Form 8833 if W-2 Already Included Deduction?

[JJLi14]

I was wondering if you must file Form 8833 with your tax return if box 1 of your W-2 already includes a deduction. More specifically, the China Tax-Treaty gives a $5000 tax credit for a resident alien. If box 1, for federal wages, is $5000 less than box 16, for state wages, do you need to file Form 8833?

[JohnW222 · Accepted solution]

Yes, you do, if the deduction reduces your taxes.

According to Who Must File in the instructions for Form 8833,

"A taxpayer takes a treaty-based return position by maintaining that a treaty of the United States overrules or modifies a provision of the Internal Revenue Code and thereby causes (or potentially causes) a reduction of tax on the taxpayer’s tax return."

Since the deduction in Box 1 of your Form W-2 presumably lowers your tax, you'd need to file Form 8833.  Please see the IRS's page at Claiming Tax Treaty Benefits for more information.