Understanding Your U.S. Tax  Obligations

• The U.S. tax system is a pay-as-you go system in that there are usually automatic tax withholdings from your paycheck, stipend or financial aid.

• The Internal Revenue Service, usually referred to as the IRS, is the name of the U.S. tax collection agency.

• This amount is estimated based on information you provided in your W-4 or other tax documents as well as your tax filing status and possibly your residency (due to a tax treaty).

• This means that your available income may be reduced by tax withholdings. Look carefully at your first St. Edward’s paycheck to make sure the amount of taxes withheld is accurate.

• Scholarships, fellowships, or grants from a U.S. source that exceed the amount of tuition and mandatory fees is also taxable

• When you file your annual tax return in April for the preceding year, you will use a tax software (Glacier) to calculate the exact amount of your tax liability for that calendar year based on your total income and other personal circumstances. Your actual tax liability will be compared to the amount that you had paid so far. Some years you may get a tax refund (this is why it is called a tax return) and in others you may owe and need to pay additional taxes.

• It is the taxpayer’s (that’s YOU!) responsibility to meet their tax obligations to the IRS.

F-1 and J-1 international students and scholars who were present in the U.S. during any portion of the past calendar year may be required to file certain tax forms with the U.S. federal government. This is true whether or not you worked in the U.S., gained income in the U.S., or received a scholarship during the past calendar year.

The staff at ISS are not trained in taxation, and therefore cannot answer specific tax questions or help you prepare your tax forms. Ultimately, it is your responsibility to meet your tax obligations and do so accurately.

However, international students who receive wages or financial aid from St. Edward’s University will have access to Glacier Tax Prep. Glacier, a software program provided by Arctic International, LLC, assists with nonresident alien tax compliance. Glacier helps students collect information needed to complete tax returns. St. Edward’s Payroll will send an access code to the student to have access to Glacier. OPEN THE EMAIL SINCE THE CODES EXPIRE! Please create your Glacier profile as soon as you receive an email from Payroll, since the Glacier access codes do expire.

Any of your earnings in the U.S. are subject to applicable federal, state, and local taxes. Filing tax paperwork, such as a tax return, is a reconciliation that compares what you paid in taxes throughout the year to what you should have paid in taxes.

When you start a new job or receive taxable money, you typically will complete Tax Withholding paperwork, which dictates how much tax should be withheld from your payment. Employers and schools then withhold taxes from your paychecks or other taxable income (such as stipend payments). If the taxes that were withheld from your payment are higher than what you should have paid, you will get a refund after filing your tax return ("tax refund"). If taxes were not withheld, or insufficient tax was withheld, then you will owe money by the filing deadline (typically April 15 of each year). You declare your income and account for the taxes owed on a form or set of forms called a “tax return.”

If you did not receive any income in the United States during the tax year, you do not need to file a tax return, but you’re obligated to send one form to the IRS. Glacier will help you file the required form 8843.

Tax forms may vary depending on your individual residency status for tax purposes and employment status. The Internal Revenue Service (IRS), an agency of the U.S. government, determines tax residency based on the two classifications outlined below. Before you file your taxes, you must determine your tax residency status, which may be different from your immigration status.

1. Residents for tax purposes (also called 'resident alien'): All U.S. citizens, legal permanent residents, and nonresident aliens for immigration purposes who have met the Substantial Presence Test.

2. Non-residents for tax purposes (also called 'nonresident aliens'): all others, regardless of immigration status.

3. Residency status: F and J students are generally considered "nonresident aliens" (NRA) for federal tax purposes for the first 5 tax years, not necessarily consecutive, going back a number of years. See our page to know more about determining your residency status. Nonresidents must file a nonresident tax return called 1040-NR if they have taxable income, along with the form 8843. If you did not receive any income in the United States during the tax year, you do not need to file 1040-NR, but you’re obligated to send one form to the IRS. Glacier will help you file the required forms.

When do I prepare my tax forms?

Most of our international population will file their tax paperwork between late-February and early April.

If you received taxable income last year, you will need to receive relevant payment documents from your employer or school before you can complete your tax return.  Usually, schools and employers provide these tax documents between January and March. They are sometimes provided by mail, so it is important to keep your address updated with current and former employers.

What is the deadline for filing taxes with the IRS?

The deadline for filing your tax paperwork with the IRS depends on whether or not you received any taxable income in the previous calendar year. However, the deadline to file taxes is generally April 15th.

If you received any reportable money/income in the previous year (e.g. income, salary, taxable scholarships, grants, or awards), you will need to have any/all relevant tax forms before you can file your tax paperwork. These tax forms come from U.S. employers, stipend/scholarship providers, or schools. The forms, (e.g. W-2, 1042-S, etc) provide information about the amount of money you were paid and what amount was withheld from your payment for tax purposes.

Filing tax documents each year is an important part of maintaining your immigration status and is a federal requirement for international visitors and their dependents. Not filing your required taxes could lead to penalties, such as fines, or even negatively impact your immigration status.

If you apply for future immigration benefits, such as H-1B, Permanent Residency, or other statuses, you will likely be asked to provide copies of tax filings for all previous years you were in the U.S. If you forgot or didn't file in previous years when you should have, the IRS recommends that you file now for previous years. You can find the relevant forms from past years on the IRS website.

The IRS expects you to file your taxes each year. Penalties for late filing may include fines, interest on taxes owed, or other consequences. Visit the IRS website for information on Filing Past Due Tax Returns. You can follow up with the IRS or a foreign tax expert if you have questions.