Non-residents for Tax Purposes: Taxable Income?

NEXT STEP: Did You Receive Taxable Income Last Year?

A non-resident alien for tax purposes is an alien who has not passed the “Green Card” Test or the Substantial Presence Test.  What you need file as a non-resident depends on whether or not you received income in the U.S during the previous calendar year.  Select the option that fits your situation for filing instructions.

Choose one:

 

What Is Taxable Income for Non-Residents?

Nonresident aliens use Form 1040NR or 1040NR-EZ to report only income sourced in the United States, or effectively connected with a United States trade or business. Read more about "effectively connected income," and "Source of Income" by using the preceding links. Income might inclue wages/payment from an on campus, OPT, CPT, or AT employer, a taxable stipend or scholarship from the University, or other sources. Generally speaking tuition waivers for degree seeking students are not taxable.

Nonresident aliens who receive interest income from deposits with a U.S. bank, savings & loan institution, credit union, or insurance company, or who receive portfolio interest are exempt from taxation on such interest income as long as such interest income is not effectively connected with a United States trade or business.

More information about how Non-Resident Alien income is taxed can be found on the IRS website.

Did you receive taxable money from the University?

If so, the following information may be helpful:

Note: the information above has been provided to OIA by a foreign tax professional.  Because OIA advisers are not tax experts, we are unable to answer questions about tax laws or individual tax situations.