This document summarizes a presentation on taxation for nonresident aliens. It discusses the differences between nonresident aliens, resident aliens, and US residents for tax purposes. The substantial presence test and green card test are explained for determining resident alien status. Tax forms like 1040NR, 1042-S, and W-7 are also summarized. The document provides an overview of Glacier Tax Prep software for filing taxes and addresses where to mail completed tax documents.

1. Payroll Management Services
Payroll Management Services (http://www.utsa.edu/payroll)
NON-RESIDENT ALIEN TAXATION
UTSA WORKSHOP
January 29th, 2018

2. Presenter/Sponsorship
 Nnennaya Ikwuagwu
◦ Senior Time & Labor Analyst
 Tanya Orndorff
◦ Office of International Programs
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3. NONRESIDENT or RESIDENT ALIEN?
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Office of Financial Affairs
If you are not a citizen of the United States, the Internal Revenue Service (IRS) who is the U.S. government tax
authority has categorized you as a Nonresident Alien as such issued strict regulation regarding taxation and
reporting of payment made to Nonresident Alien.
There are three definitions that are important to the international tax process:
 Nonresident Alien for Tax Purposes: this is defined by US immigration laws and generally means any person
who is not a US citizen, US national, US resident, asylee, refugee or permanent resident. Non-resident aliens
are also called "international persons." The substantial presence test and/or the visa status of an
international person is used to determine when this categorization ends. Use tax form 1040-NR or 1040NR-
EZ for annual tax filing.
 Resident Alien for Tax Purposes: this is defined by US tax regulations and simply means any international
person who has been physically present in the USA for the amount of time required to be described as a
Resident Alien for Tax Purposes. It could also be said the person who has passed their substantial presence
test. Resident aliens for tax purposes are taxed in the same manner as US residents. They can use the same
filing statuses and claim tax allowances just as a US resident could. In addition, worldwide income must be
reported. Use tax form 1040 or 1040-EZ for annual tax filing.
 US Resident: this is defined by US immigration law and generally means any person who is a US citizen, US
national, asylee, refugee or permanent resident .

4. NONRESIDENT or RESIDENT ALIEN?
To determine if you are a nonresident alien or a resident alien for tax purposes, you will need to meet either the
green card test or the substantial presence test for current year be assessed.
Substantial Presence Test
 The substantial Presence Test is a method used by IRS to determine if an individual should be
taxed as a nonresident alien. The test is applied each year and in general , is a calculation of
the number of days that an individual has been or will be physically present in the U.S. during
the three calendar year period.
 An individual becomes a resident alien for tax purposes when he or she passes the
Substantial Presence Test.
 Glacier will use the information entered to apply the Substantial Presence Test, which is used
by the IRS to determine U.S. tax residency.
Green Card Test
 You generally have this status if the U.S. Citizenship and Immigration Services (USCIS) issued
you an alien registration card, Form I-551, also known as a "green card.“
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Tax Update/Glacier
Once an international student is hired, the student is required to go to the international office
with their hire letter to get their information in the Social Security Database. They will receive a
letter from the office and take it with them to the Social Security Office. They will receive a
receipt indicating the date the SSN card will be received by the student. It also applies to a
Research Scholar and any international person who is eligible to work. In some cases where
the person needs to start their work immediately and can not wait for the SSN card to arrive,
they can visit the Payroll office to be issued a temporary SSN. While coming to the Payroll
office, the international person will come with their I-20 or DS-2019 ( as the case maybe),
Passport, I-94,receipt from the SSN office.
Another step is when the international person has worked before and already have a social
security card, they are also required to visit the payroll office to determine their residency
status, if they are nonresident or resident alien. Some students, research scholars or H-1B
holders are eligible for tax treaty. While coming to the Payroll office, the international person will
come with their I-20 or DS-2019 ( as the case maybe), Passport, I-94,receipt from the SSN
office. Information will be updated in a software used to track tax eligibility provided by the
University called Glacier. Glacier is also used for tax filling and preparation of tax documents
for international persons who got their scholarship taxed or who have tax treaty.

6. FORM 1042-S
 Form 1042-S reports taxable income for international persons who have received
the following types of income:
 Wage payments made to employees who have claimed tax treaty benefits
 Fellowship/Scholarship income
 Independent personal services for work performed in the U.S.
 Royalty payments issued to individuals or entities.
 Non-employee Prize or Award payments
 Form 1042-S will be available through Glacier no later than February 13th.
 A number of NRA students/employees will receive both a W-2 form along with a
1042-S form. It is strongly advised that both forms be filed together. Due date
for filing is April 17th, 2018.
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7. TAX FORMS
 Form 1040NR-EZ
• You may be able to use Form 1040NR-EZ if your only income from U.S. sources is wages, salaries, tips,
refunds of state and local income taxes, scholarship or fellowship grants, and nontaxable interest or
dividends.
 Form 1040NR
• It is used by Nonresident Aliens to file their taxes like the 1040 for the citizens, permanent residents and
Resident aliens.
• See IRS Conditions.
 Form 8843
• All nonresident aliens present in the U.S. under F-1, F-2, J-1, or J-2 nonimmigrant status must file Form
8843 "Statement for Exempt Individuals and Individuals With a Medical Condition"—even if they received
NO income during 2017.
 W7 form
• Use this form to apply for an IRS Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit
number issued by the U.S. Internal Revenue Service (IRS) to individuals who are required for U.S. tax
purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to get a
social security number (SSN). It is for Federal Tax purposes only.
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8. TAX FORMS
 Form 8233
• To avoid tax withholding on compensation paid to nonresident employees, independent contractors, students,
teachers, or researchers based on tax treaty , the individual must complete and submit to the withholding agent a
properly completed form 8233.
 Form W-8 BEN
• Under the section 1441 regulations, an individual may avoid withholding tax for a payment of a non-service
scholarship or fellowship grant or passive income based on the nonresident alien eligibility for a tax treaty
exemption.
 Form W-9
• Those who have met either the green card test or substantial presence test thus becoming resident aliens for tax
purposes but who continue to qualify for exemption from tax based on an exception to a saving clause of an
income tax treaty, are required to use Form W-9 and additional statement to make such claim.
 1098-T
• Form 1098T is a form used to report certain tuition payments to the individual and the IRS. It can be used by U.S.
tax residents (citizens, permanent residents, and residents under the substantial presence test) to claim certain tax
credits. Persons who are ‘nonresident aliens’ are not issued the form as you cannot take any of those credits.
 If you do not complete the information in Glacier and/or submit the required
forms and documents in a timely fashion, the maximum amount of tax will
be withheld from all payments made to you. There will be no refund made
when form has been completed. The exemption will start from the time the
nonresident alien submits their information for exemption.
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9. NONRESIDENT TAX CRITERIA
 Income to Report
• A nonresident alien's income that is subject to U.S. income tax must generally be divided into two
categories:
• Income that is Effectively Connected with a trade or business in the United States
• U.S. source income that is Fixed, Determinable, Annual, or Periodical (FDAP)
 U.S. Source Interest Income
• See Nonresident Aliens-Exclusions From Income
 Personal Exemption
• Exemptions reduce your taxable income. Generally, if you are a nonresident alien engaged in a
trade or business in the United States, you can claim only one personal exemption ($4,050 for
2017).
 Standard Deduction
• If you are a nonresident alien, you cannot claim the standard deduction. However, students and
business apprentices from India may be eligible to claim the standard deduction under Article 21
of the U.S.A.-India Income Tax Treaty. Refer to Publication 519, U.S. Tax Guide for Aliens and to
Revenue Procedure 93-20 for more information.
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10. REFUND OF OASDI TAXES
 Refund of Taxes Withheld in Error for Non Resident Aliens
◦ If social security or Medicare taxes were withheld in error from pay that is not
subject to these taxes, file a claim for refund with the Internal Revenue Service
on Form 843, Claim for Refund and Request for Abatement (PDF). Attach the
following items to Form 843:
 A copy of your Form W-2 to prove the amount of social security and Medicare taxes
withheld,
 A copy of the page from your passport showing the visa stamp,
 INS Form I-94,
 If OPT, EAD card is needed, and
 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
that 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.
 If applicable, Form 8316, Information Regarding Request for Refund of Social Security
Tax Erroneously Withheld on Wages Received by a Nonresident Alien on an F, J, or M
Type Visa (PDF)
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11. GLACIER TAX PREP
 What is Glacier Tax Prep?
• GLACIER Tax Prep is the start to filing tax assistance for nonresident aliens to complete their U.S. tax
return filing responsibilities.
 How will I file my taxes through Glacier Tax Prep?
• The foreign national individual will receive an Access Code and instructions from the Glacier Support
Center on how to access Glacier; and The foreign national individual simply logs into Glacier from any
web-enabled computer - anywhere in the world, at any time of day or night to begin completing his or
her U.S. tax return!
 In FOUR SIMPLE STEPS, GLACIER Tax Prep will:
1. Determines whether the person is a nonresident alien for U.S. tax purposes or a resident alien
for U.S. tax purposes.
2. Collects information about all of the categories of income the person received to determine
whether the person is eligible to claim an exemption from tax based on an income tax treaty
exemption, and/or any exclusions from taxable income.
3. Obtains additional information to ensure that any applicable deductions or allowances are
applied. It then calculates the total income and applicable tax impact to determine whether a
tax refund can be claimed or if additional tax is due.
4. Populates all of the applicable forms so that the person may simply print, review, sign and mail
the tax return and/or other forms.
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12. GLACIER TAX PREP
Additional Information
 Access to GTP is not allowed until the Form 1042S is issued to all.
 All GTP support issues for foreign nationals are handled via the HELP link from within GTP;
no phone calls or other emails will be addressed.
 Nonresident Aliens are not allowed to electronically file tax forms.
 It may take up to 4 months for nonresident aliens to receive a tax refund.
 Filing with 1098T is not permissible for all Nonresident Aliens. GTP does not have that
option.
 Glacier does not have the option for State taxes. If any Nonresident Alien require to file
State taxes, they will be linked to another vendor Sprintax and it will incur a charge for that
process.
 If previous year was not filed and Nonresident Alien desire to file for the previous year, go
back to the Arctic International Website: https://www.arcticintl.com. Click on the link on the
page “order GTP now”. Choose the Individual Use Access to file for the missing year.
 Make sure to pay attention to the address at the instruction after tax return has been
completed. Some Nonresident Alien might receive a different address to mail their return.
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14. IMPORTANT ADDRESS & DATE
• Where do I mail my tax documents upon completion of my tax
filing?
• ALL Non Residents are to mail his/her tax forms to:
• Internal Revenue Service Center
• Austin, TX 73301-0215
• No later than April 17th, 2018
• If filing from overseas, the same address applies -- add
U.S.A.
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15. Additional Information
If you need more information, IRS has free publications that might help you.
Publication 519 will be the most important, but the following publications also may
help.
◦ Pub. 501 Exemptions, Standard Deduction, and Filing Information
◦ Pub. 525 Taxable and Nontaxable Income
◦ Pub. 529 Miscellaneous Deductions
◦ Pub. 597 Information on the United States–Canada Income Tax Treaty
◦ Pub. 901 U.S. Tax Treaties
◦ Pub. 910 IRS Guide to Free Tax Services (includes a list of all publications)
These free publications and the forms and schedules you will need are available
from the IRS. You can download them at IRS.gov. Also see How To Get Tax Help,
later, for other ways to get them (as well as information on receiving IRS assistance
in completing the forms).
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16. QUESTIONS
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17. Your partner for successful solutions
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Thank you!