Foreign Nationals

Foreign visitors working or receiving payments from the University of Oklahoma Health Sciences Center may be subject to U.S. income tax on the earnings or benefits they receive. Taxable payments may include:

• Employee wages
• Fellowship payments
• Scholarship payments
• Other financial benefits provided by the University

Under U.S. tax law, wages are generally taxable unless there is a specific exemption. Employee wages are subject to federal and state income tax withholding. Income tax on employee wages is withheld at graduated rates mandated by law. Tax withholding tables are used to determine the amount withheld based on the employee's taxable wages. In addition to income taxes, some employees may be required to pay FICA taxes (also known as Social Security and Medicare taxes), totaling 7.65% of eligible wages. Certain visa types, such as F-1 and J-1 students and scholars, may be temporarily exempt from FICA taxes under U.S. tax regulations.

 

The United States maintains tax treaties with approximately 70 countries. Some treaties may allow foreign students, researchers, or short-term visitors to receive partial or full exemptions from U.S. income tax for a limited period of time or up to a specified dollar amount. However, even if a tax treaty exists between the United States and your country of tax residency, you may not qualify for an exemption from tax withholding on U.S. wages. Applicable tax treaty benefits and exemptions can be determined once you are in the United States and complete the Sprintax registration process. For more information regarding tax treaties, please select the Income Tax Treaties tab.

Payroll-Services@ouhsc.edu

The United States maintains income tax treaties with approximately 70 countries. These treaties are negotiated between the U.S. government and foreign governments to help prevent double taxation. Some treaties allow eligible foreign individuals to receive partial or full exemptions from U.S. federal income tax for a limited time.

Treaty eligibility is generally based on an individual's country of tax residency, which may differ from their country of citizenship. Eligibility requirements vary by treaty and must be evaluated based on the individual's specific facts and circumstances.

Each treaty is unique and includes its own criteria, which may include:

• Visa classification (non‑immigrant status)
• Purpose of the visit (student, researcher, trainee, etc.)
• Maximum income thresholds
• Time limits or one‑time‑use restrictions
• Retroactive or limiting provisions
  
  

Important Notes About Treaty Eligibility

• The existence of a treaty does not mean the individual is automatically exempt from U.S. taxes.
• Treaty benefits are not automatic and must be reviewed and approved by Payroll Services Tax Team.
• Eligibility for treaty benefits is reviewed after the individual completes the Sprintax registration process and submits all required documentation.

Based on IRS regulations, treaty limitations, retroactive clauses, or other compliance‑related factors, the University of Oklahoma may choose not to apply a tax treaty exemption to an employee’s wages, even if the treaty appears to permit an exemption. This ensures the University and the employee remain compliant with IRS rules and avoid potential penalties for improper treaty application.

General information regarding individual tax treaties IRS Publication 901 “U.S. Tax Treaties"

Detailed information regarding Individual Tax Treaties

For questions regarding tax status, please email hsc-tax@ouhsc.edu.

The U.S. tax system operates on a calendar‑year basis, and payroll taxes for international employees are either withheld or exempt depending on tax residency status and any applicable income tax treaties.

For tax purposes, the IRS classifies individuals as Resident Aliens (RA) or Nonresident Aliens (NRA)—terms that relate only to taxation and have no impact on immigration status. Your payroll tax status is determined using the information submitted through Sprintax Calculus, and it dictates which taxes apply to your pay as well as which federal and state tax forms you will be required to file each year.

Federal and state income tax withholding follows a pay‑as‑you‑go, graduated system and is required unless a valid tax treaty exemption applies. Treaty eligibility is based on country of tax residency, which may differ from citizenship.

FICA includes:

• Social Security tax
• Medicare tax

FICA tax, consisting of Social Security and Medicare taxes, is different from federal and state withholding tax. FICA provides for a federal retirement system and is separate from income tax treaty exemption.
 

General FICA rules for foreign nationals:

• Resident Alien tax status:
  FICA withholding is typically required, with limited exceptions for certain individuals in F‑1 or J‑1 student status.
• Nonresident Alien tax status:
  FICA is generally exempt for individuals in:
  • F‑1 student status
  • J‑1 student status
  • Certain J‑1 non‑student categories
  • Other nonresident alien statuses as allowed under IRS regulations

For detailed information see Publication 519 “U.S. Tax Guide for Aliens”.

Contact our Foreign National Tax staff with questions regarding individual tax status at: HSC-Tax@ouhsc.edu.

*Please note that these are general FICA rules. The Payroll Services Tax Team will notify employees of their tax residency classification and FICA withholding status after their Sprintax Calculus record has been completed and reviewed.

Resident Alien (RA) employees may access and update their Form W‑4 through Employee Self Service: https://www.ouhsc.edu/selfserve. The system permits updates once per calendar day. Please note that, due to payroll processing schedules, changes may not be reflected until the following pay period.

RA employees receive Form W-2 reporting taxable wages and taxes withheld for the year.

For Resident Alien employees who qualify for an applicable income tax treaty exemption, a Form W-9 may be required. When applicable, the treaty-related Form W-9 will be generated through Sprintax Calculus after all required information and supporting documentation have been submitted and reviewed. The form must be electronically signed before treaty benefits can be considered for implementation.

Note that some J-1 non-student employees in Resident Alien status may also receive a Form 1042-S in addition to a Form W-2. Form 1042-S, "Foreign Person's U.S. Source Income Subject to Withholding," is generally used to report income that is exempt from federal income tax under an applicable tax treaty or other reportable payments subject to IRS reporting requirements.

Below is a list of forms typically used by RA employees and their purpose:

• Form W-4: “Employee's Withholding Certificate." Resident Alien employees complete and update Form W-4 electronically through Employee Self Service. Employees whose tax residency status changes should ensure their Sprintax Calculus record is updated and contact HSC-Tax with any questions regarding payroll withholding.

• Form W-9: “Request for Taxpayer Identification Number and Certification." Certain Resident Alien employees claiming treaty benefits may be required to electronically sign a treaty-related Form W-9 generated through Sprintax Calculus.

• Form W-2: “Wage and Tax Statement." Form W-2 is an annual statement reporting taxable earnings and taxes withheld during the calendar year.

• Form 1042-S: “Foreign Person's U.S. Source Income Subject to Withholding." For employees, this form is generally used to report income that is exempt from federal income tax under an applicable tax treaty. Form 1042-S is furnished separately from Form W-2 when required.

If you have any visa or immigration status changes, please promptly update your information in Sprintax Calculus and notify HSC-Tax, as these changes may affect tax residency status, treaty eligibility, payroll tax withholding, and reporting requirements.

Questions regarding tax status or treaty eligibility may be directed to HSC-Tax@ouhsc.edu.

 

Note that tax status is different from immigration status.

NRA employees are required to complete the tax forms generated through Sprintax Calculus, which generally include Form W‑4 (Nonresident) and Form W‑8BEN.

When an employee qualifies for a tax treaty, Form 8233 and the accompanying Statement to Form 8233 must be signed before treaty benefits can be applied to the employee's account. Treaty benefits will not become effective until both forms have been signed. Please be advised that tax treaties cannot be processed if the employee currently holds a temporary Social Security number (SSN). Even if an employee meets all eligibility requirements, the option to elect a tax treaty will not populate in Sprintax Calculus until a permanent SSN is issued by the Social Security Administration.

Form W-4: "Employee's Withholding Certificate" determines the amount of federal and state income taxes withheld from your pay and contains special withholding requirements for employees in Nonresident Alien (NRA) tax status. The form is generated through the employee's Sprintax Calculus account and must be signed and submitted by the employee. Because federal tax withholding for NRA employees is governed by IRS regulations, employees in NRA tax status do not have access to modify their federal tax withholding in Employee Self Service. The following are the general rules that apply to Form W-4 for employees in NRA tax status:

• In general, NRA status employees have just one option, which is “Single” regardless of marital status, with “Nonresident Alien” or “NRA” entered on the applicable line of the form.
• The “Single” filing status corresponds to a payroll tax withholding table issued by the Internal Revenue Service (IRS). IRS regulations require an additional amount per pay period to be added to the wages of most NRA employees solely for purposes of calculating federal income tax withholding. OUHC is required to add this amount when calculating federal income tax withholding from each biweekly payroll.
• An exception to this rule applies to students from India in F‑1 or J‑1 student status, who are generally excluded from the additional amount added for federal withholding calculations.
• Until the proper NRA Form W‑4 is received, federal income tax withholding must be calculated using the required default withholding rules.

NRA employees do have access to their Oklahoma W‑4 form in Employee Self Service and can make changes if needed.

Below is a list of forms typically used by NRA employees and their purpose:

• Form W-8BEN: “Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding.” This form is used for NRA employees to indicate Nonresident Alien status. The form is generated through the employee's Sprintax Calculus account and must be electronically signed and submitted through Sprintax Calculus.

• Form 8233: “Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.” This form is generated through the employee's Sprintax Calculus account and must be electronically signed and submitted through Sprintax Calculus. Tax treaty benefits cannot be reviewed for implementation until Payroll Services receives the signed Form 8233 and accompanying Statement to Form 8233 and confirms eligibility under applicable IRS regulations and treaty provisions.

• Form 1042-S: Foreign Person’s U.S. Source Income Subject to Withholding.” For employees, this form is used to report treaty-exempt income for the tax (calendar) year. If the employee opts in to online delivery through Sprintax Calculus, the form will be available for download in their Sprintax Calculus account no later than March 15. If the employee does not opt in to online delivery, HSC Tax will mail a paper copy by March 15. Depending on the employee's tax situation, a Form W‑2 may also be issued to report taxable wages that are not exempt under an applicable tax treaty.

Employees are responsible for promptly updating any visa or immigration status changes in Sprintax Calculus and notifying HSC‑Tax, as such changes may affect tax residency status, treaty eligibility, payroll tax withholding, and reporting requirements.

Any questions regarding tax status or treaty eligibility, please email HSC‑Tax@ouhsc.edu.

Note - while OUHC does not offer assistance in the preparation of individual income tax returns, a tax software is made available each year for Nonresident Alien employees for use in preparing individual income tax returns. Email us for more information.

For IRS general concepts regarding Foreign national taxation

For IRS information for the tax status regarding Nonresident Aliens

For IRS information regarding tax status of Resident Aliens

For IRS information regarding tax status of Dual-Status Aliens

 

Can I access Sprintax Calculus after I am no longer employed at University of Oklahoma Health Science Center?

Yes. When you separate from OUHC, the HSC Tax team will add your personal email address to your Sprintax Calculus account. You will then receive an email from Sprintax Calculus with instructions to create a password and access your account using your personal email address.

What payroll taxes are deducted from my paycheck and what happens to the amounts withheld?

Federal withholding tax, shown on your earnings statement as "Fed Withholding", is based on tax withholding tables issued by the IRS, Internal Revenue Service. The amounts withheld are reported by OUHSC on an annual form W-2 form for your use when preparing your individual income tax returns (forms).

State withholding tax, shown on the earnings statement as "OK Withholding" is based on tax withholding tables issued by Oklahoma Tax Commission and are also reported on the form W-2.

FICA tax (also called Social Security and Medicare Tax) shown in your earnings statement as "Fed OASDI/EE" and "Fed MED/EE" respectively. The combined rate deducted from employee's pay is 7.65 percent. Among other things, FICA, Federal Insurance Contributions Act, provides for a federal system of old-age insurance.

Are foreign nationals exempt from taxes?

For all or a portion of wages to be exempt from federal tax withholding, the relevant sections of the income tax treaty must be met.

For FICA tax to be exempt under the foreign national rules, you must be a nonresident alien in F-1 or J-1 status. To be exempt under the Student FICA rule, you need to carry sufficient credit hours per semester and maintain F-1 or J-1 student status. This is the general rule. For foreign nationals with prior stays in the U.S. the rules may change. Email us with questions on your individual status.

Can I decide on the amount of taxes withheld from my pay?

The form W-4 is the tax form used by employees to direct the amount of federal and state taxes withheld from your pay. However, for foreign nationals in nonresident alien tax status there are additional instructions by the IRS on how to complete this form. Foreign nationals in resident alien tax status complete the form following the instructions on the form. The amount of federal and state income tax withheld from your pay depends on your tax status and any applicable income tax treaty .

What are individual income tax returns?

Foreign nationals must prepare individual income tax forms, called "returns", with the U.S. federal and state governments. For Nonresident Aliens (NRA), OUHSC makes available a NRA tax preparation software. NRAs use the federal form 1040NR series tax forms and the form 511NR for the state of Oklahoma. Resident Aliens (RA) file tax forms similar to U.S. citizens using the form 1040 series. RAs can use the services of a tax preparation professional or tax preparation software. Each individual is responsible for filing tax returns.

How do I file tax returns if I am in both nonresident alien and resident alien status in the same tax year?

We recommend you seek the advice of a tax accountant.

How do I get my final pay and/or income tax refund if I leave the country?

Prior to leaving the U.S., discuss with your U.S. bank how to keep your account open so your final pay can be deposited, and how to set up a wire transfer for the funds to be transferred to your foreign bank account. If you have a refund of tax on your U.S. federal or state tax return (or both), you may direct the IRS to deposit the amount into your U.S. bank account. Note that the IRS will not deposit refunds into foreign bank accounts. If you close your U.S. bank account after returning home, and before you receive any tax refund due, you may not be able to cash a check.

What happens if I fail to file my taxes?

The IRS (Internal Revenue Service) can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties can amount to more than the original debt. There can be immigration consequences for failing to file taxes. Applicants for a permanent residency "green card" must provide proof of filing taxes for all years of residence in the U.S.

What happens if I file my taxes but use the wrong forms?

We recommend you consult with a tax professional and with your immigration attorney.