If you claim treaty benefits that override or modify any provision
of the Internal Revenue Code, and by claiming these benefits your tax
is, or might be, reduced, you must attach a fully completed Form 8833
to your tax return. See Exceptions, below, for the
situations where you are not required to file Form 8833.
You must file a U.S. tax return and Form 8833 if you claim the
following treaty benefits.
- A reduction or modification in the taxation of gain or loss
from the disposition of a U.S. real property interest based on a
treaty.
- A change to the source of an item of income or a deduction
based on a treaty.
- A credit for a specific foreign tax for which foreign tax
credit would not be allowed by the Internal Revenue Code.
You must also file Form 8833 if you receive payments or income
items totaling more than $100,000 and you determine your country of
residence under a treaty and not under the rules for residency
discussed earlier in this publication.
These are the more common situations for which Form 8833 is
required.
Exceptions.
You do not have to file Form 8833 for any of the following
situations.
- You claim a reduced rate of withholding tax under a treaty
on interest, dividends, rent, royalties, or other fixed or
determinable annual or periodic income ordinarily subject to the 30%
rate.
- You claim a treaty reduces or modifies the taxation of
income from dependent personal services, pensions, annuities, social
security and other public pensions, or income of artists, athletes,
students, trainees, or teachers. This includes taxable scholarship and
fellowship grants.
- You claim a reduction or modification of taxation of income
under an International Social Security Agreement or a Diplomatic or
Consular Agreement.
- You are a partner in a partnership or a beneficiary of an
estate or trust and the partnership, estate, or trust reports the
required information on its return.
- The payments or items of income that are otherwise required
to be disclosed total no more than $10,000.
Penalty for failure to provide required information on Form
8833.
If you are required to report the treaty benefits but do not, you
are subject to a penalty of $1,000 for each failure.
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