University Notice About Taxes

The International Information Form

In order to ensure that you are paying the correct amount of U.S. income taxes, please complete and sign the International Information Form (IIF).

iif

This form is required by the Tax Office to determine your U.S. tax residency. Please return the IIF form to the OISS office; they will forward it to the Tax Office.

The Tax Office will review the IIF and will send you notification if you are required to complete additional tax forms, including tax treaty forms.

Note: You must have a U.S. Social Security Number or Individual Taxpayer Identification Number to qualify for treaty benefits. If you have questions contact that Tax Office by calling (203) 432-5530 or (203) 432-5597 or by email daysi.cardona@yale.edu. The Tax Office website is at www.yale.edu/tax/int. The tax office is located at 25 Science Park, 5th Floor.

Overview

The United States Internal Revenue Service (IRS) requires that the University apply certain tax withholding and reporting rules to payments made to individuals who are neither U.S. citizens nor U.S. permanent residents.Taxes may be withheld from any wages you receive for on-campus employment and from the portion of your fellowship or financial aid award that is above the amount of Yale’s tuition. (Financial aid or a fellowship that covers tuition charges is not taxable.)

How Much Taxes Will Be Withheld?

The tax withholding rate is based on the type of payment received (e.g. wages, stipend, etc.), U.S. tax residency and visa status. If the payment is considered a stipend or fellowship, the University is required to withhold federal income tax at a rate of 14% for non-resident taxpayers whose current immigration status is F, J, M or Q.

Tax Treaties

Tax treaty is a bilateral agreement between two governments to avoid double taxation, if a treaty applies, some or all of your wages or stipend may be exempt from federal tax withholding. Each treaty is different and will provide different benefits.  In addition, the existence of a treaty does not mean that an individual will automatically qualify for the tax treaty exemption. Research tax treaties currently in force.

Social Security (FICA) Tax

If you are classified as a non-resident taxpayer, which will be the case for most international students in F-1 or J-1 status who are in the U.S. for the first time, you are exempt from social security (FICA) taxes under IRS Section 3121(b)(19). Students, regardless of their tax resident status, may also be exempt from FICA taxes under section 3121(b)(10) which applies equally to students who are U.S. citizens and nonresident aliens who work for the school in which they are enrolled and regularly attend classes.

How Do I Pay These Taxes?

If you are receiving a stipend and/or working on campus, any federal and State income tax is automatically deducted from your payments. Prior to April 15th of the following year, you are required to file income tax returns with the U.S. government (IRS). OISS will provide you with the tax preparation software, CINTAX, and information about how to file your federal and state income tax returns.