Form W-2 - Wages Exempt by Tax Treaty

If you received Form(s) W-2 Wage and Tax Statement, and some or all of your wages are exempt by tax treaty, you will need to manually adjust your W-2 entry to reflect only the wages that are not exempt by tax treaty. Wages which are exempt by tax treaty should be reported on Schedule OI. The IRS will match the amount reported on your Form(s) W-2 with the amounts reported on Lines 8 and 22 of your Form 1040-NR U.S. Nonresident Alien Income Tax Return.

You will need to paper-file your return.

See Entering in Program - Form W-2 to access the Form W-2.

In Box 1, enter only the amount of your wages which are not exempt by tax treaty.

To enter the information for your wages exempt by tax treaty on Schedule OI:

  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 Income Exempt from Tax Under Treaty in the Federal Quick Q&A Topics menu.
  3. Continue with the interview process to enter all of the appropriate information for your exempt treaty income.

See Pub. 901 U.S. Tax Treaties for more information on tax treaties.

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.