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FAQ - U.S. Tax for International Students, Faculty, Staff, and Visiting Scholars at Macalester

Introduction

Tax law in the United States is complicated. How much and what you may be taxed on is based on sets of credits, charts, and concepts that are difficult to understand by the average U.S. resident. This is doubly so for international visitors studying or working in the U.S. as different rules and concepts apply.

Macalester College provides several services to assist you in navigating the rules and regulations. This FAQ is designed to provide some basic information for international visitors at Macalester and some answers to commonly asked questions about the FNIS service. Also, the International Student Program at Macalester maintains an FAQ that may be informative to international students studying at Macalester.

This information should be viewed as informational only. You should seek professional advice in the event your situation, relative to taxes, is unusual or you need assistance beyond what the school can offer you.

FAQ Categories

General Questions

Q: What can I be taxed on in the U.S.?

A: Commonly, as an international student, visting scholar, or employee, you will be taxed if any of the following apply to you:

  • You receive direct monetary compensation for services that you perform for the school (student employment, teaching, lecturing, or other employment related tasks)
  • You receive a scholarship or grant from the school and the amount exceeds certain payment limits during the tax year
  • You receive a prize, award or honorarium from the school (this might include such items as a "gift card" given by a department to you or winning a competition at the school that results in a cash payment)
  • You receive compensation as an independent contractor (visting scholar) -- this rarely affects students, faculty, and staff at the college; though it always affects international visiting faculty who lecture for the college and are paid, but have no employment relationship with the school

Q: When is the "tax year" in the United States

A: The "tax year" runs from January 1st to December 31st.

Q: What are my obligations/procedures related to tax at Macalester

  1. If any of the situations apply to you as described here, we will ask you to complete a information survey and certain forms near the start of the academic year or when you start working/studying at Macalester -- this information request is sent via an e-mail to your Macalester e-mail account -- you should provide this information as the directions indicate -- this service is provided by the Employment Services (Payroll) Department
  2. You will need to complete a U.S. federal and state tax return prior to April 15th for the previous tax year -- the college will provide you with access to software and support to assist you in doing this -- this service is provided by the International Student Program -- click here for more information

Q: What will happen if I don't provide the requested information (answer 1 above)?

A: Failure to provide the information and/or return the necessary forms will require the college to tax you at the maximum rate under U.S. law.

Q: What will happen if I don't file a U.S. tax return and I am required to do so (answer 2 above)?

A: Failure to complete a return (when you are required to do so) may subject you to fines and penalties under U.S. law.

Q: How does immigration information relate to tax in the U.S.?

  • Immigration and tax are separate subjects from the standpoint of the law in the U.S.
  • They are related as how a person is taxed is determined by how long they have been in the U.S. and what country they had "tax residence" with prior to entering the U.S. -- also, much of the documentation required for taxation is the same documentation as is required for immigration

Q: What does the term "Alien" mean related to U.S. tax law?

A: For tax purposes, an alien is an individual who is not a U.S. citizen. Aliens are classified as nonresident aliens and resident aliens. Resident Aliens are subject to U.S. tax law in the same way as U.S. citizens. You can become a resident alien in two ways --

  • Becoming a U.S. lawful permanent resident - LPR - (getting a "green card")
  • Passing the "Substantial Presence Test" (or being in the U.S. long enough in a specific immigration status)

Macalester has software that will determine if you are a resident alien for payroll withholding (deductions) and tax filing purposes using the "Substantial Presence Test".

Q: What is a "tax treaty"?

A: Tax treaties are special agreements that the U.S. has with 60+ countries. Taking advantage of these treaties provides a special exemption from U.S. taxation (with the intent of reducing "double taxation" -- i.e. being taxed in the U.S. and your home country for the same taxable income)

  • Tax treaties can be claimed as you are being paid (resulting in more money "in pocket")
  • Tax treaties can be claimed when you file your tax return (possibly resulting in year-end refunds)
  • Claiming a tax treaty is optional
  • The state of Minnesota observes federal tax treaty rules (if you are exempt for federal taxes under a treaty, you will also be exempt for MN state taxes for the same type of income -- note, not all states in the U.S. follow this rule)

Special rules and paperwork apply when claiming these treaties. Macalester has software that can assist you in taking advantage of this benefit if you desire to do so and are eligible -- see FNIS below.

Q: Can you provide a link to additional information about U.S. taxation for international visitors?

A: Following are links to the official Internal Revenue Service (IRS) site for this topic -- this information is very technical and may require a significant investment of time to understand:

Keep in mind, the previous link only covers tax concepts related to federal U.S. taxes. Links to information about Minnesota state taxes is as follows:

Foreign National Information System (FNIS) questions

Q: What is FNIS?

A: FNIS is an online system that Macalester uses to collect additional information about you that relates to how we tax you during your stay in the U.S. -- it is to your advantage to complete the information as accurately as possible.

Q: How is the information used?

A: We use the collected information for the following purposes:

  • To determine your status in the U.S. for tax withholding purposes ("Non-Resident Alien" or "Resident Alien")
  • Determine your eligibility for certain tax exemptions (tax treaties)
  • Provide you with the necessary year end documentation to file your taxes

Q: What will I need to complete the questions on FNIS?

A: You will need your passport and U.S. immigration history to complete the questions on the site. Allow yourself 30 minutes to complete the information.

Q: What should I do if I forget my password?

A: Contact the Macalester administrator named in the e-mail -- he/she will contact with a new password and instructions

Q: What should I do if I don't understand a question on FNIS?

  1. Click on the "?" icon to the right of the question -- these icons lead to more information about the question and may assist you
  2. Contact the administrator named in the initial contact e-mail, he/she will assist you in completing the question on the form

Q: What is my trainee type? (listed under page 1)

A: "Not a trainee" for all non-OPT students or faculty/staff

Q: I don't think I have a regional postal code in my country -- What should I do? (page 3)

A: Skip this field and click on the "Save with Errors" button at the bottom of the page

Q: What is my "Country of Tax Residence"? (page 4)

A: Generally, this is the same as your country of citizenship or the country that issued your passport --

  • The exception to this rule is if you lived in a country for an extended period prior to coming the the U.S. that is different than your country of citizenship -- if you think this exception applies to you, contact us and we will help you determine which country you should put in this field

Q: Do I need to create a new visa immigration record? When should I add a visa immigration record? (page 5)

A: You should add a visa immigration records for the following reasons:

  • The current visa record listed is expired
  • The current visa record is incorrect (incorrect start and end dates)
  • You have visa immigration activity within the past three calendar years
  • You have F, J, M or Q visa immigration activity since January 1, 1985.
  • You visa immigration activity since January 1, 1985 for which you received tax treaty benefits

Q: When I enter a visa immigration record, I'm not sure what to answer? (page 5)

A: Answers follow:

  • Immigration Status - drop down selector -- lists U.S. visa types, "F-1; J-1, ect." -- this can be obtained from the visa information in your passport
  • J Subcategory - defaults to "Not Applicable" -- only used for persons on a "J" status visa
  • Primary Purpose of Visit -- used to indicate why you were in the U.S. "F-1" visas holders should use the following :
    • "Studying in a Degree Program" for your time at Macalester, or another college working toward a degree
    • "Studying in a Non-Degree Program" - time not at Mac in a "F-1" visa status -- this is typically used for persons who participated in an exchange program prior to their study at Macalester
    • "Practical Training (OPT)" -- generally only graduates participating in the optional practical training program
  • Tax residence country before entering U.S. - country the person had tax liability or had the "potential to be taxed in" prior to visiting U.S. on the visa record -- please contact us if you have questions regarding this
  • First Day in the U.S. in this status -- first day in U.S. on the visa record in question (can use start date on visa record if you don't know)
  • Last Day in U.S. in this status -- use end date on visa record
  • Treaty Benefit Taken as -- indicate if you took advantage of a tax treaty while on the visa being entered -- if you don't know, you can answer "unknown"
  • Other other fields on the visa records (non-bold) are optional and not required to be filled in.

If you have questions beyond the above answered above, please contact the administrator named in the initial contact e-mail.


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