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New! PowerPoint Slides from the ISchO's Tax Information Session on February 24, 2009 (MIT Certificate required)
You should be aware that taxes may be deducted from salaries, stipends, and fellowships. Your available income after taxes may be lower than anticipated. The amount withheld from your paycheck is dependent upon your tax status which, in turn, is determined by your visa classification and the amount of time you have been in the United States. Income taxes, when applied, usually amount to about 14% of total income, but may be as high as 30%. H-1B and J-2 visa holders are also subject to social security tax of approximately 7.65% of total income.
All foreign scholars and spouses are required to report their annual income by filing a tax return between January 1 and April 15 of the following year (for the 2008 tax year, returns are filed between January 1 and April 15, 2009). According to current regulations, all individuals in F and J visa status must also complete particular tax forms even if they had no United States source income. Please keep records of your income and expenditures to substantiate later claims on your tax returns, and keep copies of your income tax forms.
Please keep in mind that many tax treaties exist between the United States and other countries, which may exempt you from paying income tax in the United States. First, review the summary of your home country treaty (if there is one), in IRS Publication 901, or consult the MIT Libraries website. Then, if you are eligible for the tax treaty exemption, you may submit the correct forms to the MIT Payroll Office in Building NE49-3131 (payroll@mit.edu).
Please note: Because of legal restrictions on our capacity to advise you about tax liabilities, the ISchO staff is not able to answer individual questions regarding your tax situation.
Last Updated: February 2009