco 5 Unlimited 18

Netherlands 3 Unlimited 22(2)

Norway 5 Unlimited 16(1)

Philippines 5 Unlimited 22(1)

Poland 5 Unlimited 18(1)

Portugal 5 Unlimited 23(1)

Romania 5 Unlimited 20(1)

Russia 5 Unlimited 18

Slovak Rep. 5 Unlimited 21(1)

Spain 5 Unlimited 22(1)

Thailand 5 Unlimited 22(1)

Trinidad & Tobago 5 Unlimited 19(1)

Tunisia 5 Unlimited 20

Ukraine 5 Unlimited 20

Venezuela 5 (undergraduate) Unlimited 21(1)

* The Commonwealth of Independent States (C.I.S.) includes 

Armenia, Azerbaijan, Belarus, Georgia, Kyrgzstan, Moldova, 

Tajikistan, Turkmenistan, and Uzbekistan.

† The annual income limit under the tax treaty with the C.I.S. is 

$10,000 if that amount is spent for the purposes for which the 

person is in the U.S.
3-6 Lesson 3

Example 2

Aseye is from Ghana, Africa. She is an F-1 student in the 

U.S. She receives a tuition waiver from her college. She is 

not required to work to get the waiver. She also received 

a $250 scholarship from a local group to help cover her 

books. She pays her own room and board with monies 

from her home country. She has no taxable scholarship or 

fellowship income.

Example 3

Birgit is from Sweden. She is an F-1 Student at a graduate school in the U.S. She receives a tuition waiver in 

exchange for services as a graduate assistant. Her waiver 

is taxable to the extent it equals the value of her services.

Example 4

Reinhard, who is from Germany, is a student with an F-1 

visa. He receives a tuition waiver from his college. He is 

not required to perform any services to get this waiver. 

The tuition waiver is not taxable. He has another scholarship that covers all his room and board. It would normally 

be taxable, but his treaty provision makes it nontaxable.

INCOME CODE 18: COMPENSATION FOR TEACHING AND RESEARCHING

Pay of professors and teachers may be exempt from U.S. income 

taxes for either 2 or 3 years if they are temporarily in the U.S. to 

teach or do research. Table 3 lists the countries with treaty benefits 

for this type of income. These exemptions by treaty apply to pay 

earned by the visiting professor or teacher only—not to any earnings of a spouse or dependents. 

The treaty exemption for teaching or research income is counted 

from the day of arrival in the U.S. Germany, India, Netherlands, 

Thailand, and the United Kingdom have treaty clauses saying 

that if the maximum years of presence are exceeded, the entire

treaty benefit is lost. This could require the teacher to file amended 

returns and pay tax on past years. Thus a taxpayer who expects to 

stay more than the limit on years of presence should avoid claiming 

the treaty benefit for any years.
Lesson 3 3-7

Example 5

Deepak is from India. He is on a J-1 visa and is teaching 

engineering at a local university. He has been offered an 

18 month contract with that university, and fully expects 

to return to India when it ends. He should claim his treaty 

benefit when filing his return.

Example 6

Assume the same facts as in Example 5, except that Deepak 

renews his contract for an additional year in its second 

year. Now all of his earnings from the university will be 

taxable from the beginning of his employment. He will have 

to file amended returns for the tax years he claimed the treaty 

benefit.

Example 7

Assume that Deepak was hired on a 4-year contract to 

teach at the university. Since he expects to stay beyond the 

maximum years of presence allowed by treaty, he should 

not claim the treaty benefit for any year.

Example 8

Assume the same facts as in Example 7, except that Deepak 

stays only 1 year and then returns to India. He is entitled 

to the treaty benefit, even though his original contract 

exceeded the limit on years of presence.
3-8 Lesson 3

Table 3 Countries With Treaty Benefits for Income From Teaching 

 (income code 18)

Maximum years Treaty

Country in U.S. Amount article

Belgium 2 Unlimited 20

China, People’s Rep. 3 Unlimited 19

C.I.S. 2 Unlimited VI(1)

Czech Rep. 2 Unlimited 21(5)

Denmark† 2 Unlimited XIV

Egypt 2 Unlimited 22

France 2 Unlimited 20

Germany 2 Unlimited 20(1)

Greece 3 Unlimited XII

Hungary 2 Unlimited 17

Iceland 2 Unlimited 21

India 2 Unlimited 22

Indonesia 2 Unlimited 20

Israel 2 Unlimited 23

Italy 2 Unlimited 20

Jamaica 2 Unlimited 22

Japan 2 Unlimited 19

Korea 2 Unlimited 20

Luxembourg† 2 Unlimited XIII

Luxembourg (new treaty) 2 Unlimited 21(2)

Netherlands 2 Unlimited 21(1)

Norway 2 Unlimited 15

Pakistan 2 Unlimited XII

Philippines 2 Unlimited 21

Poland 2 Unlimited 17

Portugal 2 Unlimited 22

Romania 2 Unlimited 19

Slovak Rep. 2 Unlimited 21(5)

Thailand 2 Unlimited 23

Trinidad & Tobago 2 Unlimited 18

United Kingdom 2 Unlimited 20

Venezuela 2 Unlimited 21(3)

† Applies to users of the old treaty only.
Lesson 3 3-9

INCOME CODE 19: COMPENSATION DURING STUDY AND TRAINING

Students and trainees from many countries are allowed to earn 

some money tax-free in the U.S. Table 4 lists these amounts, which 

vary by country.

Immigration restrictions usually bar students from working offcampus during their first year in the U.S. Even after that year, 

special BCIF permission is needed to work off-campus. Most international students earn money from the college or university they 

attend. If they work for the campus food service, but it is managed 

by an outside company, their wage statements will show the name 

of that company. That is considered on-campus work for immigration purposes.

A spouse or dependent of an F-1 student is not permitted to work 

while in the U.S. on an F-2 visa. A spouse who acquires his or her 

own F-1 visa may be granted permission to work on campus.

Sometimes, students earn more wages than their treaty benefit. If 

that happens, the excess must be reported on their tax return. As 

you will see later, international students are allowed only limited 

deductions against their income.

Example 9

Yumiko is an international student from Japan. She 

earned $3,516 last year working in the campus library. She 

had $118 of federal income tax withheld. This is her second 

year in the U.S. Her treaty allows her to earn $2,000 taxfree. Her taxes would be computed as follows:

 Wages $ 3,516

 Treaty benefit -2,000 

 Wages subject to tax 1,516

 Personal deduction -3,050

 Taxable income 0

 Refund $ 118
3-10 Lesson 3

Table 4 Countries With Treaty Benefits for Student Wages 

 (income code 19)

Maximum years Treaty

Country in U.S. Amount article

Belgium 5 $2,000 21(1)

China, People’s Rep. No limit 5,000 20 (c)

C.I.S. 5 Limited VI(1)

Cyprus 5 2,000 21(1)

Czech Rep. 5 5,000 21(1)

Egypt 5 3,000 23(1)

Estonia 5 5,000 20(1)

France 5 5,000 21(1)

Germany 4 5,000 20(4)

Iceland 5 2,000 22(1)

Indonesia 5 2,000 19(1)

Israel 5 3,000 24(1)

Japan 5 2,000 20(1)

Korea 5 2,000 21(1)

Latvia 5 5,000 20(1)

Lithuania 5 5,000 20(1)

Luxembourg (new treaty) 2 Unlimited 21(1)

Morocco 5 2,000 18

Netherlands No limit 2,000 22(1)

Norway 5 2,000 16(1)

Pakistan No limit 5,000 XIII(1)

Philippines 5 3,000 22(1)

Poland 5 2,000 18(1)

Portugal 5 5,000 23(1)

Romania 5 2,000 20(1)

Slovak Republic 5 5,000 21(1)

Spain 5 5,000 22(1)

Thailand 5 3,000 22(1)

Trinidad & Tobago 5 2,000 19(1)

Tunisia 5 4,000 20

Venezuela 5 5,000 21(1)
Lesson 3 3-11

DEPENDENT AND INDEPENDENT PERSONAL SERVICES

Students and scholars sometimes try to make use of the treaty 

benefits for dependent and independent personal service income 

(income codes 16 and 17). Generally, this is an incorrect interpretation of the treaties, except for Canadian students. Treaties often 

do not permit students and scholars to earn those types of income. 

They are only allowed to engage in employment that is related to 

the reason they were admitted to the country. Students are not 

admitted to be performers or have dependent service income. The 

BCIF usually does not allow a student to engage in independent 

personal services in the U.S.

UNUSUAL TREATY PROVISIONS

Although every treaty is unique, most have very similar rules for 

students and scholars. However, three countries have unusual provisions for students and scholars. The following information is a 

summary of those provisions.

Canada Treaty

The Canadian treaty has some provisions that are unique to it. IRS 

Publication 597 is a good reference tool on its benefits to students 

and scholars from Canada. Residents of other countries often go 

to Canada and establish residency there, then come to the U.S. to 

study. Generally, they follow the treaty provisions of the country in 

which they were most recently residents.

The U.S. – Canada tax treaty contains no specific benefits for 

either students or visiting scholars who are residents of Canada. 

The treaty does, however, contain a benefit that will apply to some 

students and scholars for Canada. The students and scholars are 

permitted to use article 15 of the tax treaty, which applies to dependent personal services. As we noted earlier, generally international 

students and scholars can’t use the treaty benefits for dependent 

personal services. Canada is an exception to the general rule.

The tax treaty with Canada is different from all other tax treaties 

because it (1) exempts all earned income if the nonresident earned 

no more than $10,000 in the tax year, but (2) taxes all income if the 

nonresident earned over $10,000. This treaty benefit is lost if the 

nonresident becomes a resident for tax purposes.
3-12 Lesson 3

Example 10

Henry LaRue is an international student from Canada. He 

entered the U.S. on an F-1 visa in 2002. In 2003 he earned 

$5,600 from on-campus employment. His federal tax withholding was $593. He must file either Form 1040NR or 

Form 1040NR-EZ. In either form’s question-and-answer 

section, he will provide the information that “Tax treaty 

article XV exempts all earned income from tax. I earned 

$5,600 in 2003”. Henry will receive a refund of $593. 

If Henry had earned more than $10,000, he could not use 

the earned income treaty benefit. He would owe federal 

taxes on all his earnings that year.

India Treaty

The IRS issued procedures for a new tax treaty with India in 

1994. The treaty’s benefits apply to tax years beginning on or after 

January 1, 1993.

An Indian student may take a standard deduction equal to 

the amount allowable on Form 1040 and may claim the personal 

exemptions for a non-working spouse and U.S. born children.

Treaty benefits for a scholar from India are very different from 

those for a student. The scholar benefit for income code 18 is lost 

retroactively if the visit exceeds 2 years.

Example 11

Kumar Dali arrived in the U.S. in 2000 on a J-1 visa. He had a 

1-year contract to teach agriculture at the local university. His 

teaching was well received, and he was asked to stay and teach 

until the fall of 2003. In 2000 and 2001 he excluded all his earnings from tax by using the Indian treaty benefit. In 2002, all his 

earning will be taxable. He also must file amended returns for 

2000 and 2001, changing his income from non-taxable to 

taxable.

China Treaty

Almost all U.S. tax treaties are limited to a specific number of years 

and may not be available for residents for tax purposes. But the 

U.S. treaty with China is different. Many of its provisions are available to both nonresident and resident aliens. 

The treaty provides that a scholar is exempt from tax on earned 

income for 3 years. After 2 years a scholar will become a resident 

alien for tax purposes, but is still entitled to 1 more year of tax benefits under the treaty.
Lesson 3 3-13

Example 12

Joy Chen came to the U.S. in 2001 to teach for 3 years at 

the local university. She was paid $38,000 per year for her 

full-time “Art as Clothing” program. For 2001 and 2002 

she filed Form 1040NR-EZ, reporting no taxable income 

because her treaty benefit exempted all her income.

A student from China, is entitled to the $5,000 exemption for the 

amount of time reasonably necessary to complete education or 

training. A student will become a resident alien for tax purposes 

after 5 years, but is still entitled to the treaty benefit as long as 

(s)he remains a student.

Example 13

Kia came to the U.S. in 1997 on an F-1 visa to study bioengineering. She has not left the U.S. except for short visits 

home. In 2003 she earned $10,700 as a graduate assistant. 

She must file a Form 1040. She can exclude $5,000 of her 

wages under her treaty benefit. The remaining $5,700 will 

be her adjusted gross income. Kia’s country of residence is 

P.R. China.

Exercise 1

Determine the treaty benefit available for the following students. 

Assume that all money was earned in the U.S. 

Use Table 4 to help you answer these questions.

Years Earned Treaty

Country in U.S. income benefit

Germany 2 $5,400 

China 6 6,200 

Ghana 3 4,700 

Nigeria 1 2,100 

Poland 4 7,600 

Israel 6 5,800 

Russia 2 7,300 

 What form should be given to the university payroll office to 

claim exemption from withholding on the amount of income 

covered by the treaty?___________________________________
3-14 Lesson 3

Exercise 2

Determine how much of the following scholars’ income from U.S. 

universities will be exempt from U.S. taxation. Use Table 3 to help 

you answer these questions.

Years Nontaxable

Country in U.S. Salary portion

India 1 $34,000 

China 1 34,000 

China 3 34,000 

South Africa 1 34,000 

Sweden 2 34,000 

Exercise 3

Determine how much of the following scholars’ income from U.S. 

universities will be exempt from U.S. taxation in 2003. They each 

entered the U.S. on August 1, 2001 and were still here in 2004. 

Use Table 3 to help you answer these questions.

 Nontaxable

Country Salary portion

India $34,000 

China 34,000 

South Africa 34,000 

Sweden 34,000 
Lesson 3 3-15

Exercise 4

Did the following students have any taxable scholarships? Assume 

that their tuition was equal to the tuition scholarship. Also 

assume that each student arrived in the U.S. for the first time in 

2000, and that all scholarships are provided by U.S. institutions. 

use Table 2 to help you answer these questions.

Room & Amount

Tuition board subject

Country scholarship scholarship to tax

China $5,000 $4,600 

Poland 3,800 6,700 

India 3,150 4,900 

Australia 4,950 5,000 

Pakistan 3,700 7,300 

Russia 4,600 5,900 

Guyana 4,400 2,950 
3-16 Lesson 3

STUDENT NOTES
Lesson 3 3-17

Exercise 1 Germany $5,000

China $5,000

Ghana (No Tax Treaty) 0

Nigeria (No Tax Treaty) 0

Poland $2,000

Israel (5 year Tax Treaty 

Benefit; student is 

in the 6th year) 0

Russia (No Treaty 

Benefit)

0

Form 8233 should be used to inform the university payroll office of the treaty benefit being claimed

Exercise 2 India $34,000

China (1 year) $34,000

China (3 years) $34,000

South Africa (No Treaty 

Benefit)

0

Sweden (No Treaty 

Benefit)

0

Exercise 3 India 0

India is zero because the scholar exceeded two year in 

the U.S.

China $34,000

China is $34,000 because the treaty allows the benefit 

for 3 years even though the scholar must file Form 

1040. In 2004, the benefit will have to be prorated to 

July 31st.

South Africa (No Treaty 

Benefit)

0

Sweden (No Treaty 

Benefit)

0

Exercise 4 None of the tuition scholarship money would be taxed 

to any of these students. That is because the Internal 

Revenue Code allows any recipient of tuition, fees, and 

books scholarships to exclude them from income

China 0

Poland 0

India $4,900

TREATY OVERVIEW ANSWERS TO EXERCISES Lesson 3
3-18 Lesson 3

Australia $5,000

Pakistan $7,300

Russia 0

Guyana $2,950
Lesson 3 3-19

Table 2. Compensation for Personal Services Performed in United States Exempt from U.S. Income Tax Under Income Tax Treaties

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

AustraliaBarbadosBelgium

Canada

16201720191620

172019

15

1620171819161719

Any contractorAny foreign resident

No limit$10,000

1417151720

Any contractorAny foreign residentAny foreign resident

No limit$10,000No limit

Any foreign contractorAny U.S. contractorAny contractor

Any foreign residentAny U.S. or foreign residentAny foreign resident

No limit$5,000$250 per day or $4,000 p.a.

No limit

6

$5,000$250 per day or $4,000 p.a.6

141417

151720

Any U.S. or foreign resident5

Any contractorAny contractorBelgian residentU.S. educational institutionAny foreign residentBelgian residentOther foreign or U.S. residentBelgian residentU.S. Government or its contractor

No limit

No limit$3,000No limitNo limitNo limit$5,000$2,000 p.a.$5,000$10,000

21(1)

14(2)(a)(b)14(2)(c)152021(1)21(2)(b)21(1)21(2)(a)21(3)

Any contractor No limit12Any U.S. or foreign resident $10,000Any foreign resident15 No limit12Any foreign resident No limit

XIVXVXVXX

Independent personal services22

Public entertainment

Dependent personal services15

Public entertainment15

Studying and training:

Remittances or allowances10

Independent personal services7,22

Public entertainment

Dependent personal services7,15

Public entertainment

Studying and training:20

Remittances or allowances10

Scholarship or fellowship grant

Independent personal services22

Public entertainment

Dependent personal services15

Teaching4Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

Independent personal services22

Dependent personal servicesStudying and training:

Remittances or allowances10

183 days183 days183 days183 daysNo limit89 days89 daysNo limit

183 daysNo limitNo limit

5 years

182 days90 days182 days2 years5 years12 consec. mo.5 years12 consec. mo.1 yearNo limitNo limit183 daysNo limit

Austria 16

20172019

Any contractorAny contractorAny U.S. or foreign resident

14171720 Any foreign resident

No limit$20,000 p.a.25

No limit$20,000 p.a.25No limit

15

Independent personal services22

Public entertainment

Dependent personal services15

Studying and training:10

Remittances or allowances

No limitNo limit183 daysNo limit3 years11

Public entertainment

Any foreign resident

China, People’s Rep. of 15

162017201819

Any U.S. or foreign resident5 No limit

Any contractor No limitAny contractor No limitAny foreign resident No limitAny U.S. or foreign resident No limitU.S. educational or research institute No limitAny foreign resident No limitAny U.S. or foreign resident $5,000 p.a.

20(b)131614161920(a)20(c)

Scholarship or fellowship grantIndependent personal services22

Public entertainment29

Dependent personal services7,15

Public entertainment29

Teaching4Studying and training:

Remittances or allowancesCompensation during training or while

gaining experience

No specific limit183 daysNo limit183 daysNo limit3 yearsNo specific limitNo specific limit
3-20 Lesson 3

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

Commonwealth of

Independent States

Cyprus

Czech RepublicDenmark

151617181915162017

20191516201720181916171819

Scholarship or fellowship grantIndependent personal servicesDependent personal servicesTeaching4,18

Studying and training:

Remittances or allowancesCompensation while gaining experienceCompensation under U.S.

Government program

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services15

Directors’ feesPublic entertainment

Studying and training:

Remittances or allowancesCompensation during trainingCompensation while gaining experience2Compensation under U.S.

Government program

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4,35

Studying and training:

Remittances and allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

Independent personal servicesDependent personal servicesTeachingStudying and training:

Remittances or allowances

5 years183 days183 days2 years

5 years

1 year

1 year

Generally, 5

years

182 days

No limit182 days

No limitNo limitGenerally, 5

years

Generally, 5

years

1 year1 year5 years183 days183 days183 days183 days2 years5 years5 years12 consec. mos.1 year180 days90 days180 days90 days2 yearsNo limit

Any U.S. or foreign residentAny U.S. or foreign contractorAny U.S. or foreign resident

Any U.S. educational or scientific institutionAny U.S. or foreign residentC.I.S. residentAny U.S. or foreign residentAny U.S. or foreign resident5Any contractorAny contractorAny foreign resident

U.S. corporationAny U.S. or foreign residentAny foreign residentAny U.S. or foreign residentCyprus residentU.S. Government or its contractorAny U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny foreign residentAny U.S. educational or research

institution

Any foreign residentAny U.S. or foreign residentCzech residentU.S. GovernmentDanish resident contractorOther foreign or U.S. resident contractorDanish residentOther foreign or U.S. residentU.S. educational institutionAny foreign resident

Limited19

No limitNo limitNo limitLimited19No limit19No limitNo limitNo limit$500 per day or $5,000 p.a.6No limit

No limit21

$500 per day or $5,000 p.a.6No limit$2,000 p.a.$7,500$10,000$20,000 p.a.30No limitNo limit$20,000 p.a.$5,000 p.a.$8,000$3,000$3,000

30

No limitNo limitNo limit$10,000No limitNo limitNo limitNo limit

VI(1)VI(2)VI(2)VI(1)VI(1)VI(1)VI(1)21(1)1719(1)18

2019(1)21(1)21(1)21(2)21(3)21(1)1418151821(5)21(1)21(1)21(2)21(3)XIXIXIXIXIVXIII

Denmark

(New Treaty)

161719

Independent personal services22

Dependent personal services15Studying and training:4,10

Remittances or allowances

183 days3 years11

Any contractorAny contractorAny foreign residentAny foreign residentAny foreign resident

$20,000 p.a.25

$20,000 p.a.25No limitNo limitNo limit

1417151720

Public entertainmentPublic entertainment

2020

No limitNo limit183 days
Lesson 3 3-21

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

EgyptFinlandFranceGermany

1516201720181916201720191516201720181915162017201819

Scholarship or fellowship grantIndependent personal services

Public entertainment

Dependent personal services14,15

Public entertainment

Teaching4

Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

Generally, 5 years89 daysNo limit89 daysNo limit2 yearsGenerally, 5 yearsGenerally, 5 years12 consec. mos.1 year

Any U.S. or foreign resident5

Any contractorAny contractorEgyptian residentAny U.S. or foreign residentU.S. educational institutionAny foreign residentU.S. or any foreign residentEgyptian residentU.S. Government or its contractor

No limitNo limit$400 per dayNo limit$400 per dayNo limitNo limit$3,000 p.a.$7,500$10,000

23(1)151716172223(1)23(1)23(2)23(3)

Independent personal services22

Public entertainment

Dependent personal services15

Public entertainment

Studying and training:

Remittances or allowances10

No limitNo limit183 daysNo limitNo limit

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

No limit$20,000 p.a.No limitNo limit

25

$20,000 p.a.25

1417151720

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4,39

Studying and training:4

Remittances or allowancesCompensation during study or

training

Compensation while gaining experience

5 years40No limitNo limit183 daysNo limit2 years405 years4012 consec. mos.5 years12 consec. mos.

Any U.S. or foreign resident5Any contractorAny contractorAny foreign residentAny U.S. or foreign residentU.S. educational or research institutionAny foreign residentFrench residentOther foreign or U.S. residentFrench resident2

No limitNo limit$10,00030No limit$10,00030No limitNo limit$8,000$5,000 p.a.$8,000

21(1)141715172021(1)21(2)21(1)21(2)

Scholarship or fellowship grantIndependent personal services7,22

Public entertainment22

Dependent personal services7,15

Public entertainment15

Teaching4Studying and training:

Remittances or allowances10

Compensation during study or trainingCompensation while gaining experience2

No limitNo limitNo limit183 days183 days2 yearsNo limit4 years1 year

Any U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny foreign residentU.S. educational or research institutionAny foreign residentAny U.S. or foreign residentAny German enterprise or foreign

organization or institution

No limit 20(3)No limit 14$20,000 p.a.30 17

No limit 15$20,000 p.a.30 17No limit 20(1)No limit 20(2)$5,000 p.a. 20(4)$10,00028 20(5)

Estonia 15

1719

No limitNo limitNo limit

Scholarship or fellowship grants4

Dependent personal services7,15Studying and training:

Remittances or allowances

5 years183 days5 years

20 Public entertainment20 Public entertainment

No limitNo limit

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

$20,0009$20,0009

20(1)17151720(1)

16 No limit Independent personal services22 Any contractor 14

Compensation during trainingCompensation while gaining

experience2

Compensation under U.S. Gov’t.

program

183 days12 consec. mos.5 years12 consec. mos.1 year

Any U.S. or foreign resident5Estonian residentOther foreign or U.S. residentEstonian residentU.S. Government or its contractor

$8,000$5,000 p.a.$8,000$10,000

20(2)20(1)20(2)20(3)
3-22 Lesson 3

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

IcelandIndiaIndonesia

15162017181916201720181915162017201819

Scholarship and fellowship grantIndependent personal services22

Public entertainment

Dependent personal services15

Teaching4Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

5 years182 days90 days182 days2 years5 years5 years12 consec. mo.1 year

Any U.S. or foreign resident5

Any contractorAny contractorIceland resident16U.S. educational institutionAny foreign residentU.S. or any foreign residentIceland residentU.S. Government or its contractor

No limitNo limit$100 per dayNo limitNo limitNo limit$2,000 p.a.$5,000$10,000

22(1)1818192122(1)22(1)22(2)22(3)

Independent personal services7,22

Public entertainment22

Dependent personal services7,15

Public entertainment15

Teaching4Studying and training:

Remittances or allowances

89 days89 days183 days183 days2 yearsNo limit

Any contractorAny contractorAny foreign residentAny foreign residentU.S. educational institutionAny foreign resident27

No limit$1,500 p.a.26No limit$1,500 p.a.No limit

26

No limit

151816182221(1)

Scholarship and fellowship grant 5 years Any U.S. or foreign resident5

Independent personal services22 119 days Any contractor

Public entertainment No limit Any contractor

Dependent personal services15 119 days Any foreign resident

Public entertainment No limit Any U.S. or foreign resident

Teaching4 2 years U.S. educational institutionStudying and training:

Remittances or allowances 5 years Any foreign residentCompensation during training

Compensation while gaining experience

5 years Any foreign or U.S. resident12 consec. mo. Any U.S. or foreign resident

No limitNo limit$2,000 p.a.25

No limit$2,000 p.a.25No limitNo limit$2,000 p.a.$7,500

19(1)151716172019(1)19(1)19(2)

Ireland 16

1719

Independent personal services22

Dependent personal services15,23Studying and training:10

Remittances or allowances

No limit183 daysNo limit1 year11

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

No limit 14

151720

No limit$20,000 p.a.25

No limit

20 Public entertainment20 Public entertainment

No limit Any contractor $20,000 p.a.25 17

GreeceHungary

1617181916171819

Independent personal services 183 days

183 days183 days183 days3 yearsNo limit

Dependent personal servicesTeachingStudying and training:

Remittances or allowances

Greek resident contractorOther foreign or U.S. resident contractorGreek residentOther foreign or U.S. residentU.S. educational institutionAny foreign resident

No limit$10,000No limit$10,000No limitNo limit

XXXXXIIXIII

Independent personal services22

Dependent personal services15Teaching4Studying and training:20

Remittances or allowances10

183 days183 days2 yearsNo limit

Any contractorAny foreign residentU.S. educational institutionAny foreign resident

No limit 13No limit 14No limit 17No limit 18(1)
Lesson 3 3-23

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

ItalyJamaicaJapanKazakstan

16201720181916201720181915162017181915161719

Independent personal services7,22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4

Studying and training:

Remittances or allowances

183 days90 days183 days90 days2 yearsNo limit

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentU.S. educational institutionAny foreign resident

No limit$12,000 p.a.25

No limit$12,000 p.a.25No limitNo limit

1417(1)1517(1)2021

Independent personal services22

Public entertainment

Dependent personal services15

Public entertainmentDirectors’ fees

Teaching4

Studying and training:20

Remittances or allowances10Compensation during studyCompensation while gaining experience2

89 days89 daysNo limit183 daysNo limitNo limit2 yearsNo limit12 consec. mo.12 consec. mo.

Any foreign contractorAny U.S. contractorAny contractorAny foreign residentAny U.S. or foreign residentU.S. residentU.S. educational institutionAny foreign residentJamaican residentJamaican resident

No limit$5,000 p.a.$400 per day or $5,000 p.a.6

$5,000 p.a.$400 per day or $5,000 p.a.6$400 per day6No limitNo limit$7,500 p.a.$7,500 p.a.

1414181518162221(1)21(2)21(2)

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services15,17

Teaching4Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

5 years183 days90 days183 days2 years5 years5 years12 consec. mo.1 year

Any U.S. or foreign resident5

Any contractorAny contractorJapanese resident16U.S. educational institutionAny foreign residentU.S. or any foreign residentJapanese residentU.S. Government or its contractor

No limitNo limit$3,0006

No limitNo limitNo limit$2,000 p.a.6$5,0006$10,0006

20(1)1717181920(1)20(1)20(2)20(3)

Scholarship or fellowship grant44 5 years31 Any U.S. or foreign resident5

Independent personal services22 183 days Any contractor

Dependent personal services7,15 183 days Any foreign residentStudying and training:4

Remittances or allowances 5 years Any foreign resident

No limit 19No limit 14No limit 15No limit 19

Israel 15

162017201819

Scholarship and fellowship grantIndependent personal services

Public entertainment

Dependent personal services14,15

Public entertainment

Teaching4,37

Studying and training:

Remittances or allowancesCompensation during study or

training

Compensation while gaining experience2Compensation under U.S.

Government program

5 years Any U.S. or foreign resident5

182 days Any contractorNo limit Any contractor182 days Israeli resident16No limit Any U.S. or foreign resident2 years U.S. educational institution5 years Any foreign resident5 years Any U.S. or foreign resident12 consec. mo. Israeli resident1 year U.S. Government or its contractor

No limitNo limit$400 per dayNo limitNo limitNo limit$3,000 p.a.$7,500$10,000

26

$400 per day26

24(1)161817182324(1)24(1)24(2)24(3)
3-24 Lesson 3

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

Luxembourg 15

16171819

Scholarship or fellowship grantIndependent personal servicesDependent personal services7

Teaching8Studying and training:

Remittances or allowancesCompensation during trainingCompensation while gaining experience2Compensation under U.S.

Government program

XIV(1)XIIXIIXIIXIIXIIIXIV(1)XIV(1)XIV(2)XIV(3)

Luxembourg

(New Treaty)

16

20172019

Independent personal services22

Public entertainment

Dependent personal services15,24

Public entertainment

Studying and training:10

Remittances or allowances

15

18161821(1)

No limitNo limit$3,000No limit$3,000No limitNo limitNo limit$5,000$10,000No limit

$10,00025

No limit$10,00025No limit

Any foreign resident5

Luxembourg resident43Any U.S. or foreign residentLuxembourg resident43Any U.S. or foreign residentU.S. educational institutionAny foreign residentAny foreign residentAny foreign residentU.S. Government, its contractor, or a

foreign resident

Any contractor

Any contractorAny foreign residentAny foreign residentAny U.S. or foreign resident

No limit180 days180 days180 days180 days2 yearsNo limit1 year1 year1 year

No limit183 daysNo limit2 years11

Korea, Rep. of 15

16171819

Scholarship or fellowship grant 5 years Any U.S. or foreign resident5

Independent personal services22 182 days Any contractor

Dependent personal services15 182 days Korean resident16

Teaching4 2 years U.S. educational institution

Studying and training:

Remittances or allowances 5 years Any foreign residentCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

5 years Any foreign or U.S. resident1 year Korean resident1 year U.S. Government or its contractor

No limit 21(1)$3,000 p.a. 18$3,000 p.a. 19No limit 20No limit 21(1)$2,000 p.a. 21(1)$5,000 21(2)$10,000 21(3)

Latvia 15

1719

No limitNo limitNo limit

Scholarship or fellowship grants4

Dependent personal services7,15Studying and training:

Remittances or allowances

5 years183 days5 years

20 Public entertainment20 Public entertainment

No limitNo limit

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

$20,0009$20,0009

20(1)17151720(1)

16 No limit Independent personal services22 Any contractor 14

Compensation during trainingCompensation while gaining

experience2

Compensation under U.S. Gov’t.

program

183 days12 consec. mos.5 years12 consec. mos.

1 year

Any U.S. or foreign resident5Latvian residentOther foreign or U.S. residentLatvian resident

U.S. Government or its contractor

$8,000$5,000 p.a.$8,000

$10,000

20(2)20(1)20(2)

20(3)

Lithuania 15

1719

No limit

No limitNo limit

Scholarship or fellowship grants4

Dependent personal services7,15Studying and training:

Remittances or allowances

5 years

183 days5 years

20 Public entertainment20 Public entertainment

No limitNo limit

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

$20,0009$20,0009

20(1)

17151720(1)

16 No limit Independent personal services22 Any contractor 14

Compensation during trainingCompensation while gaining

experience2

Compensation under U.S. Gov’t.

program

183 days

12 consec. mos.5 years12 consec. mos.1 year

Any U.S. or foreign resident5

Lithuanian residentOther foreign or U.S. residentLithuanian residentU.S. Government or its contractor

$8,000$5,000 p.a.$8,000$10,000

20(2)20(1)20(2)20(3)

Teaching or research8 18

No limit2 years Any U.S. or foreign resident No limit 21(2)
Lesson 3 3-25

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

Pakistan 15

16171819

XIII(1)XIXIXIIXIII(1)XIII(1)XIII(2)XIII(3)

Scholarship or fellowship grantIndependent personal services14

Dependent personal services14TeachingStudying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation while under U.S.

Government program

No limit183 days183 days2 yearsNo limitNo limit1 yearNo limit

Pakistani nonprofit organizationPakistani resident contractorPakistani residentU.S. educational institutionAny foreign residentU.S. or any foreign residentPakistani residentU.S. Government, its contractor, or any

foreign resident employer

No limitNo limitNo limitNo limitNo limit$5,000 p.a.$6,000$10,000

Morocco

NetherlandsNew Zealand

15161719

1516201720181916

20172019

Scholarship or fellowship grantIndependent personal services22Dependent personal services15Studying and training:

Remittances or allowancesCompensation during training

1814151818

Scholarship or fellowship grant33

Independent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4,34

Studying and training:33

Remittances or allowancesCompensation while gaining experienceCompensation while recipient of

scholarship or fellowship grant

22(2)1518161821(1)22(1)22(1)22(2)

Independent personal services22

Public entertainment

Dependent personal services15

Public entertainment15

Studying and training:10

Remittances or allowances

14

17151720

No limit$5,000No limitNo limit$2,000 p.a.

No limitNo limit$10,000 p.a.25

No limit$10,000 p.a.25No limitNo limit$2,000 p.a.$2,000 p.a.36No limit

$10,00025

No limit$10,00025No limit

Any U.S. or foreign resident5

Any contractor12Moroccan resident12, 16Any foreign residentU.S. or any foreign resident

Any U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny foreign residentU.S. educational institutionAny foreign residentAny U.S. or foreign residentAny U.S. or foreign residentAny contractor

Any contractorAny foreign residentAny foreign residentAny foreign resident

5 years182 days182 days5 years5 years

3 yearsNo limitNo limit183 days183 days2 yearsNo limitNo limit3 years183 days

183 days183 days183 daysNo limit

Norway 15

16

20171819

16(1)13

13141516(1)16(1)16(2)16(3)

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal servicesTeaching4

Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation under U.S.

Government program

5 years182 days

90 days182 days2 years5 years5 years12 consec. mo.1 year

Any U.S. or foreign resident5

Any contractor

Any contractorNorwegian resident16

U.S. educational institutionAny foreign residentU.S. or any foreign residentNorwegian residentU.S. Government or its contractor

No limitNo limit

$10,000 p.a.No limitNo limitNo limit$2,000 p.a.$5,000$10,000

Mexico 16

20172019

Independent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Studying and training:

Remittances or allowances

14

18151821

No limit

$3,000 p.a.30

No limit$3,000 p.a.30No limit

Any contractor

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

183 days

No limit183 daysNo limitNo limit
3-26 Lesson 3

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

RomaniaRussia

1516201720181915

161719

Scholarship or fellowship grantIndependent personal services49

Public entertainment

Dependent personal services15

Public entertainment

Teaching4Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation while under U.S.

Government program

Scholarship or fellowship grant44

Independent personal services22Dependent personal services7,15,32Studying and training:4

Remittances

20(1)141415151920(1)20(1)20(2)20(3)18

131418

No limitNo limit$3,000No limit$2,999.99No limitNo limit$2,000 p.a.$5,000$10,000No limit

No limitNo limitNo limit

Any U.S. or foreign resident5

Any contractorAny contractorRomanian residentRomanian residentU.S. educational institutionAny foreign residentU.S. or any foreign residentRomanian residentU.S. Government or its contractorAny U.S. or foreign resident5

Any contractorAny foreign residentAny foreign resident

5 years182 days90 days182 days89 days2 years5 years5 years1 year1 year5 years31

183 days183 days5 years31

PhilippinesPoland

1516

2017201819

1516171819

Scholarship or fellowship grantIndependent personal services22

Public entertainment

22(1)1515

17

Dependent personal services15

Public entertainment

1617

Teaching4,38 21

Studying and training:

Remittances or allowancesCompensation during study

Compensation while gaining experience2Compensation while under U.S.

Government program

22(1)22(1)22(2)22(3)

Scholarship or fellowship grantIndependent personal servicesDependent personal services15

Teaching4Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation while under U.S.

Government program

18(1)15161718(1)18(1)18(2)18(3)

5 years89 days89 days

No limit89 daysNo limit2 years5 years5 years12 consec. mo.1 year

5 years182 days182 days2 years5 years5 years1 year1 year

Any U.S. or foreign resident5

Any foreign contractorAny U.S. resident

Any contractorAny Philippines resident16

Any U.S. or foreign residentU.S. educational institutionAny foreign residentAny U.S. or foreign residentPhilippines residentU.S. Government or its contractor

Any U.S. or foreign resident5

Any contractorAny foreign residentU.S. educational institutionAny foreign residentU.S. or any foreign residentPolish residentU.S. Government or its contractor

No limitNo limit$10,000 p.a.

$100 per day or $3,000 p.a.No limit$100 per day or $3,000 p.a.No limitNo limit$3,000 p.a.$7,500 p.a.$10,000 p.a.

No limitNo limitNo limitNo limitNo limit$2,000 p.a.$5,000$10,000

Portugal 15

162017201819

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4,41Studying and training:4

Remittances or allowancesCompensation during study or

training

Compensation while gaining experience

23(1)151916192223(1)23(2)23(1)23(2)

No limitNo limit$10,000 p.a.30

No limit$10,000 p.a.30No limitNo limit$8,000$5,000 p.a.$8,000

Any U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentU.S. educational institutionAny foreign residentPortuguese residentOther foreign or U.S. residentPortuguese resident2

5 years182 daysNo limit183 daysNo limit2 years5 years12 consec. mos.5 years12 consec. mos.
Lesson 3 3-27

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

Switzerland 16

20172019

Independent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Studying and training:10

Remittances or allowances

1417151720

No limit$10,00025

No limit$10,00025No limit

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

No limitNo limit183 daysNo limitNo limit

Thailand

16171819

Independent personal services22

Dependent personal services15,23Teaching or research4,38Studying and training:

Remittances or allowances

151516192322(1)

Scholarship or fellowship grant 15

Compensation during training

Compensation while gaining experienceCompensation under U.S.

Government program

22(1)22(1)22(2)

22(3)

No limit$10,000No limit45

No limitNo limitNo limit$3,000 p.a.$7,500

$10,000

Any U.S. or foreign resident5

Any foreign contractorAny foreign residentAny foreign residentAny U.S. or foreign residentThai resident2

U.S. Government

5 years89 days89 days183 daysNo limit2 years5 years5 years12 consec. mos.

1 year

20 Public entertainment

No limit 20 Public entertainment

Any U.S. residentAny contractorAny U.S. or foreign residentAny U.S. or foreign resident

$100 per day or $3,000 p.a.9$100 per day or $3,000 p.a.9

19

Slovak Republic

South Africa

15162017201819

1620172019

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Teaching4,35

Studying and training:

Remittances or allowancesCompensation during training

Compensation while gaining experience2Compensation while under U.S.

Government program

Independent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Studying and training:10

Remittances or allowances

21(1)1418151821(5)21(1)21(1)

21(2)21(3)1417151720

No limitNo limit$20,000 p.a.30

No limit$20,000 p.a.30No limitNo limit$5,000 p.a.

$8,000$10,000No limit$7,50030

No limit$7,50030No limit

Any U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny foreign residentAny U.S. educational or research institutionAny foreign residentAny U.S. or foreign resident

Slovak residentU.S. GovernmentAny contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

5 years183 days183 days183 days183 days2 years5 years5 years

12 consec. mos.1 yearNo limit183 daysNo limit1 year11

Spain 15

1620172019

Scholarship or fellowship grantIndependent personal services22

Public entertainment

Dependent personal services15

Public entertainment

Studying and training:4

Remittances or allowancesCompensation during trainingCompensation while gaining experience2

22(1)1519161922(1)22(1)22(2)

No limitNo limit$10,000 p.a.30

No limit$10,000 p.a.30No limit$5,000 p.a.$8,000

Any U.S. or foreign resident5

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign residentSpanish resident

5 yearsNo limitNo limit183 daysNo limit5 years5 years

12 consec. mo.

Any U.S. or foreign resident

183 days

Sweden 16

20172019

Independent personal services22

Public entertainment

Dependent personal services7,15

Public entertainment

Studying and training:

Remittances or allowances10

1418151821

No limit$6,00042No limit$6,00042No limit

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

No limitNo limit183 daysNo limitNo limit
3-28 Lesson 3

Table 2. ( Continued)

Country

(1)

Code1

(2)

Category of Personal Services

Purpose

(3)

Maximum

Presence

in U.S.

(4)

Required Employer or Payer

(5)

Maximum

Amount of

Compensation

(6)

Treaty Article

Citation

(7)

Trinidad and Tobago

1617

1819

Independent personal services13

Dependent personal services13

Teaching4Studying and training:

Remittances or allowances

171717

171819(1)

Scholarship or fellowship grant 15

Compensation during training

Compensation during professional trainingCompensation while gaining experience2Compensation under U.S.

Government program

19(1)

19(1)19(1)19(2)

19(3)

Tunisia

161719

Independent personal services22

Dependent personal services15Studying and training:10

Remittances or allowances

1417151720

Scholarship or fellowship grant10 15

Compensation during training

2020

Public entertainmentPublic entertainment

2020

Ukraine

(New Treaty)

161719

Independent personal services22

Dependent personal services15Studying and training:

Remittances or allowances10

14152021

18 Teaching4

No limitNo limit$3,0006No limit

$3,0006

No limitNo limit$2,000 p.a.6$5,000 p.a.6$5,0006

$10,0006No limit$7,500 p.a.$7,500 p.a.25No limit$7,500 p.a.25No limit$4,000 p.a.No limit12No limit12No limitNo limit

Any U.S. or foreign resident5

Any foreign resident contractorAny U.S. contractorAny foreign resident

Any U.S. residentU.S. educational institution or U.S. GovernmentAny foreign residentU.S. or any foreign residentU.S. or any foreign residentTrinidad

—Tobago resident

U.S. Government or its contractorAny U.S. or foreign resident5

U.S. resident contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign residentAny U.S. or foreign residentAny contractorAny foreign residentU.S. educational institutionAny foreign resident

5 years183 days183 days183 days

183 days2 years5 years5 years5 years1 year

1 year5 years183 daysNo limit183 daysNo limit5 years5 years183 days183 days2 yearsNo limit

Turkey 16

20172019

Independent personal services22

Public entertainment46

Dependent personal services15,24

Public entertainment46

Studying and training:10

Remittances or allowances

1417151720(1)

No limit$3,00049

No limit$3,00049No limit

Any contractorAny contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

183 daysNo limit183 daysNo limitNo limit

18 Teaching or research 20(2) No limit 2 years Any foreign resident

Venezuela 15

1719

No limitNo limitNo limit

Scholarship or fellowship grants4

Dependent personal services7,15Studying and training:4

Remittances or allowances

5 years47

183 days5 years47

20 Public entertainment20 Public entertainment

No limitNo limit

Any contractorAny foreign residentAny U.S. or foreign residentAny foreign resident

$6,00030$6,00030

21(1)18151821(1)

16 No limit Independent personal services7,22 Any contractor 14

Compensation during trainingCompensation while gaining

experience2

12 mos.5 years12 mos.

47

Any U.S. or foreign resident5Venezuelan residentOther foreign or U.S. residentVenezuelan resident

$8,000$5,000 p.a.$8,000

21(2)21(1)21(2)

18 No limit Teaching4 2 years48 21(3) Any U.S. or foreign resident

No limit

United Kingdom

151619

Scholarship or fellowship grant44

Independent personal services22,50Studying and training:

Remittances or allowances10

20141520

17 Dependent personal service15,23,50

No limitNo limitNo limitNo limit

Any contractorAny foreign resident

5 years31

183 days5 years31No limit

Any U.S. or foreign resident

Any foreign resident

5
Lesson 3 3-29

1234567891011121314

Refers to income code numbers under which the income is

reported on Forms 1042-S. Personal services must be

performed by a nonresident alien individual who is a resident

of the specified treaty country.

Applies only if training or experience is received from a person

other than alien’s employer.

Annual compensation for services wherever performed.Does not apply to compensation for research work primarily

for private benefit.

Grant must be from a nonprofit organization. In many cases,

the exemption also applies to amounts from either the U.S. or

foreign government. For Indonesia and the Netherlands, the

exemption also applies if the amount is awarded under a

technical assistance program entered into by the United States

or the foreign government, or its political subdivisions or local

authorities.

Reimbursed expenses are not taken into account in figuring

any maximum compensation to which the exemption applies.

For Japan and Trinidad and Tobago, only reimbursed travel

expenses are disregarded in figuring the maximum

compensation.

Does not apply to fees of a foreign director of a U.S.

corporation.

Does not apply to compensation for research work for other

than the U.S. educational institution involved.

Exemption does not apply if gross receipts exceed this amount.

Income is fully exempt if visit to the United States is

substantially supported by public funds of the treaty country

or its political subdivisions or local authorities.

Applies only to full-time student or trainee.The time limit pertains only to an apprentice or business trainee.Does not apply to compensation paid to public entertainers

(actors, artists, musicians, athletes, etc.). For Canadian or U.K.

resident public entertainers, the exemption does not apply if

the gross receipts (including reimbursements) are more than

$15,000 in any year.

Does not apply to compensation paid to public entertainers

that is more than $100 a day.

Exemption applies only if the compensation is subject to tax

in the country of residence.

15161718

192021222324

252627

The exemption does not apply if the employee’s

compensation is borne by a permanent establishment (or in

some cases a fixed base) that the employer has in the

United States.

The exemption also applies if the employer is a permanent

establishment in the treaty country but is not a resident of

the treaty country.

This exemption does not apply in certain cases if the

employee is a substantial owner of that employer and the

employer is engaged in certain defined activities.

The exemption is also extended to journalists and

correspondents who are temporarily in the U.S. for periods

not longer than 2 years and who receive compensation from

abroad.

Also exempt are amounts of up to $10,000 received from

U.S. sources to provide ordinary living expenses. For

students, the amount will be less than $10,000, determined

on a case by case basis.

A student or trainee may choose to be treated as a U.S.

resident for tax purposes. If the choice is made, it may not

be changed without the consent of the U.S. competent

authority.

Amounts received in excess of a reasonable fixed amount

payable to all directors for attending meetings in the United

States are taxable.

Exemption does not apply to the extent income is

attributable to the recipient’s fixed U.S. base. For residents

of Japan, this fixed base must be maintained in the U.S. for

more than 183 days during the tax year for the exemption

not to apply; for residents of Belgium, Iceland, Korea, and

Norway, the fixed base must be maintained for more than

182 days; for residents of Morocco, the fixed base must be

maintained for more than 89 days.

Fees paid to a resident of the treaty country for services as a

director of a U.S. corporation are subject to U.S. tax, unless

the services are performed in the country of residence.

Fees paid to a resident of the treaty country for services

performed in the United States as a director of a U.S.

corporation are subject to U.S. tax.

Exemption does not apply if gross receipts (including

reimbursements) exceed this amount.

Exemption does not apply if net income (or gross income for

Israel) exceeds this amount.

Exemption does not apply to payments borne by a

permanent establishment in the United States or paid by a

U.S. citizen or resident or the federal, state, or local

government.

282930

3132

3334353637383940

4142

4344

Exemption does not apply if compensation exceeds this

amount.

The exemption applies only to income from activities

performed under special cultural exchange programs agreed

to by the U.S. and Chinese governments.

Exemption does not apply if gross receipts (or compensation

for Portugal), including reimbursements, exceed this amount.

Income is fully exempt if visit to the United States is

substantially supported by public funds of the treaty country

or its political subdivisions or local authorities.

The 5-year limit pertains only to training or research.Compensation from employment directly connected with a

place of business that is not a permanent establishment is

exempt if the alien is present in the United States for a

period not exceeding 12 consecutive months. Compensation

for technical services directly connected with the application

of a right or property giving rise to a royalty is exempt if the

services are provided as part of a contract granting the use

of the right or property.

Exemption does not apply if, during the immediately

preceding period, the individual claimed the benefits of

Article 21.

Exemption does not apply if, during the immediately

preceding period, the individual claimed the benefits of

Article 22.

Exemption does not apply if the individual either (a) claimed

the benefit of Article 21(5) during a previous visit, or (b)

during the immediately preceding period, claimed the benefit

of Article 21(1), (2), or (3).

Exemption applies only to compensation for personal

services performed in connection with, or incidental to, the

individual’s study, research, or training.

Exemption does not apply if, during the immediately

preceding period, the individual claimed the benefits of

Article 24(1).

Exemption does not apply if, during the immediately

preceding period, the individual claimed the benefits of

Article 22(1).

Exemption does not apply if the individual previously claimed

the benefit of this Article.

The combined period of benefits under Articles 20 and 21(1)

cannot exceed 5 years.

Exemption does not apply if the individual either (a)

previously claimed the benefit of this Article, or (b) during the

immediately preceding period, claimed the benefit of Article

23. The benefits under Articles 22 and 23 cannot be claimed

at the same time.

Exemption does not apply if gross receipts (including

reimbursements) exceed this amount during any 12-month

period.

The exemption also applies if the income is borne by an

employer that is a permanent establishment of a U.S.

enterprise in Luxembourg.

Applies to grants, allowances, and other similar payments

received for studying or doing research.

45 A $10,000 limit applies if the expense is borne by a permanent

establishment or a fixed base in the United States.

46 This provision does not apply if these activities are substantially

supported by a nonprofit organization or by public funds of the

treaty country or its political subdivisions or local authorities.

47 Applies to any additional period that a full-time student needs

to complete the educational requirements as a candidate for

a postgraduate or professional degree from a recognized

educational institution.

48 The combined benefit for teaching cannot exceed 5 years.49 Exemption does not apply if the recipient maintains a

permanent establishment in the U.S. with which the income is

effectively connected.

50 The exemption does not apply to income received for

performing services in the United States as an entertainer or

a sportsman. However, this income is exempt for U.S. income

tax if the visit is (a) substantially supported by public funds of

Ukraine, its political subdivisions, or local authorities, or (b)

made under a specific arrangement agreed to by the

governments of the treaty countries.
3-30 Lesson 3

Country

Official Text

Symbol1

General

Effective Date Citation

Applicable Treasury

Explanations or

Treasury Decision (T.D.)

Australia

Austria

Barbados

Protocol

Belgium

Protocol

Canada2

Protocol

China, People’s Republic of

Commonwealth of

Independent States3

Cyprus

Czech Republic

Denmark

Egypt

Finland

France

Germany

Greece

Hungary

Iceland

India

Indonesia

Ireland

Israel

Italy

Jamaica

Japan

Kazakstan

Korea, Republic of

Luxembourg

Mexico

Protocol

Morocco

Netherlands

New Zealand

Norway

Protocol

Pakistan

Philippines

Poland

Portugal

Romania

Russia

South Africa

Spain

Sweden

Switzerland

Trinidad and Tobago

Tunisia

Venezuela

TIAS 10773

TIAS

TIAS 11090

TIAS

TIAS 7463

TIAS 11254

TIAS 11087

TIAS

TIAS 12065

TIAS 8225

TIAS 10965

TIAS

TIAS

TIAS 10149

TIAS 12101

TIAS

TIAS

TIAS 2902

TIAS 9560

TIAS 8151

TIAS

TIAS 11593

TIAS

TIAS

TIAS 11064

TIAS 10207

TIAS 7365

TIAS

TIAS 9506

TIAS

TIAS

TIAS

TIAS 10195

TIAS

TIAS 10772

TIAS 7474

TIAS 10205

TIAS 4232

TIAS 10417

TIAS 8486

TIAS

TIAS 8228

TIAS

TIAS

TIAS

TIAS

TIAS

TIAS 7047

TIAS

TIAS

Dec. 1, 1983

Jan. 1, 1999

Jan. 1, 1984

Jan. 1, 1994

Jan. 1, 1971

Jan. 1, 1988

Jan. 1, 1985

Jan. 1, 1996

Jan. 1, 1987

Jan. 1, 1976

Jan. 1, 1986

Jan. 1, 1993

Jan. 1, 2001

Jan. 1, 1982

Jan. 1, 1991

Jan. 1, 1996

Jan. 1, 19904

Jan. 1, 1953

Jan. 1, 1980

Jan. 1, 1976

Jan. 1, 1991

Jan. 1, 1990

Jan. 1, 1998

Jan. 1, 1995

Jan. 1, 1985

Jan. 1, 1982

Jan. 1, 1973

Jan. 1, 1996

Jan. 1, 1980

Jan. 1, 2001

Jan. 1, 1994

Oct. 26, 1995

Jan. 1, 1981

Jan. 1, 1994

Nov. 2, 1983

Jan. 1, 1971

Jan. 1, 1982

Jan. 1, 1959

Jan. 1, 1983

Jan. 1, 1974

Jan. 1, 1996

Jan. 1, 1974

Jan. 1, 1994

Jan. 1, 1998

Jan. 1, 1996

Jan. 1, 1998

Jan. 1, 1970

Jan. 1, 1990

Jan. 1, 2000

Jan. 1, 1991

1986-2 C.B. 220

1991-2 C.B. 436

1973-1 C.B. 619

1986-2 C.B. 258

1988-1 C.B. 414

1976-2 C.B. 463

1989-2 C.B. 280

1982-1 C.B. 219

1958-2 C.B. 1054

1980-1 C.B. 333

1976-1 C.B. 442

1992-1 C.B. 442

1982-1 C.B. 257

1973-1 C.B. 630

1979-2 C.B. 435

1994-2 C.B. 424

1982-2 C.B. 405

1990-2 C.B. 274

1973-1 C.B. 669

1982-2 C.B. 440

1960-2 C.B. 646

1984-2 C.B. 384

1977-1 C.B. 416

1976-2 C.B. 492

1971-2 C.B. 479

1986-2 C.B. 246

1991-2 C.B. 466

1987-2 C.B. 298

1988-1 C.B. 447

1976-2 C.B. 475

1989-2 C.B. 314

1982-1 C.B. 243

T.D. 6109, 1954-2 C.B. 638

1980-1 C.B. 354

1976-1 C.B. 456

1992-1 C.B. 473

1982-1 C.B. 291

1973-1 C.B. 653

1979-2 C.B. 458

1994-2 C.B. 489

1982-2 C.B. 427

1990-2 C.B. 303

1973-1 C.B. 693

1982-2 C.B. 454

T.D. 6431, 1960-1 C.B. 755

1984-2 C.B. 412

1977-1 C.B. 427

1976-2 C.B. 504

1

2

3

4

(TIAS)—Treaties and Other International Act Series.

Information on the treaty can be found in Publication 597, Information on the United States—Canada Income Tax Treaty.

The U.S.—U.S.S.R. income tax treaty applies to the countries of Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, and

Uzbekistan.

The general effective date for the area that was the German Democratic Republic is January 1, 1991.

Slovak Republic TIAS Jan. 1, 1993

Thailand TIAS Jan. 1, 1998

Turkey TIAS Jan. 1, 1998

Estonia TIAS Jan. 1, 2000

Latvia TIAS Jan. 1, 2000

Lithuania TIAS Jan. 1, 2000

United Kingdom TIAS 9682 Jan. 1, 1975 1980-1 C.B. 394 1980-1 C.B. 455

Ukraine TIAS Jan. 1, 2001
Lesson 4 4-1

FAMILY ISSUES Lesson 4

IDENTIFICATION NUMBERS

Most nonresident students and scholars cannot claim family members as dependents. Any family member who can be claimed as a 

dependent must have a Taxpayer Identification Number (TIN). If 

the dependent has been issued a Social Security Number (SSN), 

that is the TIN. But most family members do not have work authorization, so the Social Security Administration will not issue them 

Social Security Numbers. 

A Form W-7 must be filed with the IRS for each person who will be 

claimed as a spouse or a dependent. About 6 to 8 weeks after the 

form is filed, the IRS will issue an Individual Tax Identification 

Number (ITIN) for that dependent. The form should be filed as 

soon as the student or scholar expects to claim the family member 

as a dependent. The deduction for the spouse or the dependent 

cannot be claimed until the ITIN is received. At the time that 

this publication went to print, a new revision of the Form W-7 was 

in progress. For a copy of the latest revision of the form, visit our 

website at http://www.irs.gov.

All boxes on Form W-7 must be filled in, including writing “N/A” 

when not applicable. The form must contain both the mailing 

address and the address of tax residence (in the foreign country). 

When Form W-7 is filed, original documents (such as the dependent’s passport or other proof of claim of foreign status) must be 

presented. This can be done in person at an IRS office, or with 

an acceptance agent. The foreign student office on the campus 

should be able to tell you whether the college is an acceptance 

agent. Some U.S. consulate offices also provide assistance with 

Form W-7.
4-2 Lesson 4

FILING STATUS AND SPOUSAL EXEMPTION

All unmarried nonresidents must use the “single” filing status. 

Married nonresidents must use one of the married filing statuses 

even if their spouse is not present in the U.S. Nonresidents cannot

use the Head of Household status. 

The filing status determines what tax rate schedule will be used, so 

you should be careful when marking the filing status on the return.

Nonresidents from Canada, Mexico, Japan, Korea, or India may be 

able to claim an exemption for their spouse. (This is not the same 

as claiming their spouse as a dependent. The term “dependent” is 

reserved for family members other than the spouse.) The following 

rules apply:

Canada and Mexico: Residents of Canada or Mexico can 

claim a personal exemption for a spouse if the spouse had no 

gross income for U.S. tax purposes and was not a dependent on 

another U.S. return.

Japan and South Korea: Residents of Japan and South Korea 

may be able to claim a personal exemption for a spouse. The 

spouse must live with the taxpayer. If the student or scholar 

also has income from outside the U.S., the exemption will have 

to be prorated. See IRS Publication 519 for more information.

India: Some nonresidents from India are eligible to claim a 

personal exemption for a spouse. The deduction applies only 

to students and business apprentices. A student can claim an 

exemption for a spouse if the spouse had no gross income during 

the year and cannot be claimed on someone else’s U.S. return. 

When completing the form, the spouse’s information goes on line 

7c.

Example 1

Zenobia, a married scholar from Nigeria, arrived in the 

U.S. on a J-1 visa in 2002. Her husband and child live with 

her in the U.S. Her husband, Kentaznib, has a J-2 visa and 

works for a local computer company. Zenobia must file a 

tax return for herself and mark the “married” box; but her 

deductions and taxes must be calculated at the “married 

filing separate” rate. Kentaznib must file his own return 

using the same filing status. Neither of them can claim the 

child, or any child-related tax credits.
Lesson 4 4-3

Example 2

Ming, a married student from Japan, came to the U.S. in 

2001 as an F-1 student. Her husband came with her. Her 

only income was from her on-campus job. Her husband 

had no income. As a nonresident, she cannot file a joint 

return with him. She can claim him on her return. He will 

need to have a tax identification number (either an SSN or 

an ITIN).

DEPENDENTS

Most nonresidents cannot take a deduction for their dependents. 

Even if the dependents are U.S. citizens, usually they cannot be 

claimed on a nonresident return. 

Exceptions apply to persons from Canada, Mexico, Japan, Korea, 

and India, as follows:

Canada and Mexico: Dependents can be deducted if 

they meet the five general tests for dependency listed in 

Publication 678, VITA Assistor’s Guide, and Publication 17, 

Your Federal Income Tax Guide.

Japan and Korea: Dependents must live with the nonresident in the U.S. at least part of the year. The dependent 

deduction will need to be prorated if the nonresident has 

both U.S.-source income and foreign income.

India: Dependents can be claimed if they were not admitted 

to the U.S. on an F-2, J-2, or M-2 visa. They must also meet 

the five tests for dependency listed in Publication 678, VITA

Assistor’s Guide, and Publication 17, Your Federal Income 

Tax Guide.

Most international students and scholars do not earn large 

amounts in the U.S. But it should be noted that the phase-out for 

exemptions applies on Form 1040NR also. A student or scholar 

would have to exceed $104,625 of income before these limitations 

begin to apply.
4-4 Lesson 4

Example 3

Dehni and Aschuma are married international students 

at the local university. They are both on F-1 visas from 

India. They have been in the U.S. since 1999. In 2002 they 

had a baby girl. Dehni earned $4,300 in 2002 and Aschuma 

earned $5,027. Normally, the person who provided most 

of a child’s support can claim the exemption. But Dehni 

and Aschuma each earned less than the amount of their 

deductions (which are covered in a later chapter), so they 

owe no federal income tax. Thus neither of them needs to 

claim the child. Each of them can file Form 1040NR-EZ and 

report his or her earnings.

Example 4

Jesus and Maria are married international students from 

Mexico. They arrived here in December 2001 and Maria 

had a baby boy (Jose) in February 2002. Maria did not 

work in 2002. She was busy with her full-time classes and 

taking care of Jose. Jesus’ mother came to help them in 

late December 2001, and was in the U.S. all of 2002. Jesus 

maintained his full-time class schedule in pre-med and 

worked to support his family. He worked at the health center on campus and earned $7,800. He should file a Form 

1040NR and claim an exemption for his wife and baby. He 

may also be entitled to claim his mother, but due to his low 

income he will not benefit from doing so.

Exercise 1:

Jenny is from Australia. She arrived in the U.S. in 2002 with her 

husband and son. She had an F-1 visa, and her husband and son 

were on F-2 visas. She earned $3,100 from an on-campus job.

What is Jenny’s filing status? _____________________________

Can she claim her husband and son? ______________________

Can she use Form 1040NR-EZ? ___________________________
Lesson 4 4-5

Exercise 2:

Devesh is from India. He arrived on an F-1 visa in 1999. In 2001, 

his wife and two children joined him in the U.S. and obtained 

identification numbers. In 2002 his wife had a third child while in 

the U.S. Devesh earned $7,850 from on-campus work in 2002. He 

provided all support for his family. His wife is on an F-2 visa and 

is not permitted to work.

What is Devesh’s filing status? _____________________________

Can he take a deduction for his wife? _______________________

Can he take a deduction for his two children born in India? 

_________________________________________________________

Can he take a deduction for his child born in 2002? __________

CHILD AND DEPENDENT CARE CREDIT

Generally, nonresident aliens do not qualify for this credit. To 

qualify for the credit, a nonresident alien must do all four of the 

following:

1. pay someone to watch a dependent under age 13 (or a disabled 

spouse or dependent), and

2. do that for care provided during the hours when the student or 

scholar was working (or looking for work) rather than attending 

classes or studying, and

3. if married, file a joint return with a spouse who is a U.S. citizen 

or resident alien, under an election for the nonresident spouse 

to be treated as a resident, and

4. not claim expense for the credit in an amount exceeding earned 

income.

For more information, see IRS Publication 519.

CHILD TAX CREDIT

Few nonresident aliens can claim this credit either. To claim it, a 

nonresident alien must have a child who:

1. is a U.S. citizen, national, or resident alien, and

2. can be claimed as a dependent on the nonresident’s tax return, 

and

3. is a son, daughter, adopted child, grandchild, stepchild, or foster 

child, and

4. is under age 17 at the end of the tax year.
4-6 Lesson 4

EARNED INCOME TAX CREDIT

A student or scholar who is a nonresident for any part of the tax 

year generally cannot get the Earned Income Tax Credit (EITC). 

However, a student or scholar who was married and chose to file a 

joint return with a U.S. citizen or resident spouse may be eligible 

for the credit. See Publication 596 for more information.

SPOUSE AND DEPENDENT FILING REQUIREMENTS

Immigration regulations do not allow spouses and dependents on 

F-2 visas to work. The amount of U.S.-source income those persons 

are allowed to have is extremely limited. Spouses and dependents 

in the U.S. under F-2 visas are generally not required to file Form 

1040NR or 1040NR-EZ. However, they do need to file Form 8843.

Spouses and some dependents on J-2 visas can be authorized to 

work. They need to file Form 8843, and either Form 1040NR or 

Form 1040NR-EZ. Their visa status does not exempt them from 

paying Social Security tax nor can they file claims to get Social 

Security tax refunded to them.
Lesson 4 4-7

Exercise 1 Jenny’s filing status is married filing separate. 

She cannot claim her husband and son on her 

return.

She can file Form 1040NR-EZ

Exercise 2 Devesh’s filing status is married filing separate.

He can take a deduction for his wife.

He cannot take deductions for his two children 

born in India.

He can take a deduction for his child born in 

the U.S.
4-8 Lesson 4

STUDENT NOTES
Lesson 5 5-1

TAXATION OF NONRESIDENTS Lesson 5

Many international students and scholars believe that since they 

are not U.S. citizens, they are not subject to U.S. taxes. That is 

false. Indeed, international students and scholars are normally 

entitled to fewer exemptions from U.S. tax than are U.S. students. 

International students and scholars can claim a personal exemption, but they cannot normally use the standard deduction or take 

exemptions for dependents.

This lesson deals with taxation of nonresident aliens only. If an 

international student or scholar is a resident alien, and your site 

does not prepare returns for resident aliens, you should direct the 

student or scholar to a conventional VITA site. 

In Lesson 2 you learned who must file a U.S. income tax return and 

what form to use. We will now explore the types of income that students normally receive; which are taxable; and how they are taxed. 

You must first determine the source of each kind of income. That 

is necessary because the U.S. does not tax nonresident aliens’ 

foreign-source income. Table 1 summarizes how to determine 

the source of each kind of income.
5-2 Lesson 5

Table 1: Types and Sources of Income

Income type

Source is 

determined by

Dividends Where payer is incorporated

Interest Payer’s place of residence

Pension payments attributable to:

Contributions (employer 

or employee, pretax)

Where the services were performed

Earnings of domestic 

(U.S.) trusts

The U.S. is the source

Rents Where property is located

Royalties from natural 

resources

Where property is located

Royalties from patents, 

copyrights, etc.

Where property is used

Salaries, wages, and other 

compensation for personal 

services

Where services are performed

Sale of inventory that was 

purchased

Where the inventory is sold 

(where title passes)

Sale of personal property 

(except inventory)

Tax home of seller

Sale of real property Where the property is located

Scholarships and fellowshipsResidence of grantor

Social Security benefits Residence of payer

IS THE INCOME “EFFECTIVELY CONNECTED” WITH U.S.?

As noted above, the U.S. does not tax foreign-source income 

received by nonresident aliens. If income does have a U.S. source, 

the U.S. taxes it-but at different rates depending on whether it is 

“effectively connected” with a U.S. trade or business. A nonresident 

alien who is a student or scholar is considered to be engaged in a 

U.S. trade or business; studying, teaching, or doing research. Thus, 

income from such activities is “effectively connected” with a U.S. 

trade or business—along with income from other employment that 

has been authorized by the BCIS. Income that is effectively connected must be reported on either Form 1040NR or 1040NR-EZ, 

and is taxed at the same rates as apply to U.S. citizens and resident 

aliens. 

Income that is not effectively connected is treated quite differently. 

It must be reported on Form 1040NR (it cannot be reported on 

Form 1040NR-EZ); no deductions can be taken against it; and it is 

taxed at a flat rate—either 30% or a lower treaty rate.
Lesson 5 5-3

Most investment income is treated as not effectively connected with 

a U.S. trade or business. This includes dividends, capital gains, rental 

income, and interest-with one exception; bank interest. Interest 

received on deposits held in the “banking business” is excluded from 

nonresident aliens’ income; they need not even report it. (The “banking business” includes commercial banks, mutual savings banks, 

cooperative banks, credit unions, domestic building and loan associations, and other savings institutions chartered and supervised as 

savings and loans or similar associations under federal or state law.)

Note: The exemption of bank interest applies only if it is not connected with a U.S. trade or business. Thus the exemption may be lost 

if a nonresident holds large sums in a bank for the purpose of earning money.

Example 1

Jose is a junior at a state university. He is in F-1 immigration status. When he came to the U.S. to study, his parents 

gave him $20,000 for expenses. He lent $5,000 to his cousin, 

a U.S. resident. His cousin paid him $1,050 in 2003 ($1,000 

of principal repayment and $50 interest). He deposited the 

remaining $15,000 in the college credit union and earned 

$600 interest. The $50 from his cousin is not from the banking business, nor is it connected to his trade or business 

(studying). Therefore it must be reported on Form 1040NR, 

page 4. The $600 interest from the credit union is excluded 

from income.
5-4 Lesson 5

WAGES, SALARIES, AND TIPS

Wages are generally subject to tax withholding by the employer. 

Upon being hired, an employee files Form W-4 to advise the 

employer of the employee’s status for withholding. Due to the 

restrictions on deductions that can be claimed by nonresidents, 

a nonresident should check the “single” box on Form W-4 even if 

married; and should claim only one withholding allowance—unless 

the nonresident is from Canada, Mexico, Japan, the Republic of 

Korea (South Korea), or a student from India. Each nonresident 

should also use Form W-4 to request the following amounts of 

additional withholding. These additional amounts are required 

by law to be withheld from the pay of nonresident aliens to adjust 

their withholding for their tax liability:

 Payroll Additional

 period withholding

 Weekly $7.60

 Biweekly 15.30

 Semimonthly 16.60

 Monthly 33.10

Example 2

Sean, an international student from the U.K., is temporarily present in the U.S. as a student in F-1 status. His wife 

and daughter accompanied him to the U.S. He will be paid 

every two weeks. He should mark Form W-4 as single with 

one withholding allowance, and request that an additional 

$15.30 per pay period be withheld.

Some tax treaties provide for a limited exemption from tax for 

wages earned while temporarily studying in the U.S. To avoid 

withholding on wages eligible for such an exemption, a student to 

whom one of those treaties applies should fill out IRS Form 8233, 

Exemption From Withholding on Compensation for Independent 

Personal Services of Nonresident Alien Individual, and give it to 

the employer in duplicate. A new Form 8233 must be given to the 

employer each year. Pay earned, but not subject to withholding 

because of a treaty, is reported on Form 1042-S, which the employer 

is required to provide by March 15 each year. If a student either 

fails to give Form 8233 to the employer, or earns more than the 

treaty exemption amount, federal tax will be withheld and amounts 

earned will be reported on Form W-2.
Lesson 5 5-5

Example 3

Assume the same facts as in Example 2. Sean is from 

Belgium and is entitled to a $2,000 treaty exemption for 

wages. He didn’t know about Form 8233 and never filed it. 

He earned $4,600 during 2003, all of which was reported 

on Form W-2. Sean will enter $2,600 ($4,600 minus the 

$2,000 treaty exemption) on Form 1040NR, line 8, or Form 

1040NR-EZ, line 3.

The following worksheet can help you determine the correct 

amount of wages to report on Form 1040NR or Form 1040NREZ. 

Some of the lines may not apply to the student or scholar you are 

assisting. If the student or scholar has more than one W-2 add the 

box one amounts together before completing this worksheet.

Wages from Box 1 Form W-2 

Code 18 Income from Form 1042-S +

Code 19 Income from Form 1042-S +

Code 18 Treaty Benefit –

Code 19 Treaty Benefit –

WAGES TO BE ENTERED

ON RETURN 

INTEREST INCOME

As mentioned earlier, interest paid to a nonresident alien, by an 

entity in the banking business, is not taxable. Many banks erroneously report this income on a Form 1099-INT because they have not 

been informed that the student or scholar is a nonresident alien. 

For purposes of Form 1042-S, generally no reporting is required on 

deposits if the interest is not effectively connected with the conduct 

of a trade or business in the U.S.

DIVIDEND INCOME

If a nonresident alien student or scholar invests in the stock market and receives dividend income, it is not considered effectively 

connected with the person’s trade or business. This income must be 

reported on Form 1040NR, page 4.
5-6 Lesson 5

REFUND OF STATE AND LOCAL INCOME TAXES

If a student or scholar took an itemized deduction on the 2002 federal tax return for state or local income tax that had been withheld 

in 2002, and got a refund of any of that withholding in 2003, the 

refund may need to be reported on Form 1040NR or 1040NR-EZ for 

2003. The student or scholar should receive Form 1099-G from the 

taxing authority that issued the refund, saying how much refund 

was issued. If the amount that was refunded helped the student or 

scholar reduce their federal income tax in 2002, the refund should 

be included in income for 2003.

Example 4

Mariko has been in the U.S. since 2000, and filed both 

federal and state income tax returns in 2002. He had $75 

withheld by the state, which he claimed as an itemized 

deduction on his Form 1040NR. The $75 deduction helped 

reduce his 2002 federal taxes. He owed no state taxes, so 

the entire $75 was refunded to him in 2003. Mariko must 

report the state refund as income on his Form 1040NR for 

2003.

SCHOLARSHIPS AND FELLOWSHIPS

Income in the form of a scholarship or fellowship is treated in one 

of three ways:

1. excludable under the Internal Revenue Code (this is called the 

Section 117 exclusion);

2. exempt by treaty, or

3. taxable.

Under section 117 of the Internal Revenue Code, a student who is 

a candidate for a degree may be able to exclude from income some 

or all amounts received under a “qualified” scholarship. (The same 

is true of students who are U.S. citizens.) A qualified scholarship is 

any amount received as a scholarship or fellowship grant, and used 

for tuition, fees, books, supplies, and equipment that the student 

is required to buy. Amounts received but used for other purposes, 

such as room and board or travel, are not excludable. Section 117 

does not apply if the student must perform services to receive the 

money (i.e. teaching assistant).

Some treaties also exempt amounts received as scholarship or fellowship grants. To prevent withholding on the amount of scholarship money that is exempt by treaty, the student must file Form 

W-8BEN, Certificate of Foreign Status of Beneficial Owner for 

United States Tax Withholding; with the educational institution or 

other provider of the scholarship.
Lesson 5 5-7

SCHOLARSHIP AND FELLOWSHIP GRANT REPORTING BY PAYERS

Schools are not required to report the nontaxable portion of scholarships and fellowships on Form 1042-S. If the grant was reported 

on Form 1042-S, enter the amount reported in box 2 on the scholarship line of Form 1040NR or 1040NR-EZ. If the student did not 

receive either Form 1042-S or Form W-2 reporting the scholarship, 

then a statement from the college on its letterhead, showing the 

details of the grant, must be attached to the tax return.

Example 5

Daniela, an international student from Brazil, received a 

$6,000 scholarship from Mountain State University. She 

used $4,700 of it for tuition, fees, and books. The other 

$1,300 was used for living expenses. The university will 

issue Form 1042-S for $1,300; Daniela must report $1,300 on 

either Form 1040NR, line 12 or Form 1040NR-EZ, line 5.

CAPITAL GAIN OR LOSS

This is discussed below, under “Income Not Effectively Connected 

With a U.S. Trade or Business.”

OTHER INCOME

Any other income received by a nonresident alien student or 

scholar is generally classified as “not effectively connected with a 

U.S. trade or business” and reported on Form 1040NR, page 4.
5-8 Lesson 5

INCOME NOT EFFECTIVELY CONNECTED WITH A U.S. TRADE OR

 BUSINESS

Dividend Income

If a nonresident alien student or scholar invests in the stock market and receives dividend income, the earnings are not considered 

to be effectively connected with the student’s trade or business. 

Therefore, it should be reported on Form 1040NR, page 4. The brokerage firm should have reported that income to the taxpayer on 

Form 1042-S, and have withheld a percentage of it (varying with 

the taxpayer’s country) for income tax. But if the student or scholar 

did not tell the brokerage firm that (s)he is a nonresident alien, it 

may have been reported on a Form 1099-DIV. If it was, probably 

nothing will have been withheld from it.

Interest Income

Interest received on deposits held by persons in the banking business is excluded from nonresident aliens’ income. (The banking 

business includes commercial banks, mutual savings banks, cooperative banks, credit unions, domestic building and loan associations, 

and other savings institutions chartered and supervised as savings 

and loans or similar associations under federal or state law.)

If a nonresident alien received interest from another source, it 

must be reported on Form 1040NR, page 4.

Gambling Income

Some international students and scholars receive income from 

gambling. This income is not effectively connected with the reason 

for their visit to the U.S. and must be reported on Form 1040NR, 

line 79. On the dotted lines after the arrow, the type of income 

must be specified. The racetrack or casino should report it to the 

taxpayer on Form 1042-S; but as with dividends, such income may 

erroneously be reported on Form W-2G.

Capital Gains and Loss

Nonresident alien students and scholars are subject to 30% taxation of their U.S. capital gains, unless a tax treaty allows a lower 

rate. This should be reported on part 4 of the 1040NR.
Lesson 5 5-9

Example 6

Nabil, a resident of Iran, entered the U.S. in 2000 on an F1 visa to study engineering. He invested the money that 

he brought with him in the stock market. In 2003 he sold 

some stock to pay tuition and fees. The sale of that stock 

is reportable on Form 1040NR, page 4, line 82. Any gain is 

taxable at 30%; any loss is not deductible.

ADJUSTED GROSS INCOME

Nonresident alien students and scholars are allowed some adjustments to their “effectively connected” income. One such adjustment 

is deduction of student loan interest.

Example 7

Dino came to the U.S. in 2000 for postgraduate study. He 

borrowed $1,500 from the college credit union for his last 

semester’s fees and books. Dino graduated in December 

2002, but remained in the U.S. for one year of practical 

training. He began repaying the loan on July 1, 2003 and 

paid $45 in interest during 2003. He can deduct that on 

Form 1040NR, line 26 or Form 1040NR-EZ, line 8.

ITEMIZED DEDUCTIONS

Nonresident aliens (except students from India) are not permitted to take the standard deduction. Therefore, they must itemize 

deductions. They are further limited in the type of expenses they 

can deduct even as itemizers. They can’t claim a deduction for 

medical costs; mortgage interest; or investment interest. Below is a 

summary of the types of expenses they can itemize.

State and Local Taxes

State and local income taxes are fully deductible in the year paid, 

no matter to which state they were paid. They will normally be 

listed on the student’s or scholar’s Form W-2 or 1042S. A student 

or scholar may also have a cancelled check or receipt for additional 

state or local income taxes paid during the tax year.

Charitable Contributions

Nonresidents can deduct charitable contributions to U.S. charities and nonprofit organizations. Those generally include religious, 

charitable, educational, scientific, and literary organizations; and 

organizations that work to prevent cruelty to children or animals. 
5-10 Lesson 5

Contributions made directly to a foreign organization are not 

deductible. But contributions made to a U.S. organization that 

transfers funds to a foreign organization may be deductible. To be 

deductible, the U.S. organization must control use of the funds.

If a contribution exceeds $250, the student or scholar must have a 

receipt for it. Also, if the student or scholar benefited from making 

the contribution, the deduction will be limited.

Casualty or Theft Loss

Nonresident students and scholars can deduct losses from fire, 

storm, shipwreck, or other casualty, or theft of property, if the property was located in the U.S. at the time of the loss.

The loss is limited to the lower of (1) the decline in the fair market 

value of the property or (2) the cost of the property. The loss must 

be reduced by any insurance or other compensation received. If the 

property was covered by insurance, a loss cannot be claimed unless 

a timely insurance claim was filed.

The first $100 of a loss is not deductible. A nonresident’s loss is 

further limited to 10% of his or her income. These limitations are 

reflected in Form 4868, Casualty and Thefts.

Job Expenses

Students and scholars can deduct their job expenses such as:

■ unreimbursed travel costs required for the job;

■ union dues;

■ safety equipment;

■ small tools;

■ dues to professional organizations; and

■ subscriptions to trade journals.

These deductions are subject to a limit: only the amount over 2% of 

adjusted gross income can be deducted.

Educational Costs as Itemized Deductions

Most students cannot deduct the cost of their education from taxable income. Educational costs are deductible only by a person who 

has already worked in the field being studied, and only if the current studies will not prepare the person for a new line of work. For 

more information see Publication 508, Educational Expenses.

If a student’s course of study is less than a year, and his or her educational expenses are deductible, the student can treat the education as a business trip and deduct costs of transportation, meals, 

and lodging.
Lesson 5 5-11

Most students will receive a Form 1098T from their school. The 

purpose of this form is to substantiate that the recipient was a 

student during the year. Further, the form can be used to provide 

information for possible education credits. Non-resident aliens are 

not entitled to any of the educational credits and do not need to do 

anything with Form 1098T.

Example 8

Richard comes to the U.S. as a student on a J-1 visa to 

attend a 3-month course on advanced radiology techniques 

in cardiac care. While in the U.S., he will work part-time in 

a hospital since he is already a licensed, practicing cardiac 

radiologist. The hospital will pay him $5,000 per month. 

Richard paid $1,890 to fly here from England. He rented an 

apartment for $800 per month. He spends about $20 a day 

for food. His course cost $1,600. His books cost $250, and he 

had to pay a university fee of $40.

Richard will report wages of $15,000 on his Form 1040NR. 

He can deduct all his travel, lodging, food, tuition, books, 

and fees as itemized employee business expenses.

PREPARING THE 1040NR-EZ

The following information is provided to help you understand how 

to complete Form 1040NR-EZ. The information is presented in the 

order it appears on the return.

INFORMATION SECTION

It is advisable to have the student or scholar complete the top section of the form, although you can provide guidance. Remind the 

filer about the importance of listing his or her name in the exact 

order it appears on the Social Security card or ITIN letter. A filer 

must have either an SSN or an ITIN to file this form. A student or 

scholar who does not have one of those numbers must apply for one. 

The tax return cannot be filed without one of those numbers—even 

if getting one delays filing until after the deadline.

FILING STATUS

As discussed earlier, generally the only two filing statuses available to nonresident aliens are single and married filing separately. 

If the student is married, the “married nonresident alien” box must 

be marked—even if the spouse is not in this country.
5-12 Lesson 5

WAGES

The amount to list on the wage line should be computed as follows:

 Amount in box 1 of Form W-2

 plus: Code 18 income in box 2 of Form 1042-S

 plus: Code 19 income in box 2 of Form 1042-S

 minus: Treaty benefit

 equals: Amount to list on wage line of tax return

Example 9

Choi, a student from China, received a Form 1042-S showing code 19 income of $5,000. Choi also received a W-2 with 

$3,900 in box 1. Choi would report $3,900 on the wage line, 

calculated as follows. 

 Form W-2, box 1 3,900 

 Plus: Code 19 Income 5,000 

 Less: Treaty Benefit 5,000 

 EQUALS: Amount to 

 be listed on return 3,900

Example 10

Christiane, from Germany, worked part of the year at the 

local university in California. She gave the university the 

Form 8233 and they properly applied her treaty benefit. In 

August she moved to Illinois and began the fall semester at 

the local university. She also gave this university a Form 

8233. The Illinois university was not aware that Christiane 

had already exempted part of her income in California. At 

the end of the year, Christiane’s taxable wages are calculated as follows:

 W-2 California university $ 380

 1042-S Code 19 California university 5,000

 W-2 Illinois university 1,685

 1042-S Code 19 Illinois university 5,000

 Total wages 12,065

 Allowable treaty benefit 5,000

 Taxable wages $ 7,065

Most likely, Christiane will have a significant balance due 

on her tax return. The only income from which money was 

withheld was the $2,065 reported on her Forms W-2. If she 

had filed the correct paperwork at both universities, she 

would have had tax withheld on $7,065.
Lesson 5 5-13

TAXABLE REFUNDS OF STATE AND LOCAL TAXES

Students, except from India, may have received taxable refunds 

of state and/or local taxes. Remember that nonresident students, 

except from India, must itemize their deductions. This can include 

state and local income taxes paid.

They deduct the full amount of the taxes in the year in which they 

are paid or withheld. If they get a refund of part of those taxes they 

may need to include the refund in their return filed the next year. 

Students from India are allowed a standard deduction, therefore, 

do not include the amount of their state or local tax refund in taxable income.

Example 11

Arthur from England had $348 of state income tax withheld in 2002. His total income was $5,800 in 2002. The 

deduction of his state income taxes helped reduce his 

taxable income, as illustrated below. 

 Wages $5,800

 Personal exemption 3,000

 State income tax 348

 Taxable income $2,652

He received a $22 state income tax refund in 2003 on his 

2002 state return. That $22 must be listed as income on his 

2003 federal return.

Example 12

Sari from India had $269 of state income tax withheld in 

2002. On her federal return for 2002 she claimed the standard deduction; thus she did not get to deduct her state 

income tax.

In 2003 she received a $56 state income tax refund from 

her 2002 state return. She does not have to include this 

refund on her federal return for 2003, because she claimed 

a standard deduction in 2002 and did not receive a deduction for the state income tax.
5-14 Lesson 5

Example 13

Alexander from Russia earned $2,643 in 2002. He had $189 

withheld for state income taxes. Even though he listed the 

taxes as a deduction on his federal return for 2002, they 

did not help lower his taxable income for 2002. The personal exemption of $3,000 was more than enough to lower 

his taxable income to zero. Alexander received a state 

refund of $34 in 2003. He would not include this on his 2003 

federal return because he did not receive any tax benefit 

from his state income tax deduction.

SCHOLARSHIP AND FELLOWSHIP GRANTS

Nonresident alien students must report all scholarships they 

receive for room and board and living expenses that are not 

exempted by their treaty. Scholarships that cover only tuition, 

books, and fees are not reported. Scholarships from outside the U.S. 

are not reported either. 

If the student uses part of a reportable scholarship to pay for 

tuition, books, fees or supplies, (s)he can deduct those expenses on 

Form 1040NR-EZ, line 9.

Example 14

Emmanuel from New Zealand received the following scholarships:

 Tuition waiver $3,600

 Science Scholar Scholarship 2,000

 Abbott Scholarship 1,000

 Merrill Scholarship 1,000

Emmanuel is not required to report the tuition waiver on 

his tax return. He must report the other $4,000 of scholarships. He spent $750 on books and $250 on required fees 

other than health insurance. (The fee for health insurance 

is not a deductible fee even if the school requires it.) He 

can take a deduction of $1,000 on line 9. He will have to 

attach a written statement showing how he arrived at this 

amount.
Lesson 5 5-15

STUDENT LOAN INTEREST DEDUCTION

Many foreign students and scholars incur interest charges while 

temporarily in the U.S. However, very few of their interest charges 

are tax-deductible. The only type of interest they can deduct is 

qualified student loan interest. All of the following conditions must 

be met for interest to be qualified student loan interest:

1. the interest must have been paid during the tax year;

2. the interest repayment must have been required to be paid;

3. filing status must be single;

4. the loan must have been issued to pay for educational expenses; 

and

5. the recipient of the loan must be at least a half-time student.

ITEMIZED DEDUCTIONS

The only allowable itemized deduction on Form 1040NR-EZ is the 

state and local income tax deduction. If a student or scholar has 

any other deductions, and they would help lower taxable income, 

Form 1040NR should be filed instead of 1040NR-EZ. Students from 

India can take the standard deduction on either form. For 2003, the 

standard deduction for single students is $4,750. The deduction for 

married students is $4,750.

PERSONAL EXEMPTIONS

All taxpayers who complete Form 1040NR-EZ are entitled to claim 

a personal exemption for themselves unless they are being claimed 

as a dependent on another U.S. income tax return. Students and 

scholars who are eligible to claim family members must file Form 

1040NR. The personal exemption for tax year 2003 is $3,050.

TAX

If a positive number is on line 14, the student or scholar has some 

income subject to tax. Since all of the income on Form 1040NR-EZ 

is considered “effectively connected” income, you can use the standard tax tables to determine the correct amount of tax. Be sure to 

use only the “married filing separate” column for married students.
5-16 Lesson 5

SOCIAL SECURITY AND MEDICARE TAX ON TIP INCOME

Students and scholars are exempt from the Social Security and 

Medicare tax as long as they are nonresidents. Therefore they will 

not have an entry on Form 1040NR-EZ, line 16. But a nonresident 

with a J-2 visa is liable for these taxes, and must complete line 

16 if (s)he worked for tips and has not paid the full amount of the 

Social Security and Medicare taxes. This is an advanced issue, so 

you may prefer to let a tax professional handle it. See lesson 8 if 

the student or scholar has had Social Security or Medicare tax 

withheld.

FEDERAL INCOME TAX WITHHELD

A student or scholar may have federal income tax withholding 

listed in one of two places: Form W-2, box 2 and Form 1042-S, 

column g. If a student or scholar has income from more than one 

payor, add all the federal withholding amounts together.

ESTIMATED TAX AND OVERPAYMENT FROM PRIOR YEAR

For most students and scholars, this line will be blank. Very few 

nonresidents make estimated tax payments, especially if their only 

income is from wages and scholarships (all that is allowed on Form 

1040NR-EZ). Also, very few of them elect to have their refunds 

applied to next year’s taxes. If a student or scholar had either of 

those types of payments, list the amount on line 19.
Lesson 6 6-1

FORM 8843 Lesson 6

Any alien who excludes days of presence from the “substantial 

presence” test must file Form 8843. This applies to many of the 

international students and scholars you will be assisting. 

Even a student or scholar who had no income must still file Form 

8843. Form 8843 must be filed for every family member who is in 

the U.S. on an F-2 or J-2 visa. There is no monetary penalty for failure to file, but days of presence can’t be excluded from the substantial presence test unless Form 8843 is filed. 

Generally, students complete Parts 1 and 3 of Form 8843, and 

scholars complete Parts 1 and 2. The VITA program does not deal 

with Parts 4 or 5 of the form. Professional athletes and people with 

medical conditions should be referred to paid preparers.

Form 8843 asks for information on why the student or scholar is in 

this country. Information on the student’s educational institution is 

also requested. Most of the information needed is self-explanatory. 

Some tips on completing the form are given below. 

■ When listing the name on the top portion of the form, be careful 

to list the family name and personal name in the correct places. 

Appendix B can help you understand how naming customs vary 

by country. 

■ The space for taxpayer identification number should be filled in 

if the alien has either a Social Security number or an individual 

tax identification number (ITIN). If the alien has neither kind of 

number, this area can be left blank. 

■ The address area should be completed only if the alien is filing 

this form by itself. If the alien is filing the form along with a tax 

return, the address section need not be completed.

■ Questions 1a and 1b often confuse students and scholars. 

Students may enter the U.S. in F-2 status then change to F-1 

immigration status. But unless they leave the U.S., they will not 

actually have F-1 visas. What questions 1a and 1b really ask 

is what immigration status they are in. Also, there is not complete agreement on what number to use as the “visa number.” 

Generally, the control number is now considered the VISA number.

■ Question 2 asks for country of citizenship. Some countries allow 

dual citizenship, so the student or scholar may be a citizen of 

more than one country. The country listed on this line should be 

the foreign country with which the filer has the closest connection.
6-2 Lesson 6

■ Question 3 asks for the country that issued the passport and the 

passport number. Some passports are in foreign languages. Ask 

the student or scholar to help you interpret the passport.

■ Questions 4a and 4b ask the number of days that the student or 

scholar spent in the U.S. Some students and scholars may ask 

you if they actually have to count the days. The answer is yes. In 

many cases, the answer to question 4a for the current year will 

also be the answer to 4b.

■ Questions 5 and 6 are for scholars, teachers, and trainees. These 

questions ask about the academic institution these persons 

“attended” and about the director of their academic program. 

They often think this means where they went to school and 

attended classes. Since most of them did not attend any classes 

during the year, they leave the question blank. Another way to 

word the question would be: “At what academic institution were 

you employed or trained during the year?” If they were at more 

than one place, report the most recent place.

■ Question 7 asks for the visa type held during the year. Again, 

this may confuse scholars because their immigration status may 

have changed during the year although they do not have a new 

visa. If the status changes during the year, you need to attach 

an explanation. The explanation can be handwritten on plain 

paper.

■ Question 8 is self-explanatory.

Exercise 1:

Using the blank form on the next page, prepare a Form 8843 for 

Dr. Wolfgang Marzolf from Germany. He will be filing a Form 

1040NR also. His address in his home country, where he is a citizen, is 34 Spiegelstrasse, 21144 Hamburg, Germany. He entered 

in J-1 status as a guest professor at the University of Higher 

Learning, 426 Main Street, Anytown, IL 60000. He works under 

the direction of Dr. Friederich Heilreich at the same address. Dr. 

Heilreich’s phone number is (999) 555-5555. Dr. Marzolf has a 

Social Security number (350-55-5555) and did not change immigration status during the year. His visa number is 2001345678. 

His German passport number is 97415826. He arrived on August 

16, 2002 and has not left the U.S. or changed immigration status 

since then. He had never been to the U.S. before. His visa was 

issued on August 1, 2002.
Lesson 6 6-3

Form 8843, page 1

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003
6-4 Lesson 6

■ Question 9 asks students to enter the identifying information for 

their academic institution. A student who attended more than 

one institution during the year should give the information on 

the one being attended at the end of the year.

■ Question 10 asks students about the director of the academic 

program they are enrolled in. This should be someone the IRS 

can contact, if necessary, to verify that the student was present 

at the school. Students can list the foreign student advisor if 

necessary.

■ Question 11 asks the type of visa held during each of the last 6 

years. If the visa type has changed, a note explaining the change 

must be attached to the form.

■ Question 12 is self-explanatory.

■ Questions 13 and 14 ask whether the student has taken any 

steps to become a permanent resident of the U.S. This information is needed to determine whether the student is still entitled 

to treaty benefits.

Exercise 2:

Daniel Beregovoy, a citizen of Switzerland, has come to the 

U.S. on an F-1 visa to attend State College, 80 East Broadway, 

Springfield, MO 64033. His academic director is Dr. Small. Dr. 

Small uses the same address as the college. His phone number is 

(999) 444-4444. Daniel’s home address is 73 Rue de le Boulanger, 

Genéve, CH (Switzerland). His address in the U.S. is 324 East 

Broadway, Springfield, MO 64033. He had never been to the U.S. 

before arriving here on July 13, 2002. His Social Security number 

is 344-44-4444, and he had no income during 2003. His visa number is 17318842. His passport number is 2674130984.
Lesson 6 6-5

Form 8843, page 1

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003
6-6 Lesson 6

Canadian Students and Form 8843

Canadian students need to complete Form 8843 as long as they are 

exempt individuals. If a Canadian resident does not have a visa, 

you should use the information from either Form I-20 or IAP-66 to 

complete Form 8843.
Lesson 6 6-7

Answer to Exercise 1

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003

WOLFGANG MARZOLF XXX-XX-XXXX

J-1 AUGUST 1, 2002

J-1

GERMANY

GERMANY

97415826

365 137

365

UNIVERSITY OF HIGHER LEARNING, 426 MAIN STREET, ANYTOWN, IL 60000

DR FRIEDERICH HEILREICH, UNIVERSITY OF HIGHER LEARNING, 

426 MAIN STREET, ANYTOWN, IL 600000 (999)555-5555

J-1

X

FORM 8843 ANSWERS TO EXERCISES Lesson 6
6-8 Lesson 6

Answer to Exercise 2

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003

DANIEL BEREGOVOY XXX-XX-XXXX

73 RUE DE LE BOULANGER,GENEVA 324 EAST BROADWAY, SPRINGFIELD M

F-1 17318842

F-1

SWITZERLAND

SWITZERLAND

2674130984

365 171 0

365

STATE COLLEGE, 80 EAST BROADWAY, SPRINGFIELD, MO 64033 (999) 444-4444

DR. SMALL, STATE COLLEGE, 80 EAST BROADWAY, SPRINGFIELD, MO 64033

(999) 444-4444

F-1

X

X
Lesson 7 7-1

FINISHING THE RETURN Lesson 7

This lesson covers the final steps in finishing the return. They 

include signing, assembling the return, information about a refund 

and amount owed, consideration of estimated tax paid and withholding, and the importance of doing a quality review on the 

return.

GENERAL ISSUES

The following points apply to both Forms 1040NR and 1040NR-EZ.

Identification Numbers

Every individual return filed with the IRS must show a Tax 

Identification Number. This can be either a Social Security Number 

(SSN) or an Individual Tax Identification Number (ITIN). Every 

dependent listed on the return must also have a Tax Identification 

Number.

The Social Security Administration issues Social Security numbers 

to U.S. citizens, and to aliens who have work authorization. Any 

person who is eligible for a Social Security Number (SSN) should 

apply for one. Anyone else who needs an identification number 

should file Form W-7 with the IRS as soon as (s)he becomes aware 

of the requirement to do so. More information on the W-7 filing process is in Lesson 4.

Form 8843 does not require an identification number. A student or 

scholar who is not required to file any other return does not need 

an identification number to file Form 8843.

Taxpayer Identification Section

The taxpayer identification section should be completed after the 

return is finished. Often, this will save you time because after you 

begin preparing a 1040NR-EZ, you may realize that the taxpayer 

should actually file a Form 1040NR or 1040 instead. If so, you can 

avoid filling out the taxpayer identification section again.

Some students and scholars will already have completed the taxpayer identification section, and need your assistance only on the 

other parts of the return. You can use a form they have started, 

but it is wise to have correction fluid available while preparing a 

return.
7-2 Lesson 7

A taxpayer who received a package of forms mailed by the IRS 

should have a label that can be used in the identification section. 

Make sure that information on the label is correct before attaching 

it to the return.

Other Information

Nonresident returns contain a section asking for information very 

similar to that requested on Form 8843. While this may seem 

repetitive, it is necessary to complete this section. 

Please pay close attention to the section that asks the type and 

amount of income that is exempt from tax. You need to provide both 

the amount excluded and the treaty article number that allows 

its exclusion. Failure to complete this section fully could cause the 

return to be sent back to the student or scholar.

Signing the Return

Make sure the taxpayer signs and dates the return before mailing. 

An unsigned return cannot be processed and will be sent back to 

the taxpayer. You should put the VITA designation in the preparer’s 

section of the return.

Assembling the Return

Make sure that all forms, schedules, and attachments show the taxpayer’s name and Social Security number. Attach forms and schedules behind the Form 1040NR or 1040NR-EZ. Attach Forms W-2 

and 1042S to the left margin of the front page. If any Form 1099 

indicates income withholding, attach it to the return also.

Direct Deposit

Many students and scholars prefer the direct deposit option for 

their refunds. If the student or scholar prefers direct deposit, complete the direct deposit information section of the return. The following examples will help you determine what information to use.

Xu Chung

123 College Street

Collegetown, IL 60000

PAY TO THE

ORDER OF

1234

15-000000000

|:250250025 |:202020❚ 86❚'1234

COLLEGETOWN BANK

Collegetown, IL 60000

For

DOLLARS

$

20

SAMPLE

The “routing number” for Xu Chung is 250250025. The “account 

number” is 20202086. Do not include the check number (which in 

this example is 1234).
Lesson 7 7-3

Sometimes students and scholars want their refunds deposited to a 

savings account. They often have a small paper card issued by the 

bank that contains the necessary information. 

Collegetown Bank Instant Savings Account

Collegetown, IL 60000

The best way to save for a rainy day! Get your account today!

250250025:/// 203621:///

In this case, the routing number is 250250025 and the account 

number is 203621.

PAYMENT OPTIONS

Some students and scholars owe money with their tax return. This 

usually is due to insufficient withholding from wages. Nonresidents 

have the same payment options as citizens: 

1. They can pay the entire balance by the due date for the return.

2. They can pay by credit card.

3. They can ask for an installment agreement.

You should explain to filers that interest, and any applicable penalties, will continue to accrue until they have paid the full amount 

due. Also, remind them not to send cash through the mail. Personal 

checks, cashiers’ checks, and money orders are acceptable ways to 

pay.

ESTIMATED TAX

Estimated tax is an amount the taxpayer expects to owe for the 

next year, even after federal withholding. In other words, it is the 

amount the taxpayer expects to have to pay when filing a return in 

the spring of 2004.

Any student or scholar who expects to owe over $1,000 on the tax 

return due next year must make estimated tax payments. For further information see IRS Publication 505, Tax Withholding and 

Estimated Tax.
7-4 Lesson 7

QUALITY REVIEW

The last step of the return should be quality review. Use the checklist below to help you determine whether the return is properly 

completed.

  QUALITY REVIEW CHECKLIST 

 Are the name, address, and Social Security number correct? 

 Is the Social Security number written to the right of the 

label?

 Is the filing status correct? Is the box marked?

 Are any allowable dependents properly listed?

 Are the dependents’ identification number written correctly?

 Are income items correctly transferred from Form W-2, Form 

1042S, and Form 1099?

 Is all income reported? Be sure to include any gambling 

winnings and stock sales.

 Is the itemized deduction line completed accurately?

 Are the correct number of dependents claimed?

 If the taxpayer was eligible for any credits, have they been 

computed correctly?

 Does the amount of tax reported as withheld agree with the 

amounts listed on the Forms W-2 and 1042S? Did you include 

any withholding shown on Form 1099?

 Is the overpayment (balance due) computed correctly?

 Did you use a calculator to check your math?

 Is the return signed?

 Are all Forms W-2 and 1042S, as well as schedules and forms, 

attached to the return?

 Is the volunteer designation on the return?
Lesson 8 8-1

SOCIAL SECURITY TAX Lesson 8

Social Security and Medicare Tax Liability

An exemption from Social Security and Medicare taxes applies to 

nonimmigrant students, scholars, teachers, researchers, and trainees (including medical interns) who are temporarily present in the 

U.S. in F-1, J-1, M-1, or Q-1 status, as long as they remain nonresidents for federal income tax purposes. The exemption also applies 

to any period in which a foreign student is in “practical training” or 

other off-campus employment allowed by the BCIS. Such persons 

are exempt from Social Security and Medicare taxes as long as they 

remain nonresident aliens for tax purposes. Those who become 

resident aliens must start paying Social Security and Medicare 

taxes. 

As discussed in Lesson 1, foreign students in F-1, J-1, M-1, or Q-1 

nonimmigrant status who have been in the U.S. over 5 years—and 

foreign scholars, teachers, researchers, trainees, and other non-students in J-1 or Q-1 nonimmigrant status who have been in the U.S. 

over 2 years—are normally resident aliens. If so, they must pay 

Social Security and Medicare taxes. 

Federal tax regulations state that spouses and dependents of alien 

students, scholars, trainees, teachers, or researchers, temporarily in 

the U.S. in F-2, J-2, M-2, or Q-2 status, are not exempt from Social 

Security and Medicare taxes on any wages they earn in the U.S. 

That is because they did not enter the U.S. for the primary purpose 

of engaging in study, training, teaching, or research.

As was stated earlier, U.S. immigration law does not allow spouses 

and dependents in F-2 and M-2 status to be employed in the U.S. 

But if they are employed in violation of their nonimmigrant status, 

the IRS imposes both income tax and Social Security and Medicare 

taxes on their income.

Alien students, scholars, trainees, teachers, or researchers in F-1, 

J-1, M-1, or Q-1 status who change to a nonimmigrant status other 

than F-1, J-1, M-1, or Q-1 become liable for Social Security and 

Medicare taxes—in most cases on the day they change status.

Teachers, trainees, and researchers in H-1b status, and alien 

nurses in H-1a status, are liable for Social Security and Medicare 

taxes from the first day of U.S. employment—regardless of whether 

they are nonresident or resident aliens, and whether or not their 

wages may be exempt from federal income tax under an income tax 

treaty.
8-2 Lesson 8

Foreign scholars, teachers, researchers, or trainees who arrive in 

the U.S. in O-1 status or TN status (from Canada or Mexico under 

the NAFTA treaty) are fully liable for U.S. Social Security and 

Medicare taxes if they are employed by the university, whether 

they are resident or nonresident aliens.

Self-Employment Tax Liability

The Internal Revenue Code normally imposes “self-employment 

tax” on any self-employment income of a person in the U.S. But 

self-employment income of nonresident aliens is exempt from this 

tax. Again, the exemption is lost if an alien becomes a resident.

As discussed in Lesson 1, foreign scholars, teachers, researchers, 

trainees and other non-students who enter the U.S. on J-1 or Q-1 

visas usually become resident aliens on January 1 of their third 

calendar year in the U.S.; and foreign students who enter the U.S. 

on F-1, J-1, M-1, or Q-1 visas usually become resident aliens on 

January 1 of their sixth calendar year in the U.S.

Note: U.S. immigration law usually does not authorize nonimmigrants (such as nonresident aliens) to earn self-employment 

income. Thus, the question of a foreign student’s or scholar’s 

liability for self-employment tax does not often arise. But if a nonresident violates his or her nonimmigrant status by earning selfemployment income, the IRS will impose self-employment tax on it.

FORM 843

Students and scholars who have had Social Security and Medicare 

taxes withheld in error, should approach their employer to ask for 

a refund. If the employer will not issue a refund, the student or 

scholar should file Form 843, Claim for Refund and Request for 

Abatement. A sample is shown on the next page. Please be sure to 

use the explanation provided in the example. This will help IRS 

process the request. 

You should let the student or scholar know that it may take up to 

six months to get the refund from the IRS. During that time, the 

IRS may write and ask the student or scholar for additional information. The student or scholar should reply to the requests for 

additional information. If the student or scholar moves before the 

refund is issued, they should file a Form 8822, Change of Address 

Request.
Lesson 8 8-3

Form 843

Form 843

(Rev. November 2002) Claim for Refund and Request for Abatement OMB No. 1545-0024

Department of the Treasury

Internal Revenue Service  See separate instructions.

Use Form 843 only if your claim involves (a) one of the taxes shown on line 3a or (b) a refund or abatement of interest, penalties,

or additions to tax on line 4a.

Daytime telephone number

Name of claimant

( )

Address (number, street, and room or suite no.)

Type or print

City or town, state, and ZIP code

Spouse’s SSN or ITIN

Your SSN or ITIN

Employer identification number (EIN)

Name and address shown on return if different from above

1 Period. Prepare a separate Form 843 for each tax period 2 Amount to be refunded or abated

From / / to / / $

b Dates of payment 

3a Type of tax, penalty, or addition to tax:

Employment

Penalty—IRC section 

Estate Gift

4a Request for abatement or refund of:

Interest as a result of IRS errors or delays.

A penalty or addition to tax as a result of erroneous advice from the IRS.

Type of return filed (see instructions):

706 709 990-PF 4720 940 945

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 10180R Form 843 (Rev. 11-2002)

b

5 Explanation and additional claims. Explain why you believe this claim should be allowed, and show computation of tax

refund or abatement of interest, penalty, or addition to tax. If you need more space, attach additional sheets.

Under penalties of perjury, I declare that I have examined this claim, including accompanying schedules and statements, and, to the best of my knowledge and

belief, it is true, correct, and complete.

Signature (Title, if applicable. Claims by corporations must be signed by an officer.) Date

Signature Date

Signature. If you are filing Form 843 to request a refund or abatement relating to a joint return, both you and your spouse must

sign the claim. Claims filed by corporations must be signed by a corporate officer authorized to sign, and the signature must be

accompanied by the officer’s title.

Do not use Form 843 if your claim is for—

● An overpayment of income taxes;

● An overpayment of excise taxes reported on Form(s) 11-C, 720, 730, or 2290.

Excise (see instructions)

941 943 Other (specify)

● A refund for nontaxable use (or sales) of fuel; or

I am a non-resident alien student of an F-1 visa. Section 3121(b)(19) of the Internal

Revenue Code and the regulations thereunder state that a NRA student on an F-1 visa 

is not liable for paying SS and MC taxes on wages for as long as he remains an NRA

under the residency rules stated in Sect. 7701(b) of the Internal Revenue Code. I 

state that for calendar year ________ I was a NRA student and not liable for the SS

and MC tax. I hereby ask for a refund of the SS and MC taxes withheld from my wages.

I have asked my employer for a refund of these taxes and have been refused.

x
8-4 Lesson 8

STUDENT NOTES
Lesson 9 9-1

STATE INCOME TAX ISSUES Lesson 9

TREATIES AND STATE INCOME TAXES

Income tax treaties do not cover state income taxes. However, many 

states define income based on federal taxable income or federal 

adjusted gross income. In some states, like Illinois, this allows 

students and scholars to exempt the same amount of income from 

state taxes. In other states, the students and scholars are required 

to add back in the treaty exclusion when computing state income 

taxes. Whether state income taxes allow the treaty benefit, must 

be determined on a case by case basis. The following states currently do not allow treaty exemptions. Please check with the state 

income tax authorities for further information.

 Alabama

 Arkansas

 California

 Connecticut

 Hawaii

 Kansas

 Kentucky

 Maryland

 Mississippi

 New Jersey

 North Dakota

 Pennsylvania

The India treaty allows students to claim the standard deduction 

on their federal return. Since some states (such as Illinois) base the 

state income tax on the federal adjusted gross income, the Indian 

students will not always benefit from their treaty provisions on the 

state returns.

INTERNET ADDRESSES FOR STATE INCOME TAX

You may wish to use the internet to find out more about the state 

income taxes. Every state that has an income tax, has a web site. 

The web addresses are not printed here because they are subject 

to change. If you do not know the web address for a state income 

tax site, you may wish to use a search engine (such as Google, 

AltaVista, Yahoo, MSN, AOL etc.) to help you find the address.
9-2 Lesson 9

STUDENT NOTES
Appendix A-1

Most international students and scholars will ask you questions if 

they do not understand what you are telling them. This appendix 

contains actual questions from students and scholars. Following 

the questions and answers is a section on most frequent errors.

Where do I mail my tax return? The address you gave me 

seems incomplete.

You should mail your return to: 

 Internal Revenue Service 

 Philadelphia, PA 19255

You do not need a street address or building number.

What type of postage and envelope should I use to mail my 

tax return?

You can use any envelope to mail your tax return. It is okay to 

fold the return. You should put the proper postage on the envelope. 

Generally, you can send 4 or 5 pieces of paper with one First Class 

(37¢) stamp. You need not use registered or certified mail, but you 

can if you want to.

I forgot to put my Social Security Number on my return. 

What should I do? Should I send in another return and put 

my number on it?

You should wait to see if the IRS sends the return back to you. 

Often, they can find your number by looking at one of the attachments to your return. Do not send in another tax return.

My wife was on a J-2 visa last year. We filed Form 843 for 

her but it was rejected. Why?

Form 843 is used by individuals who are nonresident aliens for 

federal tax purposes to claim a refund for Social Security and 

Medicare taxes that were withheld inappropriately. Not all nonresidents are exempt from Social Security and Medicare tax. If your 

wife was a J-2 student last year and her income was from working 

on campus, she is eligible to file 843. If your wife was not a student 

and she worked on or off campus, she is not eligible for a refund of 

the Social Security and Medicare taxes.

COMMON QUESTIONS AND

PROCESSING ISSUES Appendix A
A-2 Appendix

My family could not live on my income as an F-1 student, so 

my wife earned some money. She is an F-2 and was paid $50 

per week to deliver a newspaper to several locations near 

our house. She did not receive a W-2. She has a 1099-MISC. 

What should we do now?

For income tax purposes, your wife is considered self-employed. 

She should file Form 1040NR with Schedule C and pay income 

and Social Security tax on her earnings. Note that even though she 

did not have permission from BCIS to work, she still must file the 

required tax forms. Since she is F-2 status, she is not entitled to any 

treaty benefit.

Last year I was in a bad car accident. My insurance did not 

cover the damages. I had to pay $789 to get my car fixed. 

This was a lot of money to me because I earned only $5,000 

last year. Where can I deduct this?

Casualty losses are deductible if you file Form 1040NR. You will 

need to file a Form 4864, Casualty and Theft Losses, with your 

return. The first $100 of your loss is not deductible. You also have to 

limit your loss by 10% of your income. Therefore, you should be able 

to deduct a casualty loss of $189 on your return.

I have not received my Forms W-2 and 1042S. Could you 

please make one for me?

You need to ask your employers to reissue the forms. If this is not 

possible, we can help you complete a substitute wage statement if 

you have all the information on your earnings and withholding.

Last year I went to an American church. I gave them $10 

per week. Can I deduct this money? 

If you file Form 1040NR, you can deduct monies donated to U.S. 

charities. In America, all churches are considered charities. If you 

received anything of value from the donation, such as a book, you 

may need to adjust the amount that you deduct.

I filed my return late, what will happen?

If you owed money to the IRS, there may be a penalty for not sending your return in on time. If you did not owe any tax, there will not 

be any IRS penalties for not filing on time. However, the BCIS may 

not look at this favorably since you are required to timely comply 

with all laws while in the U.S.

I never got my return back. What should I do?

If you are talking about your refund money, you should contact your 

nearest IRS office to determine why your refund was not issued. The 

most common reason is because people move. If you move after you 

file your return, you can file Form 8822 to change your address.
Appendix A-3

I am a second year F student and I received Form 1098T. 

What should I do with it?

You should keep it with your tax records, but you do not need to send 

it in with your return or mention it on the return. The purpose of 

the form is to let you know that you were a student at the college or 

university who issued it. It also can contain information about how 

much tuition and fees you paid. If you were a domestic student, this 

information could be used to calculate tax credits. International students are not entitled to education credits as long as they are nonresidents.

I changed my immigration status from F-2 to F-1 on May 11, 

2003 (the day I received the notice from the BCIS). I also left 

the U.S. for a home visit late in December and I acquired an 

F-1 visa on December 21, 2003. I don’t know which date to 

use on question 1b on Form 8843.

You should use the date of May 11, 2003. Even though we ask if you 

changed visas, we actually want to know if you changed immigration status. Therefore, the date we want is the one that coincides 

with your status change.

I arrived in the U.S. in December of 2003 and I didn’t work. 

Do I still have to file Form 8843?

Yes. Even if you were only in the U.S. 1 day in 2003, you must file 

Form 8843.

I had bank interest on my checking account. Is that income?

No. Simple bank interest and interest on CDs is not considered 

income for nonresident aliens. If the bank sends you a statement 

listing your interest earnings, you should keep the paper with your 

copy of the tax return you can use 1040NR, page 5, line L to exclude 

this income. If you are filing as a resident alien, you must report 

your bank interest as income.

I am married and have a child who was born in the U.S. Can 

I take a deduction for my wife and child?

Generally, no. Students and scholars from Canada, Mexico, Japan, 

Korea and India may be able to claim exemptions for his/her spouse 

and children if certain conditions are met. Students and scholars 

from all other countries are not permitted to take a deduction as 

long as they are nonresident aliens for tax purposes.

I am from Canada and can claim an exemption for my wife. 

She does not have a Social Security number or ITIN, can I 

still deduct her? I know she needs a number but it is April 3, 

and I can’t wait for the number.

No. You need to help her apply for an ITIN using Form W-7. It will 

take 6 to 8 weeks to get this number. You should go ahead and file 

your return. You will need to amend it later. If you don’t expect to 

owe any taxes when you file your return, you can file for an extension to wait for the ITIN to come in.
A-4 Appendix

I am from China and my three children live with me. I pay 

everything for them. Can I claim them as dependents? Can I 

get any child related credits for them?

No. Chinese nonresidents are not allowed to claim a deduction for 

their children; nor are they entitled to any child-related credits.

I have been a student for two years and I still can’t figure 

out how to calculate the Hope Credit. In Germany we don’t 

have such credit.

You can stop being concerned because as a nonresident alien, you 

are not entitled to the HOPE or Tuition Tax Credit. You also are not 

eligible for any earned income credit.

Can I deduct the computer I had to buy to write my term 

papers and do other homework?

Generally no. Unless a specific class required that you have a computer, no deduction is allowed. Many times you need access to a 

computer but it isn’t stipulated that you need your own computer.

Should I keep a copy of my return?

Yes. And you should keep a copy of all of the attachments such as W2 and 1042S. This helps prove that you filed a tax return. You may 

need this proof if you apply for permanent resident status with the 

BCIS.

I owe money. Can I send a check, and who do I make it for?

You can send a check made out to U.S. Treasury. Make sure to write 

your Social Security number on the check in the memo section. You 

should also write which year the money is for.

I will be graduating in June. I am going home to India. I did 

have work this year (2003). What do I need to do next year 

to fix my tax problems?

You need to make sure that the payroll office at your college has an 

address to forward your wage statements. You can download the tax 

forms you will need by going to www.irs.gov or you can have someone mail the forms to you. You will still send your completed forms 

to Philadelphia.
Appendix A-5

PROCESSING ISSUES

The Philadelphia Service Center processes all Form 1040NRs and 

related forms. It has provided the following processing information.

➢ A mismatch between the SSN or ITIN and the name is the most 

common error. Exercise caution when completing the taxpayer 

information section of the return.

➢ Ideally, a return should not be filed until an adequate identification number is obtained for the filer and any possible dependents.

➢ If wages are present on the return, it must be filed by April 15, 

unless an extension of time to file has been submitted before 

April 15.

➢ Tax treaty exclusions should be adequately addressed in the 

questions and answers section of the tax return. Particular 

attention should be given to the amount of time spent in the 

U.S. under the relevant visa, and the treaty country and article 

number should be clearly indicated.

➢ Particular emphasis is needed on the provisions of the India 

treaty and calculation of possible standard deduction and 

exemption amounts.

➢ Amended returns should be prepared for a scholar who loses all 

of their treaty benefit if they stay past the maximum presence 

allowed by their treaty.
A-6 Appendix

STUDENT NOTES
Appendix B-1

NAMING CUSTOMS

International names can be a challenge in many ways. 

Pronunciation may be difficult. Spelling may be unusual, and the 

concept of “first” and “last” name varies by country. International 

students and scholars are very patient during your attempts to 

obtain their “correct name”.

For federal income tax purposes, the most important rule to 

remember is that the name on the tax papers must match 

the records on file with the Social Security Administration 

or with the Internal Revenue Service ITIN unit. When advising students and scholars, instruct them to use their name in the 

same order as it appears on their Social Security card or ITIN letter.

The following information is for reference purposes and to help you 

have a better understanding of naming customs.

GENERAL ORIENTAL NAMING CUSTOMS

Oriental or Southeast Asians often use their family name first. 

Chinese, Vietnamese, and Cambodian persons use their names in a 

pattern directly reversed from the way of naming in the U.S.

The words “Van” and “Thi” appearing in the middle of the names 

are not given names. They are to identify gender. “Van” indicates a 

male. “Thi” is female. These words should be included as the middle 

name.

Example: 

Nguyen Thi Mai 

Nguyen is the family or “last” name 

Thi is the middle name indicating the person is female 

Mai is the given or “first” name.

In the example above, when completing the tax return for Mai, 

you would follow the order that her name appears on her Social 

Security card.

NAMING CUSTOMS AND

IMMIGRATION STATUS Appendix B
B-2 Appendix 

BURMESE NAMING CUSTOMS

The Burmese do not have family names. Most Burmese given 

names consist of two and sometimes three words. Most names are 

given according to the astrological sign for the day of the week 

on which the child is born. There may be no similarity between a 

child’s name and a parent’s name. Almost all Burmese have at least 

one alias. These aliases are taken for a variety of reasons, including advice from astrologers. Ethnic Chinese and Indians in Burma 

usually take a Burmese name in addition to their own ethnic name. 

Women do not change their name when they marry. There are 

no differences between male and female names. Therefore, courtesy titles are always attached to the name. The titles will change 

throughout the lifetime.

Example:

A male child is given the name of “Tin”. 

At birth, he will be known as Maung Tin. 

At college age, he will be known as Ko Tin. 

When he marries he will be known as U Tin.

ETHIOPIAN NAMING CUSTOMS

Ethiopians do not use a system of family names. A child receives 

the father’s first name and in addition is given a new first name. 

Only the paternal name passes on. A woman retains her name 

after marriage.

GREEK NAMING CUSTOMS

Every Greek has three names. They frequently abbreviate their 

names. The name “Pappas” may be a valid name by itself, or it may 

be a shortening of several thousand possible names.

 In males: First name = given name

 Second name = given name of the father in the 

 genitive case 

 Third name = family name

In females: First name = given name

 Second name = the genitive form of her husband’s 

 first name

 Third name = husband’s family name

INDIAN NAMING CUSTOMS

Children are not always given names at birth or their names are 

changed after birth. There is no consistency in writing names. 

Different last names can be used by members of the same family. Under Sikh custom, a child is not named until forty days after 

birth. Males are given the second name “Singh”. Girls are given a 

second name “Kaur” which may be changed after marriage.
Appendix B-3

INDONESIAN NAMING CUSTOMS

People from Indonesia may have only one name. In that case, use 

“FNU” (First Name Unknown) for the first name.

PORTUGUESE AND BRAZILIAN VARIATIONS OF PORTUGUESE NAMING

CUSTOMS

The Portuguese Code of Civil Registry provides that full 

Portuguese names shall never consist of more than six names 

(words). Except for noble families, names are generally restricted to 

four words. Three given names is not unusual. The legitimate offspring of a Portuguese couple would include the surnames of both 

parents, neither of which is considered a middle name. In the case 

of a child born out of wedlock, the surname of the mother is used. 

Portuguese usage places the family name last. Diminutives are 

used extensively in Portuguese. Certain names are very popular 

and appear frequently. Many Portuguese use only the part of their 

name that will distinguish them from others.

SPANISH NAMING CUSTOMS

A great number of Spanish given names contain more than one 

word. Multiple words should be considered part of one name (Maria 

de los Angeles = Maria Angeles). A great many Spanish given 

names have equivalent nicknames which are commonly used as a 

first name, but should not be used for tax purposes. A man named 

Jose might be known as Pepe. On the tax return, use the name 

Jose.

IMMIGRATION STATUS

Non-immigrants must enter the U.S. with a visa that matches 

their requested immigration status. Immigrant status can change 

without a new visa being issued. Failure to obtain a visa results in 

illegal alien status. For income tax purposes, we are only concerned 

with residency status according to the tax laws and the amount 

of earnings. If someone is in the country illegally and has earned 

money, they still need to file a tax return.

The following information may help you understand some of the 

terminology you will encounter when working with international 

students and scholars.
B-4 Appendix 

COMMONLY USED NONIMMIGRANT IMMIGRATION STATUSES

A-1 Ambassador, public minister, career 

diplomatic or consular officer 

assigned to the U.S. or immediate 

family

May be employed only by the 

government that sent alien to U.S.; 

spouse may request permission to 

work through BCIS

A-2 Other Foreign government official 

or employee, or immediate family

Same as A-1

A-3 Attendant, servant, or personal 

employee of A-1 or A-2, or 

immediate family

May work only for A-1 and A-2 visa 

holders

B-1 Temporary visitor for business Not allowed to work

B-2 Temporary visit for pleasure Not allowed to work

B-1/B-2 Temporary visit for business and 

pleasure

Not allowed to work

C-1 Alien in transit through U.S. Not allowed to work

C-2 Alien in transit to United Nations 

Headquarters District under 

subsections 11(3), (4), or (5) of the 

Headquarters Agreement with the 

United Nations

Not allowed to work

 C-3 Foreign government official, 

immediate family, attendant, 

servant, or personal employee in 

transit

Not allowed to work

C-4 Transit without a visa Not Allowed to work

 D Crewmember (sea or air) May work only on board the aircraft 

or vessel of the foreign company 

that employs the alien

E-1 Treaty trader, spouse or child May work only for the company 

that is doing the international trade 

or the company that alien or alien 

investor has invested in

E-2 Treaty investor, spouse or child Not allowed to work
Appendix B-5

F-1 Student (academic or language 

training programs)

May not accept off-campus 

employment at any time during 

the first year of study; however, 

BCIS may grant permission to 

accept off-campus work after one 

year. Student may accept oncampus employment without BCIS 

permission

F-2 Spouse or child of F-1 Not allowed to work

G-1 Principal resident representative 

of recognized foreign government 

to international organization, staff, 

or immediate family on long-term 

assignment

May work for international 

organization that he/she 

represents. Spouse or dependent 

may apply to BCIS for permission 

to work

G-2 Other representative of recognized 

foreign member government to 

international organization, or 

immediate family

Same as G-1

G-3 Representative of nonrecognized 

or nonmember foreign government 

to international organization, or 

immediate family

Same as G-1

G-4 International organization officer 

or employee or immediate family

Same as G-1

G-5 Attendant, servant, or personal 

employee of G-1, G-2, G-3, and G-4 

classes or immediate family

May work only for G-1, G-2, G-3, or 

G-4 visa holders

H-1B Temporary worker in specialty 

occupation (profession)

May work in accordance with the 

reason they were admitted to the 

country.

H-1C Registered nurses May work only for the person or 

company that filed the petition for 

alien in a health shortage area

H-2A Temporary worker performing 

agricultural services unavailable 

in U.S.

May work in accordance with the 

reason they were admitted to the

country.

H-2B Temporary worker performing 

other services unavailable in the 

U.S.

May work in accordance with the 

reason they were admitted to the

country.

H-3 Trainee other than medical 

academic

May work in accordance with the 

reason they were admitted to the

country.

H-4 Spouse or child of alien classified 

as H-1A/B, H-2 A/B or H-3

Not allowed to work
B-6 Appendix 

I Representative of foreign 

information media, spouse or child

May work only for foreign-based 

employer. Spouse and children 

may not work

J-1 Exchange visitor in U.S. for 

purpose of teaching, instructing 

or lecturing studying, observing, 

conducting research, consulting, 

demonstrating special skills, or 

receiving training

Employment depends upon terms 

of the program. Participants 

in program which provides for 

on-the-job training, teaching, 

research, or other activities that 

involve paid employment, may 

accept such employment

J-2 Spouse or child of J-1 May request BCIS permission to 

work

K-1 Fiancé(e) of U.S. citizen May request BCIS permission to 

work

K-2 Child of fiancé(e) of U.S. citizen May request BCIS permission to 

work

K-3 Fiancé(e) (LIFE ACT) May request BCIS permission to 

work

K-4 Child of Fiancé(e) (LIFE ACT) May request BCIS permission to 

work

L-1 Intracompany transferee 

(executive, managerial, and 

specialized knowledge personnel 

continuing employment with an 

international firm or corporation)

May request permission from 

BCIS to work

L-2 Spouse or child of intracompany 

transferee

May request permission from 

BCIS to work

M-1 Vocational student or other 

nonacademic

With prior approval from BCIS, 

may accept temporary employment 

for practical training

M-2 Spouse or child of M-1 Not allowed to work

N-8 Parent of an alien classified SK-3 

special immigrant

Not allowed to work

N-9 Child of N-8, or of an SK-1, SK-2, 

or SK-4 special immigrant

Not allowed to work
Appendix B-7

NATO-1 

NATO-2 

NATO-3 

NATO-4 

NATO-5 

NATO-6

Representatives of member states 

to NATO, and their families

Generally not permitted to work

NATO-7 Attendant, servant, or personal 

employee of above NATO classes, 

or immediate family

Permitted to work for NATO visa 

holder only

O-1 Alien with extraordinary ability in 

sciences, arts, education, business 

or athletics

 Allowed to work

O-2 Alien accompanying and 

assisting an O-1 visa holder in a 

professional capacity

Allowed to work

O-3 Spouse or minor child or O-1 or O2

Not allowed to work

P-1 Internationally recognized athlete 

or member of internationally 

recognized entertainment group

Allowed to work

P-2 Artist or entertainer in a 

reciprocal exchange program

Allowed to work

P-3 Artist or entertainer in a 

culturally unique program

Allowed to work

P-4 Spouse or child of P-1, P-2, or P-3 Not allowed to work

Q-1 Participant in an international 

cultural exchange program

Allowed to work

Q-2 Irish Peace Process Cultural And 

Training Program

Allowed to work

R-1 Alien in a religious occupation May work in a nonprofessional 

vocation or occupation if the type 

of work to be done relates to a 

traditional religious function

R-2 Spouse or child of R-1 Not allowed to work

S-5 Informant possessing critical 

reliable information concerning a 

criminal organization or enterprise
B-8 Appendix 

S-6 Informant possessing critical 

reliable information concerning a 

terrorist organization, enterprise 

or operation

S-7 Qualified family member S-5, S-6

TN Canadian or Mexican citizen 

working in a professional capacity 

under shown North America Free 

Trade Agreement (NAFTA)

Allowed to work in the profession 

on NAFTA list

TD Spouse or child of NAFTA 

professional

Not allowed to work

There are some additional statuses not listed here. They do not occur very often.
Appendix B-9

BCIS FORMS

The Bureau of Citizenship and Immigration Services also has a 

large number of forms. Many students and scholars will not need to 

file most of these forms. If they do need to file some of these forms 

with the BCIS, they should consult the foreign student advisor at 

their college. The information provided here is for your reference. 

For more information about these forms, visit http://www.bcis.gov

Form 

number Name Cost to file

AR-11 Change of Address Form None

G-14 Information Form None

G-28 Notice of Entry of Appearance as 

Attorney or Representative

None

G-325 Biographic Information None

G-325A Biographic Information None

G-325B Biographic Information None

G-325C Biographic Information None

G-639 Freedom of Information Request Varied

G-731 Inquiry about status of I-551 Alien 

Registration Card

None

G-845 Verification Request None

G-854S Verification Request None

G-942 Application Survey None

G-1020 H-1B Specialty Occupation Data 

Collection

None

I-9 Employment Eligibility Verification None

I-17 Petition for Approval of School 

for Attendance by Nonimmigrant 

student

$230

I-68 Canadian Border Boat Landing 

Permit

$16

I-90 Application to Replace Permanent 

Resident Card

$130

I-94 Arrival-Departure Record $6

I-94W Nonimmigrant Visa Waiver ArrivalDeparture Record

$6

I-102 Application for Replacement/Initial 

Nonimmigrant Arrival-Departure 

Record

$100

I-129 Petition for a Non-immigrant worker $130 + 

$1000 per 

petition

I-129F Petition for Alien Fiance(e) $110
B-10 Appendix 

I-129S Nonimmigrant Petition Based on 

Blanket L Petition

None

I-129W Petition for Nonimmigrant Worker 

Filing Fee Exemption

None

I-130 Petition for Alien Relative $130

I-131 Application for Travel Document $110

I-134 Affidavit of Support None

I-140 Immigrant Petition for Alien Worker $135

I-175 Application for Nonresident Alien’s 

Canadian Border Crossing Card

$30

I-190 Application for Nonresident Alien 

Mexican Border Crossing Card

$26

I-191 Application for Permission to Return 

to Unrelinquished Domicile

$195

I-192 Application for Advance Permission 

to Enter as a Nonimmigrant

$195

I-193 Application for Waiver of Passport 

and/or Visa

$195

I-212 Application for Permission to 

Reapply for Admission into the U.S. 

After Deportation or Removal

$195

I-246 Application for Stay of Deportation 

or Removal

$155

I-290B Notice of Appeal to the 

Administrative Appeals Unit

$110

I-352 Immigration Bond None

I-360 Petition for Amerasian, Widow(er), or 

Special Immigrant

$130 (no 

fee for 

Amerasians)

I-361 Affidavit of Financial Support and 

Intent to Petition for Legal Custody

None

I-395 Affadavit in Lieu of Lost Receipt 

of United States INS for Collateral 

Accepted as Security

None

I-408 Application to Pay Off or Discharge 

Alien Crew

None

I-485 Application to Register Permanent 

Residence or Adjust Status

$255

I-485A Supplement A to Form I-485, 

Application to Register Permanent 

Residence

$1,000

I-485B Form I-485 Instructions for NACARA None

I-485C Instructions to Supplement C to 

Form I-485 (HRIFA)

None
Appendix B-11

I-485D LIFE Legalization Supplement to 

the Form I-485

$255

I-526 Immigrant Petition By Alien 

Entrepreneur

$400

I-538 Certification by Designated School 

Official

None

I-539 Application to Extend/Change 

Nonimmigrant Status

$140

I-566 Interagency Record of Individual 

Requesting Change/Adjustment to or 

from A or G status

None

I-589 Application for Asylum None

I-600 Petition to Classify Orphan as an 

Immediate Relative

$460

I-600A Application for Advance Processing 

of Orphan Petition

$460

I-601 Application for Waiver of Grounds of 

Excludability

$195

I-602 Application By Refugee For Waiver 

of Grounds of Excludability

None

I-612 Application for Waiver of the Foreign 

Residence Requirement

$195

I-643 Health and Human Services 

Statistical Data for Refugee/Asylee 

Adjusting Status

None

I-690 Application for Waiver of 

Excludability 

$35

I-693 Medical Examination of Aliens 

Seeking Adjustment of Status

None

I-694 Notice of Appeal Decision $50

I-695 Application for Replacement 

Employment Authorization or 

Temporary Residence Card

$15

I-698 Application to Adjust Status From 

Temporary to Permanent Residence

$120

I-730 Refugee/Asylee Relative Petition None

I-751 Petition to Remove the Conditions of 

Residence

$145

I-765 Application for Employment 

Authorization

$120

I-765D Liberian Deferred Enforced 

Departure Supplement

None

I-817 Application for Family Unity 

Benefits

$140
B-12 Appendix 

I-821 Application for Temporary Protected 

Status

$50

I-821A Forms and Instruction for TPS for 

Nicaraguans and Hondurans

$50

I-823 Application—Inspections Facilitation 

Program

I-824 Application for Action on an 

Approved Application or Petition

$140

I-829 Petition by Entrepreneur to Remove 

Conditions

$395

I-847 Report of Compliant None

I-855 ABC Change of Address None

I-864 Affidavit of Support None

I-864A Affidavit of Support Contract 

Between Sponsor and Household 

Member

None

I-864P Poverty Guidelines None

I-864

Pkg.

Contains I-684, I-684A and I-685 None

I-865 Sponsor’s Notice of Change of 

Address

 None

I-866 Application Checkpoint Pre-enrolled 

Access Lane

 None

I-876 Election Form to Participate in 

Employment Eligibility Confirmation 

Pilot Program

 None

I-881 NACARA—Suspension of 

Deportation or Application for 

Special Rule Cancellation of Removal

 $215

I-905 Application for Authorization to 

Issue Certification for Health Care 

Workers

$230

I-907 Request for Premium Processing 

Service

$1000

I-914 Application for T Nonimmigrant 

Status

$200

N-4 Monthly Report Naturalization 

Papers 

None

N-25 Request for Verification of 

Naturalization

None

N-300 Application to File Declaration of 

Intent

$60
Appendix B-13

N-336 Request for Hearing on a Decision in 

Naturalization Proceedings Under 

Section 336 of the INA

$195

N-400 Application for Naturalization $260

N-410 Application for Motion for 

Amendment of Petition

$50

N-426 Request for Certification of Military 

or Naval Service

None

N-455 Application for Transfer of Petition 

for Naturalization

$90

N-470 Application to Preserve Residence 

for Naturalization Purposes

$95

N-565 Application for Replacement 

Naturalization Citizenship 

Document

$155

N-600 Application for Certification of 

Citizenship

$185

N-600K Application for Citizenship and 

Issuance of Certificate under 322

$185

N-644 Application for Posthumous 

Citizenship

$80

N-648 Medical Certification for Disability 

Exceptions

None

N-600/

N-643

Supp. A

Application for Transmission for 

Citizenship Through a Grandparent

None
B-14 Appendix 

STUDENT NOTES
Appendix C-1

COMPREHENSIVE PROBLEMS Appendix C

Comprehensive problems and their solutions are contained in this 

appendix. Work the problems and then check your answers. You 

will then be ready to proceed to the test. 

At the time of the printing of this publication, the 1040NR and 

1040NR-EZ tax charts were not available. Please visit our website 

(www.irs.gov) for the current charts.
C-2 Appendix

COMPREHENSIVE PROBLEM 1

Michelle Deventer, a permanent resident of Belgium, came to the 

U.S. on an F-1 visa on August 1, 2001. She has remained in the 

country since then and is a full-time student at the local university. 

Michelle, born 4-15-1978, is single. She began working on the university campus on January 3, 2003. She filed Form 8233 with the 

payroll department on January 15, 2003. Using the following information, complete Michelle’s income tax return. 

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003

19 2,000.00 04

xx-xxxxxxx xxx-xx-xxxx

x

HOMETOWN UNIVERSITY

123 HOME AVENUE

TOWNCENTER KS 67201

BELGIUM BE

MICHELLE DEVENTER

345 TOWN AVE, FAIRMONT TOWER RM.216

TOWNCENTER KS 67201
Appendix C-3

For Privacy Act and Paperwork Reduction

Act Notice, see separate instructions.

1

Control number

Retirement

plan Third-partysick pay Statutoryemployee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy A For Social Security Administration—Send this entire

page with Form W-3 to the Social Security Administration;

photocopies are not acceptable.

Department of the Treasury—Internal Revenue Service

Do Not Cut, Fold, or Staple Forms on This Page — Do Not Cut, Fold, or Staple Forms on This Page

Form

Dependent care benefits

See instructions for box 12

Cat. No. 10134D

a

b

c

d

e

f

Void

W-2 Wage and Tax

Statement 2

22222

0 30

OMB No. 1545-0008

For Official Use Only 

Last name

$

$

$

$

$

$

$

$

$

$

$

C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

$

$

$

Local wages, tips, etc. 19 Local income tax 20

$

$

$

$

$

$

$

$

12d

C

o

d

e $

(99)

12-3456789

Hometown University

123 Home Avenue

Towncenter, KS 67201

234-56-7890

Fairmount Tower, Room 216

345 Town Avenue

Towncenter, KS 67201

KS K9123456789 3,200.00 78.80

3,200.00 788.00

0 0

0 0

Michelle Deventer
C-4 Appendix

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
Appendix C-5

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
C-6 Appendix

COMPREHENSIVE PROBLEM 2

Determine what type of return that Sue from Malaysia should file. 

She is single and 26 years old. She entered the U.S. on an F-1 visa 

on August 1, 1997. She has been a full-time student at the local 

university since then. She began working on January 2, 1999 in the 

campus bookstore. In 2003, her W-2 shows that she earned $5,200 

and no income tax was withheld. Her Social Security card says that 

it is not valid for employment. 

Is she a resident or a nonresident for tax purposes? What tax form 

should she file?

______________________________________________________________

COMPRHENSIVE PROBLEM 3

Kiwal from Malaysia entered the U.S. on August 1, 1999 on an F-1 

visa. He is a full time student at the local university and has not 

left the country since he arrived here. He is single and 27 years 

old. He started to work in the cafeteria in 2000. Last year and this 

year, he received the same amount of income. He tells you that he 

did not file a 2002 return because he didn’t know how. Using the 

W-2 form below, prepare his 1040NR-EZ for 2003. Should he file a 

return for 2002 also?

For Privacy Act and Paperwork Reduction

Act Notice, see separate instructions.

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy A For Social Security Administration—Send this entire

page with Form W-3 to the Social Security Administration;

photocopies are not acceptable.

Department of the Treasury—Internal Revenue Service

Do Not Cut, Fold, or Staple Forms on This Page — Do Not Cut, Fold, or Staple Forms on This Page

Form

Dependent care benefits

See instructions for box 12

Cat. No. 10134D

a

b

c

d

e

f

Void

W-2 Wage and Tax

Statement 2

22222

0 30

OMB No. 1545-0008

For Official Use Only 

Last name

$

$

$

$

$

$

$

$

$

$

$

C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

$

$

$

Local wages, tips, etc. 19 Local income tax 20

$

$

$

$

$

$

$

$

12d

C

o

d

e $

(99)

12-9876543

Delicious Enterprises

P.O. Box 98

Superville, IL 53102

890-12-3456

Kiwal Chee

678 Easy Street

Superville, IL 53102

K 345678921 40.00

4,100.00 400.00

0 0

0 0

0 0
Appendix C-7

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
C-8 Appendix

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
Appendix C-9

COMPREHENSIVE PROBLEM 4

Lee Cheng is a single 26 year old student from the Peoples 

Republic of China. He entered the U.S. on January 2, 2002 on an 

F-1 visa. Even though he started to work at the campus security office in 2002, he has remained a full time student. When he 

started his job, he did not know about Form 8233. When he filed his 

2002 return he received a large refund. In June 2003, he gave the 

payroll office a Form 8233, claiming the China treaty benefit so he 

would not have as much federal withholding this year. Using the 

following forms, complete his 2003 tax return

For Privacy Act and Paperwork Reduction

Act Notice, see separate instructions.

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy A For Social Security Administration—Send this entire

page with Form W-3 to the Social Security Administration;

photocopies are not acceptable.

Department of the Treasury—Internal Revenue Service

Do Not Cut, Fold, or Staple Forms on This Page — Do Not Cut, Fold, or Staple Forms on This Page

Form

Dependent care benefits

See instructions for box 12

Cat. No. 10134D

a

b

c

d

e

f

Void

W-2 Wage and Tax

Statement 2

22222

0 30

OMB No. 1545-0008

For Official Use Only 

Last name

$

$

$

$

$

$

$

$

$

$

$

C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

$

$

$

Local wages, tips, etc. 19 Local income tax 20

$

$

$

$

$

$

$

$

12d

C

o

d

e $

(99)

12-5678903

Ranger University

385 Colt St.

Gunsmoke, TX 69788

321-65-4987

Lee Cheng

485 Colt, Apt 3

Gunsmoke, TX 69788

3,000.00 475.00
C-10 Appendix

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003

19 3,500.00 01

xx-xxxxxx xxx-xx-xxxx

RANGER UNIVERSITY

385 COLT ST

GUNSMOKE TX 69788

PR CHINA CH

LEE CHENG

485 COLT ST APT 3

GUNSMOKE TX 69788
Appendix C-11

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
C-12 Appendix

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
Appendix C-13

COMPREHENSIVE PROBLEM 5

Henry from Belgium is single and 26 years old. He entered the U.S. 

on August 1, 1997 on an F-1 visa. In May of 1999, he graduated and 

returned to Belgium. On June 1, 2003 he reentered the U.S. on a

J-1 visa to teach at the local university for two years.

For tax purposes, is Henry a resident or non-resident alien and 

why?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

COMPREHENSIVE PROBLEM 6

Sinju Khadori is a married student from India. Her husband had 

a small amount of gross income. She obtained BCIS permission 

to work off-campus at Pizza Hut. Her employer withheld Social 

Security and Medicare taxes from her wages and tips.

Is she entitled to a refund of these taxes?_____________________

Should she talk to her employer about this? __________________

If the employer refuses to help her, what form should she file if

she is entitled to a refund?

___________________________________________________________

What should she include with the form?

___________________________________________________________
C-14 Appendix

APPENDIX C—PART 2

ANSWERS TO COMPREHENSIVE PROBLEMS

Comprehensive Problem 1

See the completed form.

Comprehensive Problem 2

Sue is a resident for tax purposes. She should file Form 1040EZ

Comprehensive Problem 3

See the completed forms. He should also file a return for 2002.

Comprehensive Problem 4

See the completed forms.

Comprehensive Problem 5

Henry is a resident alien for tax purposes. During the six year 

period including the year 2003 and the five prior years, he had two 

or more years of presence in an exempt category. Therefore, he is 

not entitled to any additional exempt time as a teacher.

Comprehensive Problem 6

Sinju is entitled to a refund. 

She should ask her employer to refund the money to her. If the 

employer refuses to refund the money, she should file Form 843 and 

attach a copy of her I-20, I-94, and W-2.
Appendix C-15

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003

MICHELLE DEVENTER XXX-XX-XXXX

X

3,200

2,000

3,200

3,200

79

3,121

3,050

71

7

7

788

788

781

781

Pxx-xx-xxxx

BELGIUM
C-16 Appendix

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)

BELGIUM

X

STUDY

F-1

8-1-2001

X

153 365 365

X

2002 1040NR-EZ

BELGIUM

WAGES $2,000 21(1)

WAGES $2,000 21(1)

X

X
Appendix C-17

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003

KIWAL CHEE XXX-XX-XXXX

678 EASY ST

SUPERVILLE IL 53102

USA

X

4,100

4100

4,100

40

4,060

3,050

1,010

101

101

400

400

299

299

PXX-XX-XXXX

MALAYSIA
C-18 Appendix

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)

MALAYSIA

X

STUDY

F-1

F-1

8-1-99

X

365 365 365

X

X

X
Appendix C-19

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003

LEE CHENG XXX-XX-XXXX

488 COLT ST APT 3

GUNSMOKE TX 69788

USA

X

1,500

5,000

1500

1,500

1,500

3,050

0

0

475

475

475

475

PXX-XX-XXXX

PR CHINA
C-20 Appendix

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)

PR CHINA

X

STUDY

F-1

F-1

1-2-2001

X

364 365 365

X

2002 1040nrez

PR CHINA

$5,000 COMPENSATION DURING STUDY 20(C)

$5,000 COMPENSATION DURING STUDY 20(C)

X

XX
Appendix D-1

BLANK TAX FORMS Appendix D

The following forms were the most current revisions available at 

the time this publication went to print. They are provided here for 

your reference. Always obtain the most current version of the form 

before assisting taxpayers.

 Form W-2 Page D-2

 Form W-2G Page D-2

 Form W-4 Page D-3 and D-4

 Form W-7 Page D-5 through D-7

 Form W-8BEN Page D-8

 Form 843 Page D-9

 Form 1040NR-EZ Page D-10 and D-11

 Form 1040NR Page D-12 through D-16

 Form 1042S Page D-17

 Form 1099G Page D-18

 Form 1099INT Page D-19

 Form 8233 Page D-20 and D-21

 Form 8840 Page D-22 through D-24

 Form 8843 Page D-25 through D-28
D-2 Appendix

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B To Be Filed with Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

a

b

c

d

e

f

W-2 Wage and Tax

Statement 20 30

OMB No. 1545-0008

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS Web Site

at www.irs.gov.

3232 CORRECTED

OMB No. 1545-0238 PAYER’S name 1 Gross winnings 2 Federal income tax withheld

Street address 3 Type of wager 4 Date won

Certain

Gambling

Winnings

City, state, and ZIP code 5 Transaction 6 Race

Federal identification number 7 Winnings from identical wagers 8 Cashier

For Privacy Act and

Paperwork Reduction Act

Notice, see the 2003

General Instructions for

Forms 1099, 1098, 5498,

and W-2G.

WINNER’S name 9 Winner’s taxpayer identification no. 10 Window

Street address (including apt. no.) 11 First I.D. 12 Second I.D.

City, state, and ZIP code 13 State/Payer’s state identification no. 14 State income tax withheld

File with Form 1096.

Under penalties of perjury, I declare that, to the best of my knowledge and belief, the name, address, and taxpayer identification number that I have furnished

correctly identify me as the recipient of this payment and any payments from identical wagers, and that no other person is entitled to any part of these payments. Copy A

Signature  Date 

Form W-2G Cat. No. 10138V Department of the Treasury - Internal Revenue Service

For Internal Revenue

Service Center

Form W-2G

Telephone number

2003
Appendix D-3

Draft as of

8/06/2003

Form W-4 (2004)

Purpose. Complete Form W-4 so that your

employer can withhold the correct Federal

income tax from your pay. Because your tax situation may change, you may want to refigure

your withholding each year.

Head of household. Generally, you may claim

head of household filing status on your tax

return only if you are unmarried and pay more

than 50% of the costs of keeping up a home for

yourself and your dependent(s) or other qualifying individuals. See line E below.

Exemption from withholding. If you are

exempt, complete only lines 1, 2, 3, 4, and 7 and

sign the form to validate it. Your exemption for

2004 expires February 16, 2005. See Pub. 505,

Tax Withholding and Estimated Tax.

Check your withholding. After your Form W-4

takes effect, use Pub. 919 to see how the dollar

amount you are having withheld compares to

your projected total tax for 2004. See Pub. 919,

especially if your earnings exceed $xxx,xxx

(Single) or $xxx,xxx (Married). Basic instructions. If you are not exempt, complete the Personal Allowances Worksheet

below. The worksheets on page 2 adjust your

withholding allowances based on itemized

Two earners/two jobs. If you have a working

spouse or more than one job, figure the total

number of allowances you are entitled to claim

on all jobs using worksheets from only one Form

W-4. Your withholding usually will be most accurate when all allowances are claimed on the

Form W-4 for the highest paying job and zero

allowances are claimed on the others.

Personal Allowances Worksheet (Keep for your records.)

A Enter “1” for yourself if no one else can claim you as a dependent A

● You are single and have only one job; or

B Enter “1” if: ● You are married, have only one job, and your spouse does not work; or B

● Your wages from a second job or your spouse’s wages (or the total of both) are $1,000 or less.  

Enter “1” for your spouse. But, you may choose to enter “-0-” if you are married and have either a working spouse or

more than one job. (Entering “-0-” may help you avoid having too little tax withheld.)

C

C

D Enter number of dependents (other than your spouse or yourself) you will claim on your tax return D

E E

F F

H Add lines A through G and enter total here. Note: This may be different from the number of exemptions you claim on your tax return.  H

● If you plan to itemize or claim adjustments to income and want to reduce your withholding, see the Deductions

For accuracy, and Adjustments Worksheet on page 2.

complete all

worksheets

that apply.

● If you have more than one job or are married and you and your spouse both work and the combined earnings

from all jobs exceed $xx,xxx, see the Two-Earner/Two-Job Worksheet on page 2 to avoid having too little tax

withheld.

● If neither of the above situations applies, stop here and enter the number from line H on line 5 of Form W-4 below.



Cut here and give Form W-4 to your employer. Keep the top part for your records.

OMB No. 1545-0010

Form W-4 Employee’s Withholding Allowance Certificate

Department of the Treasury

Internal Revenue Service

 Your employer must send a copy of this form to the IRS if (a) you claim more than

10 allowances or (b) you claim "Exempt" and your wages are normally more than $200 per week.

1 Type or print your first name and middle initial Last name 2 Your social security number

Home address (number and street or rural route) 3 Single Married Married, but withhold at higher Single rate.

City or town, state, and ZIP code

Note: If married, but legally separated, or spouse is a nonresident alien, check the “Single” box.

5 Total number of allowances you are claiming (from line H above or from the applicable worksheet on page 2) 5

6 Additional amount, if any, you want withheld from each paycheck 6 $

7 I claim exemption from withholding for 2004, and I certify that I meet both of the following conditions for exemption:

● Last year I had a right to a refund of all Federal income tax withheld because I had no tax liability and

● This year I expect a refund of all Federal income tax withheld because I expect to have no tax liability.

If you meet both conditions, write “Exempt” here  7

8

Under penalties of perjury, I certify that I am entitled to the number of withholding allowances claimed on this certificate, or I am entitled to claim exempt status.

Employee’s signature

(Form is not valid

unless you sign it.)  Date 

Employer’s name and address (Employer: Complete lines 8 and 10 only if sending to the IRS.) Office code 9 Employer identification number

(optional)

10

Enter “1” if you have at least $x,xxx of child or dependent care expenses for which you plan to claim a credit

4 If your last name differs from that shown on your social security

card, check here. You must call 1-800-772-1213 for a new card. 

Cat. No. 10220Q

Enter “1” if you will file as head of household on your tax return (see conditions under Head of household above)

Note: You cannot claim exemption from withholding if: (a) your income exceeds $xxx and

includes more than $xxx of unearned income

(e.g., interest and dividends) and (b) another

person can claim you as a dependent on their

tax return.

Nonwage income. If you have a large amount of

nonwage income, such as interest or dividends,

consider making estimated tax payments using

Recent name change? If your name on line 1

differs from that shown on your social security

card, call 1-800-772-1213 for a new social security card.

G Child Tax Credit (including additional child tax credit):

G ● If your total income will be between $xx,xxx and $xx,xxx ($xx,xxx and $xxx,xxx if married), enter “1” if you have one or two eligible children,

“2” if you have three eligible children, “3” if you have four eligible children, or “4” if you have five or more eligible children.

● If your total income will be between $xx,xxx and $xx,xxx ($xx,xxx and $xx,xxx if married), enter “1” for each eligible child plus 1 additional if

you have three to five eligible children or 2 additional if you have six or more eligible children.

(Note: Do not include child support payments. See Pub. 503, Child and Dependent Care Expenses, for details.)

Tax credits. You can take projected tax credits

into account in figuring your allowable number of

withholding allowances. Credits for child or

dependent care expenses and the child tax

credit may be claimed using the Personal

Allowances Worksheet below. See Pub. 919,

How Do I Adjust My Tax Withholding? for information on converting your other credits into

withholding allowances.

Nonresident alien. If you are a nonresident

alien, see the Instructions for Form 8233 before

completing this Form W-4.

deductions, certain credits, adjustments to

income, or two-earner/two-job situations. Complete all worksheets that apply. However, you

may claim fewer (or zero) allowances.

Form 1040-ES, Estimated Tax for Individuals.

Otherwise, you may owe additional tax.

2004

For Privacy Act and Paperwork Reduction Act Notice, see page 2. Form W-4 (2004)
D-4 Appendix

Draft as of

8/06/2003

Form W-4 (2004) Page 2

Deductions and Adjustments Worksheet

Note: Use this worksheet only if you plan to itemize deductions, claim certain credits, or claim adjustments to income on your 2004 tax return.

Enter an estimate of your 2004 itemized deductions. These include qualifying home mortgage interest,

charitable contributions, state and local taxes, medical expenses in excess of 7.5% of your income, and

miscellaneous deductions. (For 2004, you may have to reduce your itemized deductions if your income

is over $xxx,xxx ($xx,xxx if married filing separately). See Worksheet 3 in Pub. 919 for details.)

1

$ 1

$x,xxx if married filing jointly or qualifying widow(er)

$ $x,xxx if head of household 2 2 Enter: $x,xxx if single

$x,xxx if married filing separately  

$ 3 Subtract line 2 from line 1. If line 2 is greater than line 1, enter “-0-” 3

$ 4 Enter an estimate of your 2004 adjustments to income, including alimony, deductible IRA contributions, and student loan interest

$ 5 Add lines 3 and 4 and enter the total. (Include any amount for credits from Worksheet 7 in Pub. 919) 5

$ 6 Enter an estimate of your 2004 nonwage income (such as dividends or interest) 6

$ 7 Subtract line 6 from line 5. Enter the result, but not less than “-0-” 7

8 Divide the amount on line 7 by $x,xxx and enter the result here. Drop any fraction 8

9 Enter the number from the Personal Allowances Worksheet, line H, page 1 9

Add lines 8 and 9 and enter the total here. If you plan to use the Two-Earner/Two-Job Worksheet, also

enter this total on line 1 below. Otherwise, stop here and enter this total on Form W-4, line 5, page 1

10

10

Two-Earner/Two-Job Worksheet (See Two earners/two jobs on page 1.)

Note: Use this worksheet only if the instructions under line H on page 1 direct you here.

1 Enter the number from line H, page 1 (or from line 10 above if you used the Deductions and Adjustments Worksheet) 1

2 Find the number in Table 1 below that applies to the lowest paying job and enter it here 2

3 If line 1 is more than or equal to line 2, subtract line 2 from line 1. Enter the result here (if zero, enter

“-0-”) and on Form W-4, line 5, page 1. Do not use the rest of this worksheet 3

Note: If line 1 is less than line 2, enter “-0-” on Form W-4, line 5, page 1. Complete lines 4–9 below to

calculate the additional withholding amount necessary to avoid a year-end tax bill.

4 Enter the number from line 2 of this worksheet 4

5 Enter the number from line 1 of this worksheet 5

6 Subtract line 5 from line 4 6

$ 7 Find the amount in Table 2 below that applies to the highest paying job and enter it here 7

Multiply $ 8 line 7 by line 6 and enter the result here. This is the additional annual withholding needed 8

Divide line 8 by the number of pay periods remaining in 2004. For example, divide by 26 if you are paid

every two weeks and you complete this form in December 2003. Enter the result here and on Form W-4,

line 6, page 1. This is the additional amount to be withheld from each paycheck

9

9 $

Privacy Act and Paperwork Reduction Act Notice. We ask for the information on

this form to carry out the Internal Revenue laws of the United States. The Internal

Revenue Code requires this information under sections 3402(f)(2)(A) and 6109 and

their regulations. Failure to provide a properly completed form will result in your

being treated as a single person who claims no withholding allowances;

providing fraudulent information may also subject you to penalties. Routine uses

of this information include giving it to the Department of Justice for civil and criminal

litigation, to cities, states, and the District of Columbia for use in administering their

tax laws, and using it in the National Directory of New Hires. We may also disclose

this information to Federal and state agencies to enforce Federal nontax criminal

laws and to combat terrorism.

The time needed to complete this form will vary depending on individual

circumstances. The estimated average time is: Recordkeeping, 46 min.; Learning

about the law or the form, 13 min.; Preparing the form, 59 min. If you have

comments concerning the accuracy of these time estimates or suggestions for

making this form simpler, we would be happy to hear from you. You can write to the

Tax Products Coordinating Committee, Western Area Distribution Center, Rancho

Cordova, CA 95743-0001. Do not send Form W-4 to this address. Instead, give it to

your employer.

4

Table 1: Two-Earner/Two-Job Worksheet

Married Filing Jointly All Others

Enter on

line 2 above

If wages from LOWEST

paying job are—

Enter on

line 2 above

If wages from LOWEST

paying job are—

$0 - $x,xxx 0

x,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

$0 - $x,xxx 0

x,xxx - x,xxx x

x,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

Table 2: Two-Earner/Two-Job Worksheet

Married Filing Jointly All Others

If wages from HIGHEST

paying job are—

Enter on

line 7 above

If wages from HIGHEST

paying job are—

Enter on

line 7 above

$0 - $xx,xxx $xxx

xx,xxx - xx,xxx xxx

xx,xxx - xxx,xxx xxx

xxx,xxx - xxx,xxx x,xxx

xxx,xxx and over x,xxx

$0 - $xx,xxx $xxx

xx,xxx - xxx,xxx xxx

xxx,xxx - xxx,xxx xxx

xxx,xxx - xxx,xxx x,xxx

xxx,xxx and over x,xxx

xx,xxx - xx,xxx x

xx,xxx - xx,xxx x

xx,xxx - xx,xxx xx

xx,xxx - xx,xxx xx

xx,xxx - xxx,xxx xx

xxx,xxx - xxx,xxx xx

xxx,xxx - xxx,xxx xx

xxx,xxx and over xx

Enter on

line 2 above

If wages from LOWEST

paying job are—

You are not required to provide the information requested on a form that is

subject to the Paperwork Reduction Act unless the form displays a valid OMB

xx,xxx - xxx,xxx x

xxx,xxx - xxx,xxx x

xxx,xxx and over xx

Enter on

line 2 above

If wages from LOWEST

paying job are—

control number. Books or records relating to a form or its instructions must be

retained as long as their contents may become material in the administration of any

Internal Revenue law. Generally, tax returns and return information are confidential,

as required by Code section 6103.
Appendix D-5

Form W-7

(Rev. October 1999)

Department of the Treasury

Internal Revenue Service

Application for IRS Individual

Taxpayer Identification Number

 For use by individuals who are NOT U.S. citizens, nationals, or permanent residents.

OMB No. 1545-1483

● This number is for tax purposes only. Do not submit this form if you have, or are eligible to

obtain, a U.S. social security number (SSN).

Before you begin:

● Receipt of an IRS individual taxpayer identification number (ITIN) creates no inference regarding

your immigration status or your right to work in the United States.

● Receipt of an ITIN does not make you eligible to claim the earned income credit (EIC).

1 Name 1a Last name (surname or family name) First name Middle name

Name at birth if

different 

1b Last name (surname or family name) First name Middle name

2 Permanent

residence

address, if any

Street address, apartment number, or rural route number. Do not use a P.O. box number.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

3 Mailing address

(if different from

above)

Street address, apartment number, P.O. box number, or rural route number.

City or town, state or province, and country. Include ZIP code or postal code where appropriate.

4 Birth

information

Date of birth (month, day, year)

/ /

Country of birth 5 Male

Female

6 Family

information

Father’s last name (surname) First name Middle name

Mother’s maiden name (surname) First name Middle name

7 Other

information

7a Country(ies) of citizenship 7b Foreign tax identification number

FOR IRS USE ONLY

7d Identification document(s) submitted (see instructions).

Type of U.S. visa (if any) and expiration date

7e Have you previously received a U.S. temporary Taxpayer Identification Number (TIN) or Employer Identification Number (EIN)?

Yes. Complete line 7f. If you need more space, list on a sheet and attach to this form. (See instructions.)

TIN EIN

Enter the name under which the TIN was issued.

No/Do not know. Skip line 7f.

Under penalties of perjury, I (applicant/delegate/acceptance agent) declare that I have examined this application, including

accompanying documentation and statements, and to the best of my knowledge and belief, it is true, correct, and complete. I

authorize the IRS to disclose to my acceptance agent returns or return information necessary to resolve matters regarding the

assignment of my IRS individual taxpayer identification number (ITIN).

Sign

Here

Signature of applicant (if delegate, see instructions) Date (month, day, year)

/ /

Phone number

Name of delegate, if applicable (type or print) Delegate’s relationship

to applicant

Parent Guardian

Acceptance

Agent’s

Use ONLY

Signature

Name and title (type or print) Name of company

Date (month, day, year)

/ /

For Paperwork Reduction Act Notice, see page 4. Cat. No. 10229L Form W-7 (Rev. 10-99)

- - -











Passport

(see instructions)

 See instructions.

7f

Enter the name under which the EIN was issued.

Keep a copy of this

form for your

records.

Reason you are submitting Form W-7. (Check only one box. See instructions.)

Dependent of U.S. person

Spouse of U.S. person

U.S. resident alien (based on days present in the United States) filing a U.S. tax return and not eligible for an SSN

Other (specify)

Nonresident alien filing a U.S. tax return and not eligible for an SSN

Enter name and SSN of U.S. person (see instructions) 

b

c

d

e

f

(see instructions)

City and state or province (optional)

7c

Driver’s license/State I.D. INS documentation Other

Issued by: Number:

EIN

a Nonresident alien required to obtain ITIN to claim tax treaty benefit

 Please type or print.

Phone ( )

Fax ( )

Power of Attorney
D-6 Appendix

Form W-7 (Rev. 10-99) Page 3

General Instructions

Purpose of Form

Use Form W-7 to apply for an IRS individual

taxpayer identification number (ITIN). An ITIN

is a nine-digit number issued by the U.S.

Internal Revenue Service (IRS) to individuals

who are required to have a U.S. taxpayer

identification number but who do not have,

and are not eligible to obtain, a social security

number (SSN).

To obtain an SSN, get Form SS-5,

Application for a Social Security Card. To get

Form SS-5 or to find out if you are eligible to

obtain an SSN, contact a Social Security

Administration office.

Who Must Apply

Any individual who is not eligible to obtain

an SSN but who must furnish a taxpayer

identification number to the IRS must apply

for an ITIN on Form W-7. For example:

● An alien individual eligible to be claimed as

a dependent on a U.S. tax return but who is

unable or not eligible to obtain an SSN. To

determine if an alien individual is eligible to be

claimed as a dependent on a U.S. tax return,

see Pub. 501, Exemptions, Standard

Deduction, and Filing Information, and Pub.

519, U.S. Tax Guide for Aliens.

● An alien spouse claimed as an exemption

on a U.S. tax return who is not eligible to

obtain an SSN.

● A U.S. resident alien (based on substantial

presence) who files a U.S. tax return but who

is not eligible for an SSN.

Additional Information

Publications. For details on resident and

nonresident alien status and the tests for

residence (including the substantial presence

test), get Pub. 519.

For details on individuals who can be

claimed as dependents and on obtaining an

SSN for a dependent, get Pub. 501.

When To Apply

Complete Form W-7 as soon as you meet

one of the requirements listed under Who

Must Apply on this page. Applying early will

give the IRS time to issue you an ITIN before

its required use.

● A nonresident alien individual not eligible

for an SSN who is required to file a U.S. tax

return OR who is filing a U.S. tax return only

to claim a refund.

● A nonresident alien individual not eligible

for an SSN who elects to file a joint U.S. tax

return with a spouse who is a U.S. citizen or

resident.

DO NOT complete Form W-7 if you have

an SSN or you are eligible to obtain an SSN.

Thus, do not complete this form if you are a

U.S. citizen or national, or if you have been

lawfully admitted for permanent residence or

U.S. employment.

How To Apply

These publications are available free from

the IRS. To order the publications, call

1-800-TAX-FORM (1-800-829-3676) if you are

in the United States. If you have a foreign

address, you can write to:

You can also get these publications using a

computer and modem. On the Internet, you

can do this in two ways:

Telephone help. If, after reading these

instructions and our free publications, you are

not sure how to complete your application or

have additional questions, you may call for

assistance:

Note: If you have been lawfully admitted for

permanent residence or U.S. employment,

you are eligible for a social security number.

Do not complete this form.

If you have an application for an SSN

pending, do not file Form W-7. Complete

Form W-7 only if the Social Security

Administration notifies you that an SSN

cannot be issued.

Eastern Area Distribution Center

P.O. Box 85074

Richmond, VA 23261-5074

The ITIN is for tax purposes only. It does

not entitle you to social security benefits, and

creates no inference regarding your

immigration status or your right to work in the

United States. Any individual who is eligible

to be legally employed in the United States

must have an SSN.

For details on eligibility for the earned

income credit, get Pub. 596, Earned Income

Credit.

● Inside the United States: 1-800-829-1040.

This service is available 24 hours a day, 7

days a week from January 3, 2000, through

April 17, 2000. Beginning April 18, 2000, this

service is available Monday through Saturday

from 7:00 a.m. until 11:00 p.m. local time.

Holiday hours may vary.

Note: Individuals filing tax returns using an

ITIN are not eligible for the earned income

credit (EIC). File transfer protocol: Connect to

ftp.irs.gov.

World Wide Web: Connect to www.irs.gov.

● Outside the United States: 1-215-516-ITIN

(215-516-4846). This is not a toll-free number.

You may also contact any of our overseas

offices in Berlin, London, Mexico City, Paris,

Rome, Singapore, or Tokyo.

You can apply either by mail or in person.

See Where To Apply on this page. Keep a

copy for your records. Be sure to mail or

bring with you:

● Your completed Form W-7; and

The document(s) you present must be

current and must verify: (a) your identity, that

is, contain your name and a photograph, and

(b) support your claim of foreign status. You

may have to provide a combination of

documents for this purpose. Examples of

acceptable documents include, but are not

limited to:

● A passport.

You can submit copies of original

documents. However, such documents must

be:

● Certified by the issuing agency or official

custodian of the original record; or

● The original documents, or certified or

notarized copies of documents, that

substantiate the information provided on the

Form W-7.

● A driver’s license.

● Birth, marriage, or baptismal certificates.

● An identity card issued by a state or

national government authority.

● A foreign military or military dependent

identification card.

● School records.

● A foreign voter registration certificate.

● Notarized by a U.S. notary public legally

authorized within his or her local jurisdiction

to certify that the document is a true copy of

the original. To do this, the notary must see

the valid, unaltered original document and

verify that the copy conforms to the original.

U.S. notaries public are available at U.S.

embassies and consulates worldwide.

Non-U.S. notarizations will not be accepted.

Where To Apply

Applying in person. You can apply for an

ITIN at any IRS walk-in office in the United

States and at most IRS offices abroad

(contact the IRS office abroad to find out if

that office accepts Form W-7 applications).

You can also get application forms at certain

U.S. consular offices.

You can also apply through an acceptance

agent authorized by the IRS.

Applying by mail. Complete Form W-7, sign

and date it, and mail the form along with the

original or certified or notarized copies of your

documentation to:

Internal Revenue Service

Philadelphia Service Center

ITIN Unit

P.O. Box 447

Bensalem, PA 19020

If you have not heard from the IRS

regarding your ITIN within 30 days, you may

call 1-800-829-1040 (in the United States) or

1-215-516-4846 (outside the United States) to

find out about the status of your application.

Be sure to have a copy of your application

available when you call. Please allow 30 days

from the date you submitted Form W-7

before calling the IRS about the status of

your application.

Allow 4 to 6 weeks for the IRS to notify

you in writing of your ITIN.

Specific Instructions

The following instructions are for those items

that are not self-explanatory. Enter N/A (not

applicable) on all lines that do not apply. If

you are completing this form for someone

else, answer the questions as they apply to

that person.

Original documents you submit will be

returned to you. You do not need to provide

a return envelope. Copies of documents will

not be returned.

Reason for applying. You must check a box

to indicate the reason you are completing this

Form W-7. Check only one box.

● Documents issued by the U.S. Immigration

and Naturalization Service (INS).
Appendix D-7

Form W-7 (Rev. 10-99) Page 4

Line 7e. If you ever received a “temporary

Taxpayer Identification Number” (TIN) or an

Employer Identification Number (EIN), check

the “Yes” box and enter the number on line

7f. If you never had a temporary TIN or an

EIN, or you do not know your temporary TIN,

check the “No/Do not know” box.

A “temporary TIN” was a nine-digit number

issued by the IRS to individuals before 1996.

You would have been issued this number if

you filed a U.S. tax return and did not have a

social security number. This temporary TIN

will appear on any correspondence the IRS

sent you concerning that return. You may

have been issued more than one temporary

TIN. If so, attach a separate sheet listing all

the temporary TINs you received.

An EIN is a nine-digit number assigned by

the IRS to businesses, such as sole

proprietorships.

Signature. Generally, Form W-7 must be

signed by the applicant. However, if the

applicant is a minor 14 years of age or

younger, a delegate (parent or guardian)

should sign for him or her. Type or print the

delegate’s name in the space provided and

check the appropriate box to indicate the

relationship to the applicant.

Line 7c. Enter only U.S. nonimmigrant visa

information, for example, “B-1/B-2.” Also

enter the expiration date of the visa.

Line 7b. If your country of residence for tax

purposes has issued you a tax identification

number, enter that number on line 7b. For

example, if you are a resident of Canada, you

would enter your Canadian Social Insurance

Number.

Line 7f. Enter in the space provided the

temporary TIN and/or EIN and the name

under which the number was issued.

Line 3. Enter your mailing address if it is

different from the address on line 2. This is

the address the IRS will use to mail you

written notification of your ITIN.

Do not use a Post Office box or an “in

care of” (c/o) address instead of a street

address. It will not be accepted.

Lines 1a and 1b. Enter your legal name on

line 1a. This entry should reflect your name

as it will appear on your U.S. tax return. If

your legal name was different at birth, enter

on line 1b your name at birth as it appears on

your birth certificate.

Line 2. Enter your complete address in the

country where you permanently or normally

reside. If you are claiming a benefit under an

income tax treaty with the United States, the

address entered must normally be an address

in the treaty country. Include the postal code

where appropriate.

Paperwork Reduction Act Notice. We ask

for the information on this form to carry out

the Internal Revenue laws of the United

States. You are required to give us the

information. We need it to ensure that you are

complying with these laws and to allow us to

figure and collect the right amount of tax.

The time needed to complete and file this

form will vary depending on individual

circumstances. The estimated average time

is: Learning about the law or the form, 13

min.; Preparing the form, 29 min.; Copying,

assembling, and sending the form to the

IRS, 20 min.

If you have comments concerning the

accuracy of these time estimates or

suggestions for making this form simpler, we

would be happy to hear from you. You can

write to the Tax Forms Committee, Western

Area Distribution Center, Rancho Cordova,

CA 95743-0001. DO NOT send the form to

this address. Instead, see Where To Apply

on page 3.

You are not required to provide the

information requested on a form that is

subject to the Paperwork Reduction Act

unless the form displays a valid OMB control

number. Books or records relating to a form

or its instructions must be retained as long as

their contents may become material in the

administration of any Internal Revenue law.

Generally, tax returns and return information

are confidential, as required by Internal

Revenue Code section 6103.

b. Nonresident alien filing a U.S. tax

return and not eligible for an SSN. This

category includes:

● A nonresident alien who must file a U.S.

tax return to report income effectively or not

effectively connected with the conduct of a

trade or business in the United States.

c. U.S. resident alien (based on days

present in the United States) filing a U.S.

tax return and not eligible for an SSN. A

foreign individual living in the United States

who does not have permission to work from

the INS, and is thus ineligible for an SSN,

may still have a U.S. tax return filing

obligation. Such individuals must check this

box.

d. Dependent of U.S. person. This is an

individual who may be claimed as a

dependent on a U.S. tax return and who is

unable, or not eligible, to obtain an SSN.

Note: A U.S. person is a citizen, national, or

resident alien of the United States.

e. Spouse of U.S. person. This is a

nonresident alien husband or wife who is not

filing a U.S. tax return (including a joint return)

but who may be claimed as a spouse for an

exemption, and who is not eligible to obtain

an SSN.

f. Other. Use this box only if your situation

does not fall into any of the above categories.

If you check this box, you must describe in

detail your reason for requesting an ITIN.

SSN of U.S. person. If you are applying for

an ITIN under category d or e above, you

must provide the full name and SSN of the

U.S. person. Enter the information in the

space provided. If the U.S. person chooses to

provide this information in a separate letter,

be sure to enter “Information will be provided

in separate letter” in this space. If this space

is left blank, your application will be rejected.

● The U.S. person’s full name and SSN; and

Mail the letter to the address shown under

Where To Apply on page 3.

Line 7d. If you have a passport, use it to

provide verification of your identity and

foreign status. Check the “Passport” box.

● A nonresident alien who is filing a U.S. tax

return only to obtain a refund.

● A nonresident alien electing to file a U.S.

tax return jointly with a spouse who is a U.S.

citizen or resident.

● The name, address, date of birth and

country of birth of the dependent or spouse

as shown on the Form W-7.

Line 4. You must identify the country in

which you were born.

You must provide the name of the state,

country, or other issuer, and the identification

number (if any) appearing on the document(s)

you provide. You may be required to provide

a translation of documents in a foreign

language.

If you have none of the above, check the

box for “Other” and specifically identify the

type(s) of document you are using (for

example, enter “military ID” for a military or

military/dependent identification card). You

may have to provide more than one current

document to verify your identity and foreign

status. At least one document you present

should contain a recent photograph.

If the applicant is over 14 years of age, the

applicant may appoint an authorized agent to

sign. The authorized agent must print his or

her name in the space provided for the name

of the delegate and must attach Form 2848,

Power of Attorney and Declaration of

Representative.

If you do not have a passport, use a

driver’s license or official identification card

issued by a U.S. or foreign governmental

jurisdiction and check the appropriate box.

If you are using documents issued by the

INS, check the “INS documentation” box.

Note: If the U.S. person chooses this method,

the Form W-7 will not be processed until the

information is received.

The letter provided by the U.S. person

must identify the Form W-7 to which the

information relates and must include:

a. Nonresident alien required to obtain

ITIN to claim tax treaty benefit. Certain

nonresident aliens must obtain an ITIN to

claim a tax treaty benefit even if they do not

have to file a U.S. tax return.
D-8 Appendix

Form W-8BEN

(Rev. December 2000)

Department of the Treasury

Internal Revenue Service

Certificate of Foreign Status of Beneficial Owner

for United States Tax Withholding

 See separate instructions.

 Give this form to the withholding agent or payer. Do not send to the IRS.

OMB No. 1545-1621

Do not use this form for: Instead, use Form:

● A foreign partnership, a foreign simple trust, or a foreign grantor trust (see instructions for exceptions) W-8ECI or W-8IMY

● A foreign government, international organization, foreign central bank of issue, foreign tax-exempt organization,

foreign private foundation, or government of a U.S. possession that received effectively connected income or that is

claiming the applicability of section(s) 115(2), 501(c), 892, 895, or 1443(b) (see instructions) W-8ECI or W-8EXP

● A person acting as an intermediary W-8IMY

● A person claiming an exemption from U.S. withholding on income effectively connected with the conduct

of a trade or business in the United States W-8ECI

Part I

Part II

Identification of Beneficial Owner (See instructions.)

1

3

2

4

5

6 7

8

Name of individual or organization that is the beneficial owner

Type of beneficial owner:

Country of incorporation or organization

Permanent residence address (street, apt. or suite no., or rural route). Do not use a P.O. box or in-care-of address.

City or town, state or province. Include postal code where appropriate. Country (do not abbreviate)

U.S. taxpayer identification number, if required (see instructions) Foreign tax identifying number, if any (optional)

Reference number(s) (see instructions)

Individual Corporation Partnership Simple trust

Mailing address (if different from above)

City or town, state or province. Include postal code where appropriate. Country (do not abbreviate)

Claim of Tax Treaty Benefits (if applicable)

I certify that (check all that apply):

The beneficial owner is a resident of within the meaning of the income tax treaty between the United States and that country.

If required, the U.S. taxpayer identification number is stated on line 6 (see instructions).

The beneficial owner is not an individual, derives the item (or items) of income for which the treaty benefits are claimed, and, if

applicable, meets the requirements of the treaty provision dealing with limitation on benefits (see instructions).

The beneficial owner is not an individual, is claiming treaty benefits for dividends received from a foreign corporation or interest from a

U.S. trade or business of a foreign corporation, and meets qualified resident status (see instructions).

The beneficial owner is related to the person obligated to pay the income within the meaning of section 267(b) or 707(b), and will file

Form 8833 if the amount subject to withholding received during a calendar year exceeds, in the aggregate, $500,000.

Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. I

further certify under penalties of perjury that:

● I am the beneficial owner (or am authorized to sign for the beneficial owner) of all the income to which this form relates,

● The beneficial owner is not a U.S. person,

● The income to which this form relates is not effectively connected with the conduct of a trade or business in the United States or is effectively connected but is

not subject to tax under an income tax treaty, and

● For broker transactions or barter exchanges, the beneficial owner is an exempt foreign person as defined in the instructions.

Sign Here  Signature of beneficial owner (or individual authorized to sign for beneficial owner) Date (MM-DD-YYYY)

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 25047Z Form W-8BEN (Rev. 12-2000)

 Section references are to the Internal Revenue Code.

a

b

c

d

e

SSN or ITIN EIN

Capacity in which acting

Disregarded entity

Certification

9

Special rates and conditions (if applicable—see instructions): The beneficial owner is claiming the provisions of Article of the

treaty identified on line 9a above to claim a % rate of withholding on (specify type of income): .

Explain the reasons the beneficial owner meets the terms of the treaty article:

10

Government International organization

Central bank of issue Tax-exempt organization

Part IV

Part III Notional Principal Contracts

11 I have provided or will provide a statement that identifies those notional principal contracts from which the income is not effectively

connected with the conduct of a trade or business in the United States. I agree to update this statement as required.

● A U.S. citizen or other U.S. person, including a resident alien individual W-9

Private foundation

Note: These entities should use Form W-8BEN if they are claiming treaty benefits or are providing the form only to

claim they are a foreign person exempt from backup withholding.

Note: See instructions for additional exceptions.

Grantor trust Estate Complex trust

Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner or

any withholding agent that can disburse or make payments of the income of which I am the beneficial owner.
Appendix D-9

Form 843

(Rev. January 1997) Claim for Refund and Request for Abatement OMB No. 1545-0024

Department of the Treasury

Internal Revenue Service  See separate instructions.

Use Form 843 only if your claim involves (a) one of the taxes shown on line 3a or (b) a refund or abatement of interest, penalties,

or additions to tax on line 4a.

Daytime telephone number

Name of claimant

( )

Address (number, street, and room or suite no.)

City or town, state, and ZIP code

Please type or print

Spouse’s social security number

Your social security number

Employer identification number

Name and address shown on return if different from above

1 Period—prepare a separate Form 843 for each tax period 2 Amount to be refunded or abated

From , 19 , to , 19 $

b Dates of payment 

3a Type of tax, penalty, or addition to tax:

Employment

Penalty—IRC section 

Estate Gift

4a Request for abatement or refund of:

Interest caused by IRS errors or delays (if applicable—see instructions).

A penalty or addition to tax as a result of erroneous advice from the IRS.

Type of return filed (see instructions):

706 709 990-PF 4720 940 945

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 10180R Form 843 (Rev. 1-97)

b

5 Explanation and additional claims. Explain why you believe this claim should be allowed, and show computation of tax

refund or abatement of interest, penalty, or addition to tax.

Under penalties of perjury, I declare that I have examined this claim, including accompanying schedules and statements, and, to the best of my knowledge and

belief, it is true, correct, and complete.

Signature (Title, if applicable. Claims by corporations must be signed by an officer.) Date

Signature Date

Signature. If you are filing Form 843 to request a refund or abatement relating to a joint return, both you and your spouse must

sign the claim. Claims filed by corporations must be signed by a corporate officer authorized to sign, and the signature must be

accompanied by the officer’s title.

Do not use Form 843 if your claim is for—

● An overpayment of income taxes;

● A refund of fuel taxes;

● An overpayment of excise taxes reported on Form 720, 730, or 2290 (see General Instructions).

Excise (unless reported on Form 720, 730, or 2290—see instructions.)

941 943 Other (specify)
D-10 Appendix

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
Appendix D-11

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
D-12 Appendix

Draft as of

8/13/2003

OMB No. 1545-0089 U.S. Nonresident Alien Income Tax Return

Form For the year January 1–December 31, 2003, or other tax year

Department of the Treasury

Internal Revenue Service beginning , 2003, and ending , 20

Your first name and initial Last name Identifying number (see page 7 of inst.)

Present home address (number, street, and apt. no., or rural route). If you have a P.O. box, see page 7. Check if:

Estate or Trust

Individual

City, town or post office, state, and ZIP code. If you have a foreign address, see page 7. For Disclosure and Paperwork

Reduction Act Notice, see page 26.

Country  Of what country were you a citizen or national during the tax year? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing Status and Exemptions for Individuals (see page 7) 7a 7b

Filing status. Check only one box (1–6 below). Yourself Spouse

1 Single resident of Canada or Mexico, or a single U.S. national

2 Other single nonresident alien

3 Married resident of Canada or Mexico, or a married U.S. national If you check box 7b, enter your spouse’s

4 Married resident of Japan or the Republic of Korea identifying number 

5 Other married nonresident alien

6 Qualifying widow(er) with dependent child (see page 7)

No. of boxes checked

on 7a and 7b

Caution: Do not check box 7a if your parent (or someone else) can claim you as a dependent.

Do not check box 7b if your spouse had any U.S. gross income.

(3) Dependent’s

relationship

to you

7c Dependents: (see page 8) No. of children on

7c who: (2) Dependent’s 

identifying number

lived with you

did not live with you

due to divorce or

separation

Dependents on 7c

not entered above

Add numbers entered

on lines above

Attach Forms W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

d Total number of exemptions claimed

8 Wages, salaries, tips, etc. Attach Form(s) W-2 8

9a Taxable interest 9a

b Tax-exempt interest. Do not include on line 9a 9b

10a Ordinary dividends 10a

11 Taxable refunds, credits, or offsets of state and local income taxes (see page 9) 11

12 Scholarship and fellowship grants. Attach Form(s) 1042-S or required statement (see page 9) 12

13 Business income or (loss). Attach Schedule C or C-EZ (Form 1040) 13

14a Capital gain or (loss). Attach Schedule D (Form 1040) if required. If not required, check here

15 Other gains or (losses). Attach Form 4797 15

16a Total IRA distributions 16a 16b Taxable amount (see page 10) 16b

17a Pensions and annuities 17a 17b Taxable amount (see page 11) 17b

Rental real estate, royalties, partnerships, trusts, etc. Attach Schedule E (Form 1040) 18

19 Farm income or (loss). Attach Schedule F (Form 1040) 19

20 Unemployment compensation 20

21 Other income. List type and amount (see page 12)

22

21

Income Effectively Connected With U.S. Trade/Business

23 Add lines 8, 9a, 10a, 11–14a, 15, 16b, and 17b–21. This is your total effectively connected income  23

31

IRA deduction (see page 13)

33

26

25

Self-employed health insurance deduction (see page 14)

Self-employed SEP, SIMPLE, and qualified plans

26

27

Penalty on early withdrawal of savings

Enclose, but do not attach, any payment.

29

Scholarship and fellowship grants excluded

27

Adjusted Gross Income

Add lines 24 through 31

28

32

Subtract line 32 from line 23. Enter here and on line 34. This is your adjusted gross income 

30

33

1040NR











.

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

.

Cat. No. 11364D

 

(1) First name

Form 1040NR (2003)

Total income exempt by a treaty from page 5, Item M 22

29

Moving expenses. Attach Form 3903

25

18

Last name

28

31

Student loan interest deduction (see page 13)

32

30

(4) if qualifying

child for child tax

credit (see page 8)

24 Educator expenses (see page 13) 24

2003

b Qualified dividends (see page 9) 10b

b If box 14a is checked, enter post-May 5 capital gain distribution 14b

14a
Appendix D-13

Draft as of

8/13/2003

Form 1040NR (2003) Page 2

Amount from line 33 (adjusted gross income)

Itemized deductions from page 3, Schedule A, line 17

41

38

Subtract line 35 from line 34

34

36

34

Taxable income. Subtract line 37 from line 36. If line 37 is more than line 36, enter -0-

37

35

36

Credit for child and dependent care expenses. Attach Form 2441

42

43

Other credits. Check applicable box(es):

42

Form 8801

Tax and Credits

44

46

Add lines 42 through 48. These are your total credits

Subtract line 49 from line 41. If line 49 is more than line 41, enter -0- 

45

49

46

Tax on income not effectively connected with a U.S. trade or business from page 4, line 86

50

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

51

50

Tax on qualified plans, including IRAs, and other tax-favored accounts. Attach Form 5329 if required

Other Taxes

51

Transportation tax (see page 18)

Add lines 50 through 55. This is your total tax 

53

Federal income tax withheld from Forms W-2, 1099, 1042-S, etc.

54

55

2003 estimated tax payments and amount applied from 2002 return

56

Amount paid with Form 4868 (request for extension)

Excess social security and tier 1 RRTA tax withheld (see page 19)

58

59

Credit for amount paid with Form 1040-C

U.S. tax withheld at source from page 4, line 83

Payments

65b

65a

U.S. tax withheld at source by partnerships under section 1446:

a From Form(s) 8805

66a

b From Form(s) 1042-S

Add lines 57 through 66b. These are your total payments 

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Sign belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Here Your signature Date

Preparer’s Date Preparer’s SSN or PTIN

signature Check if

self-employed

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Exemptions (see page 14)

Other payments from:







35

Keep a copy

of this

return for

your records.

Form 3800

Form (specify) 

52

Household employment taxes. Attach Schedule H (Form 1040)

Tax (see page 15). Check if any tax is from a b Form(s) 8814 Form 4972

53

52

67

37

47

a

b c

a b Form 2439 Form 4136

48

Adoption credit. Attach Form 8839

60

62

38

43

57

58

Child tax credit (see page 17)

57

Additional child tax credit. Attach Form 8812

63

64

65

54

59

60

62

Form 1040NR (2003)

Foreign tax credit. Attach Form 1116, if required

41 Add lines 39 and 40 

40 Alternative minimum tax (see page 15). Attach Form 6251

39

55

61 61

39

40

44

Your occupation in the United States

Phone no. ( )

68

69a 69a

70 70

If line 67 is more than line 56, subtract line 56 from line 67. This is the amount you overpaid

71 71

Refund Amount of line 68 you want refunded to you.

72

Amount of line 68 you want applied to your 2004 estimated tax 

72 Estimated tax penalty. Also include on line 71

Amount

You Owe

Amount you owe. Subtract line 67 from line 56. For details on how to pay, see page 20 

Direct

deposit? See

page 19.

Routing number

Account number

b c Type: Checking Savings

d

68



Designee’s

name 

Do you want to allow another person to discuss this return with the IRS (see page 20)? Third Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

Retirement savings contributions credit. Attach Form 8880

Credits from: Form 8859 a Form 8396 b 47

45

48

49

56

67

63

U.S. tax withheld on dispositions of U.S. real property interests:

a From Form(s) 8288-A

b From Form(s) 1042-S

66

66b

64

c Form 8885
D-14 Appendix

Draft as of

8/13/2003

Form 1040NR (2003) Page 3

Schedule A—Itemized Deductions (See pages 21, 22, and 23.) 07

State and

Local

Income

Taxes

1 State income taxes 1

2 Local income taxes 2

3 Add lines 1 and 2 3

Gifts to

U.S.

Charities

Caution: If you made a gift and received a benefit in

return, see page 21.

4

Gifts by cash or check. If you made any gift of $250 or

more, see page 21

4

5

Other than by cash or check. If you made any gift of

$250 or more, see page 21. You must attach Form 8283

if “the amount of your deduction” (see definition on page

22) is more than $500

5

6 Carryover from prior year 6

7 Add lines 4 through 6 7

8 Casualty or theft loss(es). Attach Form 4684. See page 22 8

Job

Expenses

and Most

Other

Miscellaneous

Deductions

Unreimbursed employee expenses—job travel, union

dues, job education, etc. You must attach Form 2106

or Form 2106-EZ if required. See page 22 

9

9

Other expenses. See page 23 for expenses to deduct

here. List type and amount 

11

11

12 Add lines 9 through 11 12

13

Enter the amount from Form

1040NR, line 34

13

14 Multiply line 13 by 2% (.02) 14

15 Subtract line 14 from line 12. If line 14 is more than line 12, enter -0- 15

Other

Miscellaneous

Deductions

Other—see page 23 for expenses to deduct here. List type and amount 

16

Total 17

Itemized

Deductions

17

Is Form 1040NR, line 34, over $139,500 (over $69,750 if you checked filing status

box 3, 4, or 5 on page 1 of Form 1040NR)?

Yes. Your deduction may be limited. See page 23 for the amount to

enter here and on Form 1040NR, line 35.



No. Your deduction is not limited. Add the amounts in the far right

column for lines 3 through 16. Also enter this amount on Form

1040NR, line 35. 

Casualty and

Theft Losses

10 Tax preparation fees 10

16

Form 1040NR (2003)
Appendix D-15

Draft as of

8/13/2003

Dividends paid by:

Other (specify)



Industrial royalties (patents, trademarks, etc.)Motion picture or T.V. copyright royaltiesOther royalties (copyrights, recording, publishing, etc.)Real property income and natural resources royalties

Pensions and annuitiesSocial security benefitsGains (include capital gain from line 89 below)

Form 1040NR (2003)

U.S. corporations

Foreign corporationsMortgagePaid by foreign corporations

Report property sales or

exchanges that are effectively

connected with a U.S.business on Schedule D (Form1040), Form 4797, or both.

Enter only the capital gains

and losses from property sales

or exchanges that are fromsources within the UnitedStates and not effectivelyconnected with a U.S.business. Do not include a gainor loss on disposing of a U.S.real property interest; reportthese gains and losses onSchedule D (Form 1040).

Multiply line 84 by rate of tax at top of each column

Nature of income

Tax on income not effectively connected with a U.S. trade or business. Add columns (b)–(e) of line 85. Enter the total here and on Form

1040NR, line 51

88 Add columns (f) and (g) of line 87

Capital gain. Combine columns (f) and (g) of line 88. Enter the net gain here and on line 81 above (if a loss, enter -0-)



87

Attach Forms 1042-S, SSA-1042S, RRB-1042S, or similar form.

Capital Gains and Losses From Sales or Exchanges of Property

(a) U.S. tax

withheld

at source

(b) Date

acquired

(mo., day, yr.)

Enter amount of income under the appropriate rate of tax (see pages 23 and 24)

(c) Date

sold

(mo., day, yr.)

(b) 10%

(d) Sales price

(c) 15%

(e) Cost or other

basis

(d) 30%

(f) LOSS

If (e) is more

than (d), subtract (d)

from (e)

(e) Other (specify)

%

(g) GAIN

If (d) is more

than (e), subtract (e)

from (d)

Page

4

Tax on Income Not Effectively Connected With a U.S. Trade or Business

a

b

a

b

c

7475

7677

79

86

Total U.S. tax withheld at source. Add column (a) of

lines 73a through 82. Enter the total here and on Form

1040NR, line 64

Add lines 73a through 82 in columns (b)–(e)

73a

73b74a74b74c

75767778

79

80

85

86

89

88

89

Other

%

Interest:

( )

73

81

(a) Kind of property and description

(if necessary, attach statement of

descriptive details not shown below)

78

84

83

80

82

81

82

83

84

85

Form 1040NR (2003)




D-16 Appendix

Draft as of

8/13/2003

Form 1040NR (2003) Page 5

Other Information (If an item does not apply to you, enter “N/A.”)

To which Internal Revenue office did you pay any amounts

claimed on Form 1040NR, lines 58, 61, and 63?

K

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

L Have you excluded any gross income other

than foreign source income not effectively

connected with a U.S. trade or business?

If “Yes,” show the amount, nature, and source of the

excluded income. Also, give the reason it was excluded.

(Do not include amounts shown in item M.) 

Type of entry visa 

and current nonimmigrant status and date

of change (see page 24) 

D

M

F Did you give up your permanent

residence as an immigrant in the United

States this year?

● Country 

Dates you entered and left the United States during the

year. Residents of Canada or Mexico entering and leaving

the United States at frequent intervals, give name of country

only. 

G

● Type and amount of effectively connected income exempt

from tax. Also, identify the applicable tax treaty article. Do

not enter exempt income on lines 8–15, 16b, and 17b–21

of Form 1040NR: 

Give number of days (including vacation and For 2002 

nonworkdays) you were present in the United States

during:

2001 , 2002 , and 2003 .

H

● Were you subject to tax in that country

on any of the income you claim is entitled

to the treaty benefits?

If you are a resident of Canada, Mexico,

Japan, or the Republic of Korea (South

Korea), or a U.S. national, did your spouse

contribute to the support of any child

claimed on Form 1040NR, line 7c?

I

● Did you have a permanent establishment

or fixed base (as defined by the tax treaty)

in the United States at any time during

2003?

If “Yes,” enter amount  $

If you were a resident of Japan or the Republic of Korea

(South Korea) for any part of the tax year, enter in the space

below your total foreign source income not effectively

connected with a U.S. trade or business. This information

is needed so that the exemption for your spouse and

dependents residing in the United States (if applicable) may

be allowed in accordance with Article 4 of the income tax

treaties between the United States and Japan or the United

States and the Republic of Korea (South Korea).

If you file this return to report community income, give your

spouse’s name, address, and identifying number.

N

Total foreign source income not effectively connected

with a U.S. trade or business  $

Did you file a U.S. income tax return for

any year before 2003?

J

If you file this return for a trust, does the

trust have a U.S. business?

O

If “Yes,” give name and address 

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If you are claiming the benefits of a U.S. income tax treaty

with a foreign country, give the following information. See

page 24 for additional information.

● Type and amount of income not effectively connected that

is exempt from or subject to a reduced rate of tax. Also,

identify the applicable tax treaty article:

For 2002 

Date you entered the United States (see page 24)



E

For 2003 

For 2003 (also, include this exempt income on

line 22 of Form 1040NR) 

Is this an “expatriation return” (see

page 24)?

P

Yes No

If “Yes,” you must attach an annual

information statement.

During 2003, did you apply for, or take

other affirmative steps to apply for, lawful

permanent resident status in the United

States or have an application pending to

adjust your status to that of a lawful

permanent resident of the United States?

Q

If “Yes,” explain 

Yes No

If “Yes,” give the latest year and form number 

Form 1040NR (2003)
Appendix D-17

Draft as of

2/08/2002

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003
D-18 Appendix

CORRECTED (if checked)

PAYER’S name, street address, city, state, ZIP code, and telephone no. OMB No. 1545-0120 1 Unemployment compensation

Certain

Government

Payments

$

State or local income tax

refunds, credits, or offsets

2

$

PAYER’S Federal identification number RECIPIENT’S identification number 3 Box 2 amount is for tax year 4 Federal income tax withheld

$

RECIPIENT’S name 6 Taxable grants

$

Street address (including apt. no.) 7 Agriculture payments

$

City, state, and ZIP code

Account number (optional)

Form 1099-G Department of the Treasury - Internal Revenue Service

Copy B

This is important tax

information and is

being furnished to the

Internal Revenue

Service. If you are

required to file a return,

a negligence penalty or

other sanction may be

imposed on you if this

income is taxable and

the IRS determines that

it has not been

reported.

(keep for your records)

For Recipient

Form 1099-G

5

8 Box 2 is trade or

business income 

2003
Appendix D-19

Draft as of

/18/2002

9292 VOID CORRECTED

PAYER’S name, street address, city, state, ZIP code, and telephone no. OMB No. 1545-0112 Payer’s RTN (optional)

Interest Income

PAYER’S Federal identification number RECIPIENT’S identification number 1 Interest income not included in box 3

$

Early withdrawal penalty Interest on U.S. Savings

Bonds and Treas. obligations

RECIPIENT’S name 2 3

$ $

Street address (including apt. no.) 4 Federal income tax withheld

$

Foreign country or U.S.

possession

City, state, and ZIP code 6 Foreign tax paid 7

Account number (optional) 2nd TIN not.

$

Form 1099-INT Cat. No. 14410K Department of the Treasury - Internal Revenue Service

Form 1099-INT

5 Investment expenses

$

Do Not Cut or Separate Forms on This Page — Do Not Cut or Separate Forms on This Page

Copy A

For

Internal Revenue

Service Center

File with Form 1096.

For Privacy Act

and Paperwork

Reduction Act

Notice, see the

2003 General

Instructions for

Forms 1099, 1098,

5498, and W-2G.

2003
D-20 Appendix

Draft as of

12/31/2001

Exemption From Withholding on Compensation

for Independent (and Certain Dependent) Personal

Services of a Nonresident Alien Individual

Form 8233

(Rev. December 2001) OMB No. 1545-0795

Identification of Beneficial Owner (See instructions.)

Name of individual who is the beneficial owner

Permanent residence address (street, apt. or suite no., or rural route). Do not use a P.O. box.

City or town, state or province. Include postal code where appropriate.

Department of the Treasury

Internal Revenue Service

Part I

Caution: See the line 10 instructions for the required additional statement you must attach.

 See separate instructions.

This exemption is applicable for compensation for calendar year , or other tax year beginning

IF you are a nonresident alien individual who is

receiving . . .

Compensation for independent personal

services performed in the United States

THEN, if you are the beneficial owner of that

income, use this form to claim . . .

A tax treaty withholding exemption for part or

all of that compensation and/or to claim the

daily personal exemption amount.

A tax treaty withholding exemption for part or

all of that compensation.

Claiming only foreign status or treaty benefits

with respect to income that is not

compensation for personal services

IF you are a beneficial owner who is . . .

Form W-8BEN

For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 62292K Form 8233 (Rev. 12-2001)

Compensation for dependent personal

services performed in the United States

INSTEAD, use . . .

1 23 U.S. taxpayer identifying number Foreign tax identifying number, if any (optional)

4

5 Address in the United States (street, apt. or suite no., or rural route). Do not use a P.O. box.

Country (do not abbreviate)

City or town, state, and ZIP code

7a Country issuing passport

8 Date of entry into the United States

6 U.S. visa type

Note: Citizens of Canada or Mexico are not required to complete lines 7a and 7b.

10 If you are a foreign student, trainee, professor/teacher, or researcher, check this box 

DO NOT Use

This Form. . .

Who Should

Use This Form?

and ending .

Date your current nonimmigrant status expires

7b Passport number

A tax treaty withholding exemption for part or

all of both types of income.

Noncompensatory scholarship or fellowship

income and personal services income from

the same withholding agent

Note: Do not use Form 8233 to claim the daily

personal exemption amount.

Receiving compensation for dependent

personal services performed in the United

States and you are not claiming a tax treaty

withholding exemption for that compensation

Receiving noncompensatory scholarship or

fellowship income and you are not receiving

any personal services income from the same

withholding agent

Form W-4

Form W-8BEN or, if elected by the

withholding agent, Form W-4 for the

noncompensatory scholarship or

fellowship income

Note: For

definitions of terms

used in this section

and detailed

instructions on

required

withholding forms

for each type of

income, see

Definitions on

pages 1 through 3

of the instructions.

9a 9b Current nonimmigrant status
Appendix D-21

Draft as of

12/31/2001

Form 8233 (Rev. 12-2001) Page 2

How many days will you perform services in

the United States during this tax year? 

Number of personal exemptions 16

claimed 

Withholding Agent Acceptance and Certification

Name Employer identification number

Address (number and street) (Include apt. or suite no. or P.O. box, if applicable.)

City, state, and ZIP code Telephone number

Under penalties of perjury, I certify that I have examined this form and any accompanying statements, that I am satisfied that an exemption from withholding is warranted,

and that I do not know or have reason to know that the nonresident alien individual is not entitled to the exemption or that the nonresident alien’s eligibility for the

exemption cannot be readily determined.

Signature of withholding agent  Date 

Sufficient facts to justify the exemption from withholding claimed on line 12 and/or line 13 (see instructions)

15

Noncompensatory scholarship or fellowship income:

14

a Amount $

b Tax treaty and treaty article on which you are basing exemption from withholding

13

Under penalties of perjury, I declare that I have examined the information on this form and to the best of my knowledge and belief it is true, correct, and complete. 

I further certify under penalties of perjury that:

● I am the beneficial owner (or am authorized to sign for the beneficial owner) of all the income to which this form relates.

● The beneficial owner is not a U.S. person.

● The beneficial owner is a resident of the treaty country listed on line 12a and/or 13b above within the meaning of the income tax treaty between the United States

and that country.

● The beneficial owner is not a former citizen or long-term resident of the United States subject to section 877 (relating to certain acts of expatriation) or, if subject

to section 877, the beneficial owner is nevertheless entitled to treaty benefits with respect to the amounts received.

Sign Here  Signature of beneficial owner (or individual authorized to sign for beneficial owner) Date

Certification

Part IV

Note: Lines 15 through 18 are to be completed only for certain independent personal services (see instructions).

Part III

17 Daily personal exemption amount claimed (see instructions) 

Note: Do not complete lines 13a through 13c unless you also received compensation for personal services from the same

withholding agent.

a Description of personal services you are providing

b Total compensation you expect to be paid for these services in this calendar or tax year $

12 If compensation is exempt from withholding based on a tax treaty benefit, provide:

a Tax treaty and treaty article on which you are basing exemption from withholding

b Total compensation listed on line 11b above that is exempt from tax under this treaty $

c

11 Compensation for independent (and certain dependent) personal services:

Country of permanent residence

Part II Claim for Tax Treaty Withholding Exemption and/or Personal Exemption Amount

Furthermore, I authorize this form to be provided to any withholding agent that has control, receipt, or custody of the income of which I am the beneficial owner or

any withholding agent that can disburse or make payments of the income of which I am the beneficial owner.

18 Total personal exemption amount claimed. Multiply line 16 by line 17 

c Total income listed on line 13a above that is exempt from tax under this treaty $
D-22 Appendix

Draft as of

5/14/2002

Form 8840

Department of the Treasury

Internal Revenue Service

Closer Connection Exception Statement for Aliens

For the year January 1—December 31, 2002, or other tax year

beginning , 2002, and ending , 20 .

OMB No. 1545-1410

Your first name and initial

Fill in your

addresses only if

you are filing this

form by itself and

not with your U.S.

tax return

Your U.S. taxpayer identification number, if any

General Information

1

2

3

4

5

6

7

8

Enter your U.S. visa number, if any  

Of what country or countries were you a citizen during the tax year?

What country or countries issued you a passport?

Enter your passport number(s)  

Enter the number of days you were present in the United States during:

2002 2001 2000 .

During 2002, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States (see instructions)?

Closer Connection to One Foreign Country

9

10

11

12

Where was your tax home during 2002?

Enter the name of the foreign country to which you had a closer connection than to the United States during 2002



Have you filed or will you file tax returns for 2002 in the countries listed on lines 9 and 10?

If “Yes” to either line 12 or line 13, attach verification.

Yes No

Yes No

13

Cat. No. 15829P Form 8840 (2002)

Part III

Part I

Part II

Closer Connection to Two Foreign Countries

Yes No

Next, complete Part IV on the back.

After changing your tax home from its location on January 1, 2002, where was your tax home for the remainder of 2002?

Where was your tax home on January 1, 2002?

Did you have a closer connection to each foreign country listed on lines 9 and 10 than to the United

States for the period during which you maintained a tax home in that foreign country?

If “No,” attach an explanation.

Were you subject to tax as a resident under the internal laws of (a) either of the countries listed on lines

9 and 10 during all of 2002 or (b) both of the countries listed on lines 9 and 10 for the period during

which you maintained a tax home in each country?

Yes No

For Paperwork Reduction Act Notice, see page 4.

Attachment

Sequence No. 101

If “No” to either line 12 or line 13, please explain 

Last name

Address in country of residence Address in the United States

Next, complete Part IV on the back.

 Attach to Form 1040NR or Form 1040NR-EZ. 2002
Appendix D-23

Draft as of

5/14/2002

Form 8840 (2002) Page 2

19

20

Where were your personal belongings, furniture, etc., located?

27

28

Sign here

only if you

are filing

this form by

itself and

not with

your U.S.

tax return

Under penalties of perjury, I declare that I have examined this form and the accompanying attachments, and to the best of my knowledge and

belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any

knowledge.

 Your signature Date 

List social, cultural, religious, and political organizations you currently participate in and the location of each:

Location

Location

a

b

Did you conduct business activities in a location other than your tax home?

If “Yes,” where?

Where was your driver’s license issued?

If you hold a second driver’s license, where was it issued?

Where were you registered to vote?

22 Yes No

23a

24

b

In what country/countries did you keep your personal, financial, and legal documents?

From what country/countries did you derive the majority of your 2002 income?

30 In what country/countries were your investments located (see instructions)?

c Location

d Location

e Location

21 Where was the bank(s) with which you conducted your routine personal banking activities located?

a c

b d

25 When completing official documents, forms, etc., what country do you list as your residence?

26 Have you ever completed:

Form W-8 or Form W-8BEN (relating to foreign status)? Yes No

Form W-9, Request for Taxpayer Identification Number and Certification? Yes No

Form 1078, Certificate of Alien Claiming Residence in the United States? Yes No

Any other U.S. official forms? If “Yes,” indicate the form(s)  Yes No

a

b

c

d

31 List any charitable organizations to which you made contributions and their locations:

Location

Location

a

b

c Location

d Location

32 Did you qualify for any type of government-sponsored “national” health plan? Yes No

If “Yes,” in what country?

If “No,” please explain 

29 Did you have any income from U.S. sources? Yes No

If “Yes,” what type?

If you have any other information to substantiate your closer connection to a country other than the United States or you

wish to explain in more detail any of your responses to lines 14 through 32, attach a statement to this form.

Significant Contacts With Foreign Country or Countries in 2002

18 Where was your automobile(s) registered?

Part IV

14 Where was your regular or principal permanent home located during 2002 (see instructions)?

15 If you had more than one permanent home available to you at all times during 2002, list the location of each and

explain 

16 Where was your family located?

17 Where was your automobile(s) located?

Form 8840 (2002)
D-24 Appendix

Draft as of

5/14/2002

Purpose of Form

Form 8840 (2002) Page 3

General Instructions

Who Must File

If you are an alien individual and you

meet the closer connection

exception to the substantial

presence test, you must file Form

8840 with the IRS to establish your

claim that you are a nonresident of

the United States by reason of that

exception.

Section references are to the U.S.

Internal Revenue Code.

Use Form 8840 to claim the closer

connection to a foreign country(ies)

exception to the substantial

presence test. The exception is

described in Regulations section

301.7701(b)-2.

Substantial Presence Test

You are considered a U.S. resident if

you meet the substantial presence

test for 2002. You meet this test if

you were physically present in the

United States for at least:

● 31 days during 2002 and

2. Days you were in the United

States for less than 24 hours when

you were traveling between two

places outside the United States.

Closer Connection

Exception

● You were present in the United

States for fewer than 183 days

during 2002, ● 183 days during the period 2002,

2001, and 2000, counting all the

days of physical presence in 2002

but only 1/3 the number of days of

presence in 2001 and only 1/6 the

number of days in 2000.

● You establish that during 2002,

you had a tax home in a foreign

country, and

● You establish that during 2002,

you had a closer connection to one

foreign country in which you had a

tax home than to the United States,

unless you had a closer connection

to two foreign countries.

Days of presence in the United

States. Generally, you are treated as

being present in the United States

on any day that you are physically

present in the country at any time

during the day. However, you do not

count the following days of presence

in the United States for purposes of

the substantial presence test.

1. Days you regularly commuted

to work in the United States from a

residence in Canada or Mexico.

4. Days you were unable to leave

the United States because of a

medical condition or medical

problem that developed while you

were in the United States.

5. Days you were an exempt

individual.

Closer Connection to Two Foreign

Countries

You may demonstrate that you have

a closer connection to two foreign

1. You maintained a tax home as

of January 1, 2002, in one foreign

country.

4. 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.

Note: You are not eligible for the

closer connection exception if 

(a) you were present in the United

States 183 days or more in calendar

year 2002 or (b) you are a lawful

permanent resident of the United

States (that is, you are a green card

holder).

Even though you would otherwise

meet the substantial presence test,

you will not be treated as a U.S.

resident for 2002 if:

2. You changed your tax home

during 2002 to a second foreign

country.

3. You continued to maintain your

tax home in the second foreign

country for the rest of 2002.

5. You are subject to tax as a

resident under the tax laws of either

foreign country for all of 2002 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.

For more details on the substantial

presence test and the closer

connection exception, see Pub. 519,

U.S. Tax Guide for Aliens.

In general, an exempt individual

is a (a) foreign government-related

individual, (b) teacher or trainee, 

(c) student, or (d) professional

athlete competing in a charitable

sports event. For more details, see

Pub. 519.

Note: If you qualify to exclude days

of presence in the United States

because you were an exempt

individual (other than a foreign

government-related individual) or

because of a medical condition or

medical problem (see item 4 above),

you must file Form 8843, Statement

for Exempt Individuals and

Individuals With a Medical Condition.

Note: You can download forms and

publications from the IRS Web Site

at www.irs.gov.

When and Where To File

If you are filing a 2002 Form

1040NR or Form 1040NR-EZ, attach

Form 8840 to it. Mail your tax return

by the due date (including

extensions) to the address shown in

your tax return instructions.

Establishing a Closer Connection

You will be considered to have a

closer connection to a foreign

country than to 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.

Tax Home

Your tax home is your main place of

business, employment, or post of

duty regardless of where you

maintain your family home. 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.

If you do not have to file a 2002

tax return, mail Form 8840 to the

Internal Revenue Service Center,

Philadelphia, PA 19255 by the due

date (including extensions) for filing

Form 1040NR or Form 1040NR-EZ.

3. Days you were temporarily in

the United States as a regular crew

member of a foreign vessel engaged

in transportation between the United

States and a foreign country or a

possession of the United States

unless you otherwise engaged in

trade or business on such a day.

countries (but not more than two) if

all five of the following apply.
Appendix D-25

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003
D-26 Appendix

Draft as of

3/20/2003

Form 8843 (2003) Page 2

Individuals With a Medical Condition or Medical Problem

b

c

18

Describe the medical condition or medical problem that prevented you from leaving the United States 

Enter the date you intended to leave the United States prior to the onset of the medical condition or medical problem described

Enter the date you actually left the United States 

Physician’s Statement:

I certify that

Name of taxpayer

was unable to leave the United States on the date shown on line 17b because of the medical condition or medical problem

described on line 17a and there was no indication that his or her condition or problem was preexisting.

Name of physician or other medical official

Physician’s or other medical official’s address and telephone number

Professional Athletes

15

16

Enter the name of the charitable sports event(s) in the United States in which you competed during 2003 and the dates of

competition 

Enter the name(s) and employer identification number(s) of the charitable organization(s) that benefited from the sports

event(s) 

Note: You must attach a statement to verify that all of the net proceeds of the sports event(s) were contributed to the charitable

organization(s) listed on line 16.

Part V

Part IV

Sign here

only if you

are filing

this form by

itself and

not with

your tax

return

Under penalties of perjury, I declare that I have examined this form and the accompanying attachments, and to the best of my knowledge and

belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which the preparer has any

knowledge.

 Your signature Date 

17a

Physician’s or other medical official’s signature Date

on line 17a 

Form 8843 (2003)
Appendix D-27

Draft as of

3/20/2003

Form 8843 (2003) Page 3

General Instructions

Section references are to the Internal

Revenue Code.

Who Must File

If you are an alien individual, you must

file Form 8843 to explain the basis of

your claim that you can exclude days of

presence in the United States for

purposes of the substantial presence

test because you:

● Were an exempt individual (other than

a foreign government-related individual)

or

Substantial Presence Test

You are considered a U.S. resident if you

meet the substantial presence test for

2003. You meet this test if you were

physically present in the United States

for at least:

● 31 days during 2003 and

Days of presence in the United States.

Generally, you are treated as being

present in the United States on any day

that you are physically present in the

country at any time during the day.

However, you do not count the following

days of presence in the United States

for purposes of the substantial presence

test.

1. Days you regularly commuted to

work in the United States from a

residence in Canada or Mexico.

2. Days you were in the United States

for less than 24 hours when you were

traveling between two places outside

the United States.

4. Days you were unable to leave the

United States because of a medical

condition or medical problem that

5. Days you were an exempt

individual.

Exempt Individuals

For purposes of the substantial presence

test, an exempt individual includes

anyone in the following categories.

● A teacher or trainee (defined on this

page).

● A student (defined on this page).

● A professional athlete temporarily

present in the United States to compete

in a charitable sports event.

Part II—Teachers and

Trainees

If you were a teacher or trainee under

a “J” or “Q” 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 “J” or “Q” visa status.

Even if you meet these requirements,

you cannot exclude days of presence in

2003 as a teacher or trainee if you were

exempt as a teacher, trainee, or student

for any part of 2 of the 6 prior calendar

years. But see the Exception below.

● Were unable to leave the United

States because of a medical condition

or medical problem.

● 183 days during the period 2003,

2002, and 2001, counting all the days of

physical presence in 2003 but only 1/3

the number of days of presence in 2002

and only 1/6 the number of days in

2001.

2. A foreign employer paid all your

compensation during 2003.

3. You were present in the United

States as a teacher or trainee in any of

the 6 prior years.

4. A foreign employer paid all of your

compensation during each of those prior

6 years you were present in the United

States as a teacher or trainee.

For more details, see Pub. 519, U.S.

Tax Guide for Aliens.

Note: To claim the closer connection to

a foreign country(ies) exception to the

substantial presence test described in

Regulations section 301.7701(b)-2, you

must file Form 8840, Closer Connection

Exception Statement for Aliens.

● An individual temporarily present in

the United States as a foreign

government-related individual.

Exception. If you were exempt as a

teacher, trainee, or student for any part

of 2 of the 6 prior calendar years, you

can exclude days of presence in 2003

as a teacher or trainee only if all four of

the following apply.

1. You were exempt as a teacher,

trainee, or student for any part of 3 (or

fewer) of the 6 prior calendar years.

Alien individuals with “Q” visas are

treated as students, teachers, or

trainees and, as such, are exempt

individuals for purposes of the

substantial presence test if they

otherwise qualify. “Q” visas are issued to

aliens participating in certain

international cultural exchange

programs.

A teacher or trainee is an individual who

is temporarily present in the United

States under a “J” or “Q” visa (other

than as a student) and who substantially

complies with the requirements of the

visa.

If you qualify to exclude days of

presence as a teacher or trainee,

complete Parts I and II of Form 8843. If

you have a “Q” visa, complete Part I and

only lines 6 through 8 of Part II. On line

6, enter the name, address, and

telephone number of the director of the

cultural exchange program in which you

participated.

Note: You can download forms and

publications from the IRS Internet Web

Site at www.irs.gov.

Part IV—Professional

Athletes

A professional athlete is an individual

who is temporarily present in the

If you qualify to exclude days of

presence as a student, complete Parts I

and III of Form 8843. If you have a “Q”

visa, complete Part I and only lines 10

through 14 of Part III. On line 10, enter

the name, address, and telephone

number of the director of the cultural

exchange program in which you

participated.

Part III—Students

If you were a student under an “F,”

“J,” “M,” or “Q” 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. 

1. Whether you have maintained a

closer connection to a foreign country

than to the United States (for details,

see Pub. 519) and

2. Whether you have taken affirmative

steps to change your status from

nonimmigrant to lawful permanent

resident.

If you meet this exception, you must

attach information to verify that a foreign

employer paid all the compensation you

received in 2003 and all prior years that

you were present in the United States as

a teacher or trainee.

Even if you meet these requirements,

you cannot exclude days of presence in

2003 as a student if you were exempt as

a teacher, trainee, or student for any

part of more than 5 calendar years

unless you establish that you do not

intend to reside permanently in the

United States. 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:

A student is an individual who is

temporarily present in the United States

under an “F,” “J,” “M,” or “Q” visa and

who substantially complies with the

requirements of the visa.

3. Days you were temporarily in the

United States as a regular crew member

of a foreign vessel engaged in

transportation between the United

States and a foreign country or a

possession of the United States unless

you otherwise engaged in trade or

business on such a day.

developed while you were in the United

States.
D-28 Appendix

Draft as of

3/20/2003

Penalty for Not Filing

Form 8843

If you do not file Form 8843 on time,

you may not exclude the days you were

present in the United States as a

professional athlete or because of a

medical condition or medical problem

that developed while you were in the

United States. Failure to exclude days of

presence in the United States could

result in your being considered a U.S.

resident under the substantial presence

test.

Form 8843 (2003) Page 4

You will not be penalized 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.

When and Where To File

If you do not have to file a 2003 tax

return, mail Form 8843 to the Internal

Revenue Service Center, Philadelphia,

PA 19255 by the due date (including

extensions) for filing Form 1040NR or

Form 1040NR-EZ.

Part V—Individuals With a

Medical Condition or

Medical Problem

For purposes of the substantial presence

test, do not count the days you intended

to leave the United States but could not

do so because of a medical condition or

medical problem that developed 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

more details, see Pub. 519.

If you qualify to exclude days of

presence because of a medical

condition or medical problem, complete

Part I and lines 17a through 17c. Have

your physician or other medical official

complete line 18.

Paperwork Reduction Act Notice. We ask for the information on this form to carry

out the Internal Revenue laws of the United States. Section 7701(b) and its

regulations require that you give us the information. We need it to determine if you

can exclude days of presence in the United States for purposes of the substantial

presence test.

The time needed to complete and file this form will vary depending on individual

circumstances. The estimated average time is:

Recordkeeping 13 min.

Learning about the law

or the form 7 min.

Preparing the form 31 min.

Copying, assembling, and

sending the form to the IRS 17 min.

If you have comments concerning the accuracy of these time estimates or

suggestions for making this form simpler, we would be happy to hear from you. You

can write to the Tax Forms Committee, Western Area Distribution Center, Rancho

Cordova, CA 95743-0001. Do not send the form to this address. Instead, see When

and Where To File on this page.

Form 8843

Parts I & II

Form 8843

Parts I & III

Form 8843

Parts I & IV

Form 8843

Parts I & V

13 min. 13 min. 13 min.

7 min. 6 min. 7 min.

34 min. 25 min. 29 min.

17 min. 17 min. 17 min.

You are not required to provide the information requested on a form that is subject

to the Paperwork Reduction Act unless the form displays a valid OMB control

number. Books or records relating to a form or its instructions must be retained as

long as their contents may become material in the administration of any Internal

Revenue law. Generally, tax returns and return information are confidential, as

required by section 6103.

If you are filing a 2003 Form 1040NR or

Form 1040NR-EZ, attach Form 8843 to

it. Mail your tax return by the due date

(including extensions) to the address

shown in your tax return instructions.

If you qualify to exclude days of

presence as a professional athlete,

complete Parts I and IV of Form 8843.

United States to compete in a charitable

sports event. For details on charitable

sports events, see Pub. 519.

Specific Instructions

If you are attaching Form 8843 to

Form 1040NR or Form 1040NR-EZ, you

are not required to complete lines 1

through 3b of Form 8843 if you provide

the requested information on the

corresponding lines of Form 1040NR or

1040NR-EZ. In this case, enter

"Information provided on Form 1040NR"

or "Information provided on Form

1040NR-EZ" on lines 1 through 3b of

Form 8843.

Line 1b. Enter your current

nonimmigrant status. For example, enter

your current nonimmigrant status shown

on your current Immigration Form I-94,

Arrival-Departure Record. If your status

has changed while in the United States,

enter the date of change.

Part I—General Information
Glossary G-1

GLOSSARY

TAX TERMS RELEVANT TO NONRESIDENTS

Alien: An individual who is not a U.S. citizen.

Bona fide Resident: An individual who meets a time requirement 

(an entire tax year) and certain other factors that indicate “permanent” residence in a country or possession.

Exempt Individual: A nonresident alien who is not required to 

count their days of presence toward the substantial presence test. 

An exempt individual is NOT a person exempt from taxation.

Exempt Status: A period of time when aliens in F, J, M, or Q 

immigration status are not required to count their days of presence. 

Usually 2 years for scholars and 5 years for students.

Foreign National: Citizen of a foreign country.

Green Card: A card, not necessarily green, issued by the Bureau 

of Customs and Immigration Services (BCIS). This card is proof of 

lawful permanent residence in the U.S. The BCIS Form number is 

I-551, Permanent Resident Card.

Illegal Alien (Undocumented Alien): Person present in the 

U.S. in violation of the immigration laws, subject to deportation if 

apprehended by the DBTS. For tax purposes, an illegal alien must 

determine if (s)he is considered a resident alien or nonresident 

alien by applying the substantial presence test.

Individual Taxpayer Identification Number (ITIN):

Individuals who are not eligible for a Social Security number (routinely issued only to U.S. citizens, U.S. permanent residents, and 

nonimmigrants authorized to work) receive the unique nine-digit 

number from the IRS. The number is used for tax purposes only.

Internal Revenue Service: Also known as the IRS, this is the 

federal agency responsible for collecting federal income taxes and 

enforcing tax reporting and collection laws. It is an agency of the 

U.S. Treasury Department.

Lawful Permanent Resident: One who has been lawfully 

accorded the privilege of residing permanently in the U.S. as an 

immigrant in accordance with the immigrations laws. A green card 

holder.

Nonimmigrant: An individual with a permanent residence abroad 

and in the U.S. temporarily, as in the case of a foreign student.

Nonresident Alien: For federal income tax purposes a person is 

considered a nonresident if they are not a U.S. citizen and they do 

not meet the tests to be considered a resident alien.
G-2 Glossary

Passport: Any travel document issued by a competent authority 

showing the bearer’s origin, identity and nationality (if any), which 

is valid for admission of the bearer into a foreign country.

Resident Alien: An immigrant to the U.S., or a nonimmigrant who 

meets certain residency requirements or makes a special election to 

be taxed as a resident.

Social Security: A term that refers to an agency, a card, and 

two types of tax. The Social Security Administration is an agency 

of the U.S. Department of Health and Human Services. The card 

bears a unique nine-digit identification number and is issued to 

qualified persons, primarily to determine eligibility for benefits 

earned through employment. The taxes, known as FICA (Federal 

Insurance Contribution Act) and Medicare, are withheld by employers.

Substantial Presence: The period of time that an alien must 

be in the U.S. to be considered a resident alien for tax purposes. 

Normally 183 days; but international students’ presence is usually 

not counted toward the 183-day threshold for 5 years, and international scholar’s presence is usually not counted for 2 out of the last 

6 years. (See Lesson 1).

Treaty: An agreement between two countries. The provisions take 

precedence over regular tax law.

U.S. National: An individual who, although not a U.S. citizen, 

owes his/her allegiance to the U.S. U.S. nationals include American 

Samoans and Northern Marina Islanders who chose to become U.S. 

Nationals instead of U.S. citizens.

Visa: A passport stamp issued by a U.S. Embassy or Consulate in a 

foreign country, allowing a person to apply to the BCIS to enter the 

U.S.

IMMIGRATION TERMS

Students and scholars often use Immigration terms to explain to 

you why they are permitted to work, and may anticipate that you 

will understand those terms. The glossary below is based on information provided by the Bureau of Citizenship and Immigration 

Services (BCIS).

A

Acquired Citizenship: Citizenship conferred at birth on children 

born abroad to a U.S. citizen parent(s).

Adoption: See entry for “Orphan.”

Adjustment to Immigrant Status: Procedure allowing certain 

aliens already in the U.S. to apply for immigrant status. Aliens 

admitted to the U.S. in a nonimmigrant, refugee, or parolee category may have their status changed to that of lawful permanent 

resident if they are eligible to receive an immigrant visa and one 
Glossary G-3

is immediately available. In such cases, the alien is counted as an 

immigrant as of the date of adjustment, even though the alien may 

have been in the U.S. for an extended period of time. Beginning in 

October 1994, subsection 245(i) of the INA allowed illegal residents 

who were eligible for immigrant status to remain in the U.S. and 

adjust to permanent resident status by applying at an BCIS office 

and paying an additional penalty fee. Subsection 245(i) is no longer available unless the alien is the beneficiary of a petition under 

section 204 of the Act or of an application for a labor certification 

under subsection 212(a)(5)(A), filed before January 15, 1998. Most 

illegal residents are required to leave the U.S. and acquire a visa 

abroad from the Department of State.

Agricultural Worker: As a nonimmigrant class of admission, an 

alien coming temporarily to the U.S. to perform agricultural labor 

or services, as defined by the Secretary of Labor.

Alien: Any person not a citizen or national of the U.S.

Amerasian Act: Pub. L. 97-359 (Act of October 22, 1982) provides 

for the immigration to the U.S. of certain Amerasian children. In 

order to qualify for benefits under this law, an alien must have 

been born in Cambodia, Korea, Laos, Thailand, or Vietnam after 

December 31, 1950, and before October 22, 1982, and have been 

fathered by a U.S. citizen.

Amerasian (Vietnam): Immigrant visas are issued to Amerasians 

under Pub. L. 100-202 (Act of December 22, 1987), which provides 

for admission of aliens born in Vietnam after January 1, 1962 and 

before January 1, 1976, if fathered by a U.S. citizen. Spouses, children, and parents or guardians may accompany the alien.

Application Support Centers: BCIS Offices fingerprint applicants for immigration benefits. Some BCIS applications, such as 

the Application for Naturalization or the Application to Register 

Permanent Residence or Adjust Status, require the BCIS to get an 

FBI fingerprint background check on the applicant. Most applicants who need background checks will be scheduled to appear at 

a specific Application Support Center (ASC) or Designated Law 

Enforcement Agency (DLEA) for fingerprinting.

Apprehension: The arrest of a removable alien by the Directorate 

of Border and Transportation Security (DBTS). Each apprehension 

of the same alien in a fiscal year is counted separately. 

Asylee: An alien in the U.S. or at a port of entry who is found to be 

unable or unwilling to return to his or her country of nationality, 

or to seek the protection of that country because of persecution or 

a well-founded fear of persecution. Persecution or the fear thereof 

must be based on the alien’s race, religion, nationality, membership 

in a particular social group, or political opinion. For persons with 

no nationality, the country of nationality is considered to be the 

country in which the alien last habitually resided. Asylees are eligible to adjust to lawful permanent resident status after one year 

of continuous presence in the U.S. These immigrants are limited to 

10,000 adjustments per fiscal year.
G-4 Glossary

B

Beneficiaries: Aliens on whose behalf a U.S. citizen, legal permanent resident, or employer have filed a petition for such aliens to 

receive immigration benefits from the U.S. BCIS. Beneficiaries generally receive a lawful status as a result of their relationship to a 

U.S. citizen, lawful permanent resident, or U.S. employer.

Border Crosser: An alien resident of the U.S. reentering the country after an absence of less than six months in Canada or Mexico, 

or a nonresident alien entering the U.S. across the Canadian border 

for stays of no more than six months or across the Mexican border 

for stays of no more than 72 hours.

Border Patrol Sector: Any one of geographic areas into which the 

U.S. is divided for DBTS Border Patrol activities.

Business Nonimmigrant: An alien coming temporarily to the 

U.S. to engage in commercial transactions which do not involve 

gainful employment in the U.S., i.e., engaged in international commerce on behalf of a foreign firm, not employed in the U.S. labor 

market, and receives no salary from U.S. sources.

C

Cancellation of Removal: A discretionary benefit adjusting an 

alien’s status from that of deportable alien to one lawfully admitted 

for permanent residence. Application for cancellation of removal is 

made during the course of a hearing before an immigration judge.

Certificate of Citizenship: Identity document proving U.S. citizenship. Certificates of citizenship are issued to derivative citizens 

and to persons who acquired U.S. citizenship (see definitions for 

Acquired and Derivative Citizenship).

Child: Generally, an unmarried person under 21 who is: a child 

born in wedlock; a stepchild (provided that the child was under 18 

when the marriage creating the stepchild relationship occurred); 

a legitimated child (provided that the child was legitimated while 

in the legal custody of the legitimating parent); a child born out of 

wedlock if a benefit is sought on the basis of its relationship with 

its mother (or to its father if the father has or had a bona fide relationship with the child); a child adopted while under 16 who since 

adoption has resided in the legal custody of the adopting parents 

for at least 2 years; or an orphan, under 16, who has been adopted 

abroad by a U.S. citizen or has an immediate-relative visa petition 

submitted in his/her behalf and is coming to the U.S. for adoption 

by a U.S. citizen.
Glossary G-5

Country of . . .

Birth: The country in which a person is born.

Chargeability: The independent country to which an immigrant 

entering under the preference system is accredited for purposes of 

numerical limitations.

Citizenship: The country in which a person is born (and has not 

renounced or lost citizenship) or naturalized, and to which that 

person owes allegiance and by which he or she is entitled to be protected.

Former Allegiance: The previous country of citizenship of a naturalized U.S. citizen or of a person who derived U.S. citizenship. 

(Last) Residence: The country in which an alien habitually resided 

before entering the U.S.

Nationality: The country of a person’s citizenship or country in 

which the person is deemed a national.

Crewman: A foreign national serving in a capacity required 

for normal operations and service on board a vessel or aircraft. 

Crewmen are admitted for 29 days, with no extensions. Two categories of crewmen are defined in the INA: D1 (departing from the U.S. 

with the vessel or aircraft on which he arrived or some other vessel 

or aircraft) and D2 (departing from Guam with the vessel on which 

he arrived).

Cuban/Haitian Entrant: Status accorded (1) Cubans who entered 

illegally or were paroled into the U.S. between April 15, 1980, and 

October 10, 1980, and (2) Haitians who entered illegally or were 

paroled into the country before January 1, 1981. Cubans and 

Haitians meeting these criteria who have continuously resided in 

the U.S. since before January 1, 1982, and who were known to the 

BCIS before that date, may adjust to permanent residence under a 

provision of the Immigration Control and Reform Act of 1986.

D

Deferred Inspection: See entry for “Parolee.”

Departure Under Safeguards: The departure of an illegal alien 

from the U.S. which is physically observed by an DBTS official.

Deportable Alien: An alien in and admitted to the U.S. subject to any grounds of removal specified in the Immigration and 

Nationality Act. This includes any alien illegally in the U.S., 

regardless of whether the alien entered the country by fraud or 

misrepresentation or entered legally but subsequently violated the 

terms of his or her nonimmigrant classification or status.

Deportation: The formal removal of an alien from the U.S. when 

the alien has been found removable for violating the immigration laws. Deportation is ordered by an immigration judge without 

any punishment being imposed or contemplated. Until April 1997, 

deportation and exclusion were separate removal procedures. The 
G-6 Glossary

Illegal Immigration Reform and Immigrant Responsibility Act 

of 1996 consolidated these procedures. After April 1, 1997, aliens 

in and admitted to the U.S. may be subject to removal based on 

deportability.

Derivative Citizenship: Citizenship conveyed to children 

through the naturalization of parents or, in certain circumstances, 

to foreign-born children adopted by U.S. citizen parents, provided 

certain conditions are met.

District: Geographic areas into which the U.S. and its territories 

are divided for the BCIS field operations or one of three overseas 

offices located in Rome, Bangkok, and Mexico City. Each District 

Office, headed by a District Director, has a specified service area 

that may include part of a state, an entire state, or many states. 

District Offices are where most BCIS field staff are located. District 

Offices are responsible for providing certain immigration services 

and benefits to people resident in their service area, and for enforcing immigration laws in that jurisdiction. Certain applications are 

filed directly with District Offices, many kinds of interviews are 

conducted at these Offices, and BCIS staff is available to answer 

questions, provide forms, etc.

Diversity: A category of immigrants replacing the earlier categories for nationals of underrepresented countries and countries adversely “affected” by the Immigration and Nationality Act 

Amendments of 1965 (Pub. L. 89-236). The annual limit on diversity immigration was 40,000 during fiscal years 1992-94, under a 

transitional diversity program, and 50,000 beginning in fiscal year 

1995, under a permanent diversity program. 

Docket Control: The BCIS mechanism for tracking the case status of potentially removable aliens.

E

Employer Sanctions: The employer sanctions provision of the 

Immigration Reform and Control Act of 1986 prohibits employers 

from hiring, recruiting, or referring for a fee aliens known to be 

unauthorized to work in the U.S. Violators of the law are subject to 

a series of civil fines for violations or criminal penalties when there 

is a pattern or practice of violations.

Exchange Visitor: An alien coming temporarily to the U.S. as a 

participant in a program approved by the Secretary of State for the 

purpose of teaching, instructing or lecturing, studying, observing, 

conducting research, consulting, demonstrating special skills, or 

receiving training.

Exclusion: Before the Illegal Immigration Reform and Immigrant 

Responsibility Act of 1996, exclusion was the formal term for denial 

of an alien’s entry into the U.S. The decision to exclude an alien was 

made by an immigration judge after an exclusion hearing. Since 
Glossary G-7

April 1, 1997, the process of adjudicating inadmissibility may take 

place in either an expedited removal process or in removal proceedings before an immigration judge.

Expedited Removal: The Illegal Immigration Reform and 

Immigrant Responsibility Act of 1996 authorized the DBTS to 

quickly remove certain inadmissible aliens from the U.S. The 

authority covers aliens who are inadmissible because they have no 

entry documents or because they have used counterfeit, altered, 

or otherwise fraudulent or improper documents. The authority 

covers aliens who arrive in, attempt to enter, or have entered the 

U.S. without having been admitted or paroled by an immigration 

officer at a port-of-entry. The DBTS has the authority to order the 

removal, and the alien is not referred to an immigration judge 

except under certain circumstances after an alien makes a claim to 

legal status in the U.S. or demonstrates a credible fear of persecution if returned to his or her home country.

F

Fiance(e)s of U.S. Citizen: A nonimmigrant alien coming to the 

U.S. to conclude a valid marriage with a U.S. citizen within ninety 

days after entry.

Files Control Office: An Immigration and Naturalization Service 

field office—either a district (including BCIS overseas offices) or a 

suboffice of that district—where alien case files are maintained and 

controlled.

Foreign Government Official: As a nonimmigrant class of 

admission, an alien coming temporarily to the U.S. who has been 

accredited by a foreign government to function as an ambassador, 

public minister, career diplomatic or consular officer, other accredited official, or an attendant, servant or personal employee of an 

accredited official, and all above aliens’ spouses and unmarried 

minor (or dependent) children.

Foreign Information Media Representative: As a nonimmigrant class of admission, an alien coming temporarily to the U.S. 

as a bona fide representative of foreign press, radio, film, or other 

foreign information media and the alien’s spouse and unmarried 

minor (or dependent) children.

Foreign State of Chargeability: The independent country to 

which an immigrant entering under the preference system is 

accredited. No more than 7% of the family-sponsored and employment-based visas may be issued to natives of any one independent 

country in a fiscal year. No one dependency of any independent 

country may receive more than 2% of the family-sponsored and 

employment-based visas issued. Since these limits are based on 

visa issuance rather than entries into the U.S., and immigrant 

visas are valid for 6 months, there is not total correspondence 

between these two occurrences. Chargeability is usually deter-
G-8 Glossary

mined by country of birth. Exceptions are made to prevent the 

separation of family members when the limitation for the country 

of birth has been met.

G

General Naturalization Provisions: The basic requirements for 

naturalization that every applicant must meet, unless a member 

of a special class. General provisions require an applicant to be at 

least 18 and a lawful permanent resident with five years of continuous residence in the U.S., have been physically present in the 

country for half that period, and establish good moral character for 

at least that period.

Geographic Area of Chargeability: Any of five regions (Africa; 

East Asia; Latin America and the Caribbean; Near East and South 

Asia; and the former Soviet Union and Eastern Europe) into 

which the world is divided for initial admission of refugees to the 

U.S. Annual consultations between the Executive Branch and the 

Congress set the ceiling on the number of refugees who can be 

admitted from each area. Beginning in fiscal year 1987, an unallocated reserve was incorporated into the admission ceilings.

H

Hemispheric Ceilings: Statutory limits on immigration to 

the U.S. in effect from 1968 to October 1978. Mandated by the 

Immigration and Nationality Act Amendments of 1965, the ceiling 

on immigration from the Eastern Hemisphere was set at 170,000, 

with a per-country limit of 20,000. Immigration from the Western 

Hemisphere was held to 120,000, without a per country limit until 

January 1, 1977. The Western Hemisphere was then made subject 

to a 20,000 per country limit. Effective October 1978, the separate 

hemisphere limits were abolished in favor of a worldwide limit.

I

Immediate Relatives: Certain immigrants who because of their 

close relationship to U.S. citizens are exempt from the numerical 

limitations imposed on immigration to the U.S. Immediate relatives 

are: spouses of citizens, children (under 21 and unmarried) of citizens, and parents of citizens 21 or older. 

Immigrant: See entry for “Permanent Resident Alien.” 

Immigration Act of 1990: Pub. L. 101-649 (Act of November 29, 

1990), which increased the limits on legal immigration to the U.S., 

revised all grounds for exclusion and deportation, authorized temporary protected status to aliens of designated countries, revised 

and established new nonimmigrant admission categories, revised 

and extended the Visa Waiver Pilot Program, and revised naturalization authority and requirements.
Glossary G-9

Immigration Judge: A lawyer appointed by the Attorney General 

to act as an administrative judge within the Executive Office for 

Immigration Review. They are qualified to conduct specified classes 

of proceedings, including removal proceedings. 

INA: See entry for “Immigration and Nationality Act.”

Immigration and Nationality Act (INA): The Act that, along 

with other immigration laws, treaties, and conventions of the U.S., 

relates to the immigration, temporary admission, naturalization, 

and removal of aliens.

Immigration Marriage Fraud Amendments of 1986: Pub. L. 

99-639 (Act of November 10, 1986), enacted to deter immigrationrelated marriage fraud. Its major provision stipulates that aliens 

deriving their immigrant status based on a marriage of less than 

two years are conditional immigrants. To remove their conditional 

status the immigrants must apply at an BCIS office during the 90-

day period before their second-year anniversary of receiving conditional status. If the aliens cannot show that the marriage through 

which the status was obtained was and is a valid one, their conditional immigrant status may be terminated and they may become 

deportable.

Immigration Reform and Control Act (IRCA) of 1986: Pub. L. 

99-603 (Act of November 6, 1986), enacted to control and deter illegal immigration to the U.S. Its major provisions stipulate legalization of undocumented aliens who had been continuously unlawfully 

present since 1982, legalization of certain agricultural workers, 

sanctions for employers who knowingly hire undocumented workers, and increased enforcement at U.S. borders.

Inadmissible: An alien seeking admission at a port of entry who 

does not meet the criteria in the INA for admission. The alien may 

be placed in removal proceedings or, under certain circumstances, 

allowed to withdraw his or her application for admission.

Industrial Trainee: See entry for “Temporary Worker.” 

Internal Revenue Service: A bureau of the U.S. Treasury 

Department that administers the U.S. tax code.

International Representative: As a nonimmigrant class of 

admission, an alien coming temporarily to the U.S. as a principal or other accredited representative of a foreign government 

(whether officially recognized or not recognized by the U.S.) to an 

international organization, an international organization officer or 

employee, and all above aliens’ spouses and unmarried minor (or 

dependent) children.

Intracompany Transferee: An alien, employed for at least one 

continuous year out of the last three by an international firm or 

corporation, who seeks to enter the U.S. temporarily in order to 

continue to work for the same employer, or a subsidiary or affiliate, 

in a capacity that is primarily managerial, executive, or involves 

specialized knowledge, and the alien’s spouse and minor unmarried 

children.
G-10 Glossary

IRCA: See entry for “Immigration Reform and Control Act of 1986.”

L

Labor Certification: Requirement for U.S. employers seeking to 

employ certain persons whose immigration to the U.S. is based on 

job skills or nonimmigrant temporary workers coming to perform 

services for which qualified authorized workers are unavailable 

in the U.S. Labor certification is issued by the Secretary of Labor 

and contains attestations by U.S. employers as to the numbers 

of U.S. workers available to undertake the employment sought 

by an applicant, and the effect of the alien’s employment on the 

wages and working conditions of U.S. workers similarly employed. 

Determination of labor availability in the U.S. is made at the time 

of a visa application and at the location where the applicant wishes 

to work.

Legalization Dependents: A maximum of 55,000 visas were 

issued to spouses and children of aliens legalized under the provisions of the Immigration Reform and Control Act of 1986 in each of 

fiscal years 1992-94.

Legalized Aliens: Certain illegal aliens who were eligible to apply 

for temporary resident status under the legalization provision of 

the Immigration Reform and Control Act of 1986. To be eligible, 

aliens must have continuously resided in the U.S. in an unlawful 

status since January 1, 1982, not be excludable, and have entered 

the U.S. either (1) illegally before January 1, 1982, or (2) as temporary visitors before January 1, 1982, with their authorized stay 

expiring before that date or with the Government’s knowledge of 

their unlawful status before that date. Legalization consists of 

two stages--temporary and then permanent residency. In order to 

adjust to permanent status aliens must have had continuous residence in the U.S., be admissible as an immigrant, and demonstrate 

at least a minimal understanding and knowledge of the English 

language and U.S. history and government.

Legitimated: Most countries have legal procedures for natural 

fathers of children born out of wedlock to acknowledge their children. A legitimated child from any country has two legal parents 

and cannot qualify as an orphan unless:

1. only one of the parents is living, or

2. both parents have abandoned the child

M

Medical and Legal Parolee: See entry for “Parolee.”

Metropolitan Statistical Area (MSA): A core area with a large 

population, and adjacent communities having a high degree of 

social and economic integration with the core. MSAs are defined 

by the U.S. Office of Management and Budget (OMB). MSAs are 

generally counties (cities and towns in New England) containing 

at least one city or urbanized area with a population of at least 
Glossary G-11

50,000 and a total metropolitan population of at least 100,000 

(75,000 in New England). MSAs of one million or more population 

may be recognized as Consolidated Metropolitan Statistical Areas 

(CMSAs). Primary Metropolitan Statistical Areas (PSMAs) are 

component areas within MSAs. New England County Metropolitan 

Areas (NECMAs) are the county-based metropolitan alternative 

of the New England states for the city- and town-based MSAs and 

CMSAs.

Migrant: A person who leaves his/her country of origin to seek 

residence in another country.

N

NACARA: Nicaraguan Adjustment and Central American Relief 

Act.

National: A person owing permanent allegiance to a state.

NATO Official: As a nonimmigrant class of admission, an alien 

coming temporarily to the U.S. as a member of the armed forces 

or as a civilian employed by the armed forces on assignment with 

a foreign government signatory to NATO (North Atlantic Treaty 

Organization), and the alien’s spouse and unmarried minor (or 

dependent) children.

Naturalization: The conferring, by any means, of citizenship upon 

a person after birth.

Naturalization Application: The form used by a lawful permanent resident to apply for U.S. citizenship. The application is filed 

with the BCIS at the Service Center with jurisdiction over the 

applicant’s place of residence.

Nonimmigrant: An alien who seeks temporary entry to the U.S. 

for a specific purpose. The alien must have a permanent residence 

abroad (for most classes of admission) and qualify for the nonimmigrant classification sought. The nonimmigrant classifications 

include: foreign government officials, visitors for business and for 

pleasure, aliens in transit through the U.S., treaty traders and 

investors, students, international representatives, temporary workers and trainees, representatives of foreign information media, 

exchange visitors, fiance(e)s of U.S. citizens, intracompany transferees, NATO officials, religious workers, and some others. Most 

nonimmigrants can be accompanied or joined by spouses and 

unmarried minor (or dependent) children.

Nonpreference Category: Nonpreference visas were available 

to qualified applicants not entitled to a visa under the preferences until the category was eliminated by the Immigration Act 

of 1990. Nonpreference visas for persons not entitled to the other 

preferences had not been available since September 1978 because 

of high demand in the preference categories. An additional 5,000 

nonpreference visas were available in each of fiscal years 1987 and 

1988 under a provision of the Immigration Reform and Control 
G-12 Glossary

Act of 1986. This program was extended into 1989, 1990, and 1991 

with 15,000 visas issued each year. Aliens born in countries from 

which immigration was adversely affected by the Immigration and 

Nationality Act Amendments of 1965 (Pub. L. 89-236) were eligible 

for the special nonpreference visas.

North American Free-Trade Agreement (NAFTA): Pub. Law 

103-182 (Act of December 8, 1993), which on January 1, 1994 

superseded the U.S.-Canada Free-Trade Agreement. It continued the special, reciprocal trading relationship between the U.S. 

and Canada (see entry for “United States-Canada Free-Trade 

Agreement”) and established a similar relationship with Mexico.

Numerical Limit, Exempt from: Those aliens accorded lawful permanent residence who are exempt from the provisions of 

the flexible numerical limit of 675,000 set by the Immigration Act 

of 1990. Exempt categories include immediate relatives of U.S. 

citizens, refugees, asylees (limited to 10,000 per year by section 

209(b) of the Immigration and Nationality Act), Amerasians, aliens 

adjusted under the legalization provisions of the Immigration 

Reform and Control Act of 1986, and certain parolees from the former Soviet Union and Indochina.

Nursing Relief Act of 1989: Pub. Law 101-238 (1989) provides 

for the adjustment to permanent resident status of some nonimmigrants who as of September 1, 1989 had H-1 nonimmigrant status 

as registered nurses; had been employed in that capacity for at 

least 3 years; and whose continued nursing employment meets certain labor certification requirements.

O

Occupation: For an alien entering the U.S. or adjusting without 

a labor certification, occupation refers to the employment held in 

the country of last legal residence or in the U.S. For an alien with a 

labor certification, occupation is the employment for which certification has been issued.

Orphan: The Immigration and Nationality Act provides a definition of an orphan for purposes of immigration to the U.S. A child 

may be considered an orphan due to death or disappearance of, 

abandonment or desertion by, or separation or loss from both parents. The child of an unwed mother or surviving parent may be 

considered an orphan if that parent is unable to care for the child 

properly and has, in writing, irrevocably released the child for emigration and adoption. The child of an unwed mother may be considered an orphan, as long as the mother does not marry (which 

would result in the child’s having a stepfather) and as long as the 

child’s biological father has not legitimated the child. If the father 

legitimates the child or the mother marries, the mother is no longer 

considered a sole parent. The child of a surviving parent may also 

be an orphan if the surviving parent has not married since the 

death of the other parent (which would result in the child’s having 

a stepfather or stepmother).
Glossary G-13

Note: Prospective adoptive parents should be sure that a child 

fits the definition of “orphan” before adopting a child from another 

country, because not all children adopted abroad meet the definition of “orphan,” and therefore may not be eligible to immigrate to 

the U.S.

Out of Wedlock (born out of wedlock): A child born of parents 

who were not legally married to each other at that time. Note: 

Adoptive and prospective adoptive parents of a child who was born 

out of wedlock in any country should find out whether the child has 

been legitimated.

P

Panama Canal Act Immigrants: Three categories of special 

immigrants established by Pub. L. 96-70 (Act of September 27, 

1979): (1) certain former employees of the Panama Canal Company 

or Canal Zone Government, their spouses and accompanying children; (2) certain former employees of the U.S. Government in the 

Panama Canal Zone who are Panamanian nationals, their spouses 

and children; and (3) certain former employees of the Panama 

Canal Company or Canal Zone Government on April 1, 1979, and 

their spouses and children. The Act provides for admission of a 

maximum of 15,000 immigrants at a rate no more than 5,000 each 

year. 

Parolee: A parolee is an alien, appearing to be inadmissible to the 

inspecting officer, allowed into the U.S. for urgent humanitarian 

reasons or when that alien’s entry is determined to be for significant public benefit. Parole does not constitute a formal admission 

to the U.S. and confers temporary status only, requiring parolees 

to leave when the conditions supporting their parole cease to exist. 

Types of parolees include: 

1. Deferred inspection: authorized at the port upon alien’s arrival; 

may be conferred by an immigration inspector when aliens appear 

at a port of entry with documentation, but after preliminary examination, some question remains about their admissibility which can 

best be answered at their point of destination.

2. Advance parole: authorized at an BCIS District office in advance 

of alien’s arrival; may be issued to aliens residing in the U.S. in 

other than lawful permanent resident status who have an unexpected need to travel and return, and whose conditions of stay do 

not otherwise allow for readmission to the U.S. if they depart.

3. Port-of-entry parole: authorized at the port upon alien’s arrival; 

applies to a wide variety of situations and is used at the discretion 

of the supervisory immigration inspector, usually to allow short 

periods of entry. Examples include allowing aliens who could not 

be issued the necessary documentation within the required time 

period, or who were otherwise inadmissible, to attend a funeral and 

permitting the entry of emergency workers, such as fire fighters, to 

assist with an emergency.
G-14 Glossary

4. Humanitarian parole: authorized at BCIS headquarters or overseas District Offices for “urgent humanitarian reasons” specified in 

the law. It is used in cases of medical emergency and comparable 

situations.

5. Significant Public Benefit Parole: authorized at BCIS headquarters Office of International Affairs for “significant public benefit” specified in the law. It is generally used for aliens who enter 

to take part in legal proceedings when there is a benefit to the government. These requests must be submitted by a law enforcement agency.

6. Overseas parole: authorized at an BCIS District or suboffice 

while the alien is still overseas; designed to constitute long-term 

admission to the U.S. In recent years, most of the aliens the BCIS 

has processed through overseas parole have arrived under special 

legislation or international migration agreements.

Per-Country Limit: The maximum number of family-sponsored 

and employment-based preference visas that can be issued to citizens of any country in a fiscal year. The limits are calculated each 

fiscal year depending on the total number of family-sponsored and 

employment-based visas available. No more than 7% of the visas 

may be issued to natives of any one independent country in a fiscal year; no more than 2% may be issued to any one dependency of 

any independent country. The per-country limit does not indicate, 

however, that a country is entitled to the maximum number of 

visas each year, just that it cannot receive more than that number. 

Because of the combined workings of the preference system and 

per-country limits, most countries do not reach this level of visa 

issuance.

Permanent Resident Alien: an alien admitted to the U.S. as a 

lawful permanent resident. Permanent residents are also commonly referred to as immigrants; however, the Immigration and 

Nationality Act (INA) broadly defines an immigrant as any alien 

in the U.S., except one legally admitted under specific nonimmigrant categories (INA subsection 101(a)(15)). An illegal alien who 

entered the U.S. without inspection, for example, would be strictly 

defined as an immigrant under the INA but is not a permanent 

resident alien. Lawful permanent residents are legally accorded the 

privilege of residing permanently in the U.S. They may be issued 

immigrant visas by the Department of State overseas or adjusted 

to permanent resident status by the BCIS in the U.S.

Port of Entry: Any location in the U.S. or its territories that is 

designated as a point of entry for aliens and U.S. citizens. All district and files control offices are also considered ports, since they 

become locations of entry for aliens adjusting to immigrant status.

Pre-inspection: Complete immigration inspection of airport passengers before departure from a foreign country. No further immigration inspection is required upon arrival in the U.S. other than 

submission of BCIS Form I-94 for nonimmigrant aliens. 
Glossary G-15

Preference System (Immigration Act of 1990): The nine categories since fiscal year 1992 among which the family-sponsored 

and employment-based immigrant preference visas are distributed. The family-sponsored preferences are: (1) unmarried sons 

and daughters of U.S. citizens; (2) spouses, children, and unmarried sons and daughters of permanent resident aliens; (3) married 

sons and daughters of U.S. citizens; and (4) brothers and sisters of 

U.S. citizens. The employment-based preferences are: (1) priority 

workers (persons of extraordinary ability, outstanding professors 

and researchers, and certain multinational executives and managers); (2) professionals with advanced degrees or aliens with exceptional ability; (3) skilled workers, professionals (without advanced 

degrees), and needed unskilled workers; (4) special immigrants; 

and (5) employment creation immigrants (investors).

Principal Alien: The alien who applies for immigrant status and 

from whom another alien may derive lawful status under immigration law or regulations (usually spouses and minor unmarried children).

Priority Date: In the BCIS Immigrant visa petition application 

process, the priority date is the date the petition was filed. If the 

alien relative has a priority date on or before the date listed in the 

visa bulletin, then he or she is currently eligible for a visa.

R 

Refugee: Any person who is outside his or her country of nationality who is unable or unwilling to return to that country because of 

persecution or a well-founded fear of persecution. Persecution or 

the fear thereof must be based on the alien’s race, religion, nationality, membership in a particular social group, or political opinion. 

People with no nationality must generally be outside their country 

of last habitual residence to qualify as a refugee. Refugees are subject to ceilings by geographic area set annually by the President in 

consultation with Congress and are eligible to adjust to lawful permanent resident status after one year of continuous presence in the 

U.S.

Refugee Approvals: The number of refugees approved for admission to the U.S. during a fiscal year. DBTS officers in overseas 

offices make refugee approvals.

Refugee Arrivals: The number of refugees the DBTS initially 

admits to the U.S. through ports of entry during a fiscal year.

Refugee Authorized Admissions: The maximum number of refugees allowed to enter the U.S. in a given fiscal year. As set forth in 

the Refugee Act of 1980 (Pub. L. 96-212) the President determines 

the annual figure after consultations with Congress.

Refugee-Parolee: A qualified applicant for conditional entry, 

between February 1970 and April 1980, whose application for 

admission to the U.S. could not be approved because of inadequate 
G-16 Glossary

numbers of seventh preference visas. As a result, the applicant 

was paroled into the U.S. under the parole authority granted the 

Attorney General.

Regional Offices: The three BCIS Regional Offices that supervise 

the work of BCIS Districts and Border Patrol Sectors. The Regional 

Directors report to the Executive Associate Commissioner for Field 

Operations in BCIS Headquarters, Washington, DC. The three 

Regional Offices are located in (Eastern Region) Burlington, VT, 

(Central Region) Dallas, TX, and (Western Region) Laguna Nigel, 

CA.

Registry Date: Aliens who have continuously resided in the U.S. 

since January 1, 1972, are of good moral character, and are not 

inadmissible, are eligible to adjust to legal permanent resident status under the registry provision. Before the Immigration Reform 

and Control Act of 1986 amended the date, aliens had to have been 

in the country continuously since June 30, 1948, to qualify.

Removal: The expulsion of an alien from the U.S. This expulsion 

may be based on grounds of inadmissibility or deportability. 

Required Departure: See entry for “Voluntary Departure.” 

Resettlement: Permanent relocation of refugees in a place outside their country of origin to allow them to establish residence 

and become productive members of society there. Refugee resettlement is accomplished with the direct assistance of private voluntary agencies working with the Department of Health and Human 

Services Office of Refugee Resettlement.

S

Safe Haven: Temporary refuge given to migrants who have fled 

their countries of origin to seek protection or relief from persecution or other hardships, until they can return to their countries 

safely or, if necessary until they can obtain permanent relief from 

the conditions they fled.

Service Centers: Four offices established to handle the filing, 

data entry, and adjudication of certain applications for immigration 

services and benefits. The applications are mailed to BCIS Service 

Centers—Service Centers are not staffed to receive walk-in applications or questions.

Special Agricultural Workers (SAW): Aliens who performed 

labor in perishable agricultural commodities for a specified period 

of time and were admitted for temporary and then permanent residence under a provision of the Immigration Reform and Control 

Act of 1986. Up to 350,000 aliens who worked at least 90 days in 

each of the 3 years preceding May 1, 1986 were eligible for Group I 

temporary resident status. Eligible aliens who qualified under this 

requirement but applied after the 350,000 limit was met and aliens 

who performed labor in perishable agricultural commodities for 

at least 90 days during the year ending May 1, 1986 were eligible 

for Group II temporary resident status. Adjustment to permanent 
Glossary G-17

resident status is essentially automatic for both groups; however, 

aliens in Group I were eligible on December 1, 1989 and those in 

Group II were eligible one year later on December 1, 1990.

Special Immigrants: Certain categories of immigrants who were 

exempt from numerical limitation before fiscal year 1992 and 

subject to limitation under the employment-based fourth preference beginning in 1992; persons who lost citizenship by marriage; 

persons who lost citizenship by serving in foreign armed forces; 

ministers of religion and other religious workers, their spouses 

and children; certain employees and former employees of the U.S. 

Government abroad, their spouses and children; Panama Canal Act 

immigrants; certain foreign medical school graduates, their spouses 

and children; certain retired employees of international organizations, their spouses and children; juvenile court dependents; and 

certain aliens serving in the U.S. Armed Forces, their spouses and 

children.

Special Naturalization Provisions: Provisions covering special 

classes of persons whom may be naturalized even though they do 

not meet all the general requirements for naturalization. Such special provisions allow: (1) wives or husbands of U.S. citizens to file 

for naturalization after three years of lawful permanent residence 

instead of the prescribed five years; (2) a surviving spouse of a U.S. 

citizen who served in the armed forces to file his or her naturalization application in any district instead of where he/she resides; and 

(3) children of U.S. citizen parents to be naturalized without meeting certain requirements or taking the oath, if too young to understand the meaning. Other classes of persons who may qualify for 

special consideration are former U.S. citizens, servicemen, seamen, 

and employees of organizations promoting U.S. interests abroad.

Sponsor: There are many ways to sponsor an alien. The term 

“sponsor” in the immigration sense, often means to bring to the U.S. 

or “petition for”. 

Stateless: Having no nationality.

Stowaway: An alien coming to the U.S. surreptitiously on an airplane or vessel without legal status of admission. Such an alien 

is subject to denial of formal admission and return to the point of 

embarkation by the transportation carrier.

Student: As a nonimmigrant class of admission, an alien coming temporarily to the U.S. to pursue a full course of study in an 

approved program in either an academic (college, university, seminary, conservatory, academic high school, elementary school, other 

institution, or language training program) or a vocational or other 

recognized nonacademic institution.

Suboffices: Offices found in some Districts that serve a portion 

of the District’s jurisdiction. A Suboffice, headed by an Officer-inCharge, provides many services and enforcement functions. Their 

locations are determined, in part, to increase convenience to BCIS’ 

customers.
G-18 Glossary

Subject to the Numerical Limit: Categories of legal immigrants 

subject to annual limits under the provisions of the flexible numerical limit of 675,000 set by the Immigration Act of 1990. The largest 

categories are: family-sponsored preferences; employment-based 

preferences; and diversity immigrants.

T

Temporary Protected Status (TPS): Establishes a legislative 

basis for allowing a group of persons temporary refuge in the U.S. 

Under a provision of the Immigration Act of 1990, the Attorney 

General may designate nationals of a foreign state to be eligible for 

TPS with a finding that conditions in that country pose a danger 

to personal safety due to ongoing armed conflict or an environmental disaster. Grants of TPS are initially made for periods of 

6 to 18 months and may be extended depending on the situation. 

Removal proceedings are suspended against aliens while they are 

in Temporary Protected Status.

Temporary Resident: See entry for “Nonimmigrant.”

Temporary Worker: An alien coming to the U.S. to work for a 

temporary period. The Immigration Reform and Control Act of 

1986 and the Immigration Act of 1990, as well as other acts, revised 

existing classes and created new classes of nonimmigrant admission. Nonimmigrant temporary worker classes of admission are as 

follows:

1. H-1A: registered nurses (valid October 1, 1990 through 

September 30, 1995);

2. H-1B: workers with “specialty occupations” admitted on the basis 

of professional education, skills, and/or equivalent experience;

3. H-1C: registered nurses to work in areas with a shortage of 

health professionals under the Nursing Relief for Disadvantaged 

Areas Act of 1999;

4. H-2A: temporary agricultural workers coming to the U.S. to 

perform agricultural services or labor of a temporary or seasonal 

nature when authorized workers are unavailable in the U.S.;

5. H-2B: temporary non-agricultural workers coming to the U.S. to 

perform temporary services or labor if unemployed persons capable 

of performing the service or labor cannot be found in the U.S.;

6. H-3: aliens coming temporarily to the U.S. as trainees, other than 

to receive graduate medical education or training;

7. O-1, O-2, O-3: temporary workers with extraordinary ability or 

achievement in the sciences, arts, education, business, or athletics; 

those entering solely for the purpose of accompanying and assisting 

such workers; and their spouses and children;

8. P-1, P-2, P-3, P-4: athletes and entertainers at an internationally 

recognized level of performance; artists and entertainers under a 

reciprocal exchange program; artists and entertainers under a program that is “culturally unique”; and their spouses and children;
Glossary G-19

9. Q-1, Q-2, Q-3: participants in international cultural exchange 

programs; participants in the Irish Peace Process Cultural and 

Training Program; and spouses and children of Irish Peace Process 

participants; and

10. R-1, R-2: temporary workers to perform work in religious occupations and their spouses and children.

See other entries in this Glossary for definitions of “Exchange 

Visitor,” “Intracompany Transferee,” and “U.S.-Canada or North 

American Free-Trade Agreement” classes of nonimmigrant admission.

Transit Alien: An alien in immediate and continuous transit 

through the U.S., with or without a visa, including, (1) aliens who 

qualify as persons entitled to pass in transit to and from the United 

Nations Headquarters District and foreign countries and (2) foreign government officials and their spouses and unmarried minor 

(or dependent) children in transit.

Transition Quarter: The three-month period–July 1 through 

September 30, 1976–between fiscal year 1976 and fiscal year 1977. 

At that time, the federal fiscal year changed from July 1–June 30 to 

October 1–September 30.

Transit Without Visa (TWOV): A transit alien traveling without 

a nonimmigrant visa under section 233 of the INA. An alien admitted under agreements with a transportation line, which guarantees 

his immediate and continuous passage to a foreign destination.

Treaty Trader or Investor: As a nonimmigrant class of admission, an alien coming to the U.S., under the provisions of a treaty of 

commerce and navigation between the U.S. and the foreign state of 

such alien, to carry on substantial trade or to direct the operations 

of an enterprise in which he/she has invested a substantial amount 

of capital, and the alien’s spouse and unmarried minor children.

U

Underrepresented Countries, Natives of: The Immigration 

Amendments of 1988, Pub. L. 101-658 (Act of November 5, 1988) 

allowed 10,000 visas to be issued to natives of underrepresented countries in each of the two fiscal years 1990 and 1991. 

Underrepresented countries are defined as countries that received 

less than 25% of the maximum allowed under the country limitations (20,000 for independent countries and 5,000 for dependencies) 

in fiscal year 1988.

Undocumented Aliens: See entry for “illegal aliens.”

United States-Canada Free-Trade Agreement: Pub. L. 100-

449 (Act of September 28, 1988) established a special, reciprocal 

trading relationship between the U.S. and Canada. It provided two 

new classes of nonimmigrant admission for temporary visitors to 

the U.S.-Canadian citizen business persons, and their spouses and 

unmarried minor children. Entry is facilitated for visitors seeking classification as visitors for business, treaty traders or inves-
G-20 Glossary

tors, intracompany transferees, or other business people engaging 

in activities at a professional level. Such visitors are not required 

to obtain nonimmigrant visas, prior petitions, labor certifications, 

or prior approval but must satisfy the inspecting officer they are 

seeking entry to engage in activities at a professional level and 

that they are so qualified. The United States-Canada Free-Trade 

Agreement was superseded by the North American Free-Trade 

Agreement (NAFTA) as of January 1, 1994.

V

Visa Waiver Program: Allows citizens of certain selected countries, traveling temporarily to the U.S. under the nonimmigrant 

admission classes of visitors for pleasure and visitors for business, 

to enter the U.S. without obtaining nonimmigrant visas. Admission 

is for no more than 90 days. The program was instituted by the 

Immigration Reform and Control Act of 1986 (entries began July 1, 

1988). Under the Guam Visa Waiver Program, certain visitors from 

designated countries may visit Guam only for up to 15 days without first having to obtain nonimmigrant visitor visas.

Voluntary Departure: The departure of an alien from the U.S. 

without an order of removal. The departure may or may not have 

been preceded by a hearing before an immigration judge. An alien 

allowed to voluntarily depart concedes removability but does not 

have a bar to seeking admission at a port-of-entry at any time. 

Failure to depart within the time granted results in a fine and a 

ten-year bar to several forms of relief from deportation.

W

Withdrawal: An arriving alien’s voluntary retraction of an application for admission to the U.S. in lieu of a removal hearing before 

an immigration judge or an expedited removal. Withdrawals are 

not included in nonimmigrant admission data.
Test T-1

This is an open-book test. You may use your course book and any 

other materials that you will use as a volunteer. Please complete 

the test on your own, without viewing the included answers. Taking 

the test in groups or with use of the provided answers could prove a 

disservice to the people you have volunteered to help.

The test is divided into three parts:

Part 1 – Residency Status and Form 8843

Part 2– Taxability of Income and Form 1040NR-EZ

Part 3 – Advanced Issues and Form 1040NR

All volunteers must pass Part 1. Your instructor will tell you what 

other parts of the test that you are expected to pass.

The general criteria for passing are:

Part 1 – You must answer 14 out of the 20 questions correctly.

Part 2 – You must answer 11 out of the 15 questions correctly.

Part 3 – You must answer 6 out of the 9 questions correctly.

There is not a retest for this course. If you do not successfully complete the test, please work with your site coordinator to determine 

if you can provide volunteer assistance to International Students 

and Scholars.

NOTE: Use the tax charts in Appendix C to look up the tax for 

these returns.

TEST FOR INTERNATIONAL STUDENT

AND SCHOLAR FEDERAL INCOME

TAX ISSUES
T-2 Test

IRS Use Only

Certified FS

Part 1: 

Part 2: 

Part 3: 

The purpose of the VITA and TCE programs is to provide free tax 

assistance to taxpayers. 

Before beginning the test, please sign the statement below. If you 

have questions regarding the meaning of the statement, please 

check with your instructor or a representative of the local IRS or 

sponsoring organization. After you have completed this sheet, tear 

it out and give it to your instructor.

I understand that I cannot accept payment or donations 

from the public for my services as a volunteer, nor can I 

solicit business from taxpayers I assist.

I understand that all tax information I receive from 

taxpayers in my volunteer capacity is strictly confidential 

and will not, under any circumstances, be disclosed to 

unauthorized individuals.

 

Print Last Name, First, Middle Initial Signature Date

 

Class Location Home Street Address

 

Class Dates City, State, Zip Code

 

Site Number/Name Daytime Telephone Number
Test T-3

Publication 678FS Answer Sheet

Part 1: Residency Status and Form 8843

1. 8. 15.

2. 9. 16.

3. 10. 17.

4. 11. 18.

5. 12. 19.

6. 13. 20.

7. 14.

Part 2: Form 1040NR-EZ

1. 6. 11.

2. 7. 12.

3. 8. 13.

4. 9. 14.

5. 10. 15.

Part 3: Form 1040NR and Advanced Issues

1. 4. 7.

2. 5. 8.

3. 6. 9.
T-4 Test

Certification

This is to certify that has 

successfully completed the Volunteer Income Tax training 

for International Student and Scholar Issues.

 has passed part(s) of 

the 2003 Publication 678FS test.

 

Signature of Instructor Date
Test T-5

PART 1

DETERMINATION OF RESIDENCY

FORM 8843

Carefully read the following questions and write your 

answers on the answer sheet.

1. Juliana arrived in the United States on August 1, 2003 in F-1 

immigration status. She had never been to the U.S. before and 

she did not change immigration statuses during 2003. For federal income tax purposes, is Juliana a resident or nonresident 

alien for 2003?

2. Lei came to the United States in 1996 in F-1 immigration status to study engineering. He has not left the country nor has he 

changed immigration status. For federal income purposes, is Lei 

a resident or nonresident alien for 2003?

3. Miguel is a professor at the local university. He entered the 

United States in J-1 immigration status on May 18, 2002. For 

federal income tax purposes, is Miguel a resident or nonresident 

alien for 2003?

4. Sasha served as a visiting scholar from August 2000 through 

May 2001. In April of 2003, Sasha returned to the United States 

and served another year as a visiting scholar. For federal income 

tax purposes, is Sasha a resident or nonresident alien for 2003?

5. Hans came to the United States in F-2 immigration status on 

July 11, 2003. He has not changed his immigration status. For 

federal income tax purposes, is Hans a resident or nonresident 

alien for 2003?
T-6 Test

Determine whether the following taxpayers need to file a Form 8843. 

Please record your answers on the answer sheet.

6. Celina is an F-1 student who has been in the United States since 8-6-

2001. Does she need to file a Form 8843 for 2003?

7. Devesh is an F-1 student from India who has been in the United States 

since 6-30-1997. Does he need to file a Form 8843 for 2003?

8. Christiana is the wife of Albert who is an F-1 student. Christiana has 

been in F-2 immigration status since her arrival on 12-14-2003. Does she 

need to file a Form 8843 for 2003?

9. Assume that Christiana and Albert have a child who is with them in F-2 

status. Do they need to file a Form 8843 for that child?

10. Sara is an F-1 student and her husband Franco is also an F-1 student. They have a daughter who was born in the United States. 

Do they need to file a Form 8843 for their daughter?

Use the following information to prepare a Form 8843. Record the 

requested answers on the answer sheet.

Rosa Santos is attending All-State University (115 Main St., All City, IL, 

88779) to study Business Management. Her Social Security number is 111-

22-3333. She will be filing the Form 8843 with her tax return. She is in F-1 

immigration status and her visa number is 17178817. She has not changed 

immigration status since her arrival on July 31, 2002. Rosa is from Spain 

and holds a Spanish passport (number 345123987). Dr. Miller is her advisor. 

His phone number is (499) 555-5555. Rosa had never been in the U.S. before 

2002. She has not taken any steps to apply for permanent residency.
Test T-7

11. What number is on line 4b?

12. Which line is the passport number entered on?

13. Does Rosa need to put her address on this form?

14. What is the answer to line 13?

15. Does Rosa need to sign this form?
T-8 Test

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003
Test T-9

Use the following information to prepare a Form 8843. 

Record the requested answers on the answer sheet.

Dr. Leonard Choi, a citizen from P.R. China arrived in the United 

States on May 31, 2002 as a visiting scholar in J-1 immigration 

status. His Social Security number is 888-77-6666. He will file a 

form 1040NR-EZ for 2003. His visa number is 18181718. He has 

not changed status since his arrival. His China passport number 

is 6547653. He teaches physics at State University (224 Main St., 

Any City, IL, 69999). The director of the physics department is Dr. 

Albert. Her phone number is (999) 888-7777. Dr. Choi has never 

taught in the U.S. before and he has not taken any steps to apply 

for permanent residency.
T-10 Test

16. What number is entered on line 4b?

17. Should Dr. Choi put his address on this form?

18. What is the answer on line 8?

19. What is on line 2?

20. Should Dr. Choi sign this form?
Test T-11

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003
T-12 Test

STUDENT NOTES
Test T-13

PART 2

TAXABILITY OF INCOME

FORM 1040NR-EZ

Carefully read the following questions and record your 

answers on the answer sheet.

1. Rebecca received a tuition waiver from the University. She 

did not have to perform any services to get this waiver. Is this 

waiver taxable?

2. James received $419 of interest on his bank account. He is an 

international student from Ireland. He just arrived in the U.S. 

in 2003. Is his interest income taxable?

3. Raji has a teaching assistantship. The school reports his wages 

on Form W-2. Must Raji include this income on his tax return?

4. Miya is from P.R. China. She earned $3,300 in wages in 2003. 

Her wages are reported to her on Form 1042S. Will she have to 

pay tax on her wages?

5. Hildae is an international student from South Africa. She 

earned $12 of dividend income on her investment in the U.S. 

stock market. Must Hildae report this income on her tax return?
T-14 Test

Use the following information to prepare a Form 1040NREZ. Record the requested answers on the answer sheet.

Melissa Brigham, a permanent resident of Belgium (visa number 

3344123344), came to the U.S. on an F-1 visa on August 1, 2002. 

She has remained in the country since then and is a full-time student at the local university. Melissa, born 3-15-1979, is single. She 

began working at the university campus on January 3, 2003. She 

filed the proper withholding and treaty forms with the university 

payroll office before beginning her job. Belgium will not tax her on 

wages that she earns here. Using the following information (Form 

1042-S and Form W-2), complete Melissa’s federal income tax 

return. (She would also need to file a Form 8843, but assume that 

she has already completed that on her own.)

6. Enter the amount from line 3, Form 1040NR-EZ.

7. Enter the amount from line 10, Form 1040NR-EZ.

8. Enter the amount from line 15, Form 1040NR-EZ.

9. Enter the amount from line 21, Form 1040NR-EZ.

10. Does Melissa have an overpayment of tax?
Test T-15

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B To Be Filed with Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

a

b

c

d

e

f

W-2 Wage and Tax

Statement 20 30

OMB No. 1545-0008

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS Web Site

at www.irs.gov.

12-3456789 2489.00 316.00

State University

123 Main St.

Town, IL 62700

333-88-2222

Melissa Brigham

233 Main St.

Town, IL 62700

IL 2489.00 79.00

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003

State University

123 Main St.

Town, IL 62700

Melissa Brigham

233 Main St.

Town, IL 62700

19 2000.00

xx-xxxxxxx xxx-xx-xxxx

x
T-16 Test

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
Test T-17

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
T-18 Test

Use the following information to prepare a Form 1040NREZ. Record the requested answers on the answer sheet.

Raji Ratnaker, a permanent resident of India (visa number 

88779914), came to the U.S. on an F-1 visa on August 3, 2002. He 

has remained in the country since then and is a full-time student 

at the local university. Raji, born 10-17-81, is single. He filed the 

proper treaty and withholding forms with the university payroll 

office before beginning to work in the school cafeteria in 2003. 

Using the following Form W-2, prepare Raji’s federal income tax 

return. (He has already completed his Form 8843.)

11. Enter the amount from line 3, Form 1040NR-EZ.

12. Enter the amount from line 11, Form 1040NR-EZ.

13. Enter the amount from line 15, Form 1040NR-EZ.

14. Enter the amount from line 22, Form 1040NR-EZ.

15. Does Raji have an overpayment tax?

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B To Be Filed with Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

a

b

c

d

e

f

W-2 Wage and Tax

Statement 20 30

OMB No. 1545-0008

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS Web Site

at www.irs.gov.

23-4567891 5968.00 412.00

First University

459 Main St.

Town, MO 64000

444-88-7777

Raji Ratnaker

23 India Blvd

Town, MO 64000

MO 5968.00 57.90
Test T-19

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003
T-20 Test

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)
Test T-21

PART 3

ADVANCED TOPICS

FORM 1040NR

FORM 843

Carefully read the following questions and record your 

answers on the answer sheet.

1. Eduard, an international student from Peru, has a W-2 that 

shows amounts withheld for social security and Medicare taxes. 

Eduard is an F-1 nonresident alien for tax purposes. Which form 

should he file to receive a refund of these taxes?

2. Carmela is the spouse of a J-1 scholar. She obtained work 

authorization in 2003 and started working at the local library. 

Her W-2 form shows Social Security and Medicare witholding. 

Can she get a refund of these taxes?

3. Hortensia, an international student from Italy, received dividend income in 2003. What type of federal income tax return 

does she need to file?
T-22 Test

Use the following information to prepare a Form 1040NR. 

Record the requested answers on the answer sheet.

Igor Pulaski is an F-1 international student from Poland. His wife, 

Katinka is also an F-1 student from Poland. They have come to 

your VITA site to get assistance with their 2003 tax return. They 

both worked on campus (starting in 2003) and they have a son, who 

was born in the United States in December, 2002. Igor came to the 

U.S. on 8-9-2001. Katinka came to the U.S. on 1-1-2002. In addition 

to their wage income, Igor earned $1,266 in dividends in the U.S. 

stock market (from Microsoft stock). Poland has a treaty with the 

U.S. that allows the dividends to be taxed at 15% instead of 30%. 

Prepare Igor’s tax return using the following information.

4. Can Igor and Katinka file a joint return?

5. Can Igor claim their son as a dependent?

6. What amount is on line 8 of Igor’s 1040NR?

7. What amount is on line 34 of Igor’s 1040NR?

8. What is the amount on line 57 of Igor’s 1040NR?

9. What is the amount on line 86 of Igor’s 1040NR?

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003

Middle University

9046 Main St.

Town, GA 30000

Igor Pulaski

#16 Student Parkway

Town, GA 30000

19 2000.00

xx-xxxxxxx xxx-xx-xxxx

x

04
Test T-23

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy A for

Internal Revenue Service Department of the Treasury

Internal Revenue Service

For Privacy Act and Paperwork Reduction Act Notice, see page 15 of the separate instructions.

U.S. Federal tax

withheld

Exemption

code

Withholding Net income

allowances

Income Tax rate

code

Amount repaid to

recipient

WITHHOLDING AGENT’S name and address (including ZIP code)

Recipient’s U.S. TIN, if any 

RECIPIENT’S name (first name, initial, and last name), street address,

city or town, province or state, and country (including postal code)

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19

Payer’s state tax no.

1

12

2

Cat. No. 11386R Form 1042-S (2003)

20

Name of state

21

VOID CORRECTED

Gross income 3 4 56 7 8

24

10

22

13

Country code

23

NQI’s/Flow-through entity’s address

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

2003

Middle University

9046 Main St.

Town, GA 30000

Katinka Pulaski

#16 Student Parkway

Town, GA 30000

19 1143.00

xx-xxxxxxx xxx-xx-xxxx

x

04

Poland PO

1

Control number

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number

Medicare wages and tips

Social security tips

13

5

Employee’s social security number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B To Be Filed with Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

a

b

c

d

e

f

W-2 Wage and Tax

Statement 20 30

OMB No. 1545-0008

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS Web Site

at www.irs.gov.

98-765432 7896.00 1943.00

Middle University

9046 Main St.

Town, GA 30000

555-56-5777

Igor Pulaski

#16 Student Pkwy

Town, GA 30000

GA 7896.00 696.00
T-24 Test

Draft as of

8/13/2003

OMB No. 1545-0089 U.S. Nonresident Alien Income Tax Return

Form For the year January 1–December 31, 2003, or other tax year

Department of the Treasury

Internal Revenue Service beginning , 2003, and ending , 20

Your first name and initial Last name Identifying number (see page 7 of inst.)

Present home address (number, street, and apt. no., or rural route). If you have a P.O. box, see page 7. Check if:

Estate or Trust

Individual

City, town or post office, state, and ZIP code. If you have a foreign address, see page 7. For Disclosure and Paperwork

Reduction Act Notice, see page 26.

Country  Of what country were you a citizen or national during the tax year? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing Status and Exemptions for Individuals (see page 7) 7a 7b

Filing status. Check only one box (1–6 below). Yourself Spouse

1 Single resident of Canada or Mexico, or a single U.S. national

2 Other single nonresident alien

3 Married resident of Canada or Mexico, or a married U.S. national If you check box 7b, enter your spouse’s

4 Married resident of Japan or the Republic of Korea identifying number 

5 Other married nonresident alien

6 Qualifying widow(er) with dependent child (see page 7)

No. of boxes checked

on 7a and 7b

Caution: Do not check box 7a if your parent (or someone else) can claim you as a dependent.

Do not check box 7b if your spouse had any U.S. gross income.

(3) Dependent’s

relationship

to you

7c Dependents: (see page 8) No. of children on

7c who: (2) Dependent’s

identifying number

lived with you

did not live with you

due to divorce or

separation

Dependents on 7c

not entered above

Add numbers entered

on lines above

Attach Forms W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

d Total number of exemptions claimed

8 Wages, salaries, tips, etc. Attach Form(s) W-2 8

9a Taxable interest 9a

b Tax-exempt interest. Do not include on line 9a 9b

10a Ordinary dividends 10a

11 Taxable refunds, credits, or offsets of state and local income taxes (see page 9) 11

12 Scholarship and fellowship grants. Attach Form(s) 1042-S or required statement (see page 9) 12

13 Business income or (loss). Attach Schedule C or C-EZ (Form 1040) 13

14a Capital gain or (loss). Attach Schedule D (Form 1040) if required. If not required, check here

15 Other gains or (losses). Attach Form 4797 15

16a Total IRA distributions 16a 16b Taxable amount (see page 10) 16b

17a Pensions and annuities 17a 17b Taxable amount (see page 11) 17b

Rental real estate, royalties, partnerships, trusts, etc. Attach Schedule E (Form 1040) 18

19 Farm income or (loss). Attach Schedule F (Form 1040) 19

20 Unemployment compensation 20

21 Other income. List type and amount (see page 12)

22

21

Income Effectively Connected With U.S. Trade/Business

23 Add lines 8, 9a, 10a, 11–14a, 15, 16b, and 17b–21. This is your total effectively connected income  23

31

IRA deduction (see page 13)

33

26

25

Self-employed health insurance deduction (see page 14)

Self-employed SEP, SIMPLE, and qualified plans

26

27

Penalty on early withdrawal of savings

Enclose, but do not attach, any payment.

29

Scholarship and fellowship grants excluded

27

Adjusted Gross Income

Add lines 24 through 31

28

32

Subtract line 32 from line 23. Enter here and on line 34. This is your adjusted gross income 

30

33

1040NR











.

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

.

Cat. No. 11364D

 

(1) First name

Form 1040NR (2003)

Total income exempt by a treaty from page 5, Item M 22

29

Moving expenses. Attach Form 3903

25

18

Last name

28

31

Student loan interest deduction (see page 13)

32

30

(4) if qualifying

child for child tax

credit (see page 8)

24 Educator expenses (see page 13) 24

2003

b Qualified dividends (see page 9) 10b

b If box 14a is checked, enter post-May 5 capital gain distribution 14b

14a
Test T-25

Draft as of

8/13/2003

Form 1040NR (2003) Page 2

Amount from line 33 (adjusted gross income)

Itemized deductions from page 3, Schedule A, line 17

41

38

Subtract line 35 from line 34

34

36

34

Taxable income. Subtract line 37 from line 36. If line 37 is more than line 36, enter -0-

37

35

36

Credit for child and dependent care expenses. Attach Form 2441

42

43

Other credits. Check applicable box(es):

42

Form 8801

Tax and Credits

44

46

Add lines 42 through 48. These are your total credits

Subtract line 49 from line 41. If line 49 is more than line 41, enter -0- 

45

49

46

Tax on income not effectively connected with a U.S. trade or business from page 4, line 86

50

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

51

50

Tax on qualified plans, including IRAs, and other tax-favored accounts. Attach Form 5329 if required

Other Taxes

51

Transportation tax (see page 18)

Add lines 50 through 55. This is your total tax 

53

Federal income tax withheld from Forms W-2, 1099, 1042-S, etc.

54

55

2003 estimated tax payments and amount applied from 2002 return

56

Amount paid with Form 4868 (request for extension)

Excess social security and tier 1 RRTA tax withheld (see page 19)

58

59

Credit for amount paid with Form 1040-C

U.S. tax withheld at source from page 4, line 83

Payments

65b

65a

U.S. tax withheld at source by partnerships under section 1446:

a From Form(s) 8805

66a

b From Form(s) 1042-S

Add lines 57 through 66b. These are your total payments 

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Sign belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Here Your signature Date

Preparer’s Date Preparer’s SSN or PTIN

signature Check if

self-employed

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Exemptions (see page 14)

Other payments from:







35

Keep a copy

of this

return for

your records.

Form 3800

Form (specify) 

52

Household employment taxes. Attach Schedule H (Form 1040)

Tax (see page 15). Check if any tax is from a b Form(s) 8814 Form 4972

53

52

67

37

47

a

b c

a b Form 2439 Form 4136

48

Adoption credit. Attach Form 8839

60

62

38

43

57

58

Child tax credit (see page 17)

57

Additional child tax credit. Attach Form 8812

63

64

65

54

59

60

62

Form 1040NR (2003)

Foreign tax credit. Attach Form 1116, if required

41 Add lines 39 and 40 

40 Alternative minimum tax (see page 15). Attach Form 6251

39

55

61 61

39

40

44

Your occupation in the United States

Phone no. ( )

68

69a 69a

70 70

If line 67 is more than line 56, subtract line 56 from line 67. This is the amount you overpaid

71 71

Refund Amount of line 68 you want refunded to you.

72

Amount of line 68 you want applied to your 2004 estimated tax 

72 Estimated tax penalty. Also include on line 71

Amount

You Owe

Amount you owe. Subtract line 67 from line 56. For details on how to pay, see page 20 

Direct

deposit? See

page 19.

Routing number

Account number

b c Type: Checking Savings

d

68



Designee’s

name 

Do you want to allow another person to discuss this return with the IRS (see page 20)? Third Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

Retirement savings contributions credit. Attach Form 8880

Credits from: Form 8859 a Form 8396 b 47

45

48

49

56

67

63

U.S. tax withheld on dispositions of U.S. real property interests:

a From Form(s) 8288-A

b From Form(s) 1042-S

66

66b

64

c Form 8885
T-26 Test

Draft as of

8/13/2003

Form 1040NR (2003) Page 3

Schedule A—Itemized Deductions (See pages 21, 22, and 23.) 07

State and

Local

Income

Taxes

1 State income taxes 1

2 Local income taxes 2

3 Add lines 1 and 2 3

Gifts to

U.S.

Charities

Caution: If you made a gift and received a benefit in

return, see page 21.

4

Gifts by cash or check. If you made any gift of $250 or

more, see page 21

4

5

Other than by cash or check. If you made any gift of

$250 or more, see page 21. You must attach Form 8283

if “the amount of your deduction” (see definition on page

22) is more than $500

5

6 Carryover from prior year 6

7 Add lines 4 through 6 7

8 Casualty or theft loss(es). Attach Form 4684. See page 22 8

Job

Expenses

and Most

Other

Miscellaneous

Deductions

Unreimbursed employee expenses—job travel, union

dues, job education, etc. You must attach Form 2106

or Form 2106-EZ if required. See page 22 

9

9

Other expenses. See page 23 for expenses to deduct

here. List type and amount 

11

11

12 Add lines 9 through 11 12

13

Enter the amount from Form

1040NR, line 34

13

14 Multiply line 13 by 2% (.02) 14

15 Subtract line 14 from line 12. If line 14 is more than line 12, enter -0- 15

Other

Miscellaneous

Deductions

Other—see page 23 for expenses to deduct here. List type and amount 

16

Total 17

Itemized

Deductions

17

Is Form 1040NR, line 34, over $139,500 (over $69,750 if you checked filing status

box 3, 4, or 5 on page 1 of Form 1040NR)?

Yes. Your deduction may be limited. See page 23 for the amount to

enter here and on Form 1040NR, line 35.



No. Your deduction is not limited. Add the amounts in the far right

column for lines 3 through 16. Also enter this amount on Form

1040NR, line 35. 

Casualty and

Theft Losses

10 Tax preparation fees 10

16

Form 1040NR (2003)
Test T-27

Draft as of

8/13/2003

Dividends paid by:

Other (specify)



Industrial royalties (patents, trademarks, etc.)Motion picture or T.V. copyright royaltiesOther royalties (copyrights, recording, publishing, etc.)Real property income and natural resources royalties

Pensions and annuitiesSocial security benefitsGains (include capital gain from line 89 below)

Form 1040NR (2003)

U.S. corporations

Foreign corporationsMortgagePaid by foreign corporations

Report property sales or

exchanges that are effectively

connected with a U.S.business on Schedule D (Form1040), Form 4797, or both.

Enter only the capital gains

and losses from property sales

or exchanges that are fromsources within the UnitedStates and not effectivelyconnected with a U.S.business. Do not include a gainor loss on disposing of a U.S.real property interest; reportthese gains and losses onSchedule D (Form 1040).

Multiply line 84 by rate of tax at top of each column

Nature of income

Tax on income not effectively connected with a U.S. trade or business. Add columns (b)–(e) of line 85. Enter the total here and on Form

1040NR, line 51

88 Add columns (f) and (g) of line 87

Capital gain. Combine columns (f) and (g) of line 88. Enter the net gain here and on line 81 above (if a loss, enter -0-)



87

Attach Forms 1042-S, SSA-1042S, RRB-1042S, or similar form.

Capital Gains and Losses From Sales or Exchanges of Property

(a) U.S. tax

withheld

at source

(b) Date

acquired

(mo., day, yr.)

Enter amount of income under the appropriate rate of tax (see pages 23 and 24)

(c) Date

sold

(mo., day, yr.)

(b) 10%

(d) Sales price

(c) 15%

(e) Cost or other

basis

(d) 30%

(f) LOSS

If (e) is more

than (d), subtract (d)

from (e)

(e) Other (specify)

%

(g) GAIN

If (d) is more

than (e), subtract (e)

from (d)

Page

4

Tax on Income Not Effectively Connected With a U.S. Trade or Business

a

b

a

b

c

7475

7677

79

86

Total U.S. tax withheld at source. Add column (a) of

lines 73a through 82. Enter the total here and on Form

1040NR, line 64

Add lines 73a through 82 in columns (b)–(e)

73a

73b74a74b74c

75767778

79

80

85

86

89

88

89

Other

%

Interest:

( )

73

81

(a) Kind of property and description

(if necessary, attach statement of

descriptive details not shown below)

78

84

83

80

82

81

82

83

84

85

Form 1040NR (2003)




T-28 Test

Draft as of

8/13/2003

Form 1040NR (2003) Page 5

Other Information (If an item does not apply to you, enter “N/A.”)

To which Internal Revenue office did you pay any amounts

claimed on Form 1040NR, lines 58, 61, and 63?

K

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

L Have you excluded any gross income other

than foreign source income not effectively

connected with a U.S. trade or business?

If “Yes,” show the amount, nature, and source of the

excluded income. Also, give the reason it was excluded.

(Do not include amounts shown in item M.) 

Type of entry visa 

and current nonimmigrant status and date

of change (see page 24) 

D

M

F Did you give up your permanent

residence as an immigrant in the United

States this year?

● Country 

Dates you entered and left the United States during the

year. Residents of Canada or Mexico entering and leaving

the United States at frequent intervals, give name of country

only. 

G

● Type and amount of effectively connected income exempt

from tax. Also, identify the applicable tax treaty article. Do

not enter exempt income on lines 8–15, 16b, and 17b–21

of Form 1040NR: 

Give number of days (including vacation and For 2002 

nonworkdays) you were present in the United States

during:

2001 , 2002 , and 2003 .

H

● Were you subject to tax in that country

on any of the income you claim is entitled

to the treaty benefits?

If you are a resident of Canada, Mexico,

Japan, or the Republic of Korea (South

Korea), or a U.S. national, did your spouse

contribute to the support of any child

claimed on Form 1040NR, line 7c?

I

● Did you have a permanent establishment

or fixed base (as defined by the tax treaty)

in the United States at any time during

2003?

If “Yes,” enter amount  $

If you were a resident of Japan or the Republic of Korea

(South Korea) for any part of the tax year, enter in the space

below your total foreign source income not effectively

connected with a U.S. trade or business. This information

is needed so that the exemption for your spouse and

dependents residing in the United States (if applicable) may

be allowed in accordance with Article 4 of the income tax

treaties between the United States and Japan or the United

States and the Republic of Korea (South Korea).

If you file this return to report community income, give your

spouse’s name, address, and identifying number.

N

Total foreign source income not effectively connected

with a U.S. trade or business  $

Did you file a U.S. income tax return for

any year before 2003?

J

If you file this return for a trust, does the

trust have a U.S. business?

O

If “Yes,” give name and address 

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If you are claiming the benefits of a U.S. income tax treaty

with a foreign country, give the following information. See

page 24 for additional information.

● Type and amount of income not effectively connected that

is exempt from or subject to a reduced rate of tax. Also,

identify the applicable tax treaty article:

For 2002 

Date you entered the United States (see page 24)



E

For 2003 

For 2003 (also, include this exempt income on

line 22 of Form 1040NR) 

Is this an “expatriation return” (see

page 24)?

P

Yes No

If “Yes,” you must attach an annual

information statement.

During 2003, did you apply for, or take

other affirmative steps to apply for, lawful

permanent resident status in the United

States or have an application pending to

adjust your status to that of a lawful

permanent resident of the United States?

Q

If “Yes,” explain 

Yes No

If “Yes,” give the latest year and form number 

Form 1040NR (2003)
Test T-29

TEST ANSWERS

The following pages provide the answers to the test. 

Please complete the test without referring to these

 answers.
T-30 Test

Publication 678FS Test Answer Sheet

Part 1: Residency Status and Form 8843

1. nonresident 8. yes 15. no

2. resident 9. yes 16. 365

3. nonresident 10. no 17. no

4. resident 11. 365 18. no

5. nonresident 12. 3b 19. P.R. China

6. yes 13. no 20. no

7. no 14. no

Part 2: Form 1040NR-EZ

1. no 6. 2489.00 11. 5968.00

2. no 7. 79.00 12. 4750.00

3. yes 8. 0 13. 0

4. no 9. 316.00 14. 412.00

5. yes 10. yes 15. yes

Part 3: Form 1040NR and Advanced Issues

1. 843 4. no 7. 7896.00

2. no 5. no 8. 618.00

3. 1040NR 6. 7896.00 9. 190.00
Test T-31

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003

ROSA SANTOS XXX-XX-XXXX

F-1 7-31-02

F-1

SPAIN

SPAIN

345123987

365 153 0

365

ALL STATE UNIVERSITY, 115 MAIN ST, ALL CITY, IL 88779

DR. MILLER, SCHOOL OF BUSINESS MANAGEMENT, ALL STATE UNIVERSITY

115 MAIN ST, ALL CITY, IL 88779 (499) 555-5555

F-1

X

X
T-32 Test

Draft as of

3/20/2003

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2003, or other tax year

beginning , 2003, and ending , 20 .

OMB No. 1545-1411

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (e.g., F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2003, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (1997 through 2002)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee unless you meet the

Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

Cat. No. 17227H Form 8843 (2003)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated

in during 2003 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to establish that you do

not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2003 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

1999 2000 2001 2002

1997 1998

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2003 you claim you can exclude for purposes of the substantial presence test 

2003 2002 2001 .

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

1999 2000 2001 2002

1997 1998

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2003

LEONARD CHOI XXX-XX-XXXX

J-1 5-31-2002

J-1

PR CHINA

PR CHINA

6547653

365 214 0

365

STATE UNIVERSITY, 224 MAIN ST, ANY CITY, IL 69999

DR. ALBERT, PHYSICS DEPARTMENT, STATE UNIVERISTY, 224 MAIN ST

ANY CITY, IL 69999 (999)888-7777

J-1

X
Test T-33

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003

MELISSA BRIGHAM XXX-XX-XXXX

233 MAIN ST

TOWN IL 62700

USA

X

2,489

2,000

2489

2,489

79

2,410

3,050

0

0

316

316

316

316

BELGIUM
T-34 Test

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)

BELGIUM

X

STUDY

F-1

F-1

08-01-2002

X

153 365

X

BELGIUM

$2,000 WAGES ARTICLE 21(1)

X

X
Test T-35

Draft as of

6/18/2003

OMB No. 1545-1468 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 3)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2003? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Enclose, but do not attach, any payment.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 4)

12

Scholarship and fellowship grants. Attach explanation (see page 4)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2003)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9 Scholarship and fellowship grants excluded (see page 6)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions. Enter state and local income taxes paid. Residents of India, see page 6

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 11–15

Federal income tax withheld (from Form W-2 and/or Form 1042-S)

2003 estimated tax payments and amount applied from 2002 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure and Paperwork Reduction Act Notices, see page 9 of instructions.

Add lines 18 through 20. These are your total payments  21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you 

Refund

26

Amount of line 22 you want applied to your 2004 estimated tax 

26 Estimated tax penalty (see page 7). Also include on line 25

Amount

You Owe

Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 7 

Direct

deposit? See

page 6 and fill

in 23b, 23c,

and 23d.

Routing number

Account number

b c Type: Checking Savings

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 7)?

Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

2003

RAJI RATNAKER XXX-XX-XXXX

23 INDIA BLVD

TOWN MO 64000

USA

X

5,968

5968

5,968

4,750

1,218

3,050

0

0

0

412

412

412

412

PXX-XX-XXXX

INDIA
T-36 Test

Draft as of

6/18/2003

Form 1040NR-EZ (2003) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2003 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2001 , 2002 , and 2003 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2003?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2003 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 8 for additional information.

For 2002 

Date you entered the United States (see page 8) 

H

J

K During 2003, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2003)

INDIA

X

STUDY

F-1

F-1

8-3-02

X

151 365

INDIA

STANDARD DEDUCTION PER US/INDIA TREATY ARTICLE

X

X
Test T-37

Draft as of

8/13/2003

OMB No. 1545-0089 U.S. Nonresident Alien Income Tax Return

Form For the year January 1–December 31, 2003, or other tax year

Department of the Treasury

Internal Revenue Service beginning , 2003, and ending , 20

Your first name and initial Last name Identifying number (see page 7 of inst.)

Present home address (number, street, and apt. no., or rural route). If you have a P.O. box, see page 7. Check if:

Estate or Trust

Individual

City, town or post office, state, and ZIP code. If you have a foreign address, see page 7. For Disclosure and Paperwork

Reduction Act Notice, see page 26.

Country  Of what country were you a citizen or national during the tax year? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing Status and Exemptions for Individuals (see page 7) 7a 7b

Filing status. Check only one box (1–6 below). Yourself Spouse

1 Single resident of Canada or Mexico, or a single U.S. national

2 Other single nonresident alien

3 Married resident of Canada or Mexico, or a married U.S. national If you check box 7b, enter your spouse’s

4 Married resident of Japan or the Republic of Korea identifying number 

5 Other married nonresident alien

6 Qualifying widow(er) with dependent child (see page 7)

No. of boxes checked

on 7a and 7b

Caution: Do not check box 7a if your parent (or someone else) can claim you as a dependent.

Do not check box 7b if your spouse had any U.S. gross income.

(3) Dependent’s

relationship

to you

7c Dependents: (see page 8) No. of children on

7c who: (2) Dependent’s

identifying number

lived with you

did not live with you

due to divorce or

separation

Dependents on 7c

not entered above

Add numbers entered

on lines above

Attach Forms W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

d Total number of exemptions claimed

8 Wages, salaries, tips, etc. Attach Form(s) W-2 8

9a Taxable interest 9a

b Tax-exempt interest. Do not include on line 9a 9b

10a Ordinary dividends 10a

11 Taxable refunds, credits, or offsets of state and local income taxes (see page 9) 11

12 Scholarship and fellowship grants. Attach Form(s) 1042-S or required statement (see page 9) 12

13 Business income or (loss). Attach Schedule C or C-EZ (Form 1040) 13

14a Capital gain or (loss). Attach Schedule D (Form 1040) if required. If not required, check here

15 Other gains or (losses). Attach Form 4797 15

16a Total IRA distributions 16a 16b Taxable amount (see page 10) 16b

17a Pensions and annuities 17a 17b Taxable amount (see page 11) 17b

Rental real estate, royalties, partnerships, trusts, etc. Attach Schedule E (Form 1040) 18

19 Farm income or (loss). Attach Schedule F (Form 1040) 19

20 Unemployment compensation 20

21 Other income. List type and amount (see page 12)

22

21

Income Effectively Connected With U.S. Trade/Business

23 Add lines 8, 9a, 10a, 11–14a, 15, 16b, and 17b–21. This is your total effectively connected income  23

31

IRA deduction (see page 13)

33

26

25

Self-employed health insurance deduction (see page 14)

Self-employed SEP, SIMPLE, and qualified plans

26

27

Penalty on early withdrawal of savings

Enclose, but do not attach, any payment.

29

Scholarship and fellowship grants excluded

27

Adjusted Gross Income

Add lines 24 through 31

28

32

Subtract line 32 from line 23. Enter here and on line 34. This is your adjusted gross income 

30

33

1040NR











.

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

.

Cat. No. 11364D

 

(1) First name

Form 1040NR (2003)

Total income exempt by a treaty from page 5, Item M 22

29

Moving expenses. Attach Form 3903

25

18

Last name

28

31

Student loan interest deduction (see page 13)

32

30

(4) if qualifying

child for child tax

credit (see page 8)

24 Educator expenses (see page 13) 24

2003

b Qualified dividends (see page 9) 10b

b If box 14a is checked, enter post-May 5 capital gain distribution 14b

14a

IGOR PULASKI XXX-XX-XXXX

16 STUDENT PARKWAY

TOWN, GA 30000

X

X 1

1

1

7896

2000 WAG

7896

7896

POLAND
T-38 Test

Draft as of

8/13/2003

Form 1040NR (2003) Page 2

Amount from line 33 (adjusted gross income)

Itemized deductions from page 3, Schedule A, line 17

41

38

Subtract line 35 from line 34

34

36

34

Taxable income. Subtract line 37 from line 36. If line 37 is more than line 36, enter -0-

37

35

36

Credit for child and dependent care expenses. Attach Form 2441

42

43

Other credits. Check applicable box(es):

42

Form 8801

Tax and Credits

44

46

Add lines 42 through 48. These are your total credits

Subtract line 49 from line 41. If line 49 is more than line 41, enter -0- 

45

49

46

Tax on income not effectively connected with a U.S. trade or business from page 4, line 86

50

Social security and Medicare tax on tip income not reported to employer. Attach Form 4137

51

50

Tax on qualified plans, including IRAs, and other tax-favored accounts. Attach Form 5329 if required

Other Taxes

51

Transportation tax (see page 18)

Add lines 50 through 55. This is your total tax 

53

Federal income tax withheld from Forms W-2, 1099, 1042-S, etc.

54

55

2003 estimated tax payments and amount applied from 2002 return

56

Amount paid with Form 4868 (request for extension)

Excess social security and tier 1 RRTA tax withheld (see page 19)

58

59

Credit for amount paid with Form 1040-C

U.S. tax withheld at source from page 4, line 83

Payments

65b

65a

U.S. tax withheld at source by partnerships under section 1446:

a From Form(s) 8805

66a

b From Form(s) 1042-S

Add lines 57 through 66b. These are your total payments 

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and Sign belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Here Your signature Date

Preparer’s Date Preparer’s SSN or PTIN

signature Check if

self-employed

Paid

Preparer’s

Use Only

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Exemptions (see page 14)

Other payments from:







35

Keep a copy

of this

return for

your records.

Form 3800

Form (specify) 

52

Household employment taxes. Attach Schedule H (Form 1040)

Tax (see page 15). Check if any tax is from a b Form(s) 8814 Form 4972

53

52

67

37

47

a

b c

a b Form 2439 Form 4136

48

Adoption credit. Attach Form 8839

60

62

38

43

57

58

Child tax credit (see page 17)

57

Additional child tax credit. Attach Form 8812

63

64

65

54

59

60

62

Form 1040NR (2003)

Foreign tax credit. Attach Form 1116, if required

41 Add lines 39 and 40 

40 Alternative minimum tax (see page 15). Attach Form 6251

39

55

61 61

39

40

44

Your occupation in the United States

Phone no. ( )

68

69a 69a

70 70

If line 67 is more than line 56, subtract line 56 from line 67. This is the amount you overpaid

71 71

Refund Amount of line 68 you want refunded to you.

72

Amount of line 68 you want applied to your 2004 estimated tax 

72 Estimated tax penalty. Also include on line 71

Amount

You Owe

Amount you owe. Subtract line 67 from line 56. For details on how to pay, see page 20 

Direct

deposit? See

page 19.

Routing number

Account number

b c Type: Checking Savings

d

68



Designee’s

name 

Do you want to allow another person to discuss this return with the IRS (see page 20)? Third Party

Designee Phone

no.  ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

Retirement savings contributions credit. Attach Form 8880

Credits from: Form 8859 a Form 8396 b 47

45

48

49

56

67

63

U.S. tax withheld on dispositions of U.S. real property interests:

a From Form(s) 8288-A

b From Form(s) 1042-S

66

66b

64

c Form 8885

7,896.00

696

7200

3050

4150

415

415

198

613

1943

1943

1330

1330

415
Test T-39

Draft as of

8/13/2003

Form 1040NR (2003) Page 3

Schedule A—Itemized Deductions (See pages 21, 22, and 23.) 07

State and

Local

Income

Taxes

1 State income taxes 1

2 Local income taxes 2

3 Add lines 1 and 2 3

Gifts to

U.S.

Charities

Caution: If you made a gift and received a benefit in

return, see page 21.

4

Gifts by cash or check. If you made any gift of $250 or

more, see page 21

4

5

Other than by cash or check. If you made any gift of

$250 or more, see page 21. You must attach Form 8283

if “the amount of your deduction” (see definition on page

22) is more than $500

5

6 Carryover from prior year 6

7 Add lines 4 through 6 7

8 Casualty or theft loss(es). Attach Form 4684. See page 22 8

Job

Expenses

and Most

Other

Miscellaneous

Deductions

Unreimbursed employee expenses—job travel, union

dues, job education, etc. You must attach Form 2106

or Form 2106-EZ if required. See page 22 

9

9

Other expenses. See page 23 for expenses to deduct

here. List type and amount 

11

11

12 Add lines 9 through 11 12

13

Enter the amount from Form

1040NR, line 34

13

14 Multiply line 13 by 2% (.02) 14

15 Subtract line 14 from line 12. If line 14 is more than line 12, enter -0- 15

Other

Miscellaneous

Deductions

Other—see page 23 for expenses to deduct here. List type and amount 

16

Total 17

Itemized

Deductions

17

Is Form 1040NR, line 34, over $139,500 (over $69,750 if you checked filing status

box 3, 4, or 5 on page 1 of Form 1040NR)?

Yes. Your deduction may be limited. See page 23 for the amount to

enter here and on Form 1040NR, line 35.



No. Your deduction is not limited. Add the amounts in the far right

column for lines 3 through 16. Also enter this amount on Form

1040NR, line 35. 

Casualty and

Theft Losses

10 Tax preparation fees 10

16

Form 1040NR (2003)

696

696

696
T-40 Test

Draft as of

8/13/2003

Dividends paid by:

Other (specify)



Industrial royalties (patents, trademarks, etc.)Motion picture or T.V. copyright royaltiesOther royalties (copyrights, recording, publishing, etc.)Real property income and natural resources royalties

Pensions and annuitiesSocial security benefitsGains (include capital gain from line 89 below)

Form 1040NR (2003)

U.S. corporations

Foreign corporationsMortgagePaid by foreign corporations

Report property sales or

exchanges that are effectively

connected with a U.S.business on Schedule D (Form1040), Form 4797, or both.

Enter only the capital gains

and losses from property sales

or exchanges that are fromsources within the UnitedStates and not effectivelyconnected with a U.S.business. Do not include a gainor loss on disposing of a U.S.real property interest; reportthese gains and losses onSchedule D (Form 1040).

Multiply line 84 by rate of tax at top of each column

Nature of income

Tax on income not effectively connected with a U.S. trade or business. Add columns (b)–(e) of line 85. Enter the total here and on Form

1040NR, line 51

88 Add columns (f) and (g) of line 87

Capital gain. Combine columns (f) and (g) of line 88. Enter the net gain here and on line 81 above (if a loss, enter -0-)



87

Attach Forms 1042-S, SSA-1042S, RRB-1042S, or similar form.

Capital Gains and Losses From Sales or Exchanges of Property

(a) U.S. tax

withheld

at source

(b) Date

acquired

(mo., day, yr.)

Enter amount of income under the appropriate rate of tax (see pages 23 and 24)

(c) Date

sold

(mo., day, yr.)

(b) 10%

(d) Sales price

(c) 15%

(e) Cost or other

basis

(d) 30%

(f) LOSS

If (e) is more

than (d), subtract (d)

from (e)

(e) Other (specify)

%

(g) GAIN

If (d) is more

than (e), subtract (e)

from (d)

Page

4

Tax on Income Not Effectively Connected With a U.S. Trade or Business

a

b

a

b

c

7475

7677

79

86

Total U.S. tax withheld at source. Add column (a) of

lines 73a through 82. Enter the total here and on Form

1040NR, line 64

Add lines 73a through 82 in columns (b)–(e)

73a

73b74a74b74c

75767778

79

80

85

86

89

88

89

Other

%

Interest:

( )

73

81

(a) Kind of property and description

(if necessary, attach statement of

descriptive details not shown below)

78

84

83

80

82

81

82

83

84

85

Form 1040NR (2003)





1319

198

198
Test T-41

Draft as of

8/13/2003

Form 1040NR (2003) Page 5

Other Information (If an item does not apply to you, enter “N/A.”)

To which Internal Revenue office did you pay any amounts

claimed on Form 1040NR, lines 58, 61, and 63?

K

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

L Have you excluded any gross income other

than foreign source income not effectively

connected with a U.S. trade or business?

If “Yes,” show the amount, nature, and source of the

excluded income. Also, give the reason it was excluded.

(Do not include amounts shown in item M.) 

Type of entry visa 

and current nonimmigrant status and date

of change (see page 24) 

D

M

F Did you give up your permanent

residence as an immigrant in the United

States this year?

● Country 

Dates you entered and left the United States during the

year. Residents of Canada or Mexico entering and leaving

the United States at frequent intervals, give name of country

only. 

G

● Type and amount of effectively connected income exempt

from tax. Also, identify the applicable tax treaty article. Do

not enter exempt income on lines 8–15, 16b, and 17b–21

of Form 1040NR: 

Give number of days (including vacation and For 2002 

nonworkdays) you were present in the United States

during:

2001 , 2002 , and 2003 .

H

● Were you subject to tax in that country

on any of the income you claim is entitled

to the treaty benefits?

If you are a resident of Canada, Mexico,

Japan, or the Republic of Korea (South

Korea), or a U.S. national, did your spouse

contribute to the support of any child

claimed on Form 1040NR, line 7c?

I

● Did you have a permanent establishment

or fixed base (as defined by the tax treaty)

in the United States at any time during

2003?

If “Yes,” enter amount  $

If you were a resident of Japan or the Republic of Korea

(South Korea) for any part of the tax year, enter in the space

below your total foreign source income not effectively

connected with a U.S. trade or business. This information

is needed so that the exemption for your spouse and

dependents residing in the United States (if applicable) may

be allowed in accordance with Article 4 of the income tax

treaties between the United States and Japan or the United

States and the Republic of Korea (South Korea).

If you file this return to report community income, give your

spouse’s name, address, and identifying number.

N

Total foreign source income not effectively connected

with a U.S. trade or business  $

Did you file a U.S. income tax return for

any year before 2003?

J

If you file this return for a trust, does the

trust have a U.S. business?

O

If “Yes,” give name and address 

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If you are claiming the benefits of a U.S. income tax treaty

with a foreign country, give the following information. See

page 24 for additional information.

● Type and amount of income not effectively connected that

is exempt from or subject to a reduced rate of tax. Also,

identify the applicable tax treaty article:

For 2002 

Date you entered the United States (see page 24)



E

For 2003 

For 2003 (also, include this exempt income on

line 22 of Form 1040NR) 

Is this an “expatriation return” (see

page 24)?

P

Yes No

If “Yes,” you must attach an annual

information statement.

During 2003, did you apply for, or take

other affirmative steps to apply for, lawful

permanent resident status in the United

States or have an application pending to

adjust your status to that of a lawful

permanent resident of the United States?

Q

If “Yes,” explain 

Yes No

If “Yes,” give the latest year and form number 

Form 1040NR (2003)

POLAND

X

STUDY

F-1

F-1

8-9-2001

X

131 365

X

X

POLAND

2000 WAGES TREATY ARTICLE 18(1)

X

X

X

X
T-42 Test

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