Tax Information
INTERNATIONAL STUDENT SERVICES- Change of Status to F-1 Information
- On-Campus Employment
- Off Campus Employment
- Immigration Regulations F-1
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- Job & Tax Withholding
- Getting a Social Security number
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- Travel Information for F-1 Students
- Visa Types Commonly Seen at UST
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Immigration Information
> Job and Tax Withholding
All international students must file income tax returns must file income tax returns with the Internal Revenue Service (IRS) even if they have not earned any money in the U.S. and did not work. Students may benefit froma tax treaty between their home country and the U.S. For a list of countries and benefits of tax treaties, see an International Student Advisor. If a student does not qualify for a tax benefit, taces must be paid to the U.S. federal government and the State of Minnesota. Taxes will be withheld from each paycheck from UST. Students are advised to start the tax process early and must file income tax returns by April 15. If a student did not work at all in the U.S., the dealdine is June 15. Come to the OISS for current forms.
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From the Adviser's Manual of Federal Regulations Affecting Foreign Students and Scholars; 1998 Edition. 4.9.6 Social Security Coverage Prior to the Tax Reform Act of 1984, and subsequent regulations promulgated 24 April 1992, contributions for Social Security (FICA tax) were not to be withheld from wages of nonimmigrant F-1 aliens if the employment was authorized. Recent changes in the regulations, however, make F-1 students subject to FICA tax withholdings if they are "residents for tax purposes." Generally, F-1 students become "residents" for tax purposes after they have been in the United States for 5 years. Full-time students may retain "nonresident" status beyond 5 years in some circumstances. The April 1992 regulations were retroactive to 1 January 1985, the effective date of the 1984 law. [Federal Register, 27 April 1992, p. 15237] 4.9.7 Income Tax Earnings from F-1 student employment, including income from assistantships, are usually subject to federal, state, and local income taxes. Additional information on F-1 students' federal income tax obligations may be found in Internal Revenue Service publications 515, "Withholding on Nonresident Aliens and Foreign Corporations," and 519, "U.S. Tax Guide for Aliens." [See App. 8.] Of note is the requirement that all F-1 students, regardless of income, must file IRS Form 8843 "Statement for Exempt Individuals" to claim that they are eligible to exclude days of presence in the United States for purposes of the substantial presence test, regardless of whether they have earned any income in the United States. |
