ISSS > Resources > General Tax Information

General Tax Information for Internationals*

Most internationals in nonimmigrant visa status at The University of North Carolina at Chapel Hill are required to file Federal income tax forms regardless of whether or not they have earned income from United States sources. U.S. Income Tax forms and North Carolina State income tax returns for the calendar year must be postmarked by midnight April 15 of the following year (unless April 15th falls on a Saturday or Sunday; then forms can be filed on the following Monday).  For the 2011 tax year only, the filing deadline has been extended until April 17, 2012 for both the federal and N.C. state tax forms.  See explanations (http://www.irs.gov/newsroom/article/0,,id=251825,00.html) and (http://www.dornc.com/press/2012/tentips.html).

It is recommended that students and scholars download and/or print tax forms and instructions at www.irs.gov (federal tax forms) and www.dor.state.nc.us ( North Carolina state tax forms). A very limited number of Federal Internal Revenue Service (IRS) and North Carolina State tax forms and instructions for nonimmigrants who are filing as nonresidents for tax purposes will be available at International Student and Scholar Services (ISSS) by mid-March.  Most individuals filing as “nonresident” for tax purposes must file IRS Form 8843, also available in limited quantity at ISSS.

There are tax treaties between the United States and several countries which may reduce the tax liability on compensation received.  

The ISSS staff is not able to assist anyone in the completion of tax forms or to answer specific tax questions.

IRS publication 519 “U.S. Tax Guide for Aliens” http://www.irs.gov/pub/irs-pdf/p519.pdf provides information about who is required to file federal income tax returns and which forms to file.  Please see the instructions for Form D-400 “NC Individual Income Tax Return” http://www.dornc.com/downloads/individual.html to determine if you are required to file North Carolina income tax returns. Individuals who received U.S. income from outside of North Carolina are required to file and report the income to the state in which the income was earned.  Income earned in North Carolina is taxable and must be reported on form NC D-400. 

Teaching Assistantship (T.A.) and Research Assistantship (R.A.) stipends are considered U.S. employment (wages) and may be reportable and/or taxable.  Also taxable are merit awards (athletic scholarships, Fulbright awards, etc.), on amounts not used for educational expenses.

The ISSS staff is not able to assist in answering tax questions or completing tax forms.  Please attend an ISSS tax seminar, contact ISSS for information about fee-based tax advisors, or see additional resources on the nonresident and resident tax resource webpages. 

Five Types of Tax in the State of North Carolina

In addition to Federal and North Carolina State income taxes, counties and cities may impose a variety of taxes on real estate, personal property and goods purchased (sales tax). The following is a general summary of the federal, state, and local taxes that may be applicable to nonresident aliens at UNC-Chapel Hill. It is important to remember that each individual's tax liability is unique and thus should be analyzed individually.

1. Federal Income Tax. The U.S. government assesses a tax on income, and a percentage of earnings is usually withheld from an individual's paycheck.

2. FICA ("Federal Insurance Contributions Act") or Social Security tax. The U.S. imposes a payroll tax to pay for old-age pensions and certain medical benefits. Generally, F-1 and J-1 visa holders who are considered “nonresident for tax purposes” should not have FICA tax withheld from their paychecks if they are performing services to carry out the purpose for which they were admitted to the United States. If they become “resident for tax purposes”, they may be subject to social security tax. Consult a tax expert or the UNC-Chapel Hill Payroll Office if you have questions regarding FICA withholding.

3. State Income Tax. The State of North Carolina assesses a separate tax on income and this too is usually withheld from the paycheck.

4. Property Tax. This is a tax by Orange County or other county in which you reside, on property you have purchased, such as automobiles and homes. If you purchase an automobile, you will be billed by the County after the application is made for a new license and registration, and each year after the registration is renewed. The bill will include a due date. If you purchase a home, the County tax office is informed by the recording of the deed to your property and will usually bill you automatically in July or August for payment due by December 31 each year. Contact information for the Orange County Tax Administration Department can be found at http://www.co.orange.nc.us/revenue/ContactUs.asp.

5. Sales Tax. The state and counties of North Carolina assess a minimum 6.75% sales tax on many goods and some services at the time of purchase: http://www.dornc.com/taxes/sales/salesrates_1-12.html.

*Note: This general information is meant as a basic introduction to the different types of taxes to which people living in North Carolina may be subject and does not constitute legal tax advice. Individuals are responsible for understanding the tax instructions that apply to their own situations. Staff members at International Student and Scholar Services (ISSS) are not qualified to and do not give individual tax advice. While many individuals may be able to file tax forms on their own, you may wish to seek professional advice from a tax counselor who understands nonresident tax regulations, especially if you have a very complicated case. Each individual is responsible for the proper handling of his or her income taxes.  ISSS disclaims any and all liability resulting from providing this general information.