Special Instructions For Nonresident Aliens (Form W-4 And Form NC-4)

Special Instructions for Nonresident Aliens (Form w-4 and Form nc-4)

Special Instructions for Form W-4

A nonresident alien subject to wage withholding must give the employer a completed Form W-4 to enable the employer to figure how much income tax to withhold. In completing the form, nonresident aliens should use the following instructions instead of the instructions on Form W-4.

  1. Check only \"Single\" marital status on line 3 (regardless of actual marital status).
  2. Claim only one withholding allowance on line 5, unless a resident of Canada, Mexico, Japan, or South Korea, or a U. S. national.
  3. Request that additional tax of $7.60 per week be withheld on line 6. If the pay period is two weeks, request that $15.30 be withheld instead. (Since UNCP pays monthly, not weekly, the additional tax amount to be entered on line 6 is $33.00.)
  4. Do not claim \"Exempt\" withholding status on line 7.

These instructions restrict a nonresident alien's filing status, generally limit the number of allowable exemptions, and require additional tax to be withheld because a nonresident alien cannot claim the standard deduction.

Students and Business Apprentices From India

Students and business apprentices who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty can claim additional withholding allowances on line 5 for the standard deduction and their spouses.

They can claim an additional withholding allowance for each dependent not admitted to the United States on F-2, J-2, or M-2 visas. Also, they do not have to request additional withholding on line 6.

(Note: The above Special Instructions are taken from IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations.)

Instructions for Form NC-4

NRAs complete Form NC-4 the same as a US citizen or resident of the State of North Carolina. There are no \"Special Withholding Rules\" for NRAs in North Carolina.

For Your Information

If a nonresident alien employee does not complete and give a Form W-4 to the employer, the withholding tax will be calculated as if the employee is \"Single\" with \"0\" withholding allowances. Also, a nonresident alien employee may elect to complete the Form W-4 as \"Single\" and claim \"0\" withholding allowances instead of using the Special Instructions above. The Form W-4 must be completed using one of these two options. There are no other options or exceptions other than the exceptions listed in 2) above and the students and business apprentices from India.