Instructions For Form 1040nr-Ez - 2010 (Page 10 of 24) in pdf

Item G

which you claimed an exemption from

overrides or modifies any provision of

U.S. tax based on the specified treaty

the Internal Revenue Code and that

Enter the dates you entered and left the

article.

position reduces (or potentially

United States during 2010 on short

reduces) your tax, you must report

business trips or to visit family, go on

Column (d), Amount of exempt

certain information on Form 8833 and

vacation, or return home briefly. If you

income in current tax year. Enter the

attach it to Form 1040NR-EZ.

are a resident of Canada or Mexico and

amount of income in the current tax

commute to work in the United States

year that is exempt from U.S. tax based

on more than 75% of the workdays

If you fail to report the required

on the specified treaty article.

during your working period, you are a

information, you will be charged a

regular commuter and do not need to

penalty of $1,000 for each failure,

Line (e), Total. Add the amounts in

enter the dates you entered and left the

unless you show that such failure is

column (d). Enter the total on line 1e

United States during the year.

due to reasonable cause and not willful

and on page 1, line 6. Do not include

“Commute” means to travel to work and

this amount in the amounts entered on

neglect. For more details, see Form

return to your residence within a

Form 1040NR-EZ, page 1, line 3 or 5.

8833 and its instructions.

24-hour period. Check the appropriate

box for Canada or Mexico and skip to

If required, attach Form 8833. See

Exceptions. You do not have to file

item H. See Days of Presence in the

Treaty-based return position disclosure

Form 8833 for any of the following.

United States in Pub. 519, chapter 1.

below.

1. You claim a treaty reduces the

If you were in the United States on

withholding tax on interest, dividends,

January 1, enter 01/01 as the first date

Line 2. Check “Yes” if you were

rents, royalties, or other fixed or

you entered the United States. If you

subject to tax in a foreign country on

were in the United States on December

determinable annual or periodical

any of the income reported on line 1,

31, do not enter a final date departed.

income ordinarily subject to the 30%

column (d).

rate.

Item H

Example. Sara is a citizen of Italy

2. You claim a treaty reduces or

Review your entry and passport stamps

and was a resident there until

modifies the taxation of income from

or other records to count the number of

September 2009, when she moved to

dependent personal services, pensions,

days you were actually present in the

the United States to accept a position

annuities, social security and other

United States during the years listed. A

as a high school teacher at an

public pensions, or income of artists,

day of presence is any day that you are

accredited public high school. Sara

athletes, students, trainees, or

physically present in the United States

came to the United States on a J-1 visa

teachers. This includes taxable

at any time during the 24-hour period

(Exchange visitor) and signed a

scholarship and fellowship grants.

beginning at 12:01 a.m. For the list of

contract to teach for 2 years at this U.S.

exceptions to the days you must count

3. You claim an International Social

school. She began teaching in

as actually present in the United States,

September 2009 and plans to continue

Security Agreement or a Diplomatic or

see Days of Presence in the United

teaching through May 2011. Sara’s

Consular Agreement reduces or

States in Pub. 519, chapter 1. If you

salary per school year is $40,000. She

modifies the taxation of income.

were not in the United States on any

plans to return to Italy in June 2011 and

4. You are a partner in a partnership

day of the tax year, enter -0-.

resume her Italian residence. For

or a beneficiary of an estate or trust

calendar year 2010, Sara earned

Item I

and the partnership, estate, or trust

$40,000 from her teaching position.

reports the required information on its

If you filed a U.S. income tax return for

She completes the table in item J on

return.

a prior year, enter the latest year for

her 2010 tax return as shown in the

which you filed a return and the form

5. The payments or items of income

example on this page.

number you filed.

that otherwise are required to be

disclosed total no more than $10,000.

Item J

If you are claiming tax treaty

benefits and you failed to submit

Line 1. If you are a resident of a treaty

adequate documentation to a

CAUTION

country (that is, you qualify as a

withholding agent, you must attach to

resident of that country within the

Reminders

your tax return all information that

meaning of the tax treaty between the

otherwise would have been required on

United States and that country), you

the withholding document (for example,

must know the terms of the tax treaty

Return Checklist

all information required on Form

between the United States and that

W-8BEN or Form 8233).

country to properly complete item J.

This checklist can help you file a

You can download the complete text of

Treaty-based return position

correct return. Mistakes can delay your

most U.S. tax treaties at IRS.gov.

disclosure. If you take the position

refund or result in notices being sent to

Technical explanations for many of

that a treaty of the United States

you.

those treaties are also available at that

site. Also, see Pub. 901 for a quick

reference guide to the provisions of

Example. Item J—Income Exempt from Tax

U.S. tax treaties.

If you are claiming exemption from

income tax under a U.S. income tax

(a) Country

(b) Tax treaty article

(d) Amount of

treaty with a foreign country on Form

months claimed in

exempt income in

1040NR-EZ, you must provide all the

prior tax years

current tax year

information requested in item J.

Italy

$40,000

Column (a), Country. Enter the

treaty country that qualifies you for

treaty benefits.

Column (b), Tax treaty article.

Enter the number of the treaty article

that exempts the income from U.S. tax.

(e) Total. Enter this amount on Form 1040NR-EZ, line 6. Do not

$40,000

Column (c), Number of months

enter it on line 3 or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

claimed in prior tax years. Enter the

number of months in prior tax years for

-10-

Instructions for Form 1040NR-EZ (2010)

Instructions For Form 1040nr-Ez - 2010 Page 10

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