How can I get tax advice?
You can get information tailored to your specific NIH Visiting Program award/assignment/appointment at the DIS website.
Your tax liability is a personal matter between you and the U.S. Internal Revenue Service (IRS). DIS neither prepares individual returns nor represents individuals before the IRS or state tax authorities. If you require these services, we encourage you to consult with a professional tax advisor of your choice who has expertise with nonresident or resident alien tax issues.
Must I file a federal and state income tax return?
Generally, yes. Anyone who works and receives income in the United States must file an annual income tax return for federal and state taxes, regardless of if you are exempt from taxes for any reason. Even if you do not receive income from a U.S. source, you may still be required to file a tax return.
If a tax treaty applies to me, do I still need to file a tax return?
Yes. Even if you are exempt from taxes based on a tax treaty, you must still file an annual tax return to report this exemption.
If a tax treaty applies to me, do I still need to pay state taxes and file a state tax return?
It depends on the state. Each state has a different tax authority than the federal system. Many states, including Maryland, do not recognize federal tax treaties as applicable to them.
Why are there more tax treaty benefits for Visiting Fellows than for employees (full-time equivalents)?
Tax treaties are very specific regarding the type of income that allows you to receive a tax treaty benefit. Many of the treaties have benefits available for “grant” or “stipend” recipients, but not for individuals earning “salaries” or “wages.”
My country has a tax treaty, but I do not see it detailed. Why is my country not recognized by NIH?
Although tax treaties exist between the US and many countries, they are very specific regarding the type of income that allows an individual to receive a benefit.
I believe that I should benefit from a tax treaty but DIS has indicated that I am not eligible. How is this possible?
In addition to the type of income, tax treaties are also based upon the country where you last maintained “tax residence.” The country of tax residence is not simply your country of citizenship; rather it is the country where you last paid income taxes before arrival to the NIH. Establishing tax residence is generally based upon your “habitual residence” or “center of life” just prior to your arrival to the NIH. Residency status for tax purposes is entirely different than residency status for immigration purposes.
What if I disagree with the determination regarding my tax eligibility?
DIS staff does their best to ascertain the facts to determine tax treaty eligibility. If you disagree, contact the DIS to provide additional details regarding your specific situation. The NIH must withhold taxes as necessary under all applicable tax laws and will do so in situations where treaty exemption is not clearly evident.
Ultimately, taxes are a personal matter between you and the
U.S. Internal Revenue Service (IRS). Therefore, if you feel that the tax treaty benefit does apply to you, but the NIH has withheld taxes, you are welcome to file for the benefit along with your annual tax return. If the IRS accepts and processes the return, you will receive a refund of the taxes that were withheld by the NIH. However, you should be prepared to substantiate your treaty claim in the event of an audit. DIS is unable to assist with these claims.
When will I receive my year-end tax earnings statement?
Employees receive a Form W-2 by the end of January. Fellows receive a Form 1042S by the end of March.
