A non-resident alien:

• is taxed on U.S. source income only, not on worldwide income. A nonresident alien is generally allowed only one personal exemption and cannot take the standard deduction on his/her tax return.
• See IRS Publication 515 for additional information and exceptions.

A resident alien:

• is taxed in the same manner as a U.S. citizen
• is a foreign national who either has a green card or meets the “substantial presence test” as defined by the IRS in Publication 519.

Personal services performed by an independent nonresident alien contractor include honoraria paid to visiting teachers, lecturers, and researchers.

Yes. You must have a tax ID number to file a tax return.

If you are on an F-1, H-1, J-1, or M-1 visa you are eligible for a social security number. Go to ssa.gov for an Electronic Fact Sheet for Noncitizens that will explain the procedure and required documentation.

Any other nonresident alien should obtain an individual taxpayer identification number (ITIN) by filing IRS Form W-7. This process takes approximately 4-8 weeks.

By check. All payments are processed through Nazareth's accounts payable system. The sponsoring department should complete the necessary paperwork to ensure your payment is made timely.

Nazareth must withhold taxes on all payments to nonresident aliens unless the payment is exempt under the Internal Revenue Code, a tax treaty, or as foreign source income. Nazareth withholds 30% for federal income taxes on fees and honorariums. New York State does not have a mechanism for withholding on these non-wage payments.

An individual qualifies for a tax treaty exemption from withholdings if the individual is a citizen or permanent resident of the treaty country, and if the services are performed during a period of temporary residence in the U.S. (usually not more than 183 days). The type of payment must be exempt under that specific treaty. See IRS Publication 901 for a list of treaty countries and types of payment that are exempt under a specific treaty.

In addition, the IRS requires a U.S. federal identification number, evidence of nonresident alien status (i.e., the substantial presence test), evidence of proper work authorization (i.e., visa), and a properly completed IRS "treaty exemption form" (i.e., Form 8233 for wages, fees, honoraria).

Prior to when payment for the services performed is made you must provide Nazareth with either your social security number or taxpayer identification number and your foreign residence address.

Payments for independent personal services to nonresident aliens are reported to both you and the IRS on Form 1042S by March 15.

Nazareth does not report payments to the home country, but it appears that the IRS reports income that is exempt under a treaty to the home country.

In most cases, you should file both federal and New York tax returns to ensure compliance with tax laws, to pay actual tax liability, and to document any tax amounts that need to be refunded to you.

• http://www.1040.com (includes federal and state information)
• http://www.irs.gov (federal only)
• Federal Tax Issues: 1-800-829-3676 (forms and publications) or 1-800-829-1040 (advice)
• New York State Tax Issues: 1-800-225-5829 (forms, publications, and advice)

IRS Publications (available on www.irs.gov):

• 505 Tax Withholding/Estimated Tax
• 513 Tax Information for Visitors to the U.S.
• 515 Withholding of Tax on Nonresident Aliens
• 901 U.S. Tax Treaties