IRS Pub 901 - Tax Treaty Tables - Form 1040NR IRS
The United States has income tax treaties with a number of foreign countries. Under these treaties, residents of foreign countries are taxed at a reduced rate,or even exempt from paying US income taxes on certain sources of income, they receive from sources within the United States.
Table 1 - IRS Pub 901 - Income other than Personal Services Income:
Table 1 lists the income tax rates on such income as interest, dividends, capital gains, rents and royalties.
Table 2 - IRS Pub 901 - Personal Services Income:
This table lists the different kinds of personal service income that may be fully or partially exempt from US Income Tax. Types of Personal Services Income;
1. Dependent Personal Services (If you work as an employee)
a) Public Entertainment
2. Independent Personal Services (If you work as an independent contractor)
b) Public Entertainment
3. Teaching or Research (J1 Students)
4. Studying and Training (F1, J1 students)
a) Remittances and Allowances
b) Compensation during Studying and Training (F1, J1 Students can take this in Form 1040NR-EZ)
c) Compensation while Gaining Experience
d) Compensation under US Government program
5. Scholarship or Fellowship Grant
The income code is the tables are the same as the income code used in Form 1042-S.
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