Taxes
- If a tax treaty with the USA is for three years, does that mean three years from the time I start working or does it refer to three calendar years?
The time limits of an income tax treaty vary from country to country. Time
limits may be based upon date of arrival or based upon taxable years,
including the year in which an individual arrives in The United States.
Your date of arrival will in most cases not be the same date you begin work.
Eligibility to invoke tax treaty benefits will not necessarily be
structured around the date you begin work but rather with your date of
arrival in the United States. This means three calendar years from the
time of your entry into the United States.For more detailed information you can always contact Debbie Endsley, the International Tax Payroll Cooridinator.
- What is the easiest way to find out if my country has a tax treaty with the USA, and how it applies to me?
- The United States has tax treaties with a number of foreign countries.
Under these treaties, tax residents (not necessarily citizens) of foreign
Countries are taxed at a reduced rate, or are exempt from U.S. income taxes
on certain sources of income they receive within the United States. These
reduced rates and exemptions vary among countries and specific items of
income.
Tables in the back of the Internal Revenue Service Publication 901, U.S.
Tax Treaties, which can be downloaded at http://www.irs.gov/, can be used as
quick reference. They show the countries that have income tax treaties
With the United States, the tax rates on different types of income (e.g.,
scholarship for studying or pay for teaching or research) that are exempt
from tax. - Are International students required to pay income taxes while in the USA?
- International students and scholars in the USA are subject to income tax for income earned or paid in the USA. The usual rate for students and scholars is 15%, but it can be higher. This means that your income will be taxed at this rate before you receive it. There are many variables and you may or may not be taxed depending on the type of income and if your tax country has a treaty with the USA. Please be cautious concerning signing any papers that state information about taxes, tax countries and rates of withholding of taxes.
You will be required to fill out the W-4, a form that is required before a person can receive wages in the USA. Your department should be able to help you fill out this form, however you are welcome to contact us if you have questions.
To find out if there is a tax treaty between your country and the USA, please contact the International Tax Payroll Coordinator, Ms. Debbie Endsley, to make an appointment.
There is the possibility that the money withheld for taxes will be returned to you after you declare your taxes in the new year (tax time is April 15 of the following year). International House offers workshops in the spring of each year for assistance with filling out the tax forms.