Using IRS Form 8833 For Tax Treaty Benefits: Beginner's Guide (2024)

As an American, it doesn't matter where you live or work. All your income is taxable by the IRS. This means that, unless you claim certain tax benefits using a form such as IRS Form 8833, you could face the prospect of having the same income taxed twice—once by the U.S., and once by another country.

Obviously, this is highly undesirable! But that's why so-called "tax treaties" exist between the U.S. and various countries around the world. Such treaties enable taxpayers to only pay tax once on earned income. However, you must claim the exemption to benefit from it.

How do you claim this benefit? You may be required to complete IRS Form 8833, "Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)."