The Internal Revenue Services has four categories of tax residency status. (Please note that these are NOT immigration categories).

• United States citizen
• Permanent resident alien
• Resident alien for tax purposes
• Nonresident alien for tax purposes

All payment forms ask the question:  "Are you a US Citizen or Permanent Resident Alien?" If the answer is no, then individuals are referred to the Nonresident Alien Tax Office.

Federal law dictates that Towson University must determine a person's tax status.  Individuals referred to the NRA Tax Office will be identified as one of the following:

Resident Alien for Tax Purposes (RA)

A resident alien for tax purposes is subject to the same tax regulations as a U. S. Citizen. Resident aliens are taxed on their worldwide income.

Nonresident Alien for Tax Purposes (NRA)

Separate tax laws regulate those who qualify as a nonresident alien for tax purposes. Nonresident aliens for tax purposes are only taxed on their “U. S. source” income.

NRA and RA definitions apply only at the federal level. They do not apply to state taxes.

Determining Tax Status

• A calculation called the Substantial Presence Test (SPT) is used to determine whether the individual is a RA or NRA. The key factors of the substantial presence test are the history of U.S. visits and the immigration classification during those visits. Click here for examples.
  
  
• If the information required for the Substantial Presence Test is not available, the University must by law presume the individual is a NRA and withhold tax accordingly.
  
  

• Any reference to “nonresident alien” or NRA on this website means a nonresident alien for tax purposes.
  
  
• For more information, see Publication 519 - U. S. Tax Guide for Aliens: www.irs.gov.