Tax Withholding Requirements for Non-Residents
The matrix below illustrates the different tax rates for common types of income and expenditures for Non-resident aliens.
| Type of Income | Federal Tax Rate | State Tax Rate | Year end Reporting |
|---|---|---|---|
| EMPLOYMENT | |||
| Employment: Tax Treaty Exemption | 0% | Based on W-4 (EAR/SPAR Form) | W2 for state and 1042-S for federal information |
| Employment: Person from Japan Canada, Korea, or Mexico | Based on EAR/SPAR Form: Restricted to Single marital status | Based on W-4 (EAR/SPAR Form) | W2 for state and federal |
| Employment: Outside of US | 0% | 0% | No reporting required |
| Employment: All others | Restricted to Single marital status with 1 exemption. Also additional tax of $33.10 per month. | Based on W-4 (EAR/SPAR Form) | W2 for state and federal |
| FELLOWSHIP/SCHOLARSHIP | |||
| Fellowship/Scholarship: F1, J1, M1, Q1 | 14% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
| Fellowship/Scholarship: Other Visa types | 30% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
| Fellowship/Scholarship: On Tax Treaty Exemption | 0% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
| INDEPENDENT PERSONAL SERVICES (Honorariums, Invoices, Artist, Performer, Consultant, etc.) | |||
| Independent Personal Services - Tax Treaty Exemption | 0% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
| Independent Personal Services – No Tax Treaty (i.e. Independent Contractor, Honorarium, etc.) | 30% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
| Independent Personal Services Performed Outside of U.S. | 0% | 0% | No reporting required |
| Independent Personal Services Performed Outside of CA, but inside U.S. – No Tax Treaty | 30% | 0% | IRS 1042-S for Federal |
| TRAVEL AND ALL OTHER PAYMENT TYPES | |||
| Travel Reimbursement (Accountable Plan) | 0%, No requirement | 0%, No requirement | No current requirement |
| All Other Payments | 30% | 7% of gross $1,500 and over if CA Nonresident | FTB 592 if CA Nonresident IRS 1042-S for Federal |
If you have questions regarding the tax withholding requirements, please send an email to gsweet@fullerton.edu.
Does not assist in tax preparation and cannot answer your tax questions. Please consult a tax professional, the IRS, or a financial planner who is proficient with non-resident taxation with your tax questions.
While Cal State Fullerton Accounting Services has made every effort to use the most current and accurate data, laws change frequently, and it is possible that some of the information may no longer be accurate. Cal State Fullerton assumes no legal responsibility for the information contained in this document.
