Tax treaties between the United States and other countries are designed to prevent double taxation and provide relief to taxpayers who might otherwise be taxed twice on the same income. When a taxpayer relies on a treaty to change how U.S. tax rules apply to them, they must disclose this position to the IRS using Form 8833.
Form 8833 is used to inform the IRS that a tax treaty between the U.S. and another country modifies or overrides standard U.S. tax rules. This may result in lower tax liability or an exemption from certain taxes. The form is required under Section 6114 of the Internal Revenue Code and Section 301.7701(b)-7 of the Treasury Regulations.
Who Must File?
You must file Form 8833 if you:
- Are a U.S. citizen or resident alien using a treaty to change how U.S. tax rules apply.
- Are a dual-resident taxpayer (considered a resident of both the U.S. and another country) and elect to be treated as a nonresident of the U.S. under a treaty.
- Take a treaty-based return position that affects your U.S. tax liability, such as claiming reduced tax rates on dividends, royalties, or wages
When Is Disclosure Required?
Disclosure is required when:
- A treaty provision overrides or modifies a part of the Internal Revenue Code.
- You claim a treaty benefit that affects how income is taxed in the U.S.
- You elect to be treated as a nonresident under a treaty’s tie-breaker rules.
Exceptions to Filing Form 8833
You do not need to file Form 8833 if:
- You claim reduced withholding on U.S.-source income like interest, dividends, rent, or royalties.
- You claim treaty benefits for:
- Dependent personal services
- Pensions, annuities, or Social Security
- Scholarships or fellowship grants
- Income of artists, athletes, students, or teachers
- The treaty position is reported by a partnership, estate, or trust on its return.
- The total payments or income items subject to disclosure are $10,000 or less.
Filing Multiple Treaty-Based Positions
If you rely on more than one treaty provision, you must:
- File a separate Form 8833 for each distinct position.
- However, if you receive similar types of income from the same source, you can combine them on a single form.
Example:
If you claim reduced tax rates on both dividends and royalties from the same company under different treaty articles, you must file two forms. But if you receive multiple dividend payments from that company, you can report them together on one form.
Where do I enter my Form 8833?
To fill out Form 8833, please follow this path:
- Federal
- Miscellaneous Forms
- Other Miscellaneous Forms
- Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) Form 8833