To enter an amount on Line 21 of Federal Form 1040 to reduce the taxable wage amount from Line 7 if that is appropriate in your situation:
- From within your TaxAct return (Online or Desktop), click on the Federal tab. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
- Click Other Income to expand the category and then click Prizes, awards and other miscellaneous income
- On the screen titled Miscellaneous - Amounts Received, enter a description (i.e. See Form 8833) and a negative amount in the blank field to the right for the appropriate individual (i.e. taxpayer or spouse). This will appear on Line 21 and reduce the amount calculated for Line 22 of Federal Form 1040.
When you print your return, the text See Attached
will print to the left of Line 21 on the Federal Form 1040. An attached sheet will print with the return titled Other Income - Supporting Details for Form 1040, Line 21
which will print both the description and amount that was entered for Line 21.
Per the IRS website Claiming Tax Treaty Benefits
If a tax treaty between the United States and your country provides an exemption from, or a reduced rate of, withholding for certain items of income, you should notify the payor of the income (the withholding agent) of your foreign status to claim the benefits of the treaty. Generally, you do this by filing Form W-8BEN
, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding
(PDF) with the withholding agent.
Per IRS Publication 519 U.S. Tax Guide for Aliens
:Page 48: Reporting Treaty Benefits Claimed
If you claim treaty benefits that override or modify any provision of the Internal Revenue Code, and by claiming these benefits your tax is, or might be, reduced, you must attach a fully completed Form 8833 to your tax return. See below, for the situations where you are not required to file Form 8833.
You must file a U.S. tax return and Form 8833 if you claim the following treaty benefits.
- You claim a reduction or modification in the taxation of gain or loss from the disposition of a U.S. real property interest based on a treaty.
- You claim a credit for a specific foreign tax for which foreign tax credit would not be allowed by the Internal Revenue Code.
- You receive payments or income items totaling more than $100,000 and you determine your country of residence under a treaty and not under the rules for residency discussed in chapter 1.
While these are the more common situations for which Form 8833 is required, see the publication for additional information.
Form 8833 is a fillable form which can be accessed and completed by following these steps:
TaxAct Online Users:
- From within your TaxAct Online, click the Forms tab (on the right side of the screen)
- Click View complete Forms list at the bottom of that tab
- Expand the Federal Forms folder, and then expand the Forms and Schedules folder
- Scroll down and select Form 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
- Click Add to create a new copy of the fillable form where the information can be entered or click Form to review a form already created
TaxAct Desktop Users:
- From within your TaxAct Desktop return, click on the Forms icon in the toolbar
- Expand the Federal folder, and then expand the Forms and Schedules folder
- Scroll down and double click Form 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
- Enter the information directly on the form
Once the fillable form is completed, it will then become a part of the return and will be electronically filed and/or printed with the return.Additional Information:
Per IRS Publication 901
, U.S. Tax Treaties
, page 2:Introduction
This publication will tell you whether a tax treaty between the United States and a particular country offers a reduced rate of, or possibly a complete exemption from, U.S. income tax for residents of that particular country.
Tables in the back of this publication show the countries that have income tax treaties with the United States, the tax rates on different kinds of income, and the kinds of income that are exempt from tax.CAUTION! You should use this publication only for quick reference. It is not a complete guide to all provisions of every income tax treaty
Please refer to the IRS website Tax Treaties
for additional information.Note that any link in the information above is updated each year automatically and will take you to the most recent IRS version of the document at the time it is accessed.