Federal Filing Tax Residency Information

Resident Aliens are subject to federal employment taxes same as U.S. citizens. If you do not meet the requirements of the green card test or the substantial presence test, or you are exempt from counting days towards a substantial presence test, you are considered a nonresident for tax purposes. This determination means you are required to report your U.S. income only.

Social Security/Medicare Taxes/Unemployment Taxes

Nonresident Aliens who are in the United States on a J1, F1, M1 or Q1 visa are usually exempt from Social Security and Medicare taxes as well as unemployment tax. However, those on J1/F1 visas on non-student appointments are not exempt from unemployment tax. Nonresident aliens who are in the United States on a H1B, TN, O1 or J2 visa are subject to Social Security and Medicare as well as unemployment tax. Nonresident Aliens on a F2 visa are not allowed to work and should never be placed on the payroll.

Income Tax Witholding Requirements

In general, federal income taxes on wages of non-resident alien employees must be withheld. For wages paid on or after January 1, 2010, the Internal Revenue Service (IRS) applied a new procedure for calculating the amount of income tax to withhold from wages of non-resident alien employees performing services within the United States. Please refer to Employer's Tax Guide (pdf), page 20-21, for additional information.

Nonresident Aliens

Nonresident Aliens in most cases are required to complete Form W-4 claiming single status and writing “non-resident alien” or “NRA” below Step 4(c). They are not required to request an additional amount of withholding. They cannot claim exempt status. For additional information, please refer to Notice 1392 (Rev. January 2020) (pdf). Complete Form K-4 claiming Single and 1 allowance, then writing “non-resident alien” or “NRA” on the dotted line next to 4.

Nonresident Aliens from Tax Treaty Countries

Nonresident Aliens from tax treaty countries are also required to complete Form W-4 claiming single status and writing “nonresident alien” or “NRA” below Step 4(c) of Form W-4. They can, however, claim exempt status with some limitations. They must complete IRS Form 8233 and Appendix A or B, if applicable. Please refer to Tax Treaty Summary for country and whether an A or B is required. Note: GTA'S, GRA'S and GA'S are considered students. Complete Form K-4 claiming Single and 1 allowance, then writing “non-resident alien” or “NRA” on the dotted line next to 4.

J-2 Visa Holders

J-2 Visa Holders are required to complete Form W-4 claiming single status and writing “non-resident alien” or “NRA” below Step 4(c) of Form W-4. They cannot claim exempt status regardless of their country origin. Complete Form K-4 claiming Single and 1 allowance, then writing “non-resident alien” or “NRA” on the dotted line next to 4.