Nonresident Alien Tax
The (IRS) requires that 91ÁÔÆæ comply with specific federal tax withholding and reporting regulations when making payments to nonresident aliens.
For tax purposes, non-U.S. citizens may be classified as either resident aliens or nonresident aliens. Resident aliens are taxed in the same manner as U.S. citizens.
However, the IRS requires that the apply somewhat different tax rules when making payments to nonresident aliens. These rules apply to payments made directly to the nonresident alien, as well as payments made by 91ÁÔÆæ to a 3rd party on the behalf of a nonresident alien.
In order to comply with these rules, 91ÁÔÆæ is required to identify all nonresident aliens who receive payments from us. Payments affected by these IRS rules include, but are not limited to:
- Compensation
- Consulting fees
- Fellowships
- Honoraria
- Scholarships
- Stipends
- Travel expense reimbursements
- Wages
- Other expenses
What International Students and Scholars Should Know
It has long been a misconception by international students and visiting
scholars that, because of their temporary status, they have no tax liability or
reporting responsibilities in the United States. But, in fact, all
individuals receiving income of any sort are subject to U.S. tax law.
Furthermore, all international students & scholars, in a F, J, M, or Q immigration status, who are classified as a federal nonresident alien taxpayer, must file tax return(s) every year, whether or not they were employed or received taxable payments in the United States during the reporting year.
- Individuals who were not employed or did not receive U.S. taxable income during the reporting year will file .
- Individuals who either received compensation subject to wage
withholding or income subject to U.S. taxation will file the and .
If you intend to seek professional assistance, be careful that you choose someone
who is an expert in nonresident alien tax law. If you
want to prepare your own tax returns, we strongly recommend that you
review the following resources from the IRS:
For NRAT inquiries, please send an email to nrat-ubit@sjsu.edu.