- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Hi, Alex333,
You may be eligible for lower withholding rates if there is an applicable tax treaty and you fill out and turn in the required form. I am excerpting info from the IRS below.
Note: Even if you don't get the withholding right, you can work it out when you file!
Cheer this response with a thumbs up!
Here is that information from the IRS:
If the J-1 alien is treated for U.S. income tax purposes as a resident of a country with which the United States has an income tax treaty, he or she may benefit from a reduced rate of U.S. federal income tax on certain types of U.S. source income. For treaty benefits involving personal services income, the J-1 alien should submit a signed Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Person..., to the payor of the income. For treaty exemptions involving types of income other than personal services income, the J-1 alien should submit a Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, to the payor of the income. Such income is reported to the IRS on Forms 1042 and 1042-S by the payor of the income after the end of the year.
Note: J-1 aliens who do not timely submit the Form 8233 and/or Form W-8BEN to claim treaty benefits for purposes of an exemption or reduced rate of withholding from the payor of income may still claim the treaty benefits when filing their individual U.S. income tax return. Please refer to the Form 1040-NR, Schedule OI, Instructions for more details.
**Mark the post that answers your question by clicking on "Mark as Best Answer"