As an international student, researcher, staff or faculty member at UWM, it is important that you are aware of your U.S. income tax obligations. U.S. tax laws distinguish between residents and non-residents for U.S. tax purposes. Non-residents only pay taxes on U.S. source income, while residents follow the same tax rules as U.S. citizens and pay taxes on their worldwide income. Most incoming F and J visa holders are considered non-residents (F and J students for the first five calendar years in the United States and J-1scholars for the first two calendar years in the United States).
The U.S. tax system is organized according to the calendar year and is a pay-as-you-go system, which means that taxes may be deducted from salaries, stipends, and scholarships if these funds are from U.S. sources. In most cases, taxes are automatically withheld from your pay. Your available income after taxes, therefore, may be less than anticipated as you may be subject to federal, state and/or Social Security taxes that can range from 14% to 30% of your total income. The amount of taxes you will pay will depend on the type of income you receive and your tax status in the United States.