Steve_

Actually I just had a look at the instructions for 1040NR which also seem to cover this situation.

Chiclanagir

Thank you everybody it was the instructions for the completion of the 1040NR which was confusing. Where do you put what? They are withholding a few thousand dollars so worth getting back.

nun

You should definitely go to the US Embassy and ask there.
Does your daughter have a TIN?

Here is what I would probably do.....don't take this as gospel and check with someone who is a professional or the Embassy. Their phone hours are limited so keep trying. I'm also assuming the Amazon royalties are you daughters only US sourced income and she isn't a US citizen.

After filling out the personal details at the top, as I posted before, I'd enter 0 on line 18 as you have no US taxable royalties. Then enter 0 on the rest of the calculated lines 23, 35, 36, 37, 41, 44, 51, 52, 60.

Now to the tax that was withheld. Did Amazon send you a 1099? You should enter the tax withheld on line 61a, enter the same amount on line 69.

Now the good bit.

Line 70 enter the difference between your taxable income , 0, and the tax withheld.....this is your refund. Write in the same amount in line 71a.

So that's the 1040NR

Now fill out the 8833, enter personal details and check the first check box

1a United Kingdom
1b Article 12
2 IRC 61:871(a)
3 I assume its something like Amazon, this should be on the 1099
4. leave blank
5. Royalty paid to NRA, UK citizen, resident in UK is only taxable in the UK, I am claiming a refund of withholding tax.

Chiclanagir

Nun, you will go straight to Heaven nun-stop! Don´t know about the 1099.

Yes it is the only form of US income.

Chiclanagir

Yes she has a TIN.

nun

Good, so I'd fill in the forms and get down to the US Embassy to have the logic checked. I'm not a professional and I have never filed a form for your daughter's situation so I would not want you to take my advice without getting a second opinion.

Chiclanagir

She is 200 miles away from the Embassy unfortunately. Just checked and hasn´t received anything from Amazon.

nun

So how does she know the tax that has been withheld. She must have some documentation that shows her royalties and the amount of tax withheld

Chiclanagir

I think Amazon tell her but not on this special form.

robin1234

1099 won't come till January, no?

nun

Yes, good point, what tax year are we talking about here, 2012? If so you'd get the 1099 in Jan 2013

Steve_

Shouldn't be getting a 1099, that's for US citizens and residents only. Non-resident aliens get a 1042-S which details specifically the withholding and why it was withheld (using codes which mean nothing unless you look them up).

Steve_

If they haven't actually done the withholding yet the logical thing to do is give them a completed W-8BEN and then they're not supposed to do the withholding. Problem solved.

Chiclanagir

They have done the withholding which is what she is trying to get refunded and yes it is the last tax year.

nun

It's correct that your daughter will get a 1042-S (not a 1099 which is the equivalent for US citizens or residents) that will show all the tax withheld by Amazon. When were the royalties paid and the tax withheld? In 2011 or 2012? Remember the US tax year runs from Jan 1st to Dec 31st, so it's not the same as the UK's. As others have said your daughter should file a W-8BEN with Amazon asap to stop further withholding.