Foreign National Residency



All payments made to or on behalf of a nonresident alien are generally subject to income tax withholding unless specifically exempted either by the U.S. tax law or an income tax treaty. 

All payments made to or on behalf of a nonresident alien are generally required to be reported to the Internal Revenue Service (IRS).

Examples of payments made to nonresident aliens include, but are not limited to:

 

  • Compensation
  • Salary/Wages
  • Scholarships/Fellowships
  • Living Allowances
  • Stipends
  • Awards
  • Independent Contractor Payment
  • Consultant Payments
  • Certain Travel Payments
  • Honoraria
  • Royalties
 

 

A Nonresident alien can claim exemption from withholding on compensation for independent personal services using IRS Form 8233. A nonresident alien individual should use this form to claim exemption from withholding from some or all compensation paid for (1) independent personal services (self-employment) or (2) dependent personal services provided by a student, professor/teacher, researcher, or business. For services in (1) above, use Form 8233 to claim a tax treaty exemption and/or the personal exemption amount. For services in (2) above, use Form 8233 only to claim a tax treaty exemption for any part of your compensation that is exempt from withholding.  Use Form W-4, Employee's Withholding Allowance Certificate to claim the personal exemption amount.  A nonresident alien should use IRS Form W-8BEN to claim an exemption from withholding for a non-qualified scholarship/fellowship.

Temple University utilizes an online web-based Tax Compliance System to gather all pertinent information regarding payments made to foreign nationals. During the new hire process, if required, employees will receive instructions on how to enter this information into the system.

All foreign nationals receiving a payment from the university through Accounts Payable will be provided with a University Tax Compliance Notification Sheet and are required to review and complete the form and send it to the nonresident alien tax specialist. Upon review by the Nonresident Alien Tax Specialist, the individual will receive an e-mail with an individual password and instructions on how to access Glacier, the Tax Compliance System, to provide us with additional information.

Please contact the Nonresident Alien Tax Specialist at (215) 926-2244 (7-2244) with any questions or to obtain additional information.

To obtain more information on international taxation, please visit the IRS web site.

 

 

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