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OK online Form 8233: What You Should Know
This form is used by non-resident alien individuals who are employees of foreign governments to report and pay to us. Form 706 — Payroll Deductions in Non-Resident Alien Taxpayers Cannot qualify as personal services income, nonresident alien employees must pay the employment tax on wages. Cannot be claimed by an individual who is subject to both a personal services tax and social security tax. Form W-9 SUPPLEMENTAL INFORMATION — This form is used by non-resident alien individuals who are employees of foreign governments to report and pay to us. Foreign Earned Income Exclusion Must have a social security number, or other identification number that is a U.S. citizen or resident alien who, or a U.S. national. The individual's U.S. source income is generally limited to amounts paid to, or on behalf of, the individual. Taxable Earned Income Exclusion This form must meet the requirements of the foreign earned income exclusion (FIE) rule. If the individual is a nonresident alien, he will also have to meet the earned income test requirement for all items of foreign earned income. This exemption applies to all persons who are residents of a foreign country (whether physically present in the country or not), regardless of how long they have resided in the country. Qualified Business Income This exemption does not apply to wages. Qualified Business Income Exclusion (QBE) Qualified business income is any income from an office (including a sole proprietorship or a farm partnership), an S corporation, a partnership or other pass-through business. Qualified business income includes dividends, capital gains, interest, rents, royalties, annuities, tips, and the profit from other sources, any amount received by an individual for medical care (including life insurance or long term care insurance), and any dividend or capital gain payment arising out of a sale or exchange, or a distribution from or exchange of any property. It does not include income from a trust, estate, annuity, or profits from the sale or exchange of a home or from a rental agreement or other agreement for the privilege of occupying a home. QBE does not include gross passive income, such as interest, dividends, capital gains, or qualified long-term capital gains. QBE does not include the passive activity loss of an individual carried over from 1 year to 2 years. The amount of qualified income that may be excluded is limited in number.
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