Being a resident alien for tax purposes but still receiving tax treaty benefits means that you report your income on Form 1040 or Form 1040EZ.
If the income you received under treaty benefits was not reported to you on any forms, you do not need to report the income on your Form 1040 at all because the income will be exempt from U.S. tax under the treaty.
However, if the income has been reported as taxable income on a Form W-2, Form 1042-S, Form 1099, or other information return, you should report it on the appropriate line of Form 1040 (for example, line 7 in the case of wages, salaries, scholarships, or fellowships). Enter the amount for which treaty benefits are claimed in parentheses on Form 1040, line 21. Next to the amount write “Exempt income,” the name of the treaty country, and the treaty article that provides the exemption. You can find this information on Form W-9Treaty provided to you by the Tax Office. On Form 1040, subtract this amount from your income to arrive at total income on Form 1040, line 22.
Attach to your tax return Form W-9Treaty which you can receive from the FNIS website. If you do not remember your username or password, please contact the Tax Office.
For more information see IRS Publication 519.
Last Updated: April 6, 2009