As an international student, researcher, or faculty member at Harvard, it is important that you be aware of your U.S. income tax obligations. U.S. tax laws distinguish between residents and non-residents for U.S. tax purposes. Non-residents only pay taxes on U.S. sourced income, while residents follow the same tax rules as U.S. citizens and pay taxes on their worldwide incomes. Most incoming F and J visa holders are considered non-residents (students for the first five years in the United States and J-1 scholars for the first two years in the United States).

The U.S. tax system is organized according to the calendar year and is a pay-as-you-go-system, which means that taxes may be deducted from salaries, stipends, and scholarships if these funds are from a U.S. source. In most cases, taxes are automatically withheld from your pay (or charged to your term bill if you receive a Harvard scholarship). Your available income after taxes, therefore, may be less than anticipated as you may be subject to federal, state and/or Social Security taxes that can range from 14-30% of your total income. The amount of taxes you will pay will depend on the type of income you receive and your tax status in the United States.

Tax Treaties: There are many tax treaties between the United States and other countries. Such treaties may exempt earnings, scholarships, and stipends from taxes. Students receiving scholarships from Harvard will be sent information by e-mail from the Student Receivables Office, which includes information about the countries that have tax treaties with the United States. Researchers and faculty paid by Harvard must visit the Non-Resident Alien (NRA) Tax Compliance Group Office for tax related information (see below).

NRA Tax Compliance Group: The NRA Tax Compliance Group office is located at 1033 Massachusetts Ave., 2nd floor. The staff at the NRA Tax Compliance Group helps foreign nationals determine their tax residency status and to apply for tax treaty benefits. Determining tax residency is important because it affects:

• Tax treaty eligibility
• Amount of tax withheld from payments made by the University
• Type of U.S. tax reporting documents to be received and filed

Who should visit the NRA Tax Compliance Group office? All individuals expecting to receive payments from the University, including fellowships or other stipend income, compensation, and other payments for services should visit this office. Please note that if the only “payments” from the University received by an undergraduate or graduate student are scholarship amounts applied directly to the student’s term bill, the student does not have to visit this office.

When should a foreign national visit the NRA Tax Compliance Group office?

• Employees (including student employees) – after they have moved in, started working and received their Social Security Number
• Non-employee fellowship and stipend recipients and recipients of non-employee service payments – prior to receiving their first payment from the University (if possible).

Please note: In order to claim a tax treaty benefit one must have either a Social Security Number (SSN) or an Individual Tax Identification Number (ITIN). The NRA Tax Compliance Group staff does not assist individuals file their tax returns, but can provide information related to what forms to fill out and where to find them.

Filing Tax Returns: Many of you may not realize that you will have to complete U.S. tax forms. All F and J visa holders (including F-2 and J-2 family members) must complete a Form 8843 annually regardless of whether or not they have incomes. The filing of Form 8843 confirms one’s non-resident tax status in the United States. Federal and state income tax forms are completed annually in the United States. F and J visa holders are required to complete federal income tax forms only if they had U.S. source income. Income includes salaries from jobs, scholarships, stipends, and/or grants from Harvard or any other U.S. organizations, as well as dividends from a U.S. company. Tax forms must be completed and submitted to the Internal Revenue Service (IRS) between January 1 and April 15 for the previous tax year (2007 tax forms will be due by April 15, 2008). Tax forms must be completed even if a tax treaty exempts you from paying any U.S. taxes.

It is your responsibility to file these tax forms. Because of legal restrictions on our capacity to advise you about your tax obligations, the HIO staff is not able to answer individual questions regarding your tax situation. To help guide you through the tax filing process, the HIO has purchased for your use CINTAX, a web based tax return preparation software designed exclusively for international students, scholars, and their dependents who are non-residents for tax purposes. CINTAX will determine which forms you need to complete and will prepare them for you as you answer questions. Most of our international students and J researchers would fall into this non-resident category.

In addition to CINTAX, there will be other resources to assist you with your tax forms. These include the CINTAX support staff, the Internal Revenue Service, as well as paid tax preparation services. The HIO web site will be updated in early 2008 with the most up-to-date tax information.

Scholars who hold visas such as H-1B, O-1, TN, or F-1 OPT may or may not be considered non-residents for tax purposes, depending how long they have been in the United States. CINTAX will help you determine if you are a resident or non-resident for U.S. tax purposes. CINTAX can only help prepare federal non-resident tax forms.

If you are employed in the United States, your employer will send you a statement of earnings, called a Form W2, by the end of January 2008 that details your 2007 income and any taxes withheld during the year. If the amount of taxes withheld from you is more than what is required of you, you will receive a refund when you file the tax forms. If insufficient taxes were withheld, you would pay the owed amount when filing the tax forms. If you receive benefits of a tax treaty for employment, scholarship or fellowship income, you will receive a Form1042S in March that details your 2007 income and treaty benefits. Be sure to keep copies of all your tax documents. If you are leaving Harvard before the end of 2007, be sure the Payroll Office has your proper mailing address so that you will receive the necessary tax documents.