Non-Resident Alien Guidelines & Tax Treaties

The United States has negotiated tax treaties with many other countries in the world. Oregon has chosen to honor these tax treaties and Portland State University has chosen to extend treaty benefits through payroll to those employees who are eligible under the provisions of a tax treaty.

Please bear in mind that not all treaties exempt income earned in the United States from income taxes. Some treaties exempt income received from foreign sources for the support of a student or faculty member while here. Most treaties contain clauses to eliminate double taxation of a foreign national while here. The true limit on most treaties is calculated from the first date of arrival in the United States. IRS rules regarding treaties can be found in Publication 519—US Tax Guide for Aliens and in Publication 901—US Tax Treaties.

Remember that Tax Residency and Citizenship are not the same. The information provided on these pages refers to Tax Residency. Considerations evaluated relative to what taxes you may be subject to on your income are based on a set of criteria. Your income tax determination will hinge upon your eligibility for a tax treaty and your FICA (Social Security and Medicare) is determined by the type of visa you have been granted and whether you have met the test for substantial presence or the green card test.

The following information should assist you in further understanding these provisions >>>