IRS Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual, is used by nonresident aliens to claim exemption from U.S. federal income tax withholding on compensation for services performed in the United States under an applicable tax treaty.
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Key Facts
- Eligibility: Only nonresident alien individuals performing personal services in the U.S. can use this form.
- Treaty: A valid tax treaty between the U.S. and the individual's home country must exist to claim exemption.
- Submission: The form is submitted to the employer or withholding agent, who forwards it to the IRS within 5 days.
- Renewal: Must be filed annually for each calendar year the exemption is claimed.
- Withholding: Filing this form prevents the automatic 30% federal income tax withholding on eligible income.
1. Who can use Form 8233?
Nonresident aliens providing personal services in the U.S. and eligible for treaty exemption.
2. What income is covered?
Income from services performed, such as teaching or independent contracting, not passive income like dividends.
3. What if I don’t file the form?
Your employer will withhold federal income tax at the default 30% rate.
4. Who files the form with the IRS?
The employer or withholding agent files the form, not the employee.
5. How often is the form required?
Annually, for each tax year you claim the exemption.
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