Frequently Asked Questions by International Visitors who are Employed at the University of Wisconsin
WORK ELIGIBILITY
Q: I am a student in the U.S. on an F-1 visa. How many
hours can I work?
A: Limited on-campus employment of 20 hours per week is allowed, while school is in session. You may work full-time on-campus during vacation periods and summer, if not attending classes.
Q: I am in the U.S. as an F-2 visa holder. Am I eligible to be employed?
A: No. However, you may be eligible to be a Research Assistant, as this title is not considered to be employment.
SUBSTANTIAL PRESENCE
Q: What changes when I become substantially present?
A: There are three major changes. One - You will pay Social Security and Medicare tax (a total of 7.65% of your income), unless you meet the qualifications for the student exemption. Two – You will be considered a resident alien for tax purposes and are entitled to be taxed in the same manner as U.S. citizens. Therefore, you should consider filing a new W-4 form, since you are no longer required to claim Single with “1” allowance or have additional federal taxes of $15.30 per bi-weekly or $33.10 per month deducted. You may now also claim married, if applicable, and you may claim all of your dependents as allowances. Three - You will file tax form 1040 with the Internal Revenue Service (IRS), instead of form 1040-NR.
Q: When I become substantially present, will I still be able to use my tax treaty?
A: Yes. If your maximum treaty time limit extends beyond the date you become substantially present, you have the choice of continuing to use your treaty until treaty limits are reached, in which case you will file a W-9 form to claim the treaty benefits. Or you may elect to be taxed as a U.S. citizen, in which case you would complete a new W-4 form.
Q: If an F or J visa holder is in the U.S. for only a few days during a calendar year, will that year count as a full calendar year for purposes of applying the two-year or five-year “exempt individual” test for substantial presence?
A: Yes. Any days that the individual is physically present in the U.S. during a calendar year will count as a full calendar year for purposes of the two or five-year tests.
Q: How often does the substantial presence test need to be performed?
A: Every year.
TAXATION
Q: I just received an appointment with the Engineering Dept. Last semester I had an appointment with the Math Dept. and I completed the UW-1123 form at that time. Do I have to complete it again?
A: Probably not. Once you have filed the UW-1123 and your supporting documents, you only need to update this information for one of the following reasons: One – you change your visa status. Two – you have been out of the U.S. for more than one calendar year. Three – you are a non-student who visits the U.S. on only a sporadic basis.
Q: I’m a nonresident alien. How will I be taxed, if I do not have a tax treaty?
A: You will be taxed at the rate of Single with “1” allowance and have additional federal taxes of $15.30 per bi-weekly or $33.10 per month deducted. A nonresident alien may not claim Married or claim their dependents. Under no circumstances may a nonresident alien claim “exempt” on the W-4 form. This is an IRS regulation, and not a University rule.
TREATIES
Q: I am a J-2 visa holder with employment authorization. Can I use tax treaty benefits?
A: No. Only the primary visaholder is eligible for treaty benefits. The primary purpose of the J-2 visaholder’s visit to the U.S. is to accompany their spouse (the J-1 visaholder). There are no tax treaties that allow exemptions for these individuals; therefore, you are subject to tax withholding at the standard nonresident alien rates.
Q: I entered the U.S. on an F-2 (spouse) visa last year. I decided to attend school and left the U.S. for one week to obtain and re-enter the U.S. on an F-1 visa. I am now eligible to work. If I get a job on campus, can I use tax treaty benefits?
A: No. Only the primary visaholder is eligible for treaty benefits. In order to be eligible for treaty benefits you must be a resident of your home country immediately before entering the U.S. to be a student. In order to fulfill this requirement, you must return to your home country for one calendar year to re-establish residency. After that time you may re-enter the U.S. as an F-1 visaholder, and be eligible for treaty benefits.
Q: What taxes do treaties apply to?
A: Treaties apply to Federal tax and Wisconsin State tax only; they do not apply to Social Security and Medicare tax. Social Security tax is regulated by your residency status, which is determined by substantial presence test for F-1 and J-1 visaholders. H-1, O-1, TN, and J-2 visaholders are required to pay Social Security tax immediately, regardless of their residency status.
Q: I am a nonresident alien student from India. Do I have any tax benefits?
A: Yes. As a student from India you may claim the standard deduction provided you do not itemize your deductions on your annual tax return. What this means is that you do not have to pay the additional Federal tax of $15.30/biweekly or $33.10/month. To take advantage of this benefit, you must enter “India Student” in the additional Federal tax box on the W-4 form.
Q: I am from a tax treaty country, and have been in the U.S. for two years. I recently received an appointment on campus. Does the time I spent in the U.S. prior to this appointment count toward the time limit set forth in my tax treaty?
A: Yes, it does.
REPORTING
Q: I am a nonresident alien with a paid appointment; do I have to file income tax returns with the Federal and State governments at the end of each year to report my earnings?
A: Yes. If you earn money, you will receive a form(s) from the University of Wisconsin, which you will use to complete your annual income tax returns. Please see the following website for detailed information: http://www.bussvc.wisc.edu/ecbs/tax-info.html
Q: What forms will I receive from the University of Wisconsin in order to file my annual tax return with the Internal Revenue Service (IRS) and the Wisconsin Department of Revenue?
A: All earnings to which tax treaty benefits were applied will be reported to you on a 1042-S form. All earnings from which federal or state taxes were withheld will be reported on a W-2 form. NOTE: All earnings received by a nonresident alien for a fellowship (income code 15) appointment will be reported on a 1042-S form, whether taxed or not. These forms will be mailed to your home address by the end of January each year to report your prior year’s earnings.
Q: If I didn’t have any earnings, do I still need to file annual tax returns?
A: No, but you must file IRS form 8843 for yourself and each member of your family.