Helpful Definitions

Honorarium
 
Honoraria are payments made to a professional person for services where compensation is not legally or normally required. Any payment made to an NRA is reportable income to the IRS and subject to 30% federal tax withholding unless exempted by a tax treaty. The NRA will need either an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN) to be able to receive the payment. The individual will also need to file a tax return by April 15 of the following year. Honorariums can be paid to the following visa types: B-1, B-2, WB, WT, TN and J-1. 
 
 
ITIN - Individual Taxpayer Identification Number

ITIN is used for individuals that do not qualify for a Social Security Number and must file a tax return or receive exemption from taxes under a tax treaty. The ITIN does not entitle the recipient to Social Security benefits or give the right to work in the United States. The application process for an ITIN takes approximately 6-8 weeks. Potential visitors are encouraged to file for an ITIN prior to their arrival in the United States. 

 

Tax Treaties

Any payment made to an NRA is reportable income to the IRS and subject to 30% federal tax withholding unless exempted by a tax treaty. The U.S. currently has fifty-three tax treaties that cover the payment of honorariums (see page # for treaty list). To claim a treaty an NRA must file a form 8233 with the IRS 10 days prior to receiving a payment. The NRA must also have a SSN or an ITIN to claim the treaty benefits.

 

Page last modified August 31, 2012