U.S. income taxes are owed on any income that you receive during your stay in the United States. Even if you do not receive income from a U.S. source, it may be possible that you could still be taxed on your world-wide income. Income taxes are assessed at both a state and a federal level. Each year, you must report your earnings on annual tax reports, known as "Income Tax Returns”, to both state and federal tax offices.
Each state has its own tax office to handle the enforcement and collection of state and local taxes. Tax office websites for states where NIH scientists commonly reside can be found at:
Tax Treaty Agreements
The United States has
income tax agreements or treaties with several nations that may exempt some individuals from certain types of U.S. tax. These treaties are between the U.S. and your country of
“tax residence.” The country of “tax residence” is not necessarily your country of citizenship; rather, it is the country where you last paid income taxes before arrival to the NIH. The benefits of the treaty may only be applied for a certain number of years – either on a calendar year or tax year basis (depending on the terms of the treaty) – which are calculated from the date that you initially entered the U.S.
DIS will make an interpretation regarding your tax treaty eligibility and will notify you if we believe that any exemption applies. Ultimately, income taxes are a private matter between you and the United States government. The NIH must withhold taxes as necessary under all applicable tax laws and will do so in situations where treaty eligibility is not clearly evident.
Nonresident Tax Orientation & Materials
Our contracted tax consultation service provider presents a yearly nonresident tax orientation. This orientation is designed to provide NIH Visiting Program participants with a general overview of U.S. tax procedures, terms, and forms.
The link to this year’s orientation video can be found on the first slide of Nonresident Tax presentation:
Tax Resources:
Tax Preparation Guide
DIS worked with a contracted tax consultation service provider to prepare a Tax Preparation Guide. This guide gives NIH Visiting Program Participants a specific review of documents and processes required to file annual tax returns before the April 15th deadline.
Form 1042-S, W-2, 1099, 1099-G Information
Form 1042-S – Foreign Person’s U.S. Source Income Subject to Withholding Visiting Fellows have their stipend payments and a summary of federal tax withheld reported on Form 1042-S. The NIH Fellowship Payroll Office sends out the Forms 1042-S for the prior year no later than March 15, but they make every attempt to send the forms out before the deadline. These forms are not available online.
Prior to December 15, you should make sure that your Administrative Officer (AO) has your correct mailing address. Your AO will update your information in the Fellowship Payroll System (FPS). If you do not receive your Form 1042-S by March 25, you can contact the
Office of Financial Management (OFM) via email to request a copy. You can obtain your IC’s OFM contact from your AO.
Form W-2 – Wage and Tax Statement
Scientists in FTE positions (Research Fellows, Clinical Fellows, etc.) have their wage payments and a summary of federal tax withheld reported on Form W-2. The Office of Human Resources sends out the Forms W-2 for the prior year by the end of January. If you do not receive your Form W-2 by the end of January, a duplicate can be requested from
OHR.
Form 1099-M and Form 1099-G
For information regarding these forms, contact the following offices:
- Form 1099-G – contact the Office of Financial Management (OFM) at (301) 496-5635
- Form 1099-M – contact the OFM Customer Service at (301) 496-6088.
