1. General
2. Cornell Withholding and Reporting
3. "Should I file a U.S. Tax Return?"
4. Exemptions and Credits
5. More Federal and State Tax Information

1. General

 Who should read this?
All foreign nationals. U.S. tax laws are complicated, and it is the individual's responsibility to comply with these laws. Cornell's Office of Tax Compliance cannot act as an advisor to individual taxpayers.

• If you are on an F-1, H-1, J-1, or M-1 visa, you are eligible for a social security number (SSN)and should obtain one immediately.
• Apply in person in Ithaca at 171 State St. between 9:00 a.m. and 2:00 p.m. (607-256-3651)
• Present your passport and Exit Paper (I-94)
• Also bring: F-1 Sponsor Letter (orange) and I-20 Certificate of Eligibility (white) or your J-1 IAP66 Certificate of Eligibility (pink), or your M-1 or H-1 I688B Work Authorization (plastic)
• Any other foreign national (including a spouse or child) should obtain an individual taxpayer identification number (ITIN) by filing IRS  Form W-7.

 Will I be subject to U.S. social security taxes? 
Nonresident aliens are exempt from U.S. social security taxes, but resident aliens are subject to these taxes. 

 Note: Social Security taxes apply to wages and self-employment income, not fellowships.

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2. Cornell Withholding and Reporting

 Will Cornell withhold federal and state income taxes on my payments?
There are no simple answers. Cornell 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.

Types of Payments:

• Wages: Cornell withholds federal and state taxes using graduated rates.
• Tuition Fellowships: No withholding.
• Other Fellowship Support: (e.g., room, board, stipends, living allowances, travel, prizes, awards, emergency funds, etc.) Cornell withholds federal taxes at 14%. New York State does not provide a mechanism for withholding on non-wage payments; therefore, each taxpayer should evaluate whether to make quarterly estimated tax payments to cover the state liability.
• Fee/Honorarium/Royalty: Cornell withholds federal income taxes at 30%. New York State does not have a mechanism for withholding on these non-wage payments.
• Reimbursed Business Expenses for Employees/Short-term Visitors: No withholding.

3. "Should I file a U.S. Tax Return?"

 Should I file a tax return if I receive no U.S. income?
If you are a nonresident alien and have no U.S. source income, IRS indicates that you are not required to file an income tax return. HOWEVER, you must file with IRS form 8843 disclosing information about your nonresident alien status. Resident aliens are taxed on their worldwide incomes and, therefore, must file U.S. income tax returns if they have income from any sources.

 Should I file a tax return if I received U.S. income exempt from taxation under a treaty?
In most cases, you should file federal and New York tax returns.

 Should I file a tax return if I received U.S. income but taxes were withheld on this income?
You should file federal and a 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.

 Note: The Internal Revenue Code establishes the rate of withholding, but the withholding rate does not necessarily correspond with a taxpayer's actual year-end tax liability.  

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4. Exemptions and Credits

 How do I know if I qualify for treaty exemption? 
To qualify for treaty exemption, you must be a citizen or a permanent resident (generally, a non-citizen who files a resident income tax return) of the "treaty country," and the type of payment must be exempt under that 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). Information on tax treaties is available from the IRS (Pub.901).

 Note: Although Cornell only grants treaty exemption to nonresident aliens, some treaties have "tie breaker rules."  If a foreign national feels he/she qualifies for treaty exemption in spite of the fact that Cornell withheld taxes, the individual can generally file IRS Form 8833 with his or her tax return and certify to the facts that merit the "treaty-based return position."  Cornell cannot act as an individuals tax advisor.

Am I eligible for the Hope Credit or the Lifetime Learning Credit?
These credits are generally not available to nonresident aliens.

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5. More Federal and State Tax Information

 Where can I find information about U.S. taxation? 

Websites:

• http://www.1040.com  (includes federal and state information) 
• http://www.irs.gov  (federal only)

Toll-Free Telephone Numbers :

• Federal Tax Issues: 1-800-829-3676 (forms and publications) or 1-800-829-1040 (advice) 
• New York State Tax Issues: (forms, publications, and advice) 1-800-225-5829
• IRS Publications: (available on web  and by phone), including: 
• 505 Tax Withholding/Estimated Tax
• 508 Educational Expenses
• 513 Tax Info. for Visitors to the U.S.
• 515 Withholding of Tax on Nonresident Aliens
• 519 U.S. Tax Guide for Aliens
• 520 Scholarships/Fellowships
• 597 Canada Tax Treaty; #901 Tax Treaties
• 970 Education Tax Credits

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