Nonresident Aliens

International visitors are subject to an entirely different set of tax rules and regulations that exist under Section 1441 of the Internal Revenue Code.  In general, all income received by a “nonresident alien” is taxable and the tax must be withheld at the time of payment unless the payment is:

  • Exempt from tax under the provisions of a tax treaty between the U.S. and the person's country of residence
  • Exempt from tax under a Code provision, or
  • Is "foreign source" income.

In addition, international visitors must follow strict immigration regulations about what payments they may receive while they are in the United States.  It is not always possible for a foreign visitor to legally receive a payment you might wish to make.

Click here to view a matrix with the various Visa types, the associated immigration status, permissible income, and tax withholding requirements.

For specific questions, please contact the Tax Compliance Manager.

Sources: Indiana University (http://www.fms.indiana.edu/tax/NRA/FVTguide.asp).