Nonresident Alien Taxation
The Internal Revenue Service provides detailed information for nonresident aliens and is your best source for tax related questions.
International Tax
Anyone receiving payments from a U.S. source, whether they are U.S. residents or internationals are subject to U.S. taxation. There are specific regulations and processes required for determining the tax withholdings for international persons. In certain situations, there could be a tax treaty that may exist to exempt an international person from taxes or there may be regulations that allow a reduction in taxes.
There are four definitions that are important to the international tax process:
Nonresident Alien for Tax purposes
This is defined by U.S. tax regulations as an international person who has not been physically present in the United States for the amount of time required to be treated as a resident alien for Tax purposes. The status is determined based on the substantial presence test and the visa type of the individual. A nonresident alien for tax purposes has a completely different method of having tax withheld, completing tax forms and tax documents, and is eligible for very few and limited deductions and allowances when paying taxes. A nonresident alien for tax purposes must only report and pay tax on money that he or she receives from U.S. sources.
Resident Alien for Tax purposes
This is defined by U.S. tax regulations as an international person who has been physically present in the United States for the amount of time required to be treated as a resident alien for tax purposes. The status is determined based on the substantial presence test and the visa type of the individual. Resident aliens for tax purposes are taxed in the same manner as a U.S. citizen. A resident alien for tax purposes must report ALL income from ALL sources, regardless of whether from the U.S. or foreign payors.
Nonresident Alien
This is defined by U.S. immigration laws and generally means any person who is not a U.S. citizen, U.S. national, U.S. resident, Asylee, Refugee or Permanent Resident.
U.S. Resident
This is defined by U.S. immigration law and generally means any person who is a U.S. citizen, U.S. national, Asylee, Refugee or Permanent Resident.
The Ohio State University uses a secure online international tax compliance software called GLACIER. Glacier captures the information required to determine the actual tax status of an international person. All international persons who are not U.S. Residents and who are receiving payments from The Ohio State University are required to have a GLACIER record. Therefore, a GLACIER record is required even if an international employee, student, scholar or visitor meets the definition of a Resident Alien for Tax Purposes.
Glacier
As a foreign national, you may already know how daunting understanding your tax obligations can be. That's why the university has provided you with a program called Glacier. Glacier is a web-based computer program that provides a "beginning to end" tax compliance solution. Once the university determines that you are a nonresident alien, you will receive an email to your osu.edu email address directing you to the Glacier website (www.online-tax.net) with a username and password for entry. After asking a few simple questions, the Glacier program will determine your taxation.
The Glacier system does the following:
- Makes tax residency, withholding, and income tax treaty determinations
- Provides all taxation paperwork
- Manages all paperwork
- Maintains individual taxation data and individual tax treaty data
- Provides year-end taxation documents
- Provides a process for completing a Federal tax return online (paper submission of the forms is required)
Throughout the year, international persons should update their individual Glacier record if any of the following changes occur:
- Immigration status (change in visa types)
- Departure date
- Dates present in the United States
- E-mail and home address
- Social Security Number or ITIN
After updating your information, your forms should be re-submitted as instructed.
If you are a nonresident alien and you have not received Glacier information, please submit a request through HR Connection.
If you are a nonresident alien (international student or worker), DO NOT complete the online W-4. Making changes on the online W-4 may cause an error in your tax withholdings. As a nonresident alien, completing Glacier will provide you with a nonresident Alien W-4 form.
If you have not received your username and password for Glacier, please submit a request with your formal first and last name, your OSU ID# and your pay frequency (biweekly or Monthly) to HR Connection.
Disclaimer: This is general information designed to assist nonresident aliens with questions about their tax status, tax return filing and the use of the GLACIER and GLACIER Tax Prep systems while they are present at The Ohio State University. The information herein is not to be relied upon to determine your tax, your tax status or to file your tax return. Employees at OSU are not trained to assist with tax matters. It is suggested you consult with a tax professional to assist you.
Filing Taxes in the United States
As an international student or scholar the income you earn in the U.S. is subject to taxation. Each year, the Internal Revenue Service (IRS) and the State taxation department require all individuals that earn income in the United States to file a tax return, which is due on April 15 of the following year. As a nonresident alien, you are required to file a federal tax return, Form 1040-NR and state tax return Form IT 1040. As an employee of The Ohio State University, you can complete your federal tax return (1040-NR) through the Glacier (Glacier Tax Prep) software.
Some international students and scholars are required to file a State of Ohio Tax Form. http://tax.ohio.gov. The GLACIER Tax Prep link on the Glacier system only provides assistance with the Federal tax return. The Glacier Tax Prep system does provide an additional link to another tax preparation software (Sprintax) to help you with your state tax return.
Filing Taxes in the United States - FREQUENTLY ASKED QUESTIONS
Tax forms you may receive at the end of the year
- If you have a job, receive a paycheck and don't have a tax treaty benefit you will receive a W-2 at the end of the year.
- If you have a job, receive a paycheck and do have a tax treaty benefit you will receive a 1042-S at the end of the year. If your tax treaty has a limit, you may also receive a W-2.
- If you have a reportable stipend or other taxable income and do have tax treaty benefits you will receive a 1042-S.
- If you did not have a job, but receive a stipend or other taxable income, you will receive a 1042-S.
- If you have a job and also receive a reportable stipend or other taxable income, and don't have a tax treaty benefit you will receive both a W-2 and 1042-S
Form W-2, Wage and Tax Statement
This is an income reporting form which is required to be issued by employers and payers to report your income and taxes withheld if any, to you and the Internal Revenue Service (IRS). The IRS uses this information to compare against your tax return to assure that you are reporting your income on your return.
Form W-2 is used to report taxable wages and taxes withheld of U.S. citizens, resident aliens, and nonresident aliens. It also includes Medicare wages and taxes which are used by the Social Security Administration for determining future Medicare benefits.
The W-2 is made available by January 31 of each year. It is necessary to opt in via Workday to receive this form electronically.
Form 1042-S, Foreign Person's U.S. Source Income Subject to Withholding
Form 1042-S is an income reporting form which is required to be issued by employers and payers to report your income and taxes withheld if any, to you and the Internal Revenue Service (IRS). The IRS uses this information to compare against your tax return to assure that you are reporting your income on your return.
This year-end tax document is provided to a nonresident alien who received wages covered under a tax treaty or received fellowship payments.
Treaty exempt wages are reported on this form with Exemption Code 04. The Income Code (IC) indicates the type of income reported on the form such as 16 (Scholarship or Fellowship), 17 (Independent Personal Services), 18 (Dependent Personal Services), 19 (compensation of a teacher or researcher), 20 (compensation during studying or training), 54 (Other Income).
Ohio State is required to furnish your yearly 1042-S by March 15 of the following year. You may elect to receive your 1042-S online through Glacier. Otherwise, you will receive a copy of your Form 1042-S by U.S. Mail.
In certain cases, you may receive multiple 1042-S forms with different income codes.
Some nonresident aliens may receive a W-2 in addition to a 1042-S. If you consented for online delivery of your W-2, you can access it via Workday.
Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition
This form is required for a Nonresident Alien who is present in the U.S. under an F, J, M or Q immigration status, regardless of whether or not you have received any income.
Form 1040NR, U.S. Nonresident Alien Income Tax Return
This form is used by nonresident taxpayers to file an annual income tax return.
Form 1095-A, Health Insurance Marketplace Statement
If you enrolled in health insurance through the Marketplace, you should have received a Form 1095-A. Form 1095-A is provided to assist you in determining your premium tax credit under the Affordable Care Act. However, if you are eligible to claim the premium tax credit and wish to do so, you will need to prepare your tax return manually, outside of GTP.
Forms 1095-B and 1095-C
You may receive a Form 1095-B or Form 1095-C from your insurer about your health insurance coverage. While these forms are required to be provided to you, the forms are generally not applicable to a nonresident alien. Please disregard any of the Forms 1095-B or 1095-C, the forms are provided for your information only. Do NOT enter any data from these forms into Glacier Tax Prep and do NOT attach the forms to your tax return.
Form 1098-T, Tuition Statement
Form 1098-T reports qualified scholarships and related expenses for purposes of the American Opportunity Credit and the Lifetime Learning Credit. Nonresident aliens are not eligible for these credits even if they receive a Form 1098-T. The IRS regulations state that, although no Form 1098-T is required for nonresidents, educational institutions may create the form for all students for administrative ease since many student systems lack information about the tax status of the students. A nonresident alien who receives this form should disregard it, but retain the form in your tax file.
Resident Aliens are eligible for the credits under the same rules that apply to U.S. citizens. For information about the credits, refer to IRS Publication 970, Tax Benefits for Education.
Form 1099-INT, Interest Income
Form 1099-INT is for taxable interest. Sometimes banks issue these forms to nonresident aliens who are not subject to tax on bank interest. The fact that a form was issued incorrectly does not make the interest income taxable.