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To enter an amount on Line 8 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income to reduce the taxable wage amount from Form 1040 U.S. Individual Income Tax Return Line 1, if that is appropriate in your situation:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Other Income in the Federal Quick Q&A Topics menu to expand, then click Prizes, awards or other miscellaneous income.
  3. Continue with the interview process to enter all of the appropriate information.
  4. On the screen titled Miscellaneous - Amounts Received, enter a Description and a negative amount to the right for either the taxpayer or the spouse, then click Continue. This will appear on Line 8 and reduce the amount calculated for Line 9 of Schedule 1 (Form 1040).

When you print your return, the "See Attached" text will print to the left of Line 8 on Schedule 1 (Form 1040). An attached sheet will print with the return titled "Other Income - Supporting Details for Schedule 1 (Form 1040), Line 8" which will print both the description and amount that was entered for Line 8.

Per the IRS Claiming Tax Treaty Benefits website:

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 or W-8 BEN-E, Certificate of Status of Beneficial Owner for United States Tax Withholding and Reporting (Entities) with the withholding agent.

Per IRS Publication 519 U.S. Tax Guide for Aliens on page 47:

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.

These are the more common situations for which Form 8833 is required. For additional provisions, see the Form 8833 instructions.

Form 8833 Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) is a fillable form which can be accessed and completed by following these steps:

  1. From within your TaxAct Online return, click Tools down the left to expand, then click Forms Assistant.
  2. Click to expand the FEDERAL Forms folder, then click to expand the Forms and Schedules folder.
  3. Click Form 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b).
  4. 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.
  1. From within your TaxAct Desktop return, click Forms in the toolbar.
  2. Click to expand the Federal folder, then click to expand the Forms and Schedules folder.
  3. Scroll down and double-click Form 8833 - Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b).
  4. 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, starting on page 1:

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.

See the IRS Tax Treaties website for additional information.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.


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