Tax Information

The U.S. tax system can be complex and confusing, even for citizens! Individual reporting requirements and tax obligations vary depending on many factors, including filing status, income & earnings, exemptions, etc. These can change over time and are often impacted by major life events. The University of Rochester has several resources for international students and scholars to help in navagating their U.S. taxes.

Overview

The U.S. tax system is governed by the Internal Revenue Service (IRS) and consists of two primary functions: 1) Regular reporting and tax withholdings on payments made throughout the calendar year, and 2) Filing an individual year-end statement of all income and exemptions, which are used to calculate taxes owed. All kinds of income are taxable, including earned wages, non-service scholarships or awards, and interest. They are often taxed differently, however, based on the type, amount, or recipient of the payment. Each spring, employers, banks, and other institutions issue individual summaries of all financial activities for the previous year to help in the year-end filing process. Any money withheld from payments during the year is counted as taxes already paid. Refunds are granted when total withholdings are greater than the tax obligation, but any taxes still owed will require payment to the IRS. State taxes are handled separately from the Federal filing and subject to individual state laws.

International students and scholars who were present in the U.S. during any part of the previous calendar year must comply with Federal and State tax filing requirements. Depending on your immigration status and time in the U.S., you will be categorized for tax purposes as either a 'Non-Resident Alien' or a 'Resident Alien'. (This category does not have any bearing on your actual residency status with U.S. immigration.) Your tax residency status at the State level may be different than your Federal category.
Important: You may be required to submit a Federal Tax Statement, Form 8843, even if you did not earn any income in the U.S. If you did receive U.S. income, you must also file the necessary tax forms for Federal and State earnings.

GLACIER & CINTAX Tax Software

The University of Rochester provides two software programs to assist foreign nationals in preparing required U.S. tax forms. These programs will determine your appropriate tax status, whether you are eligible for a tax treaty benefit, and which forms are necessary for you to file. These valuable resources are available free of charge to the University's international community and will help you understand and comply with your personal tax obligations. They could also save you money. The ISO encourages you to take advantage of these systems and to keep your information updated regularly!

• GLACIER is an online tax compliance system, which helps the University to make sure that foreign nationals are paid and taxed appropriately, according to their tax status. You will be automatically enrolled in GLACIER, with login details and a temporary password delivered by email when you arrive to campus. The program will ask you to enter details on your biographical, contact, & immigration information, your time present in the U.S. each year, and any payment relationship with the University. Update your record regularly! It is very important that this information remains accurate, since changes may impact your tax residency and/or treaty eligibility. For answers to common questions, please see our GLACIER Information Sheet.

GLACIER Access: www.online-tax.net
Please give permission to receive Form 1042-S electronically, when you are prompted. This will make your tax filing process easier. For help with GLACIER, please contact support@online-tax.net or a University Non-Resident Alien Tax Specialist at glacier@hr.rochester.edu.

Use GLACIER to determine your tax category! The GLACIER software will determine whether you are considered a 'Resident Alien' or a 'Non-Resident Alien' for tax purposes.  This calculation is based on your status, immigration history, and time present in the U.S.  Please access your Tax Summary after completing your record to check your residency status.

GLACIER Tax Summary & Required Forms are available through your record as PDF documents. These should be printed, signed, and mailed to the University Payoll Office anytime there is a change. Copies of your immigration documents should also be updated when necessary. Required tax forms vary a lot and will not be the same for everyone.

Tax Exemptions are used to determine how much money is withheld from U.S. earnings. It represents the number of people dependent upon your income: usually yourself, your spouse, and your children. This is a number, not a dollar amount to be withheld. The higher your exemptions, the lower your tax withholdings from each payment. Most people choose “0” or “1”. However, if your withholdings are too low throughout the year, you may owe taxes to the government when filing your tax statements, instead of receiving a refund. In some cases, your tax category may limit the tax exemptions and filing status you may declare.

• CINTAX is a companion software program that prepares Federal tax forms for foreign nationals taxed as Non-Resident Aliens, as determined through your GLACIER record. CINTAX is available each year for tax season and accessed directly through GLACIER. You may use CINTAX to prepare and print your forms for mailing (no electronic filing). State tax forms are not supported through CINTAX and must be prepared separately.
  
  Foreign nationals categorized as Resident Aliens for tax purposes cannot use CINTAX. However, you may use other tax preparation software systems widely available for purchase or access over the internet, or obtain free instructions from the IRS.

Filing Your Taxes: Help for 2009

The ISO offers several resources each year to help our international population with annual tax reporting. Please see below for details on various services and access our 2009 Tax Flyer for contacts at off-campus resources and other reminders.

Before you start preparing your tax return, be sure you have statements of all your U.S. source income! The necessary forms will depend on your financial activities for the year. These may include Forms W-2 (for earnings & wages), Form 1042-S (income to foreign nationals for wages subject to a tax treaty, scholarship or fellowship payments, independent services, awards, etc.), or Form 1099 (other income based on the type of transaction, such as bank account interest, dividends, or real estate proceeds).

CINTAX Consultant: If you have questions about using CINTAX or on completing the right tax forms, please contact our CINTAX Consultant, Rosemarie Eskes. You may send brief questions by email or schedule a free, half-hour appointment to review your tax forms individually! Appointments are made through the ISO, at 275-2866.

Appointments are available February 9th through April 15th, on Monday, Wednesday, & Friday afternoons, from 12 noon to 5 pm. Limited Saturday appointments may also be requested. Most sessions are held at River Campus (209 Morey Hall), but several appointment times are available downtown at the Eastman School of Music.

Tax Workshops: To assist foreign nationals in understanding their tax requirements, the ISO holds helpful workshops during the tax season.  Each workshop includes information on U.S. taxes, international tax treaties, using CINTAX and GLACIER to complete your forms, and a review of NY state tax requirements.

UNDERSTANDING YOUR FEDERAL TAX REPORTING REQUIREMENTS:

If you are considered a Non-Resident Alien for tax purposes:

• You must file Form 8843, the Statement of Non-Resident Status, even if you did not receive any type of income from U.S. sources.
• You must report U.S. earnings greater than $3500 for tax purposes, using Form 1040-NR or Form 1040-NR EZ. If your 2008 income is less than $3500, you are not required to file a tax return. However, if taxes were withheld from your payments throughout the year, you must file a tax return in order to get this money back in a refund.
• You may access CINTAX, via GLACIER, to prepare your Federal tax forms. All forms must be printed, signed, and mailed; you are not eligible to e-file.
• 2009 Deadlines: If you will file a Federal tax return, your 1040-NR (or 1040-NR EZ) & Form 8843 must be postmarked by April 15th. If you only need to file Form 8843, it must be postmarked by June 15th.

If you are considered a Resident Alien for tax purposes:

• You do not have to file Form 8843.
• You must report U.S. earnings greater than $8950 for tax purposes, using Form 1040 or Form 1040 EZ. If your 2008 income is less than $8950 (the $3500 personal exemption, plus the $5450 standard deduction), you are not required to file a tax return. However, if taxes were withheld from your payments throughout the year, you must file a tax return in order to get this money back in a refund.
• CINTAX cannot prepare your tax forms. Other software systems are widely available for purchase or use over the internet, or obtain free instructions from the IRS.
• 2009 Deadlines: All Forms 1040 (or 1040-EZ) must be postmarked by April 15th.
  

Filing Your Taxes: New York State

State taxes are subject to the rules of the state where income was earned. As a result, many University of Rochester students and scholars will be responsible for taxes on New York State earnings. For income earned in other U.S. states, please check with the appropriate state government office to determine your tax reporting needs.

New York State does not follow the same residency status definitions as the IRS, as determined by GLACIER. You are considered a NYS Resident for tax purposes if you maintain a permanent residence in New York for more than 11 months in the year and spend 184 days or more (6 months) in the state during that tax year. This criteria is for tax purposes only and will apply to many UR students, but does not change your residency status under U.S. immigration regulations.

NYS Residents for tax purposes should use Form IT-150 or Form IT-201. You do not need to file both: IT-201 is the long version, if you cannot use the short form IT-150. You can find instructions for both forms online, including help to figure out which version you should file.

If you are considered a NYS Nonresident for tax purposes, you will not satisfy the residency conditions above, either by not maintaining a permanent residence in New York for 11 months of the year or by spending fewer than 6 months within the state. This can include students who live in campus housing and return home for the summer.

NYS Nonresidents for tax purposes should use Form IT-203. Please find detailed instructions online to determine your filing requirements.

Government & Other Resources

Internal Revenue Service (IRS)
2009 Presentation: Federal Taxes for Non-Resident Aliens
Website: http://www.irs.gov
Phone (Forms & Publications): 800-829-3676
Phone (Advice):800-829-1040

New York State Department of Taxation
2009 Presentation: New York State Taxes for Non-Resident Aliens
Website:http://www.tax.state.ny.us
Phone (Forms & Publications): 800-462-8100
Phone (Advice):800-225-5829

Rochester Area Office Locations
The local IRS office is located at 255 East Avenue and is open during tax season Monday through Friday, 8:30AM to 4:30PM. The local phone number is 585-263-5840. The local NYS district tax office is located at 340 East Main Street.

NAFSA: Association for International Educators
Find helpful guidelines and explanations of the Federal tax reporting requirements and tax residency status in the NAFSA Federal Income Tax Brochure (2009).

Additional Information
* For more information on taxation of non-residents, please read IRS Publication 519
* IRS guidance and resources specifically for Foreign Students and Scholars
* Access Frequently Asked Questions on international tax law from the IRS

Tax Treaties

The U.S. has income tax treaties with many different countries. These treaties either reduce or exempt income tax on a portion of the eligible foreign national's earnings. They are based on your country of foreign residence, not your country of citizenship or birth, and vary in their terms and scopes. Most involve exempt dollar limits, which is the amount of earnings that can be exempt from income tax withholding. Any wages earned over the exempt dollar limit will have income tax withheld. Different treaties may also involve an exempt time limit, which is the number of years a foreign employee can use the income tax treaty. This time limit begins at the date of arrival in the U.S., not the first year the tax treaty exemption is claimed.

In order to claim a tax treaty exemption, you must submit IRS Form 8233 to your employer prior to starting your employment. For payments from the University of Rochester, if you are eligible and choose to claim a treaty benefit, GLACIER will generate this form for you. Alternatively, please refer to IRS instructions in order to fill out your Form 8233.

For more information on tax treaties, please read IRS Publication 901.