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Title 26 — Internal Revenue CodeRelease 119-73

§874 Allowance of deductions and credits

Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter N— - Tax Based on Income From Sources Within or Without the United States › Part PART II— - NONRESIDENT ALIENS AND FOREIGN CORPORATIONS › Subpart Subpart A— - Nonresident Alien Individuals › § 874

Last updated Apr 6, 2026|Official source

Summary

Nonresident aliens must file a true and accurate tax return with the Secretary, in the way required by subtitle F (sec. 6001 and following), and give any information the Secretary needs to figure their deductions and credits. That requirement does not stop the credits in sections 31 and 33 for tax withheld or the credit in section 34 for certain gasoline and special-fuel uses. The exemption under section 151 can be claimed from the withholding agent if the Secretary allows it and issues rules. Except as section 906 provides, nonresident aliens may not claim the foreign tax credit in section 901.

Full Legal Text

Title 26, §874

Internal Revenue Code — Source: USLM XML via OLRC

(a)A nonresident alien individual shall receive the benefit of the deductions and credits allowed to him in this subtitle only by filing or causing to be filed with the Secretary a true and accurate return, in the manner prescribed in subtitle F (sec. 6001 and following, relating to procedure and administration), including therein all the information which the Secretary may deem necessary for the calculation of such deductions and credits. This subsection shall not be construed to deny the credits provided by section 31 and 33 for tax withheld at source or the credit provided by section 34 for certain uses of gasoline and special fuels.
(b)The benefit of the deduction for exemptions under section 151 may, in the discretion of the Secretary, and under regulations prescribed by the Secretary, be received by a non-resident alien individual entitled thereto, by filing a claim therefor with the withholding agent.
(c)Except as provided in section 906, a nonresident alien individual shall not be allowed the credits against the tax for taxes of foreign countries and possessions of the United States allowed by section 901.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1984—Subsec. (a). Pub. L. 98–369 substituted reference to section “33” for “32” and “34” for “39”. 1983—Subsec. (a). Pub. L. 97–424 substituted “and special fuels” for “, special fuels, and lubricating oil”. 1976—Subsecs. (a), (b). Pub. L. 94–455 struck out “or his delegate” after “Secretary”. 1970—Subsec. (a). Pub. L. 91–258 included provision against

Construction

of subsec. (a) to deny credit provided by section 39 for certain uses of special fuels. 1966—Subsec. (a). Pub. L. 89–809, § 103(d), struck out “of his total income received from all sources in the United States” after “true and accurate return”. Subsec. (c). Pub. L. 89–809, § 106(a)(3), substituted “Foreign tax credit” for “Foreign tax credit not allowed” in heading and inserted reference to an exception provided in section 906. 1965—Subsec. (a). Pub. L. 89–44 inserted “or the credit provided by section 39 for certain uses of gasoline and lubricating oil”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1984 AmendmentAmendment by Pub. L. 98–369 applicable to taxable years beginning after Dec. 31, 1983, and to carrybacks from such years, see section 475(a) of Pub. L. 98–369, set out as a note under section 21 of this title.

Effective Date

of 1983 AmendmentAmendment by Pub. L. 97–424 applicable with respect to articles sold after Jan. 6, 1983, see section 515(c) of Pub. L. 97–424, set out as a note under section 34 of this title.

Effective Date

of 1970 AmendmentAmendment by Pub. L. 91–258 effective July 1, 1970, see section 211(a) of Pub. L. 91–258, set out as a note under section 4041 of this title.

Effective Date

of 1966 AmendmentAmendment by section 103(d) of Pub. L. 89–809 applicable with respect to taxable years beginning after Dec. 31, 1966, see section 103(n)(1) of Pub. L. 89–809, set out as a note under section 871 of this title. Pub. L. 89–809, title I, § 106(a)(6), Nov. 13, 1966, 80 Stat. 1569, as amended by Pub. L. 99–514, § 2, Oct. 22, 1986, 100 Stat. 2095, provided that: “The

Amendments

made by this subsection [enacting section 906 of this title and amending this section and section 901 of this title] shall apply with respect to taxable years beginning after Dec. 31, 1966. In applying section 904 of the Internal Revenue Code of 1986 [formerly I.R.C. 1954] with respect to section 906 of such Code, no amount may be carried from or to any taxable year beginning before Jan. 1, 1967, and no such year shall be taken into account.”

Effective Date

of 1965 AmendmentAmendment by Pub. L. 89–44 applicable to taxable years beginning on or after July 1, 1965, see section 809(f) of Pub. L. 89–44, set out as a note under section 6420 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 874

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73