Nonresident Alien Tax

The Internal Revenue Service requires that SJSU comply with specific federal tax withholding and reporting regulations when making payments to nonresident aliens.

For tax purposes, non-U.S. citizens may be classified as either resident aliens or nonresident aliens. Resident aliens are taxed in the same manner as U.S. citizens.

However, the IRS requires that the California State University apply somewhat different tax rules when making payments to nonresident aliens. These rules apply to payments made directly to the nonresident alien, as well as payments made by SJSU to a 3rd party on the behalf of a nonresident alien.

In order to comply with these rules, SJSU is required to identify all nonresident aliens who receive payments from us. Payments affected by these IRS rules include, but are not limited to:

  • Compensation
  • Consulting fees
  • Fellowships
  • Honoraria
  • Scholarships
  • Stipends
  • Travel expense reimbursements
  • Wages
  • Other expenses

For additional information, see our What International Students & Scholars Should Know (pdf).