1. WFMO INTERNATIONAL TAX OFFICE Basic U.S. Tax Information for Nonresident Alien for tax purpose The materials contained in this presentation are for general information purpose only, they do not constitute legal or professional advice on your specific tax situation. Distribution, republication, and/or retransmission of material contained are prohibited without written permission of the International Tax Office.

2. Tax Systems in the U.S. U.S. Person Tax System  U.S. Citizen  Lawful Permanent Resident (LPR)  Resident Alien for tax purpose (RA) Nonresident Alien Tax System  Nonresident Alien for tax purpose (NRA)

3. U.S. Residency Determination  Green card test – Resident Alien for tax purpose if met, or  Substantial Presence test  At least 31 days in the current calendar year  183 days during the preceding 3-year period: All the days present in the current calendar year 1/3 of days present during the 1st preceding calendar year 1/6 of days present during 2 nd preceding calendar year If met, your residency status will be a Resident Alien for tax purpose. If not met, your residency status will be a Nonresident Alien for tax purpose.

4. U.S. Residency Determination (cont’d)  Exceptions  F and J students: 5 exempt calendar years  Other J visa holders: 2 exempt calendar years Note: The term “Exempt” above means that the individual is exempt from counting days toward the calculation of the substantial presence test.

5. U.S. Taxable Income  Services required: Compensation, Wages, or Salary  No service required:  Fellowships  Nonqualified Scholarships:  Room and Board Scholarships  Scholarship exceed tuition and mandatory course related fees  Health Insurance Subsidy or “Reimbursement”  Other  Prize/Awards  Travel “Reimbursement” for non official Tulane business or not covered under the IRS “accountable plan”

6. Taxes  Social Security tax – 6.2%  Medicare tax - 1.45% The first two are commonly known as FICA. Exempt: 1) for nonresident alien for tax purpose, or 2) students (RA) who met certain requirements  Federal income tax – NRA can claim Single and 1 exemption at maximum (regardless of your marital status or # of dependents)  State income tax

7. Tax Treaty  68 countries have a tax treaty agreements with the U.S.  Has dollar limit and a time limit  For certain types of incomes  Not automatically granted, must meet all requirements  Must have a social security number (SSN) or Individual Taxpayer Identification Number (ITIN)  Must complete and submit all applicable exemption forms, each year (e.g. Form 8233, Form W8-BEN)  Apply to Federal and state income tax only

8. Tax Withholding  Employer (payer) is required to withhold tax from all payments (including nonqualified fellowships and scholarships) to nonresident aliens for tax purpose  Employer (payer) will then pay (deposit) that tax to the government on your behalf

9. Annual Tax Statements Employer (Payer) will issue an annual tax statement to summarize all the payments (earnings) and taxes withheld for each calendar (tax) year to employees (payees) in the beginning of the following year. There are several types of the annual tax statements based on the type of payments (earnings) or based on whether tax treaty benefits were used during the tax year.

10. Annual Tax Statements (cont’d) Types of annual tax statements may include:  W-2 ( Wage and Tax Statement )  Compensation not covered by tax treaty  No treaty or did not claim treaty  Exceed time and dollar limits  Available https://w2.adp.com by Jan 31https://w2.adp.com  The individual who signs up to receive an electronic form W- 2 will be notified via email from w2.adp.com of its availability.

11. Sample W-2

12. Annual Tax Statements (cont’d)  1042-S ( Foreign Person’s U.S. Source Income Subject to Withholding )  Compensation covered by a tax treaty (up to dollar limit)  Non-Qualified Scholarships  Non-Qualified Fellowships  Prize/Awards  Independent personal services, royalty, other income  Available www.online-tax.net by March 15.www.online-tax.net  An individual who receives a form 1042s will be notified of its availability via email from support@online-tax.netsupport@online-tax.net

13. Sample 1042-S

14. Annual Tax Statements (cont’d)  1098-T ( Tuition Statement )  Provide to all eligible students who pay tuition and enrollment fees during the calendar year.  If receive, just keep on file for your record, do not file with your tax return

15. Sample 1098-T

16. Annual Tax Statements (cont’d)  Form 1099-MISC/1099-INT/1099-DIV/1099-G  The NRA should not receive form 1099-MISC from Tulane. If receives, contact ITO

17. Annual Tax Statements (cont’d) Note: If you do not have the form that your friend has, because you may have different situations:  Tax Residency Status  Income Type and Amount  Tax Treaty Eligibility

18. U.S. Federal Tax Return Dual-Status http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Dual-Status-Aliens http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Dual-Status-Aliens Nonresident AlienResident Alien U.S. Source IncomeWorldwide income Form 1040NR, or Form 1040NR-EZ Form 8843 (For F and J only; even if no income) Form 1040, or Form 1040A, or Form 1040EZ No standard deduction Limited itemized deduction Eligible to claim standard deduction More itemized deductions May claim only one personal exemptionMay claim the exemptions in the same manner as U.S. citizen Cannot file “Joint” tax returnCan file “Joint” tax return Must mail tax return to IRS (No electronic filing) Can file electronically

19. U.S. Tax Return – Nonresident Alien  Mailing Address varies depends on the individual’s tax situation  Deadline  April 15  June 15 (if you file Form 8843 only)  Recommend: Use GLACIER Tax Prep (GTP) to prepare tax returns  Free of charge  GTP will determine the proper form (1040NR vs 1040NR-EZ) for you to file based on your entry  GTP will provide you with the instruction as to What address to mail When is the deadline to file

20. Louisiana State Tax Return  Deadline: May 15  http://revenue.louisiana.gov/Individuals http://revenue.louisiana.gov/Individuals

21. ITO Contact Information  Located at Uptown Square, 200 Broadway Street, Suite 122, New Orleans, LA 70118  Email: ito@tulane.eduito@tulane.edu