International Students

International Students: Understanding U.S. Taxes

International students, researchers and faculty members at Schools and Universities should be aware of their U.S. income tax obligations. United States tax laws distinguish between residents and non-residents for U.S. tax purposes. Non-residents only pay taxes on U.S. source income, while residents follow the same tax rules as U.S. citizens and pay taxes on their worldwide income. For more information about this, see Tax treaties below. Most incoming F and J visa holders are considered non-residents (F and J students for the first five calendar years in the United States and J-1 scholars for the first two calendar years in the United States).

The U.S. tax system is organized according to the calendar year and is a pay-as-you-go system, which means that taxes may be deducted from salaries, stipends, and scholarships if these funds are from U.S. sources. In most cases, taxes are automatically withheld from your pay (or charged to your term bill if you receive a Harvard scholarship). Your available income after taxes, therefore, may be less than anticipated as you may be subject to federal, state and/or Social Security taxes that can range from 14% to 30% of your total income. The amount of taxes you will pay will depend on the type of income you receive and your tax status in the United States.

Tax Treaties Clauses

Tax treaties between the United States and other countries may exempt earnings, scholarships, and stipends from taxes. Foreign students receiving scholarships from a College or University should review the tax treaties between their countries and the United States. In general, in order to claim a tax treaty benefit the student must have either a Social Security Number (SSN) or an Individual Tax Identification Number (ITIN).