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IRS.gov Website
Publication 519
taxmap/pubs/p519-037.htm#en_us_publink1000222659

Withholding From Other Income(p41)

rule
Other income subject to 30% withholding generally includes fixed or determinable income such as interest (other than portfolio interest), dividends, pensions and annuities, and gains from certain sales and exchanges, discussed in chapter 4. It also includes 85% of social security benefits paid to nonresident aliens.
taxmap/pubs/p519-037.htm#en_us_publink1000222662

Other income not subject to withholding of 30% (or lower treaty) rate.(p41)

rule
The following income is not subject to withholding at the 30% (or lower treaty) rate if you file Form W-8ECI with the payer of the income.
Special rules for withholding on partnership income, scholarships, and fellowships are explained next.
taxmap/pubs/p519-037.htm#en_us_publink1000222664

Tax Withheld on Partnership Income(p41)

rule
If you are a foreign partner in a U.S. or foreign partnership, the partnership will withhold tax on your share of effectively connected taxable income (ECTI) from the partnership. Your partnership may be able to reduce withholding on your share of ECTI by considering certain partner-level deductions. Generally, you must submit Form 8804-C for this purpose. See the Instructions for Form 8804-C to the partnership for more information.
The withholding rate on your share of effectively connected income is generally the highest rate of tax specified under section 1 of the Code (37% for 2018). However, the partnership may withhold at the highest rate that applies to a particular type of income allocable to you if you gave the partnership the appropriate documentation. Long-term capital gain is an example of a particular type of income to which the highest tax rate applies. Claim the tax withheld as a credit on your 2019 Form 1040NR.
The partnership will give you a statement on Form 8805 showing the tax withheld. A partnership that is publicly traded will withhold tax on your actual distributions of effectively connected income. In this case the partnership will give you a statement on Form 1042-S.
taxmap/pubs/p519-037.htm#en_us_publink100017215

Tax Withheld on Gain From the Sale or Exchange of Certain Partnership Interests(p42)

rule
If you are a direct or indirect foreign partner in a U.S. or foreign partnership that is engaged (or is treated as engaged) in a trade or business within the United States and you directly or indirectly dispose of that interest for a gain, then for transfers occurring after 2017 the transferee generally will withhold and pay to the IRS on your behalf a tax equal to 10% of the amount realized on the sale. The rules for withholding and paying over this amount are similar to the rules for sales of U.S. real property interests. You will receive a Form 8288-A reflecting the amount withheld that you may then claim on line 62c of your Form 1040NR as a credit against the tax you owe on the gain. You may be able to provide certain information to the transferee to reduce or eliminate withholding. For example, if a nonrecognition provision of the Internal Revenue Code applies to all of the gain realized on a transfer, the transferee does not need to withhold if you provide a notice describing the application of a nonrecognition provision. See Notice 2018-29, available at IRS.gov/irb/2018-16_IRB#NOT-2018-29, for more information. Notice 2018-08, available at IRS.gov/irb/2018-07_IRB#NOT-2018-08, suspended the requirement to withhold on dispositions of interests in publicly traded partnerships that are publicly traded until regulations or other guidance has been issued under section 1446(f).
taxmap/pubs/p519-037.htm#en_us_publink1000222665

Withholding on Scholarships and Fellowship Grants(p42)

rule
There is no withholding on a qualified scholarship received by a candidate for a degree. See chapter 3.
If you are a nonresident alien student or grantee with an "F," "J," "M," or "Q" visa and you receive a U.S. source grant or scholarship that is not fully exempt, the withholding agent (usually the payer of the scholarship) withholds tax at 14% (or lower treaty rate) of the taxable part of the grant or scholarship that is not a payment for services. However, if you are not a candidate for a degree and the grant does not meet certain requirements, tax will be withheld at the 30% (or lower treaty) rate.
Any part of a scholarship or fellowship grant that is a payment for services is subject to graduated withholding as discussed earlier under Withholding on Wages.
taxmap/pubs/p519-037.htm#en_us_publink1000222667

Alternate Withholding Procedure(p42)

rule
Your withholding agent may choose to use an alternate procedure by asking you to fill out Form W-4. See below for items that may reduce your withholding.
taxmap/pubs/p519-037.htm#en_us_publink1000222670

Expenses.(p42)

rule
Include expenses that will be deductible on your return. These include the IRA deduction discussed under Deductions in chapter 5.
taxmap/pubs/p519-037.htm#en_us_publink1000222671

Nontaxable grant or scholarship.(p42)

rule
You can exclude the part of your grant or scholarship that is not taxable under U.S. law or under a tax treaty.
taxmap/pubs/p519-037.htm#en_us_publink1000222672

Standard deduction.(p42)

rule
If you are a student who qualifies under Article 21(2) of the United States–India Income Tax Treaty, you can take the standard deduction. The standard deduction amount for 2018 is $12,000.
taxmap/pubs/p519-037.htm#en_us_publink1000222676

Form W-4.(p42)

rule
Complete the appropriate lines of Form W-4. Sign and date the form and give it to your withholding agent.
If you file a Form W-4 to reduce or eliminate the withholding on your scholarship or grant, you must file an annual U.S. income tax return to be allowed any deductions you claimed on that form. If you are in the United States during more than one tax year, you must attach a statement to your yearly Form W-4 indicating that you have filed a U.S. income tax return for the previous year. If you have not been in the United States long enough to be required to file a return, you must attach a statement to your Form W-4 saying you will file a U.S. income tax return when required.
After the withholding agent has accepted your Form W-4, tax will be withheld on your scholarship or grant at the graduated rates that apply to wages. The gross amount of the income is reduced by the applicable amount(s) on Form W-4, and the withholding tax is figured on the remainder.
You will receive a Form 1042-S from the withholding agent (usually the payer of your grant) showing the gross amount of your taxable scholarship or fellowship grant less any withholding allowance amount, the tax rate, and the amount of tax withheld. Use this form to prepare your annual U.S. income tax return.
For more information, go to IRS.gov/FormW4.