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. What International Tax Office Do?
The International Tax Office “ITO” applies specific federal tax withholding and reporting rules to payments made to international students, faculty, staff, short term scholars, visitors, and performers in complying with the rules and regulations set forth by the Internal Revenue Service (IRS).
ITO also provides guidance and responds to questions concerning federal tax withholding and reporting of payments made to individuals who are not U.S. citizens or U.S. permanent residents.

3. Tax Systems in the U.S. U.S. Citizen Lawful Permanent Resident (LPR)
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)
*Tax withholding and reporting rules are different between the two systems.

4. 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 2nd preceding calendar year
If met, your residency status will be a Resident Alien for tax purposes.
If not met, your residency status will be a Nonresident Alien for tax purposes.

5. 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.
Exempt Individual
“exempt” from counting days toward the calculation of the substantial presence test. Not exempt from paying income or FICA taxes

6. U.S. Tax Residency Status (GLACIER)

7. U.S. Tax Residency Status (GLACIER)
Or on the printed Tax Summary Report from GLACIER

8. Question:
Why it is important for you to know your U.S. Tax Residency Status?

9. U.S. Taxable Income Services required: Compensation, Wages, or Salary
No service required:
Fellowships
Nonqualified Scholarships:
Room and Board Scholarships
Scholarship in excess of tuition and mandatory course related fees
Health Insurance Subsidy or “Reimbursement”
Other
Prize/Awards
Travel Grants / Fellowships - “Reimbursement” for non official Tulane business or not covered under the IRS “accountable plan”
Other Income
Income subject to taxes

10. Taxes Social Security tax – 6.2% Medicare tax - 1.45%
The first two are commonly known as FICA.
Exempt: 1) nonresident alien for tax purpose, or 2) students (RA) who meet certain requirements
Federal income tax –
Services Required Income: NRA can claim Single and 1 exemption at maximum (regardless of your marital status or # of dependents)
No Service Required Income: default tax rate is 30%, or reduced at 14% if F, J, M and Q visa holder
Prize/Awards: tax rate is 30%
State income tax

11. Tax Treaty 58 countries have a tax treaty agreements with the U.S.
Has dollar limit and/or 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
Only for Federal and State income taxes
Avoid having the same income items, taxes by both home country and the U.S.

12. Tax Withholding
Tulane is required to withhold taxes from all payments (including nonqualified fellowships and scholarships) from nonresident aliens for tax purpose
Tulane will then pay (deposit) that tax to the government on your behalf
Only for Federal and State income taxes
Avoid having the same income items taxes by both home country and the U.S.

13. GLACIER Nonresident Alien Tax Compliance System
GLACIER is a secure, web-based nonresident tax compliance system, provided by Arctic International, LLC.
This system is designed to allow Tulane University to efficiently and effectively collect personal information and U.S visit history. Based on the information entered, the system will determine tax residency status (perform the substantial presence test) and apply applicable income tax treaty, according to the Internal Revenue Service (IRS) rules and regulations.
All foreign nationals who have a payment relationship with the University are required to enter their personal information and their U.S. visit history in the GLACIER system.
Only for Federal and State income taxes
Avoid having the same income items taxes by both home country and the U.S.

14. GLACIER
Once the individual completes the data entry, GLACIER will generate appropriate tax forms, and you must follow instruction to print, sign, and submit all GLACIER forms and required documents to the International Tax Office.
Keeping your GLACIER record up-to-date will help the University to make accurate tax withholdings and also to ensure that you are in the legal immigration status to receive payments.
If information changes, foreign nationals must update the information in GLACIER and submit all updated paperwork to ITO
Immigration status (extension of current status, change to a new status)
Only for Federal and State income taxes
Avoid having the same income items taxes by both home country and the U.S.

15. View Your Pay Stub Log onto Gibson Online Go to the Student tab
On the left hand panel, select “Student Employee Self-Service” under Services section
Tax Statement – for reporting purpose
What forms should I receive? It depends on what country you are from, what kind of income you received, what is your US Tax residency status. So the forms you received may be different from what your friend received.
What is on it?

16. View Your Pay Stub Use your Tulane user id and password to log in
Once login, click on View My Payslip
Tax Statement – for reporting purpose
What forms should I receive? It depends on what country you are from, what kind of income you received, what is your US Tax residency status. So the forms you received may be different from what your friend received.
What is on it?

17. Annual Tax Statements
Tulane 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.
Tax Statement – for reporting purpose
What forms should I receive? It depends on what country you are from, what kind of income you received, what is your US Tax residency status. So the forms you received may be different from what your friend received.
What is on it?

18. 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 by Jan 31
The individual who signs up to receive an electronic form W- 2 will be notified via from w2.adp.com of its availability.
To enroll with ADP:
Tax Statement – for reporting purpose
What forms should I receive? It depends on what country you are from, what kind of income you received, what is your US Tax residency status. So the forms you received may be different from what your friend received.
What is on it?

19. Sample Form W-2

20. 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 by March 15.
An individual who receives a form 1042-S will be notified of its availability via from
May have more than one form 1042-S

21. Sample 1042-S

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

23. Sample 1098-T

24. Annual Tax Statements (cont’d)
Form 1099-MISC/1099-INT/1099-DIV/1099-G
NRAs should not receive form 1099-MISC from Tulane.

25. Annual Tax Statements (cont’d)
Form 1095-B (Health Coverage) – NRAs: If receive, just keep on file for your record, do not file with your tax return

26. Annual Tax Statements (cont’d)
1095-C (Employer-Provided Health Insurance Offer and Coverage) – NRAs: If receive, just keep on file for your record, do not file with your tax return

27. Annual Tax Statements (cont’d)
Notes:
Form 1095-B and 1095-C are new forms in 2015.
If you do not have the form(s) that your friend has, because you may have different situations:
Tax Residency Status
Income Type and Amount
Tax Treaty Eligibility

28. U.S. Personal Federal Tax Return
Dual-Status
Nonresident Alien for U.S. Tax Purpose
Resident Alien for U.S. Tax Purpose
U.S. Source Income
Worldwide 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 exemption
May claim the exemptions in the same
manner as U.S. citizen
Cannot file “Joint” tax return
Can file “Joint” tax return
Must mail tax return to IRS
(No electronic filing)
Can file electronically

29. U.S. Federal Tax Return – Nonresident Alien for Tax Purpose
Deadline: April 17, 2017
Mailing Address varies depends on the individual’s tax situation
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 also prepare form 8843 and any other applicable Federal tax forms
GTP will provide you with the instruction as to
What address to mail
When is the deadline to file

30. GTP Easy to use; no knowledge of tax rules is needed
Complete your U.S. Federal tax return by completing 4 simple steps:

31. Louisiana State Tax Return
Deadline: May 15
Form IT-540 Louisiana Resident Income Tax Return
Form IT-540B Louisiana Nonresident Income Tax Return
Determination:
Domicile
State that issued your driver license
Location of the banks where you maintain accounts

32. Tax Workshops
Look out for the s regarding tax workshops around January and February 2017

33. Tax Scam
AVOID being a victim of tax scam - please refer to the following website: Phone-Calls-Continue to spot suspicious calls, s, or text messages
Never release your social security number or Individual Taxpayer Identification Number over the phone or

34. ITO Contact Information
Located at Uptown Square, 200 Broadway Street, Suite 122, New Orleans, LA 70118
Website:
Walk-in Office hours: Monday to Friday from 9:00 a.m. to 12:00 p.m. and 1:00 p.m. to 4:00 p.m.
Office hours at Tidewater: Suite 2460 from 1:00 p.m. to 4:30 p.m. every other Tuesday beginning September 20, 2016