**Please refer to this tax information for year-end tax forms.**

FEDERAL

Internal Revenue Services (IRS) rules for tax withholding on wages of nonresident alien employees depend on results of 183-day residency formulas determined by the Substantial Presence Test, which assesses immigration status/history and days of presence in the U.S. This provides withholding on wages that more closely approximates your income tax liability. Following are the Form W-4 rules and special computations for withholding on wages.

When completing Form W-4, pay particular attention to the following lines:

• Step 1: Check the Single or Married filing separately box in Step 1(c) regardless of actual marital status.
• Step 2: Nonresident aliens should only complete this step if you have multiple jobs at the same time, and you should not account for your spouse’s job. Cannot use the estimator listed in Step 2(a).
• Step 3: Nonresident aliens from Canada, Mexico, South Korea or India may be able to claim tax credits for children or other dependents. If this applies, enter the total credits in this step.
• Step 4: 
  • Do not claim exempt from withholding in the space below Step 4(c).
  • Write “NRA” or “nonresident alien” in the space below Step 4(c).
  • At your option, you may request an additional tax withholding amount in Step 4(c).  

For additional information, refer to the Form W-4 instructions for nonresident aliens on the IRS website.

STATE

Effective Jan. 1, 2023, the Iowa Department of Revenue modified the withholding formula. The withholding formula uses the standard deduction amount to determine taxable income and tax withholding.  However, as a nonresident alien under the IRS Substantial Presence Test (SPT), you are not eligible to claim the standard deduction. Instead, you must itemize your deductions. As a result, you may owe money to the state of Iowa when you file your personal income tax return.  Here’s what you can do:

• You can adjust your Iowa tax withholding by submitting a new Iowa W-4 form to Payroll Services at 120-30 USB.
• By claiming an additional withholding amount on Iowa W-4 Line 7, you may avoid future tax issues. 

For additional information, please refer to the FAQ on the Iowa Department of Revenue site.

FORMS

If you are a nonresident alien in F-1, J-1 or H-1B visa status, you CANNOT complete W-4 forms online. Thus, please download W-4 forms from links provided below and submit completed W-4 forms to Payroll Services at 120-30 USB.

Federal W-4 for nonresident aliens for 2024 (only complete highlighted fields)

Iowa W-4 for nonresident aliens for 2024 (only complete highlighted fields and Line 7 if you choose)

After making any W-4 changes, review the withholding on your next paycheck to confirm your changes.  University Payroll Services cannot advise you about your tax withholding.  University Payroll Services recommends reviewing your withholding regularly and consulting a professional tax advisor for personal income tax planning.