Federal and State Taxes
There are two types
of taxes, federal
and state. If you
are an F-1 or J-1
student or scholar
and you become employed,
you are subject to
Federal and State
income tax laws and
procedures.
Income
If you have received money, or a scholarship during your presence in the U.S. it is considered income. Typical sources of income are: (a) employment on or off campus, and (b) stipends and scholarships awarded by the University, or other organizations in the U.S. It is not considered income if the source of your monies is from your home government or a private-foreign source.
North Carolina Agricultural and Technical State University withholds State and Federal income taxes, when required by law, from cash stipends for services, certain remitted tuition benefits, scholarships, and certain cash fellowship awards.
Internal Revenue Service (IRS)
The
Internal Revenue Service (IRS) requires that the University
apply specific federal tax
withholding and reporting
rules to all payments
made to individuals
classified
as non-resident aliens
for tax purposes.
Taxes
If you have NOT received income then you do not have to pay taxes, but you do have to file a Form 8843, prior to June 15. IF YOU HAVE received income it may be taxable depending upon:
(a) a U.S. tax treaty with your country,
(b) the source of the income.
Everyone in the U.S., regardless of immigration status, is responsible each year for submitting a complete and accurate income-tax statement to the Internal Revenue Service. Americans refer to this process as “filing a tax return”. International students and scholars, regardless of whether they work or earn income while in the United States, must file an appropriate return each year.
Tax Treaties
Treaties are special considerations and arrangements made between the US government and your home country government. As an individual who is not a U.S. citizen or U.S. permanent resident, you may be eligible to claim a reduced rate of withholding (including full exemption) pursuant to a tax treaty between the United States and your country of tax residency. (Note the provisions of any income tax treaty between the U.S. and another country are disregarded for North Carolina income tax purposes.) Also, based on your tax status you may be exempt from social security withholding.
