This resource is for U.S. tax residents, including U.S. citizens and foreign nationals who have become, or expect to become, U.S. tax residents.
This content is provided for informational purposes only. MIT does not offer legal, accounting, or tax advice and services. This information should not be used as a substitute for consultation with a professional accounting, tax, or legal advisor. The Institute recommends that MIT community members consult a tax advisor for individual tax advice.
- You are a U.S. tax resident if you are a U.S. citizen or meet either of these tests for the calendar year (January 1 through December 31):
- If you are a foreign national, MIT provides you access to the Sprintax Tax Determination System to help you determine your tax status (non-resident alien vs. resident alien) and whether you are exempt from paying U.S. income taxes due to your home country’s tax treaty with the United States. Nonresidents should refer to the “Tax Guidance for Nonresident Aliens” website for more information.
if your tax status changes, you are responsible for updating your tax status with MIT.
- If you are an MIT affiliate or MIT employee and you become a resident alien for federal tax purposes, you should notify VPF HR/Payroll (nratax-payroll@mit.edu) and complete a new Form W-4 through Atlas if necessary.
- If you were both a nonresident alien and resident alien during the same tax year, refer to the FAQ for more information on dual-status reporting.
- If your status changes from a nonresident alien to a resident alien, your tax compliance obligations will change.
- How do I determine what portion of my scholarship/fellowship is taxable? The portion of a scholarship/fellowship used for qualified tuition and related expenses is generally not taxable. Use Worksheet 1-1 from IRS Publication 970 or the IRS Interactive Tax Assistant to determine the amount of a scholarship or fellowship grant that can be excluded from gross income.
- If I receive money as part of a prize or award, do I need to report it and pay tax on it? Prizes and awards are amounts paid in recognition of an outstanding achievement or winnings in a competition, raffle, or other contest. Generally, prizes and awards must be included in gross income and taxable at the applicable rates, regardless of your tax residency status. Certain exceptions may apply.
- What if I don’t want to be a resident for tax purposes because I don’t want Social Security and Medicare withheld from my pay? Residency for tax purposes is determined by the substantial presence test, based on an individual’s physical presence in the United States over a three-year period. You may not elect to be a nonresident in order to avoid Social Security and Medicare withholding. Social Security and Medicare are payroll taxes, not income taxes.
- Do I have to file a Massachusetts state tax return? If you received Massachusetts gross income of more than $8,000 during the calendar year, you must file a Massachusetts state tax return. If your Massachusetts gross income is less than $8,000, you do not need to file a Massachusetts tax return. The form you file will depend on your Massachusetts residency status. Refer to the links below for more information:
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Tax Workshop for U.S. Citizens and Resident Students and Scholars
Presented: Tuesday, March 1, 2022 Download PowerPoint presentation
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Updated: March 2, 2022
- The individual income tax return for residents and citizens includes income earned both within and outside of the U.S. The income may have been received from MIT or other sources.
- Understand the multiple types of income you might receive from MIT. Some common types of payments issued by MIT can be found here.
- https://www.irs.gov/individuals/international-taxpayers/taxation-of-us-residents
- The IRS and state websites contain information and guidance for complying with your tax filing obligations, however, you may have individual circumstances that require additional tax guidance or advice. If your tax situation is complex, you may want to seek the services of a professional tax preparer to file your tax returns.
The Details
- You are a U.S. tax resident if you are a U.S. citizen or meet either of these tests for the calendar year (January 1 through December 31):
- If you are a foreign national, MIT provides you access to the Sprintax Tax Determination System to help you determine your tax status (non-resident alien vs. resident alien) and whether you are exempt from paying U.S. income taxes due to your home country’s tax treaty with the United States. Nonresidents should refer to the “Tax Guidance for Nonresident Aliens” website for more information.
if your tax status changes, you are responsible for updating your tax status with MIT.
- If you are an MIT affiliate or MIT employee and you become a resident alien for federal tax purposes, you should notify VPF HR/Payroll (nratax-payroll@mit.edu) and complete a new Form W-4 through Atlas if necessary.
- If you were both a nonresident alien and resident alien during the same tax year, refer to the FAQ for more information on dual-status reporting.
- If your status changes from a nonresident alien to a resident alien, your tax compliance obligations will change.
- How do I determine what portion of my scholarship/fellowship is taxable? The portion of a scholarship/fellowship used for qualified tuition and related expenses is generally not taxable. Use Worksheet 1-1 from IRS Publication 970 or the IRS Interactive Tax Assistant to determine the amount of a scholarship or fellowship grant that can be excluded from gross income.
- If I receive money as part of a prize or award, do I need to report it and pay tax on it? Prizes and awards are amounts paid in recognition of an outstanding achievement or winnings in a competition, raffle, or other contest. Generally, prizes and awards must be included in gross income and taxable at the applicable rates, regardless of your tax residency status. Certain exceptions may apply.
- What if I don’t want to be a resident for tax purposes because I don’t want Social Security and Medicare withheld from my pay? Residency for tax purposes is determined by the substantial presence test, based on an individual’s physical presence in the United States over a three-year period. You may not elect to be a nonresident in order to avoid Social Security and Medicare withholding. Social Security and Medicare are payroll taxes, not income taxes.
- Do I have to file a Massachusetts state tax return? If you received Massachusetts gross income of more than $8,000 during the calendar year, you must file a Massachusetts state tax return. If your Massachusetts gross income is less than $8,000, you do not need to file a Massachusetts tax return. The form you file will depend on your Massachusetts residency status. Refer to the links below for more information:
|
Tax Workshop for U.S. Citizens and Resident Students and Scholars
Presented: Tuesday, March 1, 2022 Download PowerPoint presentation
|
|
Updated: March 2, 2022
- The individual income tax return for residents and citizens includes income earned both within and outside of the U.S. The income may have been received from MIT or other sources.
- Understand the multiple types of income you might receive from MIT. Some common types of payments issued by MIT can be found here.
- https://www.irs.gov/individuals/international-taxpayers/taxation-of-us-residents
- The IRS and state websites contain information and guidance for complying with your tax filing obligations, however, you may have individual circumstances that require additional tax guidance or advice. If your tax situation is complex, you may want to seek the services of a professional tax preparer to file your tax returns.
