Key Terms
General Questions
Year End Tax Questions
Key Terms
1. US Citizen or Permanent Resident: A U.S Citizen is a person born in the U.S. or who meets specific criteria related to birth and parents. A U.S. Citizen also may be a person who is ‘naturalized’ by meeting certain criteria. A permanent resident is a person who has been granted permission to remain in the U.S. indefinitely, so long as they continue to meet the qualifications or elect to relinquish the status. These individuals are also known as ‘green card’ holders. ^Back
2. Resident Alien or Nonresident Alien: U.S. immigration law views individuals who are neither U.S. citizens nor permanent residents as ‘aliens’. U.S. tax law divides these ‘aliens’ into two categories.
3. Substantial Presence Test: A mathematical test that appears fairly simple. However, it can become quite complex if the individual has been in the U.S. in different immigration statuses over a period of years. Assuming the days present in the U.S. have not been ‘exempt’ (not to be included in performing the test), the person must be in the U.S. at least 31 days in the current year. (All days present in the current year are then counted). Add one third of the days present in the previous calendar year and one sixth of the days in the calendar year just prior. If all those add to at least 183 days, then the person meets the substantial presence test. ^back
As long as the test is met each year, the person remains a resident for tax purposes. Any year the test is not met, the person reverts to nonresident alien status. This is the reason an individual who has been here in the past and returns must update Visa and days of presence information.
4. Glacier: The Vanderbilt International Tax office uses Glacier software to collect immigration information calculates the substantial presence test. It is based on the immigration data entered by the individual. If the person passes the substantial presence test, he or she is treated as a U.S. person for tax purposes. ^Back
5. Immigration Law and IRS Regulations: If the person is not a U.S. Citizen or permanent resident, two sets of laws must be taken into consideration. ^ Back
6. Payments: Payments to individuals may be wages paid through payroll or payments made through disbursements. Wages may be paid by check or direct deposit. Disbursement payments could be in the form of a demand check, a wire, cash, or procurement card (P-Card) transaction. The payments could be made to the individual (often as reimbursements) or could be made directly to a vendor. The method of payment (how it is paid) is not the same as the kind of payment (why it is paid).
U.S. Citizens, permanent residents, and nonresident aliens can all receive the same kinds of payments as listed above. However, the laws for tax are very different for people defined by the IRS as nonresident aliens.
7. Where do I drop off my forms? ^ Back
Mail or drop off your Glacier Tax Summary and the forms listed on the bottom portion of the summary.
8. Will I have to pay US tax? ^ Back
If you receive any payment other than a scholarship or fellowship grant for only your tuition and books, the payment may be taxable. This means stipends or pay you receive if you work may have U.S. tax withheld. If any portion of a scholarship is for room and board or travel or anything not for tuition, books and supplies required by the VU for enrollment, these may be taxable. The U.S. and certain other countries have Tax Treaties. If you can claim treaty benefits, you might not be taxed.
If you are here as an F-1 or J-1, you may not be subject to the Social Security Tax.
9. What do I need to do to be sure I have the right amount of tax? ^ Back
When International Tax is notified that you will be receiving payments, you will be set up with a password for Glacier. Glacier is the secure online software used to collect and manage tax information for our international population. You will receive an email from support@online-tax.net, which will contain your Glacier password. You must complete the Glacier interview. Once it is complete, you can print the completed forms. Mail signed forms and any listed copies of immigration documents to the address listed in the Glacier instructions or drop off at any of the locations listed. If you have problems completing your Glacier online interview, please email support@online-tax.net.
10. Am I required to update Glacier when my address or status changes? ^ Back
All individuals who are not U.S. citizens or permanent residents (including those who are counted as residents for tax purposes) and are receiving any type payments must complete and maintain a Glacier record. This provides accurate tracking of your tax status. Do be sure to change your address, compensation type, immigration status and anything else that changes that is part of your Glacier entry. This includes your departure date. (The address in Glacier is used for your Form 1042S).
11. How was the tax withheld from my paycheck calculated? ^ Back
First, review US government tax requirements based on your immigration status. (See Publication 519 available at http://www.irs.gov/).
12. What tax documents should I expect to receive at year end? ^ Back
13. How do I request a replacement W-2? ^ Back
See instructions posted on HR internet site. (Be sure your address is correct in the pay system prior to year end so that your W-2 is sent to the correct address).
14. How do I request a replacement 1042-S?
Be sure your address is correct in Glacier before year end. If you have not received your 1042-S by March 15th:
15. How do I file my personal income tax return? ^ Back
The International Tax Office is not staffed to provide tax advice to you. The following resources may help.
Non-Resident Aliens (for U. S. Tax purposes)