Q: What does “NRA” mean?

NRA is an acronym for Nonresident Alien.

Q: Who is a “Nonresident Alien and “Resident Alien” for tax purposes?

If a foreign individual does not meet either the Green Card or Substantial Presence Test, the individual is classified as a Nonresident Alien. A Nonresident Alien is taxed differently from a U.S. citizen. A Resident Alien also known as a “Permanent Resident” has been awarded a Permanency Authorization to live and work in the US. Permanent Residents are subject to all income tax reporting and taxation.

Q: What is a “W-4”?

The “Employee Withholding Allowance Certificate” is a form to declare your federal tax withholding status. When completing the W-4, you may not claim “Married,” you may not claim “Exempt,” and you may not claim more than “01” allowance.

Q: If I am exempt per a treaty, why is a W-4 also required?

When the tax treaty provisions expire, payroll will begin taxing you per the W-4 on file.

Q: Is there a tax treaty between my country and the US?

See IRS Publication 901. For further questions, go to the IRS web site, www.irs.gov.

Q: What is the difference between forms W-2 and 1042-S?

The IRS form W-2 is used to report annual taxable federal and state wages. Treaties for nonresident aliens (NRA) may exempt the employee from federal taxes. If you are an NRA and are exempt from federal taxes, then you will receive a form 1042-S.

Q: What is a "1042-S"?

A 1042-S Form is a year-end tax document given to a nonresident alien who received:

• Wages protected by a tax treaty, or
• Qualified Scholarship
• Non-Qualified Scholarship

In certain cases, individuals may receive a W-2 Form in addition to a 1042-S Form.

Q: What type of income is reported?

The IRS requires that both taxable and non-taxable payments made to nonresident aliens be reported on either Form 1042-S (mailed by March 15th) or Form W-2 (mailed by January 31st) of each year.

Q: Why is it important to submit my forms and documents to payroll?

• Prevents maximum withholding being deducted from pay
• Ensure accurate taxes are withheld from pay

Q: Where can I find information about nonresident alien taxation?

The Internal Revenue Service (IRS) has produced numerous publications and forms. All of these publications and forms are available at the IRS web site (www.irs.gov). The publication that may be helpful to nonresident aliens is Publication 519 - United States Tax Guide for Aliens.

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