Tax Information

Residency Status: Non-immigrants may be classified as either nonresident aliens or resident aliens for tax purposes. This classification depends on the Substantial Presence Test or if they possess lawful permanent residence, a green card.

Substantial Presence Test: The Substantial Presence Test is used to determine if a non-U.S. citizen qualifies as a resident alien for tax purposes. Here’s how it works:

1. 31-Day Rule: You must be physically present in the U.S. for at least 31 days during the current year.
2. 183-Day Rule: You must be present in the U.S. for at least 183 days over a 3-year period, which includes:
   
   • All the days you were present in the current year,
   • 1/3 of the days you were present in the first year before the current year, and
   • 1/6 of the days you were present in the second year before the current year.

For example, if you were in the U.S. for 120 days each year in 2022, 2023, and 2024, you would count all 120 days from 2024, 40 days from 2023 (1/3 of 120), and 20 days from 2022 (1/6 of 120). This totals 180 days, so you would not meet the Substantial Presence Test for 2024.

Exceptions: Certain days do not count towards the test, such as days you are in the U.S. as a student, teacher, or trainee on specific visas, or days you are unable to leave due to a medical condition that developed while in the U.S.

Publication 519, U.S. Tax Guide for Aliens

Resident Aliens must report and pay taxes on all income from worldwide sources.

Non-Resident Aliens only report income from U.S. sources, such as wages from a U.S. employer, U.S. investments, or scholarships used for non-qualified expenses.

Wages and Salaries: Employers withhold taxes based on the employee’s W-4 form and applicable tax rates. Non-residents may have different withholding rates compared to residents.

Scholarships and Fellowships: Portions of scholarships used for non-qualified expenses (such as room and board) may be subject to withholding compared to residents.

Resident Aliens are taxed according to the same graduated tax rates as U.S. citizens.

Non-Resident Aliens often face different tax rates, such as a flat rate on certain types of U.S.-sourced income (e.g., 30% on interest, dividends, and some types of royalties), unless reduced by a tax treaty.

Tax treaties are designed to prevent double taxation and encourage cross-border economic activity. It’s essential to understand the specific provisions of the treaty between the U.S. and your home country to maximize your benefits.

• The U.S. has tax treaties with many countries that can reduce or eliminate U.S. taxes on certain types of income. For example, treaty provisions may affect taxation of scholarships, fellowships, and compensation.
• Nonresident aliens can claim exemptions or reduced tax rates on income such as wages, scholarships, and business profits by filing Form W-8BEN or Form 8233.
• If a nonresident alien becomes a resident alien under the Substantial Presence Test, they may still benefit from treaty provisions if the treaty includes exceptions to the saving clause.

See Publication 519, U.S. Tax Guide for Aliens, and Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities.

Many of the individual states of the United States tax the income of their residents. Some states honor the provisions of U.S. tax treaties and some states do not. Therefore, you should consult the tax authorities of the state in which you live to find out if that state taxes the income of individuals and, if so, whether the tax applies to any of your income, or whether your income tax treaty applies in the state in which you live.

The State of Illinois honors the provisions of U.S. Tax treaties.

Federal Requirements

Non-Resident Aliens must file by June 15 if they live outside the U.S. on April 15. Extensions can be requested, but interest and penalties might accrue if the tax due is not paid by the original deadline.

• Federal Form 1040-NR: Non-residents file this form to report U.S.-sourced income.
• Federal Form 8843: All non-residents claiming exemption from the Substantial Presence Test (typically students and scholars) must file this form, even if they have no U.S. income to report.

State Requirements

Non-Resident Aliens generally only need to file state taxes if they have income sourced from that state, and the rules can differ significantly from state to state.

Federal Requirements

Resident Aliens typically file their tax returns by April 15, the standard deadline for U.S. tax returns. Extensions are available.

• Form 1040: Residents file this form to report worldwide income.

State Requirements

Resident Aliens must adhere to state income tax laws, which vary by state. For example, for Illinois income, you would file a Form IL-1040.

As a non-immigrant with U.S. income, you have certain tax obligations. Sprintax Calculus is here to help.

Sprintax Calculus is a web-based platform that gathers the immigration details necessary to determine your U.S. tax residency status and tax treaty eligibility.

With Calculus, international employees and students can expect accurate taxation as soon as their profile is completed and approved by the Tax Office.

Details you provide in Sprintax Calculus will be automatically populated in Sprintax Returns, which will lessen stress and possibility of errors around U.S. tax filing time.

Form 1042-S will be accessible online (with the recipient’s consent), which will reduce delays caused by mailing and eliminate the need for reissuing lost forms.

For additional information on tax filing, look for an email in mid-February from International Student and Scholar Services (ISSS) which will include Sprintax Return account set up details and your unique filing discount code.

New employees will receive an email notification from noreply@sprintax.com asking them to complete their Sprintax profile within 14 days of their start date.

Please check junk mail folders and then reach out to taxoffice@IllinoisState.edu if you haven’t received your invitation within 14 days of your start date. Please register only through an email link from noreply@sprintax.com and not directly from the Sprintax website.

Answer Sprintax Calculus questions about electronic consent, your current immigration status and history of U.S. presence, and upload immigration related documents through secure document exchange.

Nonresident aliens for tax purposes will need to obtain a social security number (SSN) once they are hired to work at ISU. ISSS can help with this.

Once an SSN is obtained, it should be updated in your Sprintax Calculus profile. The forms generated by Calculus will only be valid once an SSN is provided.

Review and e-sign tax forms generated by Calculus after your U.S. tax residency status and tax treaty eligibility have been determined.

Tax specialists will be available at taxoffice@IllinoisState.edu or via appointments via Bookings to answer any questions and provide support.

During your time at ISU, your tax residency status and other personal details may change. Please keep your Sprintax Calculus profile updated throughout the year when any of the following occur:

• Your immigration status changes.
• The end date on your immigration document changes.
• You suspect you have become a U.S. tax resident.
• You have taken steps to obtain lawful permanent residency (green card) in the U.S.
• You have a change of address.

International employees will receive annual emails from noreply@sprintax.com to update their information and documentation as needed.

Tax specialists will be available at taxoffice@IllinoisState.edu or via appointments via Bookings to answer any questions and provide support.

International students receiving non-qualified scholarships for the first time will receive an email notification from noreply@sprintax.com inviting them to complete their Sprintax profile.

After answering questions about electronic consent, your current immigration status and history of presence in the U.S., and uploading your immigration related documents through a secure document exchange, Sprintax Calculus will prepare the relevant tax forms for your e-signature.

Nonresident aliens for tax purposes will need to obtain a social security number (SSN) once they are hired to work at ISU. If you are not planning on getting a job on campus, you may still need to obtain an individual tax identification number (ITIN). ISSS can help with this.

Once an SSN/ITIN is obtained, it should be updated in your Sprintax Calculus profile. The forms generated by Calculus will only be valid once an SSN/ITIN is provided.

Tax specialists will be available at taxoffice@IllinoisState.edu or via appointments via Bookings to answer any questions and provide support.

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