How To Claim A Tax Treaty Benefit
When Filing A Resident Tax Return
Before beginning your tax return please check your GLACIER record to ensure that you are correctly filing as a resident.
If you have received a form 1042-2, please
have it with you.
You can claim the tax treaty benefit without
the 1042-S only if you did not claim any of
the treaty benefit during the year.
If you’ve already claimed the treaty through
your employer, you must have the 1042-S.
Tax Preparation
Complete your resident return using
whatever method you choose…
Resident Tax Prep software do not
correctly handle tax treaties.
◦ You can use them but cannot file electronically.
◦ If you use tax prep software:
Print your Tax Forms
Make the Treaty Adjustments
Mail the forms to the IRS
Enter any income that was reported on your W-2, 1042-S or 1099 on the correct line of your
Form 1040.
◦ Example: line 7 for wages, salaries scholarships & fellowships.
◦ http://www.irs.gov/pub/irs-pdf/p519.pdf
Enter the amount of claimed treaty benefits in
(parentheses) on 1040, line 21.
Write “Exempt Income,” country name and treaty article.
Treaty articles are found at: http://www.irs.gov/pub/irs-
pdf/p4011.pdf
On Form 1040, subtract this amount from your income to
arrive at total income on Form 1040, line 22.
You will then make the subsequent calculations as instructed
on the form 1040.
Include a copy of your 1042-S (if applicable) with
your tax return when you mail it to the IRS.
Top Related