Tax Information for Foreign Nationals
Tax Information for Foreign Nationals
The following links will act as a resource to foreign national students, employees, independent contractors and guests regarding the taxation of payments (see disclaimer below). It will also guide foreign nationals as to the necessary steps that must be taken before their payment can be processed by Ringling College of Art and Design (the College).
GLACIER™ and GLACIER™ Tax Prep
To assist both Ringling College of Art and Design staff and international students, employees and independent contractors with tax compliance, the College entered into a license agreement with Arctic International, LLC to use their GLACIER™ Online Nonresident Alien Tax Compliance system. This system allows any nonresident alien who has received a payment from the College to enter their immigration data into GLACIER™ and determine the rate of tax that will be withheld from the payment or if a tax treaty is available to exempt the payment from a tax withholding. As an additional resource to nonresident alien students attending the College, a GLACIER™ Tax Prep license is purchased by the College to give the students a resource with preparing their individual income tax return with the Internal Revenue Service.
Payments to Foreign Nationals
- Scholarships, Fellowship Grants and Stipends
- Prizes and Awards
- On Campus Employment
- Honorariums, Visiting Artists and Guest Speakers
- GLACIER™: www.online-tax.net
- GLACIER™ Tax Prep: www.online-tax.net
- Internal Revenue Service (IRS): www.irs.gov
- Foreign National Non-Compensation Form
- ICA Template for Foreign Independent Contractors (Ver 01-14-15)
- If you have any additional questions, please contact:
Peter Close, Accountant/Compliance & Tax Analyst
(Phone: 941-309-0113; email: email@example.com).
Disclaimer: Ringling College of Art and Design does not offer advice on any personal income tax requirements or issues. Students, independent contractors and employees are encouraged to seek professional tax advice for personal income tax questions and assistance.
Scholarships, Fellowship Grants and Stipends
Tuition scholarships, fellowship grants and stipends are not taxable to any nonresident alien, provided the amount does not exceed tuition, required fees and the cost of books.
Scholarships, fellowship grants or stipends that exceed the cost of tuition, required fees and books may be subject to a federal tax withholding rate of 14% for nonresident aliens. Scholarships covering the cost of room and board are subject to the 14% tax rate. This tax will be withheld from your student account and will be remitted to the United States Department of the Treasury to remain in compliance with Section 1441 of the United States Internal Revenue Code.
All nonresident alien students will be issued a Glacier™ account which will help them determine their tax residency status and any applicable tax treaties that may be available to reduce or eliminate the amount of tax required to be withheld from income earned in the United States. Once the appropriate information is entered into Glacier™, the student will be notified through Glacier™ if a tax treaty is applicable to their payment. Once the rate of taxation is determined, tax will be withheld from the payment and remitted to the United States Department of the Treasury per section 1441 of the Internal Revenue Code (see below).
- Glacier™: www.online-tax.net
Internal Revenue Service (IRS)
- Students Page - Higher Education www.irs.gov/Individuals/International-Taxpayers
- Publication 970 - Tax Benefits for Education www.irs.gov/pub/irs-pdf/p970.pdf
- Topic 421 Scholarship and Fellowship Grants www.irs.gov/taxtopics/tc421.html
- Internal Revenue Code Section § 1441. Withholding of tax on nonresident aliens
Prizes and Awards
A payment that is considered to be a prize or award is subject to a 30% tax rate. The tax will be withheld from the payment and remitted to the United States Department of the Treasury per section 1441 of the Internal Revenue Code (see below).
The Tax Summary Report produced in GLACIER will confirm the amount of tax required to be withheld from the payment. Generally, income tax treaty exemptions are not applicable to prizes and awards.
- GLACIER™ Tax Summary Report - GLACIER™ www.online-tax.net
On Campus Employment
All on campus employees will be required to visit the Office of Human Resources at Ringling College of Art and Design to verify employment eligibility and complete the necessary paperwork before any work relationship may commence. Student workers are required to visit the Registrar’s Office to verify employment eligibility prior to visiting the Office of Human Resources. The Registrar’s Office will provide student workers with a letter verifying their Visa type and that a job was secured on campus. After the student worker presents the letter to the Office of Human Resources, a separate letter will be created by the Office of Human Resources and delivered to the Social Security office by the student verifying employment was secured so that a Social Security card can be generated and issued to the student. Generally, students who enter the United States on an F-1 or J-1 Visa are legally permitted to work for their sponsoring institution for up to 20 hours per week. Instructors and visiting scholars on a J-1 Visa are legally permitted to work for their sponsoring institution full-time for a period of up to two years. Anyone on an H-1B sponsored Visa is eligible to work only for their sponsoring employer.
All students, Instructors, and visiting scholars will be issued a GLACIER™ account which will help them determine their tax residency status and any applicable tax treaties that may be available to reduce or eliminate the amount of tax required to be withheld from income earned in the United States.
- Office of Human Resources, Ringling College of Art and Design
- GLACIER™ www.online-tax.net
Honorariums, Visiting Artists and Guest Speakers
Generally, honorariums, visiting artists and guest speakers are subject to federal income tax withholding at a 30% rate of tax. Once the appropriate information is entered into GLACIER™, the independent contractor will be notified through GLACIER™ if a tax treaty is applicable to their payment. Once the rate of taxation is determined, tax will be withheld from the payment and remitted to the United States Department of the Treasury per section 1441 of the Internal Revenue Code (see below).