The United States has income tax treaties with a number of foreign countries. Under these treaties, residents (not necessarily citizens) of foreign countries are taxed at a reduced rate, or are exempt from U.S. income taxes on certain items of income they receive from sources within the United States. These reduced rates and exemptions vary among countries and specific items of income. The completed text of each treaty can be found on the Internal Revenue Service website.Countries having treaties with the U.S.
1. I am a Canadian citizen living and working in the U.S. for a U.S. employer on a visa. Do I need to file both a U.S. tax return and a Canadian tax return?
You must comply with both U.S. and Canadian filing requirements, if any. In the United States, you generally are required to file a return if you have income from the performance of personal services within the United States. However, under certain circumstances, that income may be exempt from payment of U.S. tax pursuant to the U.S.- Canada income tax treaty. You need to determine what type of visa you have, and how that impacts your residency status in the United States.
If, based on the tax code and your visa status you are treated as a U.S. resident, then your entitlement to treaty benefits will be impacted. You must contact the Canadian government to determine whether you must file a Canadian tax return and pay Canadian taxes.
2. Are international students, with F-1 or J-1 visas and employed by a U.S. company during the summer, required to have federal income taxes withheld from their paychecks?
The following discussion generally applies only to international residents. Wages and other compensation paid to an international employee for services performed as an employee are usually subject to graduated withholding at the same rates as permanent residents and U.S. citizens. Therefore, your compensation, unless it is specifically excluded from the term "wages" by law, or is exempt from tax by treaty, is subject to graduated withholding. International employees must follow modified instructions when completing Form W-4 (PDF). Please refer to chapter 8 of Publication 519, U.S. Tax Guide for Aliens, for directions on completing Form W-4 (PDF), Employee's Withholding Allowance Certificate.
3. What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service. It is a nine-digit number that always begins with the number 9 and has a 7 or 8 in the fourth digit, example 9XX-7X-XXXX.
IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA). ITINs are issued regardless of immigration status because both resident and nonresident aliens may have U.S. tax return and payment responsibilities under the Internal Revenue Code. Individuals must have a filing requirement and file a valid federal income tax return to receive an ITIN, unless they meet an exception.
4. When are W-2 and 1042S forms available and how do I receive them?
W-2 and 1042S are forms used to report to you and the IRS any money you received and if any tax was withheld. The W-2 form will be made available by January 31 of each year. You may elect to receive your W-2 electronically through your OMNI Self Service menu. Otherwise, a paper W-2 form will be mailed to the current address on file. 1042S forms will be issued no later than March 15 of each year 1042-S forms are issued electronically through your Glacier account unless you indicate you prefer a paper copy be mailed to you. It is necessary to have these forms to complete your tax return. For further information regarding this process you may contact Payroll Services.
5. Where can I find additional information about my tax responsibility?
You can view information about foreign taxpayers at the IRS website: www.irs.gov/businesses/small/international/index.html