Tax

Websites

• 1040.com  (includes federal and state information)
• Internal Revenue Service (federal only)

Toll-Free Telephone Numbers

• Federal Tax Issues: (800) 829-3676 (forms and publications) or (800) 829-1040 (advice)
• New York State Tax Issues: (800) 225-5829 (forms, publications, and advice)

These credits are generally not available to nonresident aliens. Please refer to IRS Publication 970, Tax Benefits for Education.

*Hope credit can be claimed only if at least one eligible student is attending an eligible educational institution in a Midwestern disaster areas in the states of Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska, and Wisconsin.

To qualify for treaty exemption, you must be a citizen or a permanent resident (generally, a noncitizen who files a resident income tax return) of the "treaty country," and the type of payment must be exempt under that specific treaty. In addition, the IRS requires a U.S.

You should file federal and New York State tax returns to ensure compliance with tax laws, to pay actual tax liability, and to document any tax amounts that need to be refunded to you.

Note: The Internal Revenue Code establishes the rate of withholding, but the withholding rate does not necessarily correspond with a taxpayer's actual year-end tax liability.

If you are a nonresident alien and have no U.S. source income, the IRS indicates you are not required to file an income tax return. However, you must file form 8843 with the IRS disclosing information about your nonresident alien status. Resident aliens are taxed on their world-wide incomes and, therefore, must file U.S. income tax returns if they have income from any sources.

Cornell does not report payments to the home country, but it appears that IRS reports income that is exempt under a treaty to the home country.

Payments to nonresident aliens are reported to the individual and the IRS on Form 1042-S or the W-2 form, but not on the 1099 form. The W-2 is issued by January 31; the 1042-S by March 15. Payments to resident aliens are reported on the W-2 form or 1099 form, but not on the 1042-S form.

There are no simple answers to this question. Cornell must withhold taxes on all payments to nonresident aliens unless the payment is exempt under the Internal Revenue Code, a tax treaty, or as foreign source income.

Nonresident aliens are exempt from U.S. social security payroll taxes, also known as Federal Insurance Contributions Act (FICA) taxes, but resident aliens are subjected to these taxes.

Note: FICA and Medicare taxes apply to wages and self-employment income, not fellowships.