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In this section

  • Social Security Taxes (FICA)
  • Payments Allowed by Visa Type
  • Forms Required for Payments
  • Payment FAQ
  • U.S. Federal ID Numbers
  • Honoraria/Expense Reimbursement Attestation Form
  • Foreign National Questionnaire

Payment FAQ

Filing a U.S. Tax Return

Am I eligible for the American opportunity credit, Hope credit*, or the Lifetime learning credit?

These credits are generally not available to nonresident aliens. Please refer to IRS Publication 970, Tax Benefits for Education.

*Hope credit can be claimed only if at least one eligible student is attending an eligible educational institution in a Midwestern disaster areas in the states of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin.

Will Cornell report payments to my home country?

Cornell does not report payments to the home country, but it appears that IRS reports income that is exempt under a treaty to the home country.

Should I file a tax return if I receive no U.S. income?

If you are a nonresident alien and have no U.S. source income, the IRS indicates you are not required to file an income tax return. However, you must file form 8843 with the IRS disclosing information about your nonresident alien status. Resident aliens are taxed on their world-wide incomes and, therefore, must file U.S. income tax returns if they have income from any sources.

Should I file a tax return if I received U.S. income, but taxes are withheld on this income?

You should file federal and New York State tax returns to ensure compliance with tax laws, to pay actual tax liability, and to document any tax amounts that need to be refunded to you.

Note: The Internal Revenue Code establishes the rate of withholding, but the withholding rate does not necessarily correspond with a taxpayer's actual year-end tax liability.

Payment

Who should read this information?

All foreign nationals as U.S. tax laws are complicated. It is the individual's responsibility to comply with U.S. tax laws. The University Tax Office cannot act as an adviser to individual taxpayers.

Note: Cornell's Office of Global Learning hosts a tax seminar each spring for foreign nationals.

Where can I find information about U.S. taxation?

Websites

  • 1040.com  (includes federal and state information)
  • Internal Revenue Service (federal only)

Toll-Free Telephone Numbers

  • Federal Tax Issues: (800) 829-3676 (forms and publications) or (800) 829-1040 (advice)
  • New York State Tax Issues: (800) 225-5829 (forms, publications, and advice)

IRS Publications

  • 505, Tax Withholding and Estimated Tax
  • 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
  • 519, U.S. Tax Guide for Aliens
  • 597, Information on the United States-Canada Income Tax Treaty
  • 901, U.S. Tax Treaties
  • 970, Tax Benefits for Education
Will Cornell report payments to my home country?

Cornell does not report payments to the home country, but it appears that IRS reports income that is exempt under a treaty to the home country.

Why should I care if I'm a "nonresident alien" or a "resident alien"?

"Nonresident alien" and "resident alien" are two different tax classifications, unrelated to immigration.

  • A nonresident alien is taxed on U.S. source income only, not on world-wide income. Generally, a nonresident alien is eligible for only one personal exemption and can not take the standard deduction on his or her tax return.
  • A resident alien is...
  • taxed in the same manner as a U.S. citizen.
  • a foreign national who either has a green card or meets the "Substantial Presence Test," as defined by the Internal Revenue Service (IRS) in Publication 519, U.S. Tax Guide for Aliens.
Should I file a tax return if I receive no U.S. income?

If you are a nonresident alien and have no U.S. source income, the IRS indicates you are not required to file an income tax return. However, you must file form 8843 with the IRS disclosing information about your nonresident alien status. Resident aliens are taxed on their world-wide incomes and, therefore, must file U.S. income tax returns if they have income from any sources.

Do I need a U.S. Tax Identification Number?

Yes. Life in the U.S. is very complicated without a tax ID number.

In addition, you must have a tax ID number to file a tax return. Do not file returns before March 15, as many nonresident aliens receive both a W-2 form and a 1042-S form, which is not issued until March 15. Nonresident aliens should file a 1040NR (federal) and an IT-203 (NY).

  • If you are on an F-1, H-1, J-1, or M-1 visa, you are eligible for a social security number (SSN) and should obtain one immediately
    • Also bring your F-1 Sponsor Letter (orange), and I-20 Certificate of Eligibility (white) or your J-1 DS-2019 (formerly IAP66) Certificate of Eligibility (pink), or your M-1 or H-1 I688B Work Authorization (plastic)
    • Present your passport and Exit Paper (I-94)
    • Apply in person at the Social Security Administration, 171 State St., Ithaca, NY, from 9:00 a.m. - 2:00 p.m., (607) 256-3651
  • Any other foreign national (including your spouse or child) should obtain an individual taxpayer identification number (ITIN) by filing IRS Form W-7.
Should I file a tax return if I received U.S. income, but taxes are withheld on this income?

You should file federal and New York State tax returns to ensure compliance with tax laws, to pay actual tax liability, and to document any tax amounts that need to be refunded to you.

Note: The Internal Revenue Code establishes the rate of withholding, but the withholding rate does not necessarily correspond with a taxpayer's actual year-end tax liability.

Will I be subject to U.S. social security payroll taxes?

Nonresident aliens are exempt from U.S. social security payroll taxes, also known as Federal Insurance Contributions Act (FICA) taxes, but resident aliens are subjected to these taxes.

Note: FICA and Medicare taxes apply to wages and self-employment income, not fellowships.

How do I know if I qualify for treaty exemption?

To qualify for treaty exemption, you must be a citizen or a permanent resident (generally, a noncitizen who files a resident income tax return) of the "treaty country," and the type of payment must be exempt under that specific treaty. In addition, the IRS requires a U.S. federal identification number, evidence of nonresident alien status (i.e., the substantial presence test), evidence of proper work authorization (i.e., visa), and a properly completed IRS "treaty exemption form" (i.e., Form 8233 for wages, fees, honoraria). Information on tax treaties is available from the IRS (Pub.901, U.S. Tax Treaties).

Note: Although Cornell only grants treaty exemption to nonresident aliens, some treaties have "tie breaker rules." If a foreign national feels he or she qualifies for treaty exemption in spite of the fact that Cornell withheld taxes, the individual can file IRS Form 8833 with his or her tax return and certify to the facts that merit the "treaty-based return position." Cornell cannot act as an individual's tax adviser.

Will Cornell withhold federal and state income taxes on my payments?

There are no simple answers to this question. Cornell must withhold taxes on all payments to nonresident aliens unless the payment is exempt under the Internal Revenue Code, a tax treaty, or as foreign source income.

Types of Payments

  • Wages: Cornell withholds federal and state taxes using graduated rates
  • Tuition Fellowships: No withholding
  • Other Fellowship Support: (e.g. room, board, stipends, living allowances, travel, awards, emergency funds, etc.) Cornell withholds federal taxes at 14 percent. New York State does not provided a mechanism for withholding on non-wage payments. Therefore, each taxpayer should evaluate whether to make quarterly estimated tax payments to cover the state liability
  • Fee/Honorarium/Royalty: Cornell withholds federal income taxes at 30 percent. New York State does not have a mechanism for withholding on these non-wage payments
  • Reimbursed Business Expenses for Employees/Short-term Visitors: No withholding
Am I eligible for the American opportunity credit, Hope credit*, or the Lifetime learning credit?

These credits are generally not available to nonresident aliens. Please refer to IRS Publication 970, Tax Benefits for Education.

*Hope credit can be claimed only if at least one eligible student is attending an eligible educational institution in a Midwestern disaster areas in the states of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin.

Will Cornell report my income to the Internal Revenue Service (IRS)?

Payments to nonresident aliens are reported to the individual and the IRS on Form 1042-S or the W-2 form, but not on the 1099 form. The W-2 is issued by January 31; the 1042-S by March 15. Payments to resident aliens are reported on the W-2 form or 1099 form, but not on the 1042-S form.

Cornell Withholding and Reporting

Will Cornell report my income to the Internal Revenue Service (IRS)?

Payments to nonresident aliens are reported to the individual and the IRS on Form 1042-S or the W-2 form, but not on the 1099 form. The W-2 is issued by January 31; the 1042-S by March 15. Payments to resident aliens are reported on the W-2 form or 1099 form, but not on the 1042-S form.

Will Cornell withhold federal and state income taxes on my payments?

There are no simple answers to this question. Cornell must withhold taxes on all payments to nonresident aliens unless the payment is exempt under the Internal Revenue Code, a tax treaty, or as foreign source income.

Types of Payments

  • Wages: Cornell withholds federal and state taxes using graduated rates
  • Tuition Fellowships: No withholding
  • Other Fellowship Support: (e.g. room, board, stipends, living allowances, travel, awards, emergency funds, etc.) Cornell withholds federal taxes at 14 percent. New York State does not provided a mechanism for withholding on non-wage payments. Therefore, each taxpayer should evaluate whether to make quarterly estimated tax payments to cover the state liability
  • Fee/Honorarium/Royalty: Cornell withholds federal income taxes at 30 percent. New York State does not have a mechanism for withholding on these non-wage payments
  • Reimbursed Business Expenses for Employees/Short-term Visitors: No withholding

General

Who should read this information?

All foreign nationals as U.S. tax laws are complicated. It is the individual's responsibility to comply with U.S. tax laws. The University Tax Office cannot act as an adviser to individual taxpayers.

Note: Cornell's Office of Global Learning hosts a tax seminar each spring for foreign nationals.

Why should I care if I'm a "nonresident alien" or a "resident alien"?

"Nonresident alien" and "resident alien" are two different tax classifications, unrelated to immigration.

  • A nonresident alien is taxed on U.S. source income only, not on world-wide income. Generally, a nonresident alien is eligible for only one personal exemption and can not take the standard deduction on his or her tax return.
  • A resident alien is...
  • taxed in the same manner as a U.S. citizen.
  • a foreign national who either has a green card or meets the "Substantial Presence Test," as defined by the Internal Revenue Service (IRS) in Publication 519, U.S. Tax Guide for Aliens.
Do I need a U.S. Tax Identification Number?

Yes. Life in the U.S. is very complicated without a tax ID number.

In addition, you must have a tax ID number to file a tax return. Do not file returns before March 15, as many nonresident aliens receive both a W-2 form and a 1042-S form, which is not issued until March 15. Nonresident aliens should file a 1040NR (federal) and an IT-203 (NY).

  • If you are on an F-1, H-1, J-1, or M-1 visa, you are eligible for a social security number (SSN) and should obtain one immediately
    • Also bring your F-1 Sponsor Letter (orange), and I-20 Certificate of Eligibility (white) or your J-1 DS-2019 (formerly IAP66) Certificate of Eligibility (pink), or your M-1 or H-1 I688B Work Authorization (plastic)
    • Present your passport and Exit Paper (I-94)
    • Apply in person at the Social Security Administration, 171 State St., Ithaca, NY, from 9:00 a.m. - 2:00 p.m., (607) 256-3651
  • Any other foreign national (including your spouse or child) should obtain an individual taxpayer identification number (ITIN) by filing IRS Form W-7.
Will I be subject to U.S. social security payroll taxes?

Nonresident aliens are exempt from U.S. social security payroll taxes, also known as Federal Insurance Contributions Act (FICA) taxes, but resident aliens are subjected to these taxes.

Note: FICA and Medicare taxes apply to wages and self-employment income, not fellowships.

More Federal and State Tax Information

Where can I find information about U.S. taxation?

Websites

  • 1040.com  (includes federal and state information)
  • Internal Revenue Service (federal only)

Toll-Free Telephone Numbers

  • Federal Tax Issues: (800) 829-3676 (forms and publications) or (800) 829-1040 (advice)
  • New York State Tax Issues: (800) 225-5829 (forms, publications, and advice)

IRS Publications

  • 505, Tax Withholding and Estimated Tax
  • 515, Withholding of Tax on Nonresident Aliens and Foreign Entities
  • 519, U.S. Tax Guide for Aliens
  • 597, Information on the United States-Canada Income Tax Treaty
  • 901, U.S. Tax Treaties
  • 970, Tax Benefits for Education

Exemptions and Credits

How do I know if I qualify for treaty exemption?

To qualify for treaty exemption, you must be a citizen or a permanent resident (generally, a noncitizen who files a resident income tax return) of the "treaty country," and the type of payment must be exempt under that specific treaty. In addition, the IRS requires a U.S. federal identification number, evidence of nonresident alien status (i.e., the substantial presence test), evidence of proper work authorization (i.e., visa), and a properly completed IRS "treaty exemption form" (i.e., Form 8233 for wages, fees, honoraria). Information on tax treaties is available from the IRS (Pub.901, U.S. Tax Treaties).

Note: Although Cornell only grants treaty exemption to nonresident aliens, some treaties have "tie breaker rules." If a foreign national feels he or she qualifies for treaty exemption in spite of the fact that Cornell withheld taxes, the individual can file IRS Form 8833 with his or her tax return and certify to the facts that merit the "treaty-based return position." Cornell cannot act as an individual's tax adviser.

Cornell University Tax Office

377 Pine Tree Road, East Hill Plaza
Ithaca, NY 14850

CONTACT US

Email:  tax@cornell.edu
Hours: 7:30 a.m. - 5:00 p.m., Monday - Friday
   

 


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