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Partnership Withholding Calculator (8804/8805)

IRC §1446 withholding on foreign partners' effectively connected income
A planning tool — not tax advice. This tool produces estimates from general rules and the numbers you enter. It is designed to orient you, not to decide for you — it cannot account for the facts that make your situation yours. Before acting on any result, speak with a qualified cross-border tax professional.
Partnership Information
Effectively connected taxable income
Partnership-Level Summary (Form 8804)
Foreign Partners
0
ECTI to Foreign Partners
$0
Total Withholding Required
$0
Total Installments Paid
$0
Balance Due / (Overpayment)
$0
Est. Underpayment Penalty
$0
Partner Withholding Breakdown
Foreign Partners (Form 8805)
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Installment Payment Schedule (Form 8813)

Estimated withholding tax is paid in 4 quarterly installments. Each installment equals 25% of the total estimated annual withholding.

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Add partners on the Partner Detail tab to see the installment schedule.

Section 1446 Overview

  • IRC §1446 requires US partnerships with foreign partners to withhold tax on each foreign partner's allocable share of effectively connected taxable income (ECTI).
  • Withholding applies only to ECTI — not all partnership income. Items such as FDAP income (interest, dividends, rents, royalties) are subject to separate withholding under §1441/1442.
  • This withholding becomes a credit on the foreign partner's US tax return (Form 1040-NR for individuals, Form 1120-F for corporations).

Applicable Withholding Rates

  • Non-corporate partners (individuals, trusts, estates): 37% — the highest marginal individual rate
  • Corporate partners: 21% — the flat corporate rate
  • If a partner's allocable ECTI is a loss, no withholding is required (but track for carryforward)
  • Treaty-based rate reductions may apply on a partner-specific basis

Form 8804-C (Certificate)

  • A foreign partner may submit Form 8804-C to the partnership to certify deductions, losses, or other amounts that reduce the partner's ECTI
  • If accepted, the partnership can reduce withholding accordingly
  • The partnership is not required to accept an 8804-C

Section 1446(f) — Transfer Withholding

  • Separate from regular §1446 withholding
  • Applies when a foreign partner transfers (sells/exchanges) a partnership interest
  • The transferee must withhold 10% of the amount realized
  • If the transferee fails to withhold, the partnership must withhold from future distributions
  • This withholding is also a credit on the transferor's US tax return

Installment Payments (Form 8813)

  • Partnerships pay estimated withholding in 4 quarterly installments
  • Due dates (calendar-year partnership): April 15, June 15, September 15, December 15
  • Each installment = 25% of estimated annual withholding
  • Underpayment penalties apply (computed under the corporate estimated tax rules of §6655)
  • Interest accrues on underpaid installments from the due date until paid

Treaty Considerations

  • Some US tax treaties reduce the §1446 withholding rate for certain income types
  • Treaty benefits are partner-specific — each partner's treaty country and income type must be analyzed
  • The partner must provide a valid Form W-8BEN or W-8BEN-E with treaty claims
  • Common treaty countries with relevant provisions: Israel, UK, Canada, Germany, Netherlands

Key Forms

  • Form 8804 — Annual Return for Partnership Withholding Tax (§1446). Filed by the partnership.
  • Form 8805 — Foreign Partner's Information Statement of §1446 Withholding Tax. Given to each foreign partner.
  • Form 8813 — Partnership Withholding Tax Payment Voucher (§1446). Used for quarterly installments.
  • Form 8804-C — Certificate of Partner-Level Items to Reduce §1446 Withholding.
  • Form 8288 — US Withholding Tax Return for Certain Dispositions by Foreign Persons (for §1446(f)).
Disclaimer: This tool provides estimates for informational purposes only and does not constitute tax advice. Actual withholding obligations may differ based on treaty provisions, Form 8804-C certifications, and other factors. Calculations are based on current rates (37% non-corporate / 21% corporate) and may change with legislation. Consult a qualified cross-border tax professional.