UPP 192 Instructions - University of Chicago

UNIVERSITY OF CHICAGO PAYROLL DEPARTMENT 1225 EAST 60TH STREET CHICAGO, IL 60637
TAX INFORMATION FOR
INTERNATIONAL VISITORS AT
THE UNIVERSITY OF CHICAGO
PLEASE READ THESE NOTES BEFORE SUBMITTING THE FORM UPP192
All non-US Citizens are required to complete the Form UPP192, Alien Determination of Residency. It is used to
determine: (1) the country of residency, (2) appropriate tax status, and (3) tax withholding liability on payments
made to Permanent Residents (green card holders), Resident Aliens for tax purposes, and Nonresident Aliens.
When submitting this form, an IRS Form W-9, Request for Taxpayer Identification Number and Certification or an
IRS Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding must
accompany each payment request, dependent upon visa and payment type. Additional documentation is also
required for each type of payment and citizenship status of the payee. Refer to Required Documentation For
Payments To Foreign Individuals for additional information.
The following notes are a summary of your general tax obligations while you are in the U.S. For a more
complete explanation of tax rules for international visitors, consult IRS Publication 519, U.S. Tax Guide
for Aliens.
RESIDENCE STATUS FOR TAX PURPOSES
If you are not an U.S. citizen, your U.S. tax obligations depend on your "residence status for tax purposes."
The Internal Revenue Service (IRS), the tax-collecting agency of the U.S. government, refers to non-U.S.
citizens as “aliens.” According to IRS, you are either a Resident Alien or a Nonresident Alien for tax
purposes. Resident Aliens for tax purposes are taxed, in the U.S. on their worldwide income.
Resident aliens claim the same types of tax exemptions and deductions offered to U.S. citizens, and are
subject to the same Social Security tax-withholding requirements as U.S. citizens (see FICA TAX-
WITHHOLDING).
Nonresident Aliens for tax purposes are taxed only on U.S. source income. Taxes on a Nonresident alien’s
income are assessed according to special rules and regulations. For example, Nonresident aliens may take
advantage of tax exemptions due to an income tax treaty (see TAX TREATY EXEMPTIONS).
INCOME TAX-WITHHOLDING
The process of deducting taxes from payments that we issue to you is called "Income Tax-Withholding". IRS
requires tax withholding. The rules governing how much tax (if any) the University is required to withhold are
based on several factors: (1) your residence status for tax purposes, (2) the type of payment you will be
receiving from the University -- i.e. wages, scholarships, independent contractor or honorarium, and (3)
information you furnish on tax forms.
Resident Alien Tax-Withholding
• Wage payments (i.e., payments for part-time student employment, salaries of researchers or professors):
Federal tax is withheld based on the marital status and number of allowances listed on the IRS Form W-4,
Employee’s Withholding Allowance Certificate. Federal tax rates are graduated, so the amount of tax
withheld depends on the amount of the payment.
• Scholarship or fellowship stipends, and other miscellaneous payments: Most other types of
payments to Resident aliens are not subject to tax withholding, even though these payments may be
subject to taxation. Resident aliens who receive scholarship or fellowship payments should consult IRS
Publication 520, Scholarships and Fellowships.
Rev. 10/01 1 UPP192_Notes

Nonresident Alien Tax-Withholding
• Wage payments: In order to receive wages, Nonresident aliens must have a valid US social security
number. Nonresident alien employees must follow special instructions when completing the IRS Form W-4.
Nonresident aliens must list themselves as “SINGLE” (regardless of actual marital status), with “1”
allowance, and request an additional amount of federal tax to be withheld from each check. Currently this
“additional amount” is $15.29 for employees paid on the biweekly pay schedule, or $33.13 for employees
paid on the monthly pay schedule.
In addition to the Federal tax withholding, the University also withholds state income tax. Illinois state tax is
generally withheld at the rate of 3%.
• Scholarship or fellowship stipends, and other miscellaneous payments: Scholarship or fellowship
stipends paid to Nonresident aliens are subject to a 14% federal tax-withholding rate. Other miscellaneous
payments to nonresidents are generally subject to a flat 30% federal tax-withholding rate (see TAX
TREATY EXEMPTIONS)
FICA TAX-WITHHOLDING
Social Security tax (also know as FICA) is an employment tax. FICA is withheld only from wage payments,
and is deducted in two components: Old Age, Survivors, Disability Insurance or OASDI (6.20%) and Medicare
(1.45%). FICA taxes will not be withheld from a student's wages when the student is registered and attending
classes at the University of Chicago, and works on a part-time basis.
FICA tax exemption for certain Nonresident aliens: Students who hold F-1 or J-1 classifications are
exempt from FICA tax withholding for the first five calendar years they are in the U.S. Professors and
researchers who hold J-1 classification are exempt from FICA tax withholding for the first two calendar years
they are in the U.S. It is the Payroll Department's responsibility to determine which employees should be
subject to FICA tax withholding during a particular calendar year.
Note: The term calendar year refers to the period of January 1 through December 31. If you are present in
the U.S. during any part of a particular calendar year, that year will count as one calendar year of U.S.
presence.
TAX TREATY EXEMPTIONS
Certain international visitors may be able to claim exemption from U.S. taxes based on a tax treaty agreement
between the U.S. and their home country. You should consult IRS Publication 901, U.S. Tax Treaties to see
if a treaty between the U.S. and your country of residence actually exists. If a treaty does exist, you should
determine if an article of the treaty covers the type of payment you will be receiving from the University, and if
you will be able to meet all the requirements of the treaty. If a tax treaty article does exist, and covers the
type of payment you will receive, you may claim the exemption from tax when you file your U.S. income U.S.
tax return treaty (see TAX FILING).
The IRS also allows you to claim tax exemption before the payment is made to you. To claim the exemption
from tax withholding, you must either have a permanent social security number (SSN) or an individual
taxpayer identification number (ITIN). (See note under Wages). Complete and submit the ORIGINAL forms to
the University of Chicago Payroll Department. (Faxed forms are not accepted.)
If you need to claim the exemption from tax-withholding for your:
Wages (i.e. part-time student employment, salaries of researchers or professors, etc.): Submit IRS Form
8233, Exemption from Withholding on Compensation for the Independent Personal Services of a Nonresident
Alien and revenue procedure statement 87-8 or 87-9 (contact Payroll for these forms). Note: Individuals who
have applied for SSN and receiving wages, but not yet received their SSN, can attach a copy of the SSN
application to the treaty forms to claim a treaty benefit.
Note: Individuals whom have applied for SSN and receiving wages, but not yet received their SSN, can
attach a copy of the SSN application to the treaty forms to claim a treaty benefit.
Rev. 10/01 2 UPP192_Notes

Independent Contractor, honorarium or other miscellaneous payments: Submit a completed W-8BEN-I,
Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and the IRS Form 8233,
Exemption from Withholding on Compensation or the Independent Personal Services of a Nonresident Alien.
Scholarship or fellowship stipend payments: Complete the University
Form W-8BEN-S, Certificate of Foreign Status of Beneficial Owner for Unites States Tax Withholding.
Royalty payment: Complete the University Form W-8BEN-S, Certificate of Foreign Status of Beneficial
Owner for Unites States Tax Withholding.
TAX FILING
International visitors who hold F-1, J-1 or H-1B classifications (and their spouses and dependent children)
must file income tax returns regardless of whether or not they receive wages or scholarships in the United
States.
International visitors receiving miscellaneous compensation or royalty payments must file income tax returns
regardless if a treaty applied or taxes were withheld.
"Filing an income tax return,” means completing the appropriate forms to report the income (if any) that you
received during a particular calendar year. By completing the forms, you determine whether or not you have
met your U.S. tax liability (if any) for the calendar year. Generally, for each calendar year you are present in
the U.S., you must complete and submit all tax returns by April 15 of the following year. In most cases, you
will need to file at least two income tax returns per year, one with the IRS, and one with the tax-collecting
agency in the state where you reside. People who live in Illinois file a tax return with the Illinois Department of
Revenue. Individuals who resided in states other than Illinois may need to file more than one state income
tax return. When Resident aliens file their tax returns, they are permitted to choose ONE of the following
forms to complete and submit to IRS: Form 1040, 1040A, or 1040EZ. However, Nonresident aliens are
required to complete either IRS Form 1040NR or 1040NR-EZ.
Tax-Reporting Documents Issued By The University: The University is required to furnish certain taxreporting
documents to you. In most cases you are required to attach these documents to your tax returns. If
you were paid wages, and had tax withheld, the Payroll Department will mail you Form W-2, Wage and Tax
Statement, by January 31 of the following calendar year. If you are a Nonresident alien, and received income
that was exempt from tax-withholding, or subject to a flat withholding rate, the Payroll Department will mail
you Form 1042s, Foreign Person’s U.S. Source Income Subject to Withholding, by March 15 of the following
calendar year. For this reason, it is crucial that you provide the University Payroll Department with the most
current address information.
TAX INFORMATION
For more information regarding U.S. taxation of international visitors, you should consult the following IRS
publications: Publication 513, Tax Information for Visitors, Publication 519, U.S. Tax Guide for Aliens, and
Publication 901, U.S. Tax Treaties. International visitors or department administrators may request copies of
these publications, as well as IRS forms and instructions, by calling the IRS forms hotline at 1-800-TAX-
FORM or visit the IRS web site at http:// www.irs.gov/. For assistance in completing the IRS or state income
tax returns, please call the local offices of the IRS or Illinois Department of Revenue.
If you have questions concerning the University's tax-withholding procedures, in-house forms or tax-reporting
documents, contact the Alien Payroll Desk at (773) 702-5989.
Rev. 10/01 3 UPP192_Notes