Tax Information for Newcomers

It is important for international students, researchers, or faculty members at Harvard to be aware of their 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 income. Most incoming F and J visa holders are considered non-residents (F-1 and J-1 students for the first five years in the United States; 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 U.S. sources. In most cases, taxes are automatically withheld from an individual's pay checks or charged to a student's term bill as in the case of a scholarship. The available income after taxes, therefore, may be less than anticipated as one may be subject to federal, state and/or Social Security taxes that can range from 14-30% of one's total income. The amount of taxes paid depends on an individual's type of income and 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 University Financial Services Office for tax related information (see below).

University Financial Services
University Financial Services is located at 1033 Massachusetts Ave., 2nd floor. The staff of the office helps foreign nationals determine their tax residency status and 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 University Financial Services?
All individuals expecting to receive payments from the University, including fellowships or stipend, compensation, and other payments for services should visit University Financial Services 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 the office.

When Should a Foreign National Visit University Financial Services?

• Employees (including student employees) - after they have moved in, started working and received their Social Security Numbers
• Non-employee fellowship and stipend recipients and recipients of non-employee service payments - prior to receiving their first payments 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). This office does not assist individuals in filing their tax returns, but can provide information related to what forms to fill out and where to find them.

Filing Tax Returns
All F and J visa holders including F-2 and J-2 dependents must complete the Form 8843 annually regardless of whether or not they have income. 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. sourced 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 (2008 tax forms will be due by April 15, 2009). Tax forms must be completed even if a tax treaty exempts one 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 specific 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 fall into the 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 2009 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 individuals determine if they are in resident or non-resident status for U.S. tax purposes. CINTAX can help prepare only federal non-resident tax forms.

If you are employed in the United States, your employer will send you a statement of earnings, called the Form W-2, by the end of January 2009 that details your 2008 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 2008 income and treaty benefits. Be sure to keep copies of all your tax documents. If you are leaving Harvard before the end of 2008, be sure that the Payroll Office has your proper mailing address so that you will receive the necessary tax documents.