Office of International Education |
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Federal Tax The United States Federal Government under Internal Revenue Code Sec. 1441 requires that all Universities and Colleges withhold federal taxes from the income of non-resident international students. There are two possible sources of income which you might receive from the University of Richmond: 1. If you are a scholarship recipient, any amount of scholarship or grant in excess of tuition, required fees and books is considered income. It will be taxed at 14 percent according to the Internal Revenue Code. The University collects the tax amount from you; it will appear as an item on your bill. 2. If you work on campus as a student employee, your earnings are considered income. This income will be subject to tax at the standard graduated rates applicable to U.S. employees using the following parameters-- single marital status, one withholding allowance, and an additional $8.00 per biweekly paycheck. (Exceptions are made for individuals from American Samoa, Canada, Japan, Korea, Mexico, and India. These individuals will need to complete forms at the Payroll Office.) Official authorization is required before a student can commence employment. For more international tax information on scholarships and earnings, visit the Office of International Taxation website. At the end of the tax year, you will file a tax return with the United States Internal Revenue Service. (The deadline for filing the tax return for 2007 is April 16th.) By filing the tax return, you could possibly receive a complete or partial refund of the taxes withheld from your income during the tax year. The only exception to the withholding of taxes is made when a student is a resident of a country with whom the United States has a tax treaty AND the treaty has specific provisions which exempt the specific source of income that the student is receiving. If you are a resident of one of these countries, there is a POSSIBILITY that you will be exempt from federal tax on your income. To determine your tax status, you must complete the appropriate forms at the Payroll Office. Please note that although your country may have a tax treaty with the United States, and you may not owe taxes; you are still required to a file a U.S. tax return. Income Tax Obligations of International Students and Scholars All international students and scholars on F or J visas must file an income tax form every year in order to comply with Internal Revenue Service (IRS) regulations whether or not they earned income while in the United States. The following is basic information designed to give you a general understanding of which tax forms to file and available resources. Please do not consider this information as individual tax advice. If you were present in the United States in the year 2006, please read this section very carefully. Completion of these forms is required by United States federal law and failure to comply could result in a monetary penalty. The International Student Advisor cannot offer any tax assistance to you.
Income Tax Obligations of F-2 and J-2
Dependents: Important Dates March 21, 2007: International Tax Workshop, THC 308, 5:30-7 pm. UR international student alumna Mary Assouan ('05, Ivory Coast) is an accountant at Deloitte & Touche and will hold a workshop for international students and scholars who need to complete the 8843 and 1040NR and 1040NREZ tax forms. April 16, 2007: The deadline for residents and nonresidents who have earned wages from U.S. sources to file their U.S. federal income-tax returns for the year 2006. Tax returns must be postmarked by this date. May 1: The postmark deadline for filing
the tax return
Form 760 for the State of Virginia. Hints on filing your 1040NREZ
and 1040NR: 1.
Always make xerox copies of your completed forms BEFORE you send
them. 2.
Always write your social security number on anything you send to
the IRS. 3.
Always remember to sign and date your tax forms. 4.
Staple all attachments including the W-2 so nothing is separated
from 5. Never mail in two separate tax returns to the IRS in the same envelope. Occasionally, the IRS Submission-Processing employees staple one tax return to the back of the other tax return in the same envelope and only process one of the returns. Obviously, the second tax return does not get processed or posted to the IRS Master File, and there is no record of the second tax return ever having been filed. The mistake can later be rectified, but it is usually time-consuming and frustrating to accomplish it. 6.
If you receive any inquires from the IRS after you submit your
1040NR 7. Finally if you need help with your tax return, call 1-800-829-1040. Tax Information and Resources
Social Security (FICA) Taxes Social Security tax or FICA is a taxation system that provides benefits to retired workers. As a F-1 or J-1 Visa holder, you are exempt from social security taxes. State Tax The State of Virginia also requires the withholding of state taxes from your earnings as an employee. Unless your income is determined to be exempt because of tax treaty, Virginia State taxes will be withheld according to the standard graduated rates using one withholding allowance. If you are determined to be exempt from Federal tax because of a tax treaty, you would also be exempt from state tax. Sales Tax Sales tax is similar to the value-added tax in other countries, however, the amount of the tax is not included in advertised prices of goods. Sales-tax rates vary from state to state. In Virginia, the sales tax is 5% of the advertised price. |
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Office of International Education | University of Richmond VA 23173 | Phone 804-289-8836 | Fax 804-289-8904 |
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