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TAXES Most internationals in nonimmigrant visa status at the University of North Carolina at Chapel Hill are required to file Federal income tax forms regardless of whether or not they have earned income from United States sources. U.S. Income Tax forms for the calendar year must be postmarked by midnight April 15 of the following year (usually April 15, unless the 15th falls on a Saturday or Sunday). The filing deadline for North Carolina State tax returns is also April 15th. Federal and North Carolina State tax forms and instructions for non-immigrants who are filing as nonresidents for tax purposes will be available at International Student and Scholar Services (ISSS) in March. http://www.utexas.edu/international/taxes/ The ISSS staff is not able to assist anyone in the completion of tax forms or in answering specific tax questions. ADDITIONAL TAX FORM INFORMATION AND HELP FOR INTERNATIONALS FILING AS NONRESIDENTS FOR TAX PURPOSES Federal Tax Forms are available online at www.irs.gov. North Carolina State Tax Forms are available at www.dor.state.nc.us. Some Federal and State Forms are also available from UNC’s Davis Library and the Chapel Hill public library. To contact the Internal Revenue Service (IRS) for information on federal tax filing call 1-800-829-1040. Also there is a local IRS office in Durham at 3308 Durham-Chapel Hill Boulevard Durham, NC, telephone number: 919-401-0300. For help with NC State Taxes, you can contact the Department of Revenue in Raleigh at 501 N. Wilmington Street or by calling (919) 733-7211 or visit their website www.dor.state.nc.us. Tax information from states other than North Carolina can be found here. FORMS AND PUBLICATIONS MOST COMMONLY USED BY THOSE FILING AS NON-RESIDENTS FOR TAX PURPOSES: 1040NR or 1040NR-EZ 8843 Exempt individuals – to claim exemption from the Substantial Presence Test – all internationals filing as non-residents for tax purposes file this form 843 Claim for Refund (of Social Security Tax) North Carolina D-400 (pages 1-4) OTHER PUBLICATIONS PLEASE NOTE: Individuals who did not earn any income in the U.S. in 2007 are not required to file federal or North Carolina tax forms. However, IRS form 8843 is required for all nonimmigrants including dependents who qualify as nonresident for tax purposes. Individuals who received U.S. income from outside of North Carolina are required to file and report the income to the state in which the income was earned. Any income earned in North Carolina is taxable and must be reported on form NC D-400. Teaching Assistantship (T.A.) and Research Assistantship (R.A.) stipends are considered U.S. employment (wages) and are reportable and taxable in full. Also taxable are merit awards (athletic scholarships, Fulbright awards, etc.), on amounts not used for educational expenses. Federal and State income tax forms and form 8843 must be filed by April 15th. The ISSS staff is not able to assist in answering tax questions or completing tax forms. Please attend a tax seminar for help or contact ISSS for referrals to a tax advisor (fee based). In addition to Federal and North Carolina State income taxes, counties and cities may impose a variety of taxes on real estate, personal property and goods purchased (sales tax). The following is a general summary of the taxes that may be applicable to nonresident aliens at UNC-Chapel Hill. It is important to remember that each individual's tax liability is unique and thus should be analyzed individually. Five Types of Tax in the State of North Carolina 1. Federal Income Tax. The U.S. government assesses a tax on income, and a percentage of earnings is usually withheld from an individual's paycheck. There are tax treaties between the U.S. and several countries which may reduce the tax liability on compensation received. 2. State Income Tax. The state of North Carolina assesses a separate tax on income and this too is usually withheld from the paycheck. 3. FICA ("Federal Insurance Contributions Act") or Social Security tax. The U.S. imposes a payroll tax to pay for old-age pensions and certain medical benefits. F-1 and J-1 visa holders who are considered nonresident for tax purposes should not have FICA tax withheld from their paychecks if they are performing services to carry out the purpose for which they were admitted to the United States. If they become resident for tax purposes, they may be subject to social security tax. Consult a tax expert or the UNC-Chapel Hill Payroll Office if you have questions regarding FICA withholding. 4. Personal Property Tax. This is a tax by Orange County or other county in 5. Sales Tax. The state of North Carolina assesses a 6.5% sales tax on all goods and services at the time of purchase (including food). Note: This information is meant as a basic introduction to the different types of taxes to which people living in North Carolina may be subject. You should read the tax instructions that apply to your situation carefully. While many individuals may be able to file tax forms on their own, you may wish to seek professional advice from a tax counselor who understands nonresident tax regulations, especially if yours is a very complicated case. Each individual is responsible for the proper handling of his or her income taxes. Revised 03/19/2008 |
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