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Tax Season Information for 2018:
The United States Tax Structure is based on a graduated income tax system. The percentage taken out of UMass Lowell employee's paycheck will differ depending on different variables.
More Information on Foreign Taxation
There are Three Types of Tax Deductions
- FICA (Federal Insurance Contribution Act). The FICA taxes go towards pension benefits such as Social Security and Medicare. The employer is required to pay a matching amount. As a general rule non-tax resident are not taxed for FICA, but once you are considered to be a Tax Resident, you are required to pay. Tax Resident is a term used by the Internal Revenue Service (IRS).It is NOT the same as the immigration Permanent Resident Status.
- Federal Government Income Taxes; and
- State Income Taxes
Some students and scholars may be exempt from paying FICA taxes.As a general rule, anyone employed in the U.S. must pay payroll withholding taxes. Employers are required to keep track of an individual’s U.S. visa history and tax residency in order to apply for the appropriate payroll withholding tax.
There are also Tax Treaties between the U.S. and certain countries, which may apply to some international students and scholars. We strongly urge you to read Publication 519 mentioned above as well as IRS Publication 901 for tax treaty information.
How to Apply For a Tax Treaty?
If you are currently employed at UMass Lowell and are unsure as to whether tax treaty benefits apply to you, please contact Vanntha Sann. DO NOT FOLLOW A FRIEND’S ADVICE. Chances are that you will receive incorrect information that will cost you money during tax reporting season.
To determine your tax status and eligibility for a tax treaty, all non-U.S. citizens who receive compensation, scholarships or fellowships from the University must first provide the required information and complete the necessary forms using GLACIER (Artic International LLC), the University’s secure Online Tax Compliance System. This information must be provided prior to any payment so that the correct tax withholding and reporting decisions are made; failure to do so may result in the maximum rate of tax withholding. Once you have determined you are eligible for and want to apply for Tax Treaty benefits, you must continue to REAPPLY annually every December to ensure continuance of the treaty.
Filing Tax Returns
By the end of January, all who received compensation during the previous year will receive a W-2 form distributed by Human Resources from every U.S. institution from which they were employed and received compensation. The W-2 lists your earnings and taxes withheld for the previous year (January 1 – December 31). You are then required to complete and file the appropriate tax return and to file it by April 15th of each year.Some students and scholars will also receive a 1042-S form. This form is distributed by the Human Resources department in February to employees who were covered by tax treaty benefits during previous year. Please refer to Tax Season Information (pdf) for more details.
Please note: 1042-S form for Scholarship funding is issue by Account Payable Department.
Please contact Human Resources Tax Treaty Specialist by email: Vanntha Sann, or by phone at: 978-934-3539
Income Tax Questions?