My husband needs to file his 2009 as a dual resident. He is an Australian citizen who moved to the USA as a permanent resident by the end of 2009. I am claiming his Australian earned wages as tax exempt due to the Australia-US tax treaty. While filling out his 1040NR, I realized that I need to attach a 8833 because his aggregate income was over $100,000. My confusion is with form 8833.

(8833) #2 I know the article of the relevant tax treaty, but I have no idea what IRS provision was overruled?

(8833) #3 I assume this is not applicable as the income payer was an Australian company with no US ties.

(8833) #4 According to IRS Pub 910 there is no limit on the benefit from the Australian tax treaty for article 15.

Does anyone know the answer to (8833) #2 and whether I am on the right track for (8833) #3 & (8833) #4?

Any help would be greatly appreciated!

#2 - Taxation of world-wide income for U.S. residents.

US income is not taxed worldwide, this is a myth spread by the IRS. Look at the tax treaties. If you are a US citizen and have pension income such as social security and an annuity and many other pensions you are often taxed in your country of residence and not the USA. A HUGE tax trap.

That does not change the requirement for U.S. citizens to file an annual tax return even if they are living in another country. The combination of the Foreign Earned Income Exclusion (Form 2555) and the Foreign Tax Credit (Form 1116) often results in NO taxes being due, but the return STILL must be filed.