Form 8233 is the IRS form a nonresident alien gives to the person paying them, such as an employer, to claim an exemption from federal income tax withholding on pay for personal services under a tax treaty.
| Question | Answer |
|---|---|
| Who completes it? | The nonresident alien individual |
| Who receives it? | The withholding agent, such as the employer |
| What does it claim? | Exemption from withholding on personal services pay under a tax treaty |
| How often? | A separate form for each tax year, each withholding agent and each type of income |
| What reports the payments? | Form 1042-S |
Treaty claims and residency status are technical. Use the IRS instructions or a tax professional for each case.
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A research lab hires a visiting researcher who is a nonresident alien from a country with an income tax treaty that exempts certain research pay for a limited period. In August 2026 she gives the lab a Form 8233 for tax year 2026, citing the treaty article.
The lab’s payroll lead checks the treaty article, the time limit and the form’s details, accepts it, signs it and sends the copy to the IRS as the instructions require. Her wages are not subject to federal income tax withholding to the extent the treaty applies, and the payments are reported on Form 1042-S after year end.
In January 2027 payroll asks her for a new Form 8233 for tax year 2027. Without it, the lab would have to withhold as usual from the first 2027 paycheck. The lab also notes the date her treaty period ends, so withholding starts again on time.
Without a valid form for the new year, withholding generally applies to January pay, which surprises people who assume last year’s form carries over. A short reminder in November saves a lot of explaining in February.
A university pays a visiting teacher whose treaty exemption covers compensation up to a set dollar amount per year. By September her year-to-date pay reaches that amount.
Because payroll tracks her pay against the limit, withholding starts on her next paycheck, and she is told in writing beforehand. Her Form 1042-S for the year shows the exempt amount, and her W-2 shows the wages above the limit. The specific figures come from the treaty, which payroll confirms with a tax adviser.
To claim exemption from federal income tax withholding on compensation for personal services under an income tax treaty, by a nonresident alien individual.
The nonresident alien completes it and gives it to the withholding agent, who reviews it and, if accepted, sends it to the IRS.
Yes. A separate form is required for each tax year, each withholding agent and each type of income.
Form 1042-S.
Withholding generally applies until a valid new form is received and accepted for that year.
The withholding agent reviews the claim and should not accept it if it has reason to believe the claim is incorrect. Follow the IRS instructions or ask a tax professional.
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