Foreign Visitor Tax Guide
The information in this publication is to be used as a guide by UNCG faculty, staff, and foreign visitors (Students, Teachers, Researchers, and Guest Lecturers). In addition, it is to be used as a reference tool for university personnel that interact with foreign visitors who have a financial relationship with UNCG.
This guide does not cover all tax situations. It covers only those most common to the majority of foreign students, faculty, and staff. It presents basic information about determining the tax status of various kinds of university payments to students, faculty, and staff. It is intended to provide information that will assist foreign visitors and university personnel in making decisions concerning the tax implications of payments that UNCG makes to the foreign visitors.
The guide specifically provides information about three types of payments to foreign visitors:
- Section 1 | Employee Compensation (Salary and Wages)
- Section 2 | Honorarium and Expense Reimbursements
- Section 3 | Scholarships, Fellowships and Grants
UNCG must fulfill its tax reporting obligations and can, in case of a tax question or problem, assist in supplying payroll and other appropriate documentation to explain payments made to individuals.
Users of this guide should be aware of the necessary limitations on the information presented herein. While it is hoped that this material will be useful, it should not be construed as a complete treatment of all tax or immigration questions.
This publication in no way should be construed to be the rendering of legal or tax advice. Each reader of this publication is responsible for determining the extent to which the information presented in this publication is appropriate to his/her situation. In assessing legal and tax obligations, each reader should consult with qualified legal and/or tax counsel.
Foreign students, faculty, and staff with tax questions or problems are advised to seek assistance from the IRS, a CPA, or attorney. In the U. S., the individual taxpayer is responsible for filing an appropriate and accurate tax return and negotiating all tax matters with the IRS. Taxpayer assistance is available from your local IRS office or by calling the IRS toll free taxpayer assistance number, 1-800-829-1040.
- Social Security Administration
6005 Landmark Center Blvd.
Greensboro, NC 27407
[P] (336) 854-1809 or 1-800-772-1213
- Internal Revenue Service
320 Federal Place
Greensboro, NC 27401
[P] (336) 378-2026 or 1-800-829-1040
- NC Department of Revenue
Koger Business Park
5 Centerview Drive, Lenor Building, Suite 100
Greensboro, NC 27407
[P] (336) 315-7001
- John C. Kirkman, UNCG Payroll Tax Manager
270 Mossman Building, PO Box 26170
Greensboro, NC 27402-6170
[P] (336) 334-5180 | [F] (336) 334-3131 | [E] firstname.lastname@example.org
- Norma Velazquez, International Programs
207 Foust Building
Greensboro, NC 27402
[P] (336) 334-5404 | [F] (336) 334-5406 | [E] email@example.com
- Todd Mitchell, UNCG Cashiers Office
151 Mossman Building
Greensboro, NC 27403
[P] (336) 334-4710 | [F] (336) 334-4178 | [E] firstname.lastname@example.org
- IRS Publication 515 – Withholding of Tax on Nonresident Aliens and Foreign Corporations
- IRS Publication 519 – U.S. Tax Guide for Aliens
- IRS Publication 597 – Information on the United States – Canada Income Tax Treaty
- IRS Publication 901 – U.S. Tax Treaties
- Nonresident Alien Tax Compliance: A Guide for Institutions Making Payments to Foreign Students, Scholars, Employees, and Other International Visitors
Special Instructions on Forms for Nonresident Aliens
Special Instructions for Form W-4
A nonresident alien subject to wage withholding must give the employer a completed Form W-4 to enable the employer to figure how much income tax to withhold. In completing the form, non resident aliens should use the following instructions instead of the instructions on Form W-4.
- Check only “Single” marital status on line 3 (regardless of actual marital status).
- Claim only one withholding allowance on line 5, unless a resident of Canada, Mexico, Japan, or South Korea, or a U. S. national.
- Request that additional tax of $7.60 per week be withheld on line 6. If the pay period is two weeks, request that $15.30 be withheld instead. (Since UNCG pays monthly, not weekly, the additional tax amount to be entered on line 6 is $33.00.)
- Do not claim “Exempt” withholding status on line 7.
These instructions restrict a nonresident alien’s filing status, generally limit the number of allowable exemptions, and require additional tax to be withheld because a nonresident alien cannot claim the standard deduction.
Students and business apprentices from India
Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty can claim additional withholding allowances on line 5 for the standard deduction and their spouses. They can claim an additional withholding allowance for each dependent not admitted to the United States on F-2, J-2, or M-2 visas. Also, they do not have to request additional withholding on line 6.
(Note: The above Special Instructions are taken from IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations.)
Instructions for Form NC-4.
NRAs complete Form NC-4 the same as a US citizen or resident of the State of North Carolina. There are no “Special Withholding Rules” for NRAs in North Carolina.
For Your Information
If a nonresident alien employee does not complete and give a Form W-4 to the employer, the withholding tax will be calculated as if the employee is “Single” with “0” withholding allowances. Also, a nonresident alien employee may elect to complete the Form W-4 as “Single” and claim “0” withholding allowances instead of using the Special Instructions above. The Form W-4 must be completed using one of these two options. There are no other options or exceptions other than the exceptions listed in 2) above and the students and business apprentices from India.