Forms and FAQs

When determining tax rates for international students, researchers, and researchers present in the U.S. the University uses two tests:

The Permanent Residency (Green Card) Test The Substantial Presence Test

International individuals are considered residents (for tax purposes) on January 1 of the qualifying year, regardless of the month they arrived.

If the international individual does not satisfy either test they are considered a Non-Resident Alien (NRA) for tax withholding and reporting purposes. If the individual does satisfy one, or, both of the tests they are considered a Resident Alien (RA). A resident alien is subject to the same tax withholding and reporting requirements as a U.S. citizen or Permanent Resident, including taxation of worldwide income.

The following individuals are generally considered nonresident aliens:

• F-1/J-1 students, for the first five calendar years present in the U.S.
• J-1 Researchers/Professors, for the first two calendar years present in the U.S.

Non-resident alien individuals are exempt from Medicare and Social Security (OASDI) taxes, commonly referred to as FICA taxes.

This exemption applies to F-1 and J-1 students, researchers, professors, and short-term scholars in non-resident alien status. H-1B, TN, E3, O-1 and LPR visa holders are never exempt from FICA withholdings.

More information about the FICA tax liability for foreign nationals can be found on the IRS website, https://www.irs.gov/individuals/international-taxpayers/foreign-student-liability-for-social-security-and-medicare-taxes.

If you are a non-resident and FICA taxes have been withheld from your wages please contact the International Services Office.

Scholarship/Fellowship payments are generally considered Qualified and not taxable when the payment is applied to education related expenses. Scholarship/Fellowship are generally tax-free under the following circumstances:

The student is enrolled in a degree program at an accredited university The fellowship/scholarship is used to pay the following qualified expenses, unless the terms of the fellowship/scholarship state otherwise:

•  Tuition
•  Fees
•  Books
•  Supplies (if required by all students in the course)
•  Equipment (if required by all students in the course)

Often incorrectly referred to as stipends, these payments generally are subject to 14% federal income tax withholdings. These payments typically include any payment from Southeastern for living expenses beyond typical tuition charges. U.S.-sourced, taxable scholarships and fellowship grants for nonresident aliens may be withheld at either a 14% or 30% rate. Non-qualified payments made to nonresident aliens in F, J, M, or Q nonimmigrant status will be taxed at 14%. Payments made to nonresident alien individuals in any other immigration status are subject to 30% withholding.

Non-Qualified Scholarship/Fellowship payments are reported on Form 1042-S.

Southeastern uses Sprintax Calculus to ensure proper tax withholding for all non-resident aliens and can determine any tax treaty benefits you may be eligible for. If you do not already have a Calculus profile, please contact us at [email protected] for a link to activate your account.

You should have received the following depending on your income types:

• W-2 – received for salary/wages (may be from Southeastern or outside employer)
• 1042-S – received for tax exempt salary/wages, stipends, prizes and also for taxable stipends and prizes
• 1099-MISC – received for compensation from outside company if they treated you as a contractor
• 1098-T – nonresident aliens can ignore this form

No, unfortunately we cannot. We can refer you to Sprintax who specializes in tax preparation for non-resident aliens.