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:
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.
View the Visa Type - Tax Status Matrix to see the various Visa types, the associated immigration status, permissible income, and tax withholding requirements.
Source: Indiana University
For certain F-1, J-1, M-1, Q-1, or Q-2 Visa students, depending on any existing tax treaties between the U.S. and the student’s home country, a 14 percent withholding tax may be charged to the student account. This withholding charge is based on any taxable payments received by the student from scholarships, fellowships, and awards that are in excess of any qualified tuition expenses charged to a student’s account.
If a payment is considered to be a prize or award, a 30% rate of tax withholding will apply. An income tax treaty exemption is not generally applicable for prizes or awards.
Qualified tuition expenses include:
Taxable items include, but are not limited to the following:
Source: Arctic International LLC, 2008
Students who are assessed the income tax withholding charge may be able to reclaim their withholdings if file an Income Tax Return in the United States. Ohio University will provide Form 1040 NR-EZ with the Internal Revenue Service (IRS) to receive any refund due. Additional form filings may be required. The Office of the Bursar does not provide tax filing advice to students. More information about Nonresident Alien taxation may be found on the IRS website. Students may also consult with a tax professional.
For additional questions about Income Tax Withholdings, please contact Ohio University’s Tax Compliance Manager.