Frequently asked questions

Many nonresidents can now e-file their federal return directly through Sprintax Returns. State returns must be printed, signed and mailed. Pricing starts at:

• Federal tax preparation from $54.95
• State tax preparation from $49.95
• Form 8843 only — $19.95
• Amended returns from $79.95

Nonresidents cannot usually claim education credits such as the American Opportunity Credit. You may still be due a refund if too much tax was withheld from your wages, which Sprintax Returns will calculate for you.

Nonresident investors are generally taxed on US-source income. Dividends are usually subject to a 30% withholding rate, which a tax treaty between the US and your country of residence may reduce.

Yes. Even with no US income, nonresidents present on an F, J, M or Q visa must file Form 8843 to remain compliant. Sprintax Returns prepares Form 8843 on its own from $19.95.

F-1 and J-1 students who are nonresidents for tax purposes are generally exempt from Social Security and Medicare (FICA) tax. If FICA was withheld in error, Sprintax can prepare a refund claim.

It depends on the state you lived and worked in. Some states have no income tax at all; most do. Sprintax Returns determines your state filing obligations and prepares the returns you need.

A dual status alien is any individual who is treated as nonresident for part of the year and resident for the remainder of the year. It usually arises in the first or last years of residency. The Sprintax Returns online software does not support tax return preparation for dual status taxpayers.

Yes. If you’re a temporary visitor to the U.S. on a H1B, H2B, L or B1 working visa, J1 Exchange visitor or foreign performing artist, athlete or entertainer on a P or O visa, Sprintax Returns can prepare your U.S. income tax return. However, you must be classified as nonresident for the entire tax year. If you’re unsure, Sprintax can review your circumstances and let you know.

Sprintax Returns was created specifically for international students, scholars, teachers and researchers in the U.S. on F, J, M and Q visas, to make tax prep easy and ensure they are fully compliant with the IRS tax rules.

The U.S. has signed tax treaty agreements with more than 65 countries around the world. If you are entitled to benefit from one of these agreements, you could potentially save a lot on your taxes. When you create your Sprintax account, you can easily determine whether or not you are entitled to any tax treaty benefits.

Yes. You can easily prepare your U.S. Federal and State tax return online with Sprintax. Get started with your nonresident tax return here.

International students, scholars, teachers, professors, researchers, trainees, physicians, au pairs, summer camp workers, and other non-students on F-1, J-1, M-1, Q-1 or Q-2 visas are typically entitled to a FICA exemption. Sprintax Forms will help you to determine whether you are exempt from FICA tax.

Fees for this service start from $24.95.

Sprintax Forms and Sprintax Returns are two essential tools that help nonresidents in the U.S. to stay fully tax compliant with the IRS. When a nonresident begins working in the U.S., Sprintax Forms ensures they pay the correct amount of tax on their income and claim any tax treaty benefits they are entitled to. Later, during tax season, every nonresident in the U.S. is required to file tax documents with the IRS — Sprintax Returns has been specifically developed to help these individuals accurately prepare and file their end-of-year tax return. Sprintax Calculus is our tax determination software for organizations with nonresident employees, helping payroll departments manage the tax profiles of their nonresident employees on a single dashboard.

Using Sprintax Forms has many benefits, including:

• Your employment tax forms are generated for you
• Quickly identify your tax treaty eligibility
• Calculate your residency for tax purposes
• Determine if you are exempt from FICA taxes
• 24/7 live chat support to guide you all the way

Sprintax Forms can help you to prepare every form you need when starting a new job as a nonresident in the U.S. This includes forms W-4, 8233, W-8BEN and more.

• Form W-4 — determines how much tax should be withheld from your income. Our software will ensure you complete it correctly and that you pay the right amount of tax.
• Form 8233 — used to claim a tax treaty-based exemption from tax withholding on personal services income.
• Form W-8BEN — proves your status as a nonresident alien and determines your eligibility for tax treaty benefits on Fixed, Determinable, Annual, Periodical (FDAP) income.

When you start a new job in the U.S., you will need to provide some important pre-employment documents to your employer. These documents will ensure that the correct amount of tax is withheld from your salary. If these forms are not completed correctly, you could end up paying too much tax!

Yes. Sprintax Calculus handles all aspects of tax treaty determination for you. You don’t need to be familiar with complex tax treaties or regulations — our system includes every applicable treaty and automates the process. Sprintax Calculus clearly outlines who is entitled to a tax treaty, what that entitlement means for the employee, and the impact it has on you as the employer.

No. Sprintax Calculus is a cloud-based platform — no software installation required. Simply log in to your account anytime, from anywhere.

Why not register for a free, no-obligation demo of Sprintax Calculus? Our team will be happy to walk you through the system and answer any questions you have. Request a demo here.

Sprintax Calculus frees up valuable time and resources for your payroll and international office teams. Our system ensures the correct amount of tax is withheld from nonresident employees and accurately reported to the IRS. At the same time, foreign employees are guided in determining their tax residency status and eligibility for tax treaty benefits, ensuring they are taxed correctly from their first paycheck. Plus, with open API integration, your transition to Sprintax Calculus is seamless, allowing smooth, two-way data transfer between your payroll software and our system.

Sprintax Forms was originally launched to help nonresidents in the U.S. ensure they pay the correct amount of tax on their income and claim any tax treaty benefits they are entitled to. Sprintax Calculus, on the other hand, was developed to help U.S. organizations navigate nonresident tax withholding efficiently. Today, Sprintax Forms has been fully incorporated into Sprintax Calculus, combining both functionalities into a single, streamlined solution.

Sprintax Calculus prepares all the documents your payroll office needs to manage nonresident taxation. Our system provides foreign nationals with required tax forms, including W-4, W-8BEN, and 8233. 1042-S forms are automatically generated and converted to PDF for easy distribution. Additionally, Sprintax Calculus can prepare SS-5 or W-7 forms upon request.

Sprintax Calculus is a dynamic, dependable system built specifically to help organizations manage tax withholding for their international employees. With Sprintax Calculus, your payroll team can easily oversee nonresident employee tax profiles, all in one place through a user-friendly dashboard. Today, over 700 organizations across the U.S. trust Sprintax Calculus to help them manage the taxation of their nonresident employees.

Yes. Sprintax Dividends is designed to handle cross-border Dividend Withholding Tax (DWT) reclaims for investors with dividends from multiple countries. Our software simplifies the process by automatically identifying the tax treaties and reclaim opportunities available to you, ensuring you can claim your maximum refund.

Yes – a U.S. tax number (SSN or ITIN) is essential in order to file tax paperwork with the IRS.

Many nonresidents aren’t eligible for an SSN. In these cases, they must apply for an ITIN (Individual Taxpayer Identification Number) using Form W-7.

If you need support while applying for your ITIN, Sprintax Dividends can guide you through the process.

Once your documentation is verified and your relief-at-source status is active, the reduced treaty rate is generally applied automatically to future dividend payments.

That said, most documentation has a validity period (commonly a set number of years) and will need to be renewed or reconfirmed periodically, or sooner if your circumstances (such as your country of residence) change.

To reclaim overpaid U.S. dividend tax, a nonresident typically needs to submit a Form W-8BEN (for individuals) or W-8BEN-E (for entities) to their withholding agent (such as the broker or payer) certifying their foreign status and treaty eligibility.

They must then file an end-of-year tax return to reconcile their tax record with the IRS and apply for their DWT refund.

The easiest way to secure your U.S. DWT refund is to apply with Sprintax Dividends. Our software has been developed specifically to support nonresidents through the U.S. DWT refund process.

Individuals can apply online through their HMRC Personal Tax Account (Government Gateway), by e-mail, or – if the other country gives a specific form to certify residence – by post. Companies generally use HMRC’s RES1 online service.

Your application needs to specify the relevant treaty country, the type of income involved and the period the certificate should cover.

Individuals and businesses can request a Letter of Residence through the ‘Manage My Record’ section of Revenue’s myAccount service, or through ROS.

Before issuing the letter, the relevant Revenue division must be satisfied (based on your tax record) that you were actually resident in Ireland for tax purposes in the year in question. Once validated, the letter becomes available to download through the online service.

Validity periods vary by issuing country. Keeping yours current and re-applying before it lapses is essential to avoid gaps in your relief-at-source coverage or delays to reclaim eligibility.

The IRS recommends submitting Form 8802 at least 45 days before you need the certificate. Processing typically takes approximately six to 10 weeks, though this can vary depending on IRS workload and how complete your application is. Applying early is the safest way to avoid missing a treaty deadline.

U.S. DWT refund applications are typically processed within six months. However, in certain cases, processing may take longer depending on your specific circumstances.

Revenue doesn’t publish a fixed turnaround time – the letter is only issued once the appropriate division has checked and confirmed your residency status against your tax record for that year. It is advised to apply well ahead of any deadline set by the foreign tax authority requesting it.

A UK Certificate of Residence is generally valid for one UK tax year only.

The timeframe for processing your refund depends on the paperwork required and the processing timelines in each jurisdiction. For example, DWT refund applications from the U.S. are typically processed within six months, while those from Switzerland can take up to 12 months. However, in certain cases it may take longer depending on the country and the specific tax office handling your request.

To learn more about our service and pricing for U.S. DWT refund applications, get in touch with our team for a demo.

No. Relief at source is a rate reduction, but it is not a full exemption.

It ensures the correct, treaty-reduced rate of dividend withholding tax is applied at the point of payment, rather than the higher standard statutory rate.

In most cases, some tax is still withheld – just at the lower treaty rate you’re entitled to.

A full DWT exemption (paying no withholding tax at all) is only available in specific circumstances, such as certain treaty provisions, qualifying investor types, or particular exemption regimes some countries offer. And these are less common than reduced-rate relief.

Both options are designed to ensure you don’t pay more dividend withholding tax than necessary.

The difference between the two options is timing.

Relief at source means your reduced treaty rate is applied before the dividend is paid, so you receive the correct, lower-taxed amount straight away, with no need to wait or file any further documents.

Meanwhile, with a reclaim, the full statutory withholding rate is deducted from your income at the time of payment, and you then submit a separate claim afterward to recover the difference between what was withheld and what you should have paid under the treaty.

Relief at source is generally faster and less administratively burdensome, but it depends on your documentation being verified and in place before the dividend is paid – if it isn’t, a reclaim becomes the fallback option.

Sprintax Dividends simplifies the process of reclaiming Dividend Withholding Tax (DWT) for organizations and individual investors. Our easy-to-use software removes the hassle of dealing with foreign tax authorities — no paperwork, no complicated processes. In just a few simple steps, you can reclaim overpaid tax on overseas investments and maximize your returns with ease.

If there’s no tax treaty in place between your country of residence and the source country, relief at source generally isn’t available and the standard domestic withholding rate will apply to your dividend income with no reduction.

In this case, whether you can recover any of that tax typically depends on the tax rules of your own country of residence – for example, whether it offers a foreign tax credit or deduction for tax paid abroad – rather than on any relief mechanism at the source.

Form 6166 is the actual certificate issued by the IRS after it reviews and approves your Form 8802. It confirms you were a U.S. resident for federal tax purposes for the certification year and is the document you present to a foreign tax authority or payer to support treaty-based relief.

Form 8802 is the application U.S. taxpayers file with the IRS to request Form 6166, the official U.S. certificate of residency. You need this document in order to claim benefits under a U.S. tax treaty abroad.

A Letter of Residence is the document Irish Revenue issues to confirm someone’s tax residency in Ireland to a foreign tax authority, where Ireland has a Double Taxation Agreement with that country. It’s used specifically to support a claim for exemption or a reduced withholding rate abroad.

Dividend Withholding Tax (DWT) is a tax deducted at source from dividend payments before they reach investors. The rate varies by country, but many countries have tax treaties allowing nonresidents to reclaim part of the withheld tax. Investors — including individuals, ESOP holders, and institutions — can apply for a refund by filing a claim with the relevant tax authority.

A UK Certificate of Residence is a document issued by HMRC confirming that you’re a UK tax resident for the purposes of a specific double taxation agreement, income type and period. It’s the document overseas tax authorities or payers require before applying treaty relief to UK-resident investors’ foreign income.

The standard DWT rate applied by the IRS to dividend payments made to international investors is 30%.

However, the U.S. has signed more than 60 tax treaties with countries worldwide. These treaties can entitle nonresident investors to a reduced rate of tax on their U.S.-sourced dividend payments.

The lookback period for reclaiming Dividend Withholding Tax (DWT) varies depending on the country where your securities are held. Each jurisdiction has its own statute of limitations for filing refund claims.

Many EU markets (e.g., Germany, France, Italy, Spain) and most non-EU markets do not currently offer Dividend Withholding Tax relief at source. Instead, investors must retrieve their overpaid tax through standard reclaim.

However, the FASTER Directive will soon require EU countries to apply fast-track procedures. Member countries will be able to choose relief-at-source, quick refund, or a combination of both.

Generally, you’re eligible if you’re a tax resident of a country that has a double taxation treaty with the country paying the dividend and that treaty provides for a reduced withholding rate.

When a company pays a dividend to a shareholder who lives outside the country where that company is based, the source country typically deducts a percentage of the payment as tax before it ever reaches the investor.

This is because the source country wants to make sure it collects tax on income generated within its borders, even when the recipient isn’t a local taxpayer.

Without this system, income could pass to nonresidents completely untaxed at source.

The rate deducted depends on domestic law and can be reduced under a tax treaty between the investor’s country of residence and the source country.

Yes, this service has been built for universities, businesses, and non-profits with international population that need precision without the complexity of a full tax suite.

The Sprintax technology is ISO 9001 certified – an indication of our commitment to the highest standards of data privacy and security. You can learn more about our security policy here.

Processing times vary by jurisdiction and tax authority. However, long form reclaims are generally slower than quick reclaims, as they are filed directly with the relevant tax authority rather than through DTCC.

Filing windows also vary by market; four years from the end of the relevant tax year is common, but this should be confirmed for each jurisdiction.

Your organization may face fines and penalties if it is not fully tax compliant.

Form 1042-S shows the income and tax withheld for each nonresident employee, while Form 1042 is the yearly summary that adds up all those amounts for the IRS.

Relief at source applies the correct reduced or exempt withholding tax rate at the time the dividend is paid, so investors receive their full entitlement immediately.

A reclaim is used when tax has already been over-withheld at the default rate. The investor recovers the excess after the fact – either through the quick or long form reclaim process, depending on timing and market.

The platform provides governed, auditable reporting at every stage of the process, including final reports for relief at source and reclaim positions, along with real-time dashboards for tracking reclaim status, aging and outcomes across beneficial owners and securities.

Sprintax Dividends supports transfer agents, depositary banks, custodians, DTC Participants and issuer agents – each with portal functionality tailored to their role in the withholding tax and reclaim process.

Yes. You can move up a bundle at any point before you file and pay only the difference. Nothing you’ve already entered is lost — your answers carry across.

Yes. Each bundle covers one tax year. If you need to file for several years, each year is priced separately — contact our team and we’ll look at a multi-year arrangement.

Our software applies every tax treaty benefit, credit and relief you are legally entitled to. If you can show that a different preparer would have secured you a larger legal refund on the same information, we’ll refund the price of your bundle.

A bundle is a fixed price covering a set of services together, rather than paying for each form separately. Every bundle includes your federal return and the forms that go with it; the larger ones add state returns, your FICA refund claim and extra support. The price you see is the price you pay for that tax year.

Additional state returns are $49.95 each and can be added while you file — your member rate still applies to everything in the bundle.

Then Basic is for you — it covers the federal return, your residency determination and every form the IRS needs, and nothing you don’t. You can add a state return later at the standard $49.95 if it turns out you need one.

Sprintax is ISO 27001 and ISO 9001 certified. Your data is encrypted in transit and at rest, and we never sell it. See our privacy policy for the detail.