Anne WintertonNonresident Alien Tax AnalystGlacier Lead AdministratorUCSD Payroll DivisionJuly 12, 2017

A. Two sets of tax laws in the U.S.:

1. Citizens & Residents for Tax Purposes

2. Nonresidents

B. Tax Treaties that offer exemption from U.S. federal tax to some foreign visitors

Glacier Online Nonresident Alien Tax Compliance System

Online system used by all UC campuses. ◦ Determines residency status of foreign visitors

◦ Determines tax treaty eligibility

◦ Generates tax-related forms required by Payroll

◦ Helps foreign visitor understand his/her tax status

◦ Allows online distribution of Forms 1042-S (similar to W-2)

◦ Helps nonresident aliens with tax returns

◦ Helps UC comply with tax regulations

1. Entries in PPS determine how payments to foreign visitors are taxed and reported.

2. A complete Glacier record helps us tax foreign visitors correctly

Foreign individual’s tax liability doesn’t change. He will have to fix tax problems on his tax return. He may be subject to penalties and interest by the IRS even if it is UCSD’s fault.

UCSD may also be subject to IRS penalties and interest

UCSD may have to collect retroactive FICA from the foreign person, which can be several thousand dollars if it’s for multiple years.

Exceptions:

Permanent Resident cardholders

Postdoc paid-directs (TC 3254) with no salary or benefits

Employment Authorization Card (EAD) showing category 33)

Resident assistants receiving only room and board, no pay

Refugees and asylees

Deduction Nonresident for tax purposes claiming

treaty

Resident for tax purposes, no treaty

Federal tax 0 214

State tax 125 103

Retirement 0 270

Medicare 0 58

Total deductions:

180 700

Difference = $520/month,$6240/year

If a foreign person is in the U.S. long enough, they will become a “resident for tax purposes.”

Generally....◦ F1 or J1 student will become a resident for tax

purposes in their 6th calendar year in the U.S.◦ J1 non-student becomes a resident in 3rd calendar

year

But... Multiple visits and immigration status changes make residency determination much more complicated

Search Blink for EALN, follow instructions on “How to Complete the PPS EALN Screen for Foreign Visitors”

•Do not give foreign individuals any sort of W-4 form.

S = F1 Student from IndiaA = Anyone from Korea, Mexico, or CanadaN = Everyone else

Country from passport,

I-94, EAD, or visa.

Date from Form I-94 or date stamped in

Passport. If rehire, do not change this field.

Look at visa OR:• Form DS-2019 = J1 or J2• Form I-20 = F1• EAD category 33 = DA• EAD showing “student post-completion OPT = F1• EAD different from above: “what was your

immigration status before you got this EAD?”

Foreign visitors have limited work authorization. Departments are required to maintain

current work authorization information in the work permit end date field on the PPS

EALN screen (updating this field generally coincides with new or reverified I-9)

• Expiration date on I-20, DS-2019, EAD, or Form I-94

• If application for change in status or extension of stay is pending, there may be automatic extension of 180 or 240 days work authorization. Contact the UCSD International Center for help.

• Do NOT enter passport or visa expiration date. These are not work permits.

Note: Upon review of Glacier paperwork submitted by foreign individual, Payroll may update the PPS EALN screen. Please don’t change it back! If it doesn’t look right, or if you’re concerned, email us at glacier@ucsd.edu. Better safe than sorry when it comes to taxes!

1. Department completes “Glacier Record Request Form” online

2. Payroll sends foreign payee 3 emails, with copies to dept: introductory email about Glacier

access to Glacier via email

Access to UCSD’s secure, encrypted email system.

3. Foreign payee Accesses Glacier, answers tax related questions, prints the forms Glacier generates, and

signs them. Takes 20 minutes.

Makes copies of immigration docs

Submits signed forms and document copies to Payroll

4. Payroll Updates PPS, facilitates tax treaties, adjusts pay, generates & distributes Forms 1042-S

• Departments complete form online at time of hire and clicks “submit.” Instructions & link: • http://blink.ucsd.edu/sponsor/BFS/divisions/payroll/glacier.html

• Search Blink for Glacier Form, choose the one for PPS payments

• Rehires – submit Glacier Form!

Glacier Record Request Form

Link to instructions

Glacier Record Request Form, continued

Employee category: • anyone in PPS who will receive payment or benefits AND is not title

code 3296, 3254, or 3253 (fellowship title codes)

Glacier Record Request Form, continued

Glacier Record Request Form, continued

I-Center holds federal and state tax seminars for nonresidents each Spring.

Nearly all foreign visitors need to file some sort of tax form, even if they received no income.

Noncitizens may be required to file U.S. federal and California state tax returns

Glacier Tax Prep (GTP) is like TurboTax for nonresident federal tax returns. Access through Glacier or an access code from I-Center beginning mid-February or early March

I-Center has a great tax resource page: http://ifso.ucsd.edu/living-in-sd/taxes/index.html

IRS Publication 519 “U.S. Tax Guide for Aliens” http://www.irs.gov/pub/irs-pdf/p519.pdf

IRS Publication 901 “U.S. Tax Treaties” http://www.irs.ustreas.gov/pub/irs-pdf/p901.pdf

Glacier Record Request Form http://blink.ucsd.edu/sponsor/BFS/divisions/payroll/glacier.html

“How and When to Complete a Glacier Record Request Form” http://blink.ucsd.edu/finance/payroll/foreign/glacierform.html

UCSD International Center's Tax Resource page http://icenter.ucsd.edu/ispo/living-in-sd/taxes/index.html

Resources

Email glacier@ucsd.edu

New employees: Enter only S, A, or N (as in SAN Diego) in the PPS citizenship field

Rehires: If code is not S, A, or N, email glacier@ucsd.edu before changing EALN screen.

Submit a Glacier Record Request Form whenever you hire, rehire, or change payment types of foreign individuals