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Non-resident Tax Information
University of Alabama at Birmingham (UAB) is required to withhold U.S. income tax at the time a payment is made to an international visitor who is considered as a non-resident and receives any type of payment under special rules and apply the appropriate tax rate. The type of payments to which this rule applies, but are not limited to:
- Wages, Salary or Compensation
- Independent Contractor Payments/Honoraria
- Scholarship/Fellowship
- Stipends/Living Allowances
- Prizes/Awards
U.S. tax law requires UAB to withhold federal income tax from non-residents and report to the IRS so that all students and scholars receiving any type of payments from UAB must have a U.S. issued social security number or ITIN (Individual Taxpayer Identification Number) for tax purposes. In order to be in tax compliance with the non-resident tax withholding and reporting rules, UAB must be able to identify all payments made to all non-residents in the correct manner.
Tax documents sent to students and scholars from UAB
Tax documents will be mailed and/or available online (Oracle HR & Finance) from UAB generally by mid-January of every year.
| Payment Type | Tax Form |
|---|---|
| Wages, Salary or Compensation | W-2 |
| Scholarship/Fellowship | 1042-S |
| Honoraria | 1042-S |
| Treaty benefits: Exemption from withholding on compensation (If applicable) | 1042-S |
| Tuition Statement | 1098-T |
Social Security Tax & Medicare Tax exemption for Non-residents
Non-residents who are on the F-1 student immigration status and J-1 exchange visitor immigration status are exempt from paying FICA (Federal Insurance Contributions Act) taxes, also known as Social Security tax and Medicare tax until their tax residency changes to resident for tax purposes.
| Determining U.S. tax residency status | |
|---|---|
| F-1 & J-1 Students | J-1 Exchange Visitors |
| Consider a non-resident tax residency for first 5 calendar years in the U.S. = FICA tax exempt |
Consider a non-resident tax residency for first 2 calendar years in the U.S. = FICA tax exempt |
Note:
- H-1B, J-2, O-1, L-2, E-2, E-3 and TN immigration statuses are subject to FICA taxes from their first day of employment.
- Non-resident will lose FICA taxes exemption when he/she becomes a resident through the acquisition of changing immigration status (to H-1b or Permanent Resident) from U.S. Citizenship and Immigration Services (USCIS) or meet the substantial presence test.
Hiring Current International Students: F-1 & J-1 Students
As an F-1 student, you may work on campus as long as you maintain lawful F-1 status. Students may not work more than 20 hours per week while school is in session.
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International Independent Researchers, Contractors, Observers
The UAB Office of International Student and Scholar Services works with UAB entities to make sure that independent researchers, observers, and speakers from outside the US receive the services they need while here.
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Taxes – Frequently Asked Questions
Frequently asked questions about student taxes.
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Payment Eligibility List by Immigration Status
Download the Payment Eligibility List by Immigration Status here.
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Tax Returns & Tax Workshops
The UAB office of International Student and Scholar Services (ISSS) provides on-going tax workshops to educate the international community on non-resident taxation and tax returns.
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Book an appointment
We can serve you best when we have a time dedicated to your specific question and after you have prepared the documents relevant to your inquiry.
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