Form W-4 - Employee'S Withholding Allowance Certificate printable pdf download

Department of the Treasury

Notice 1392

Internal Revenue Service

(December 2009)

Supplemental Form W-4 Instructions for

Nonresident Aliens

•

Nonresident aliens must follow special instructions when com-

Certain compensation paid to residents of American Samoa,

pleting Form W-4, Employee’s Withholding Allowance Certifi-

Puerto Rico, or the U.S. Virgin Islands.

cate, available at , for

See Publication 519 to see if you qualify for one of these

compensation paid to such individuals as employees perform-

exemptions.

ing dependent personal services in the United States. Com-

Nonresident aliens may be exempt from wage withholding

pensation for dependent personal services includes amounts

on part or all of their compensation for dependent personal

paid as wages, salaries, fees, bonuses, commissions, compen-

services under an income tax treaty. If you are claiming a tax

satory scholarships, fellowship income, and similar designa-

treaty withholding exemption, do not complete Form W-4.

tions for amounts paid to an employee.

Instead, complete Form 8233, Exemption from Withholding on

Are you a nonresident alien? If so, these special

Compensation for Independent (and Certain Dependent)

instructions apply to you. Resident aliens should

Personal Services of a Nonresident Alien Individual, available

at , and give it to each

follow the instructions on Form W-4.

withholding agent from whom amounts will be received. Even if

If you are an alien individual (that is, an individual who is not a

you submit Form 8233, the withholding agent may have to

U.S. citizen), specific rules apply to determine if you are a

withhold tax from your income because the factors on which

resident alien or a nonresident alien for federal income tax

the treaty exemption is based may not be determinable until

purposes. Generally, you are a resident alien if you meet either

after the close of the tax year. In this case, you must file Form

the “green card test,” discussed at

1040NR, U.S. Nonresident Alien Income Tax Return, available

businesses/small/international/article/0,,id=96314,00.html, or

at pub/irs-pdf/f1040nr.pdf, (or Form

the “substantial presence test,” discussed at

1040NR-EZ, U.S. Income Tax Return for Certain Nonresident

businesses/small/international/article/0,,id=96352,00.html, for

Aliens With No Dependents, available at

the calendar year. Any alien individual not meeting either test

pub/irs-pdf/f1040nre.pdf, if you qualify) to recover any

is generally a nonresident alien. Additionally, a dual-resident

overwithheld tax and to provide the IRS with proof that you are

alien who applies the so-called “tie-breaker” rules contained

entitled to the treaty exemption. See Form 8233 and

within the Resident (or Residence or Fiscal Residence) article

Instructions for Form 8233, available at pub/

of an applicable U.S. income tax treaty in favor of the other

irs-pdf/i8233.pdf; Publication 901, U.S. Tax Treaties, available

Contracting State is treated as a nonresident alien. See

at pub/irs-pdf/p901.pdf; and Publication 519

Publication 519, U.S. Tax Guide for Aliens, available at http://

for further information on treaty benefits.

, for more information on the

green card test and the substantial presence test.

Am I required to file a U.S. tax return even if I am a

nonresident alien?

What compensation is subject to withholding and

Yes. Nonresident aliens who perform personal services in the

requires a Form W-4?

United States are considered to be engaged in a trade or

Compensation paid to a nonresident alien for performing

business in the United States and generally are required to file

personal services as an employee in the United States is

Form 1040NR (or Form 1040NR-EZ). However, if your only

subject to graduated withholding. Compensation for personal

U.S. trade or business was the performance of personal

services also includes amounts paid as a scholarship or

services and the amount of compensation is less than $3,650

fellowship grant to the extent it represents payment for past,

in 2010 (the personal exemption amount), then you may not

present, or future services performed as an employee in the

need to file Form 1040NR (or Form 1040NR-EZ). Also, you do

United States. Nonresident aliens must complete Form W-4

need to file Form 1040NR (or Form 1040NR-EZ) to claim a

using the modified instructions provided later, so that

refund of any overwithheld taxes. See the Instructions for Form

employers can withhold the correct amount of U.S. federal

1040NR, available at pub/irs-pdf/i1040nr.

income tax from compensation paid for personal services

pdf, or the Instructions for Form 1040NR-EZ, available at http://

performed in the United States. This Notice modifies the

, for more information.

instructions on Form W-4 to take into account the restrictions

Nonresident aliens who are bona fide residents of U.S.

on a nonresident alien’s filing status, the limited number of

possessions should consult Publication 570, Tax Guide for

personal exemptions allowed, and because a nonresident alien

cannot claim the standard deduction.

Individuals with Income from U.S. Possessions, available at

pub/irs-pdf/p570.pdf, for information on

Are there any exceptions to this withholding?

whether compensation is subject to wage withholding in the

Yes. Nonresident aliens may be exempt from wage withholding

United States.

on the following amounts.

Will my withholding amounts be different from

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withholding for my U.S. co-workers?

Compensation paid to employees of foreign employers if

such pay is not more than $3,000 and the employee is

Yes. Nonresident aliens cannot claim the standard deduction.

temporarily present in the United States for not more than a

In addition, nonresident aliens do not qualify for the Making

total of 90 days during the tax year.

Work Pay credit. The benefits of the standard deduction and

•

Compensation paid to regular crew members of a foreign

the Making Work Pay credit are included in the existing wage

vessel.

withholding tables published in Publication 15 (Circular E),

•

Compensation paid to residents of Canada or Mexico

Employer’s Tax Guide, available at pub/

engaged in transportation-related employment.

irs-pdf/p15.pdf.

Catalog No. 54303E

Form W-4 - Employee'S Withholding Allowance Certificate

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