George Mason University is a withholding agent for the Internal Revenue Service (IRS) and is required to withhold tax. All payments made to a nonresident alien (including, but not limited to, travel/business reimbursements, honorarium, scholarships/fellowships/stipends, wages, etc.) are taxable unless specifically exempt from tax by the IRS Code or a tax treaty.
Summary of Source Rules for Income of Nonresident Aliens
Identifying a Nonresident Alien (for tax purposes)
A nonresident alien (for tax purposes) must pay taxes on any income earned in the U.S. to the Internal Revenue Service, unless the person can claim a tax treaty benefit. This applies to students as well. Failure to pay the correct tax can result in an unexpected tax obligation when the individual leaves the U.S. or may jeopardize a future application for residency.
There is a different tax structure for a nonresident alien compared to a resident alien. A nonresident alien (for tax purposes) may qualify for some tax relief through a tax treaty benefit, if one exists with the person’s home country. Generally, a resident alien can’t qualify for a tax treaty benefit. Resident aliens for tax purposes are taxed on their worldwide income.
Additionally, the UW is liable for any tax not withheld and associated fines and penalties. Any tax amount, fines and penalties determined to be owed by the IRS will be charged to the department responsible for the foreign national.
If foreign national has never lived in the U.S., generally:
- F & J students are NRAs for five calendar years
- J nonstudents are NRAs for two calendar years
If a foreign national has lived in the U.S. in the past, the individual must complete the Substantial Presence Test. This test determines if the person has been in the U.S. enough time over the previous three years to be considered “substantially present” in the states. If the foreign national has been in the U.S. for 183 days or more in the past three years, the individual is considered a resident alien for tax purposes.
Federal Withholding Tax and Tax Treaties
In most cases, a foreign national is subject to federal withholding tax on U.S. source income at a standard flat rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign national’s country of residence and the United States. The tax is generally withheld from the payment made to the foreign national.
A tax treaty is a bilateral agreement between the United States and a foreign government. Tax treaties are intended to avoid double taxation or having the income taxed by both countries. Each treaty is different and includes different exemptions. If a foreign national qualifies for an exemption because of a tax treaty benefit, little or no withholding will be taken from a payment. The foreign national must have a U.S. tax identification number in order to claim the benefit.
See the IRS Publication 515, Withholding of Tax on Nonresident Aliens & Foreign Entities for more information about which countries have treaties with the U.S. Note: Citizens of Hong Kong and Macao are not covered by the People’s Republic of China tax treaty.
If you do qualify for a tax treaty benefit, the International Tax Office will provide you with the appropriate form(s) to use to apply for the benefit.
Tax Identification Number (SSN or ITIN)
IRS regulations mandate that foreign nationals must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) in order to receive any tax treaty benefits.
Social Security and Medicare Taxes
In general, Social Security and Medicare (FICA) taxes apply to salary or wage payments made by U.S. employers to foreign national employees for services performed in the United States unless an individual qualifies for an exemption. In order to be exempt from FICA tax, a foreign national must be:
• A nonresident alien for tax purposes
• Present in the United States under an F, J, M or Q immigration status
• Performing services in accordance with the primary purpose of the visa’s issuance (i.e. F-1 student working as a TA)
Note: The exemption determination is based on the calendar year which may be a partial year.
If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to obtain a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Attach the following items to Form 843.
Items to be Attached to Form 843
- A copy of your W-2 to prove the amount of Social Security and Medicare taxes withheld.
- A copy of your visa.
- Form I-94 (or other documentation showing your dates of arrival or departure).
- If you have an F-1 visa, documentation showing permission to work in the U.S.
- If you have a J-1 visa, documentation showing permission to work in the U.S.
- If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U.S.
- A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.
- If you were exempt from Social Security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt.
Items to File to Obtain Refund
- Form 843
- Form 8316
Attachments should be submitted to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201–0038.
Important
All forms can be found on the IRS site.
Filing an Income Tax Return with the IRS
There are specific rules about filing an income tax return with the IRS that nonresident and resident aliens must follow. See IRS Publication 519, U.S. Tax Guide for Aliens, for more information. More information and resources can be found at:
Who should file a U.S tax return
You must file a U.S. tax return if any of the following apply:
- You worked in the U.S.
- You received a stipend, grant or allowance
- You had no earnings – even if you didn’t work or receive income in the U.S., you’re still legally obligated to file a tax return with the IRS to declare no earnings.
George Mason University has arranged free access to Sprintax Federal Tax preparation software for all Nonresident International Students. Sprintax will guide you through the tax preparation process and check if you’re due a tax refund.
How to get started with Sprintax
1. Create a Sprintax Account or log into your existing account
2. Complete the questionnaire
3. Contact the International Tax Office for the discount code that you will need to enter in ‘Review your order’ section
4. Sprintax will prepare your tax return and check if you’re due a refund
5. Download and print your tax return
6. Sign and send the forms to the relevant tax departments as per instructions enclosed
You can access your online account any time you like. If you choose to use the Sprintax service in subsequent tax years, you can still access the same account.
What documents and information might be needed to file the tax return
- Passport or other valid photo ID
- U.S. entry and Exit Dates for current and all past visits to the U.S.
- All tax forms, including Forms W-2, 1042-S, and/or 1099 – if you received them
- If you worked on campus or with an employer in the U.S. You’ll need a W-2 form. The W-2 reports your annual wages and amount of taxes withheld from your paycheck. Mason issued W-2 forms can be accessed via Patriot Web.
- If you received a scholarship or fellowship grant and/or claimed tax treaty benefit, you’ll need form 1042-S. Mason issued 1042-S forms will be post mailed to you by March 15th.
- Visa/Immigration Status Information, including Form DS-2019 (for J visa holders) or Form I-20 (for F visa holders)
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you do not have an ITIN, Sprintax can still help you!
- If you are using Sprintax for State Tax Returns(s) preparation only you will need a copy of your already prepared Federal Tax return.
Additional Information about Forms
- If you were employed at any time during the calendar year, either off-campus or on-campus at Mason or at a previous school, and have not received your form W-2 by February 1 of the following year, contact your employer immediately to confirm they have your current address. You will be required to include a copy of each W-2 form with your federal and state income tax forms. Mason issued W-2 forms can be accessed via Patriot Web.
- 1042-S is used to report income paid to a nonresident regardless of whether the payment is taxable. The form has a number of purposes. It can be used to report wages exempt under a tax treaty, income earned as an independent contractor, royalties, and scholarship or fellowship grants. Mason issued 1042-S forms will be post mailed to you by March 15.
For further Assistance
Watch the Sprintax online tutorial for more details or if you have questions, please email Sprintax. You may also use their online chat system or call them for free at 1-866-601-5695.
IMPORTANT NOTE: International Tax Office staff are neither qualified nor permitted to provide individual tax advice. Please contact a tax professional if you need additional assistance.
Compare Taxes Paid to Actual Tax Liability
• If paid too much >> Receive a refund
• If paid too little >> Owe more tax
*U.S. sourced income is any payment from sources within the U.S. Examples include wages and salary income paid by a U.S. employer, payments for services performed in the U.S., and scholarships paid by U.S. Grantors.
Certificate of Compliance or 'Sailing Permit'
A Certificate of Compliance or “Sailing Permit” must be requested from the IRS to demonstrate compliance with the tax law and verify that all required taxes have been paid before leaving the U.S.
F-1, F-2, J-1, H-2, H-3 and H-4 visa holders are not required to obtain a Certificate of Compliance if they had no U.S. source income other than:
- Allowances or payments to cover study expenses (including travel, room, board, and tuition)
- Wages from authorized work, including practical training
- Interest on bank deposits
All nonresident aliens with a visa status other than those noted above including permanent residents (green card holders), must obtain a Certificate of Compliance from the IRS before leaving the U.S.
- IRS Form 2063 – required if the foreign national owes no U.S. tax at the time of departure
- IRS Form 1040-C (Instructions) – required if the foreign national owes U.S. tax at the time of departure
- Form should be filed at least 14, but no more than 30 days before departure
- More information is available in IRS Publication 519, U.S. Tax Guide for Aliens
Penalties and Sanctions
Failure to file the appropriate tax returns, making intentionally false or misleading statements on tax returns or otherwise failing to comply with U.S. tax law can lead to the imposition of fines and penalties including potential criminal penalties. The regulations provide that a nonresident alien’s tax return deductions will be allowed “only if a true and accurate return for the taxable year is filed by the nonresident alien on a timely basis.” This means that unless a timely and accurate tax return is filed, tax is assessed against the nonresident alien’s gross income without regard for any deductions or credits that might otherwise be allowable. Tax compliance will be evaluated at the time the foreigner seeks to leave the country.
Identifying a Nonresident Alien (for tax purposes)
A nonresident alien (for tax purposes) must pay taxes on any income earned in the U.S. to the Internal Revenue Service, unless the person can claim a tax treaty benefit. This applies to students as well. Failure to pay the correct tax can result in an unexpected tax obligation when the individual leaves the U.S. or may jeopardize a future application for residency.
There is a different tax structure for a nonresident alien compared to a resident alien. A nonresident alien (for tax purposes) may qualify for some tax relief through a tax treaty benefit, if one exists with the person’s home country. Generally, a resident alien can’t qualify for a tax treaty benefit. Resident aliens for tax purposes are taxed on their worldwide income.
Additionally, the UW is liable for any tax not withheld and associated fines and penalties. Any tax amount, fines and penalties determined to be owed by the IRS will be charged to the department responsible for the foreign national.
If foreign national has never lived in the U.S., generally:
- F & J students are NRAs for five calendar years
- J nonstudents are NRAs for two calendar years
If a foreign national has lived in the U.S. in the past, the individual must complete the Substantial Presence Test. This test determines if the person has been in the U.S. enough time over the previous three years to be considered “substantially present” in the states. If the foreign national has been in the U.S. for 183 days or more in the past three years, the individual is considered a resident alien for tax purposes.
Federal Withholding Tax and Tax Treaties
In most cases, a foreign national is subject to federal withholding tax on U.S. source income at a standard flat rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign national’s country of residence and the United States. The tax is generally withheld from the payment made to the foreign national.
A tax treaty is a bilateral agreement between the United States and a foreign government. Tax treaties are intended to avoid double taxation or having the income taxed by both countries. Each treaty is different and includes different exemptions. If a foreign national qualifies for an exemption because of a tax treaty benefit, little or no withholding will be taken from a payment. The foreign national must have a U.S. tax identification number in order to claim the benefit.
See the IRS Publication 515, Withholding of Tax on Nonresident Aliens & Foreign Entities for more information about which countries have treaties with the U.S. Note: Citizens of Hong Kong and Macao are not covered by the People’s Republic of China tax treaty.
If you do qualify for a tax treaty benefit, the International Tax Office will provide you with the appropriate form(s) to use to apply for the benefit.
Tax Identification Number (SSN or ITIN)
IRS regulations mandate that foreign nationals must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) in order to receive any tax treaty benefits.
Social Security and Medicare Taxes
In general, Social Security and Medicare (FICA) taxes apply to salary or wage payments made by U.S. employers to foreign national employees for services performed in the United States unless an individual qualifies for an exemption. In order to be exempt from FICA tax, a foreign national must be:
• A nonresident alien for tax purposes
• Present in the United States under an F, J, M or Q immigration status
• Performing services in accordance with the primary purpose of the visa’s issuance (i.e. F-1 student working as a TA)
Note: The exemption determination is based on the calendar year which may be a partial year.
If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to obtain a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Attach the following items to Form 843.
Items to be Attached to Form 843
- A copy of your W-2 to prove the amount of Social Security and Medicare taxes withheld.
- A copy of your visa.
- Form I-94 (or other documentation showing your dates of arrival or departure).
- If you have an F-1 visa, documentation showing permission to work in the U.S.
- If you have a J-1 visa, documentation showing permission to work in the U.S.
- If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U.S.
- A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.
- If you were exempt from Social Security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt.
Items to File to Obtain Refund
- Form 843
- Form 8316
Attachments should be submitted to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201–0038.
Important
All forms can be found on the IRS site.
Filing an Income Tax Return with the IRS
There are specific rules about filing an income tax return with the IRS that nonresident and resident aliens must follow. See IRS Publication 519, U.S. Tax Guide for Aliens, for more information. More information and resources can be found at:
Who should file a U.S tax return
You must file a U.S. tax return if any of the following apply:
- You worked in the U.S.
- You received a stipend, grant or allowance
- You had no earnings – even if you didn’t work or receive income in the U.S., you’re still legally obligated to file a tax return with the IRS to declare no earnings.
George Mason University has arranged free access to Sprintax Federal Tax preparation software for all Nonresident International Students. Sprintax will guide you through the tax preparation process and check if you’re due a tax refund.
How to get started with Sprintax
1. Create a Sprintax Account or log into your existing account
2. Complete the questionnaire
3. Contact the International Tax Office for the discount code that you will need to enter in ‘Review your order’ section
4. Sprintax will prepare your tax return and check if you’re due a refund
5. Download and print your tax return
6. Sign and send the forms to the relevant tax departments as per instructions enclosed
You can access your online account any time you like. If you choose to use the Sprintax service in subsequent tax years, you can still access the same account.
What documents and information might be needed to file the tax return
- Passport or other valid photo ID
- U.S. entry and Exit Dates for current and all past visits to the U.S.
- All tax forms, including Forms W-2, 1042-S, and/or 1099 – if you received them
- If you worked on campus or with an employer in the U.S. You’ll need a W-2 form. The W-2 reports your annual wages and amount of taxes withheld from your paycheck. Mason issued W-2 forms can be accessed via Patriot Web.
- If you received a scholarship or fellowship grant and/or claimed tax treaty benefit, you’ll need form 1042-S. Mason issued 1042-S forms will be post mailed to you by March 15th.
- Visa/Immigration Status Information, including Form DS-2019 (for J visa holders) or Form I-20 (for F visa holders)
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you do not have an ITIN, Sprintax can still help you!
- If you are using Sprintax for State Tax Returns(s) preparation only you will need a copy of your already prepared Federal Tax return.
Additional Information about Forms
- If you were employed at any time during the calendar year, either off-campus or on-campus at Mason or at a previous school, and have not received your form W-2 by February 1 of the following year, contact your employer immediately to confirm they have your current address. You will be required to include a copy of each W-2 form with your federal and state income tax forms. Mason issued W-2 forms can be accessed via Patriot Web.
- 1042-S is used to report income paid to a nonresident regardless of whether the payment is taxable. The form has a number of purposes. It can be used to report wages exempt under a tax treaty, income earned as an independent contractor, royalties, and scholarship or fellowship grants. Mason issued 1042-S forms will be post mailed to you by March 15.
For further Assistance
Watch the Sprintax online tutorial for more details or if you have questions, please email Sprintax. You may also use their online chat system or call them for free at 1-866-601-5695.
IMPORTANT NOTE: International Tax Office staff are neither qualified nor permitted to provide individual tax advice. Please contact a tax professional if you need additional assistance.
Compare Taxes Paid to Actual Tax Liability
• If paid too much >> Receive a refund
• If paid too little >> Owe more tax
*U.S. sourced income is any payment from sources within the U.S. Examples include wages and salary income paid by a U.S. employer, payments for services performed in the U.S., and scholarships paid by U.S. Grantors.
Certificate of Compliance or 'Sailing Permit'
A Certificate of Compliance or “Sailing Permit” must be requested from the IRS to demonstrate compliance with the tax law and verify that all required taxes have been paid before leaving the U.S.
F-1, F-2, J-1, H-2, H-3 and H-4 visa holders are not required to obtain a Certificate of Compliance if they had no U.S. source income other than:
- Allowances or payments to cover study expenses (including travel, room, board, and tuition)
- Wages from authorized work, including practical training
- Interest on bank deposits
All nonresident aliens with a visa status other than those noted above including permanent residents (green card holders), must obtain a Certificate of Compliance from the IRS before leaving the U.S.
- IRS Form 2063 – required if the foreign national owes no U.S. tax at the time of departure
- IRS Form 1040-C (Instructions) – required if the foreign national owes U.S. tax at the time of departure
- Form should be filed at least 14, but no more than 30 days before departure
- More information is available in IRS Publication 519, U.S. Tax Guide for Aliens
Penalties and Sanctions
Failure to file the appropriate tax returns, making intentionally false or misleading statements on tax returns or otherwise failing to comply with U.S. tax law can lead to the imposition of fines and penalties including potential criminal penalties. The regulations provide that a nonresident alien’s tax return deductions will be allowed “only if a true and accurate return for the taxable year is filed by the nonresident alien on a timely basis.” This means that unless a timely and accurate tax return is filed, tax is assessed against the nonresident alien’s gross income without regard for any deductions or credits that might otherwise be allowable. Tax compliance will be evaluated at the time the foreigner seeks to leave the country.
In most cases, a foreign national is subject to federal withholding tax on U.S. source income at a standard flat rate of 30%. A reduced rate, including exemption, may apply if there is a tax treaty between the foreign national’s country of residence and the United States. The tax is generally withheld from the payment made to the foreign national.
A tax treaty is a bilateral agreement between the United States and a foreign government. Tax treaties are intended to avoid double taxation or having the income taxed by both countries. Each treaty is different and includes different exemptions. If a foreign national qualifies for an exemption because of a tax treaty benefit, little or no withholding will be taken from a payment. The foreign national must have a U.S. tax identification number in order to claim the benefit.
See the IRS Publication 515, Withholding of Tax on Nonresident Aliens & Foreign Entities for more information about which countries have treaties with the U.S. Note: Citizens of Hong Kong and Macao are not covered by the People’s Republic of China tax treaty.
If you do qualify for a tax treaty benefit, the International Tax Office will provide you with the appropriate form(s) to use to apply for the benefit.
Tax Identification Number (SSN or ITIN)
IRS regulations mandate that foreign nationals must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) in order to receive any tax treaty benefits.
Social Security and Medicare Taxes
In general, Social Security and Medicare (FICA) taxes apply to salary or wage payments made by U.S. employers to foreign national employees for services performed in the United States unless an individual qualifies for an exemption. In order to be exempt from FICA tax, a foreign national must be:
• A nonresident alien for tax purposes
• Present in the United States under an F, J, M or Q immigration status
• Performing services in accordance with the primary purpose of the visa’s issuance (i.e. F-1 student working as a TA)
Note: The exemption determination is based on the calendar year which may be a partial year.
If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to obtain a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Attach the following items to Form 843.
Items to be Attached to Form 843
- A copy of your W-2 to prove the amount of Social Security and Medicare taxes withheld.
- A copy of your visa.
- Form I-94 (or other documentation showing your dates of arrival or departure).
- If you have an F-1 visa, documentation showing permission to work in the U.S.
- If you have a J-1 visa, documentation showing permission to work in the U.S.
- If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U.S.
- A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.
- If you were exempt from Social Security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt.
Items to File to Obtain Refund
- Form 843
- Form 8316
Attachments should be submitted to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201–0038.
Important
All forms can be found on the IRS site.
Filing an Income Tax Return with the IRS
There are specific rules about filing an income tax return with the IRS that nonresident and resident aliens must follow. See IRS Publication 519, U.S. Tax Guide for Aliens, for more information. More information and resources can be found at:
Who should file a U.S tax return
You must file a U.S. tax return if any of the following apply:
- You worked in the U.S.
- You received a stipend, grant or allowance
- You had no earnings – even if you didn’t work or receive income in the U.S., you’re still legally obligated to file a tax return with the IRS to declare no earnings.
George Mason University has arranged free access to Sprintax Federal Tax preparation software for all Nonresident International Students. Sprintax will guide you through the tax preparation process and check if you’re due a tax refund.
How to get started with Sprintax
1. Create a Sprintax Account or log into your existing account
2. Complete the questionnaire
3. Contact the International Tax Office for the discount code that you will need to enter in ‘Review your order’ section
4. Sprintax will prepare your tax return and check if you’re due a refund
5. Download and print your tax return
6. Sign and send the forms to the relevant tax departments as per instructions enclosed
You can access your online account any time you like. If you choose to use the Sprintax service in subsequent tax years, you can still access the same account.
What documents and information might be needed to file the tax return
- Passport or other valid photo ID
- U.S. entry and Exit Dates for current and all past visits to the U.S.
- All tax forms, including Forms W-2, 1042-S, and/or 1099 – if you received them
- If you worked on campus or with an employer in the U.S. You’ll need a W-2 form. The W-2 reports your annual wages and amount of taxes withheld from your paycheck. Mason issued W-2 forms can be accessed via Patriot Web.
- If you received a scholarship or fellowship grant and/or claimed tax treaty benefit, you’ll need form 1042-S. Mason issued 1042-S forms will be post mailed to you by March 15th.
- Visa/Immigration Status Information, including Form DS-2019 (for J visa holders) or Form I-20 (for F visa holders)
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you do not have an ITIN, Sprintax can still help you!
- If you are using Sprintax for State Tax Returns(s) preparation only you will need a copy of your already prepared Federal Tax return.
Additional Information about Forms
- If you were employed at any time during the calendar year, either off-campus or on-campus at Mason or at a previous school, and have not received your form W-2 by February 1 of the following year, contact your employer immediately to confirm they have your current address. You will be required to include a copy of each W-2 form with your federal and state income tax forms. Mason issued W-2 forms can be accessed via Patriot Web.
- 1042-S is used to report income paid to a nonresident regardless of whether the payment is taxable. The form has a number of purposes. It can be used to report wages exempt under a tax treaty, income earned as an independent contractor, royalties, and scholarship or fellowship grants. Mason issued 1042-S forms will be post mailed to you by March 15.
For further Assistance
Watch the Sprintax online tutorial for more details or if you have questions, please email Sprintax. You may also use their online chat system or call them for free at 1-866-601-5695.
IMPORTANT NOTE: International Tax Office staff are neither qualified nor permitted to provide individual tax advice. Please contact a tax professional if you need additional assistance.
Compare Taxes Paid to Actual Tax Liability
• If paid too much >> Receive a refund
• If paid too little >> Owe more tax
*U.S. sourced income is any payment from sources within the U.S. Examples include wages and salary income paid by a U.S. employer, payments for services performed in the U.S., and scholarships paid by U.S. Grantors.
Certificate of Compliance or 'Sailing Permit'
A Certificate of Compliance or “Sailing Permit” must be requested from the IRS to demonstrate compliance with the tax law and verify that all required taxes have been paid before leaving the U.S.
F-1, F-2, J-1, H-2, H-3 and H-4 visa holders are not required to obtain a Certificate of Compliance if they had no U.S. source income other than:
- Allowances or payments to cover study expenses (including travel, room, board, and tuition)
- Wages from authorized work, including practical training
- Interest on bank deposits
All nonresident aliens with a visa status other than those noted above including permanent residents (green card holders), must obtain a Certificate of Compliance from the IRS before leaving the U.S.
- IRS Form 2063 – required if the foreign national owes no U.S. tax at the time of departure
- IRS Form 1040-C (Instructions) – required if the foreign national owes U.S. tax at the time of departure
- Form should be filed at least 14, but no more than 30 days before departure
- More information is available in IRS Publication 519, U.S. Tax Guide for Aliens
Penalties and Sanctions
Failure to file the appropriate tax returns, making intentionally false or misleading statements on tax returns or otherwise failing to comply with U.S. tax law can lead to the imposition of fines and penalties including potential criminal penalties. The regulations provide that a nonresident alien’s tax return deductions will be allowed “only if a true and accurate return for the taxable year is filed by the nonresident alien on a timely basis.” This means that unless a timely and accurate tax return is filed, tax is assessed against the nonresident alien’s gross income without regard for any deductions or credits that might otherwise be allowable. Tax compliance will be evaluated at the time the foreigner seeks to leave the country.
In general, Social Security and Medicare (FICA) taxes apply to salary or wage payments made by U.S. employers to foreign national employees for services performed in the United States unless an individual qualifies for an exemption. In order to be exempt from FICA tax, a foreign national must be:
• A nonresident alien for tax purposes
• Present in the United States under an F, J, M or Q immigration status
• Performing services in accordance with the primary purpose of the visa’s issuance (i.e. F-1 student working as a TA)
Note: The exemption determination is based on the calendar year which may be a partial year.
If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to obtain a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement. Attach the following items to Form 843.
Items to be Attached to Form 843
- A copy of your W-2 to prove the amount of Social Security and Medicare taxes withheld.
- A copy of your visa.
- Form I-94 (or other documentation showing your dates of arrival or departure).
- If you have an F-1 visa, documentation showing permission to work in the U.S.
- If you have a J-1 visa, documentation showing permission to work in the U.S.
- If you are engaged in optional practical training or employment due to severe economic necessity, documentation showing permission to work in the U.S.
- A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer or on Form 8316 claiming your employer will not issue the refund.
- If you were exempt from Social Security and Medicare tax for only part of the year, pay statements showing the tax paid during the period you were exempt.
Items to File to Obtain Refund
- Form 843
- Form 8316
Attachments should be submitted to the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201–0038.
Important
All forms can be found on the IRS site.
Filing an Income Tax Return with the IRS
There are specific rules about filing an income tax return with the IRS that nonresident and resident aliens must follow. See IRS Publication 519, U.S. Tax Guide for Aliens, for more information. More information and resources can be found at:
Who should file a U.S tax return
You must file a U.S. tax return if any of the following apply:
- You worked in the U.S.
- You received a stipend, grant or allowance
- You had no earnings – even if you didn’t work or receive income in the U.S., you’re still legally obligated to file a tax return with the IRS to declare no earnings.
George Mason University has arranged free access to Sprintax Federal Tax preparation software for all Nonresident International Students. Sprintax will guide you through the tax preparation process and check if you’re due a tax refund.
How to get started with Sprintax
1. Create a Sprintax Account or log into your existing account
2. Complete the questionnaire
3. Contact the International Tax Office for the discount code that you will need to enter in ‘Review your order’ section
4. Sprintax will prepare your tax return and check if you’re due a refund
5. Download and print your tax return
6. Sign and send the forms to the relevant tax departments as per instructions enclosed
You can access your online account any time you like. If you choose to use the Sprintax service in subsequent tax years, you can still access the same account.
What documents and information might be needed to file the tax return
- Passport or other valid photo ID
- U.S. entry and Exit Dates for current and all past visits to the U.S.
- All tax forms, including Forms W-2, 1042-S, and/or 1099 – if you received them
- If you worked on campus or with an employer in the U.S. You’ll need a W-2 form. The W-2 reports your annual wages and amount of taxes withheld from your paycheck. Mason issued W-2 forms can be accessed via Patriot Web.
- If you received a scholarship or fellowship grant and/or claimed tax treaty benefit, you’ll need form 1042-S. Mason issued 1042-S forms will be post mailed to you by March 15th.
- Visa/Immigration Status Information, including Form DS-2019 (for J visa holders) or Form I-20 (for F visa holders)
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). If you do not have an ITIN, Sprintax can still help you!
- If you are using Sprintax for State Tax Returns(s) preparation only you will need a copy of your already prepared Federal Tax return.
Additional Information about Forms
- If you were employed at any time during the calendar year, either off-campus or on-campus at Mason or at a previous school, and have not received your form W-2 by February 1 of the following year, contact your employer immediately to confirm they have your current address. You will be required to include a copy of each W-2 form with your federal and state income tax forms. Mason issued W-2 forms can be accessed via Patriot Web.
- 1042-S is used to report income paid to a nonresident regardless of whether the payment is taxable. The form has a number of purposes. It can be used to report wages exempt under a tax treaty, income earned as an independent contractor, royalties, and scholarship or fellowship grants. Mason issued 1042-S forms will be post mailed to you by March 15.
For further Assistance
Watch the Sprintax online tutorial for more details or if you have questions, please email Sprintax. You may also use their online chat system or call them for free at 1-866-601-5695.
IMPORTANT NOTE: International Tax Office staff are neither qualified nor permitted to provide individual tax advice. Please contact a tax professional if you need additional assistance.
Compare Taxes Paid to Actual Tax Liability
• If paid too much >> Receive a refund
• If paid too little >> Owe more tax
*U.S. sourced income is any payment from sources within the U.S. Examples include wages and salary income paid by a U.S. employer, payments for services performed in the U.S., and scholarships paid by U.S. Grantors.
Certificate of Compliance or 'Sailing Permit'
A Certificate of Compliance or “Sailing Permit” must be requested from the IRS to demonstrate compliance with the tax law and verify that all required taxes have been paid before leaving the U.S.
F-1, F-2, J-1, H-2, H-3 and H-4 visa holders are not required to obtain a Certificate of Compliance if they had no U.S. source income other than:
- Allowances or payments to cover study expenses (including travel, room, board, and tuition)
- Wages from authorized work, including practical training
- Interest on bank deposits
All nonresident aliens with a visa status other than those noted above including permanent residents (green card holders), must obtain a Certificate of Compliance from the IRS before leaving the U.S.
- IRS Form 2063 – required if the foreign national owes no U.S. tax at the time of departure
- IRS Form 1040-C (Instructions) – required if the foreign national owes U.S. tax at the time of departure
- Form should be filed at least 14, but no more than 30 days before departure
- More information is available in IRS Publication 519, U.S. Tax Guide for Aliens
Penalties and Sanctions
Failure to file the appropriate tax returns, making intentionally false or misleading statements on tax returns or otherwise failing to comply with U.S. tax law can lead to the imposition of fines and penalties including potential criminal penalties. The regulations provide that a nonresident alien’s tax return deductions will be allowed “only if a true and accurate return for the taxable year is filed by the nonresident alien on a timely basis.” This means that unless a timely and accurate tax return is filed, tax is assessed against the nonresident alien’s gross income without regard for any deductions or credits that might otherwise be allowable. Tax compliance will be evaluated at the time the foreigner seeks to leave the country.
A Certificate of Compliance or “Sailing Permit” must be requested from the IRS to demonstrate compliance with the tax law and verify that all required taxes have been paid before leaving the U.S.
F-1, F-2, J-1, H-2, H-3 and H-4 visa holders are not required to obtain a Certificate of Compliance if they had no U.S. source income other than:
- Allowances or payments to cover study expenses (including travel, room, board, and tuition)
- Wages from authorized work, including practical training
- Interest on bank deposits
All nonresident aliens with a visa status other than those noted above including permanent residents (green card holders), must obtain a Certificate of Compliance from the IRS before leaving the U.S.
- IRS Form 2063 – required if the foreign national owes no U.S. tax at the time of departure
- IRS Form 1040-C (Instructions) – required if the foreign national owes U.S. tax at the time of departure
- Form should be filed at least 14, but no more than 30 days before departure
- More information is available in IRS Publication 519, U.S. Tax Guide for Aliens
Penalties and Sanctions
Failure to file the appropriate tax returns, making intentionally false or misleading statements on tax returns or otherwise failing to comply with U.S. tax law can lead to the imposition of fines and penalties including potential criminal penalties. The regulations provide that a nonresident alien’s tax return deductions will be allowed “only if a true and accurate return for the taxable year is filed by the nonresident alien on a timely basis.” This means that unless a timely and accurate tax return is filed, tax is assessed against the nonresident alien’s gross income without regard for any deductions or credits that might otherwise be allowable. Tax compliance will be evaluated at the time the foreigner seeks to leave the country.