Following is a description of some items that determine the amount of tax you pay each year.

In general, most F-1 and J-1 students do not qualify for tax residency until they have been in the US for more than five years. In their sixth year as a student, they can be certified as a "resident for tax purposes" if they are able to pass a "Substantial Presence Test". Those who pass this Substantial Presence Test must be treated as residents for tax purposes.

The kind of tax return form filled out at the end of the tax year is different for nonresidents and residents for tax purposes. International students who are nonresident aliens for income tax purposes must complete a 1040NR or 1040NR-EZ. US citizens, US permanent residents and "residents for tax purposes" complete Form 1040, 1040A, or 1040EZ. Check IRS Publication 519 to obtain more information about tax residency. Students are urged to use CINTAX to determine their status.

A W-4 form is given to each employee to complete before a paycheck can be received and to each US scholarship, grant or fellowship recipient. International Students are strongly recommended to update their tax information through Glacier whenever they have a payroll and/or status change. Glacier generates the updated W-4 form based on the information you provide. W-4 form tells the IRS how much tax to withhold from monthly paychecks or scholarship amounts. Never say that you are exempt on this form. It is a legal document and you will be held responsible for proving that what you write down is true.

For non-residents, instructions for filling out form W-4 are located in Section 8 of IRS Publication 519, the US Tax Guide for Aliens, and also Form 8233 Instructions. Do not use the instructional worksheets on Form W-4 to determine your exemptions unless you are a US citizen, US permanent resident, or a "resident for tax purposes."

Some countries have tax treaties with the US, but this does not mean that taxes do not have to be paid. Each treaty is different, some say that a portion of the income will be exempt from taxes (not taxed). Please refer to Publication 901, US Tax Treaties for the summaries of tax treaty benefits.

This benefit of a tax treaty is never stated on the W-4 form where it specifically asks if you are exempt from paying taxes. Instead, people who have tax treaty benefits may have to complete Form 8233 at the same time as the W-4 form so that treaty benefits will be counted when monthly taxes are determined. Also, you will have to prove and explain your tax treaty benefits on form 1040 NR at the end of the tax year.

Non-residents do not have to pay tax on certain kinds of interest income at banks. If you are exempt from paying tax on a certain kind of interest income, you may be asked to fill out form W-8 at your bank to use this exemption. Even if you fill out form W-8 at your bank, you will still have to explain the exemption on 1040NR or 1040NR-EZ at the end of the tax year. Also, if you become a "resident for tax purposes," this benefit is no longer available.

Deductions can be declared in the tax return form and they will enable you to pay less tax. Some of the deductible items are:

• scholarships, fellowships, grants,
• education related expenses such as book, tuition and required fee payments,
• moving expenses such as plane tickets, meals and hotel expenses,
• day care expenses for children,
• any thefts or losses,
• un-reimbursed employee expenses,
• any gifts to a U.S. charity,
• medical expenses

If you are planning to declare these items as deductions, you should save any receipts, check stubs and papers as evidence of payment. Further information about what items are deductible and who are eligible to use them may be found in IRS Publication 519