Nonresident Alien Income Tax Deductions

Federal tax law contains many special income tax withholding and reporting rules that are unique to payments to nonresident aliens. It is critical for the University of Minnesota and the nonresident aliens to comply with these unique reporting and withholding requirements and to avoid the penalties related to noncompliance in this area.

Nonresident aliens should complete the W-4 form using the following Internal Revenue Service (IRS) instructions instead of the instructions on the W-4 form. IRS indicates this is because of the nonresident alien's restricted filing status, the limited number of personal allowances allowed, and because a nonresident alien cannot claim the standard deduction.

W-4 Allowances Rules

• Check only "Single" marital status (regardless of your actual marital status).
• Claim only one personal allowance, unless you are a resident of Canada, Mexico, South Korea, or a U.S. National.
• Write Nonresident Alien or NRA on line 6 of the W-4.
• Do not claim "Exempt" withholding status.

Exceptions to Claiming Personal Allowances

If you are a citizen of one of the following countries, see more detailed information on Exceptions to Claiming Personal Allowances:

• American Samoa, and Northern Mariana Islands
• Canada and Mexico
• India
• South Korea
• Barbados, Hungary, or Jamaica

More Information

For more detailed information on income tax withholding for nonresident aliens, see IRS Publication 519, U.S. Tax Guide for Aliens.