Tax withholding

The tax taken out of a paycheck, which is then paid to the U.S. tax authorities. If too much or too little tax is withheld, the individual will be due a refund or owe tax, respectively, when earnings are reported to the tax authorities the following year.

Gross Up for Nonemployee Income

In certain situations, where University and department policies and budgets allow, administrators may wish to “gross up” an income payment to a recipient. The desired outcome may be intended to achieve a specific “net amount”, accounting for required tax withholdings. Gross up payments incur additional expense to the requesting department’s budget, which can be significant.


Reportable income payments processed to or for the benefit of individuals, are reportable for “gross up” amounts paid. Depending on income type and payment circumstances,...

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What is the “Location of Activity” when processing a payment in Accounts Payable, and why is it important to include?

  • Generally, the location of the activity would be where a service is being performed, property is being rented, or the location where fellowship income is expected to be utilized in support of one’s scholarship or research.
  • Royalties, copyrights, and patents, such as those paid for the use of intellectual properties (i.e., industrial properties and software licenses), are considered U.S.-sourced if...
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Which W-8 Form do foreign entities need to submit to Harvard in order to be set-up for payment as a vendor?

There are 3 forms Harvard is able to accept from a foreign entity to be set-up to receive payments as a supplier (W-8 BEN-E, W-8 EXP, or W-8 ECI). Information on the various forms can be found here https://nratax.oc.finance.harvard.edu/foreign-entity-w8-forms. We are unable to advise on which form should be used, as this is a individual business decision a supplier must make based on their legal structure, and...

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Why didn't I receive a 1042-S tax reporting document for tax treaty benefits claimed last year, even though my fellowship/stipend/scholarship was not taxed?

Non-service fellowship income, in the absence of tax treaty benefits, is also exempt from tax withholding when paid to a resident alien. First, confirm your residency status, and only if you were a nonresident alien, last year, should you look into updating your mailing address and requesting a reprint of the document.

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June 15, 2016 — Latest Update on IRS 1042-S Notices for Tax Year 2014

The Internal Revenue Service (IRS) has begun issuing refunds and granting withholding credits to foreign taxpayers whose 1042-S tax reporting documents for 2014 were initially rejected. It acknowledges that there was a problem with its verification system, and is taking concrete steps to prevent this issue and related problems from reoccurring.

The most recent...

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My country has a tax treaty with the U.S., so why was my paycheck taxed?

  • First of all, you'll need to complete the GLACIER forms, making sure to select the correct income type (your country's tax treaty with the U.S. may not cover the relevant income type)
  • Your GLACIER forms then have to be submitted to the NRA Tax office and processed, as treaty benefits are not granted automatically. If you've already done so, and still have questions, please see the...
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Since I already had taxes withheld from my paychecks, do I need to file a tax return?

Yes, you should still file a tax return. The U.S. tax system is a “pay as you go” one, where taxes are withheld from your paychecks as you receive them (based on information you gave your employer at the time of hire). You should file a federal and/or a state income tax return to determine if you paid too much tax and are due a refund, or if you did not pay enough and owe tax.

Why am I paying taxes when I’ve submitted all the required forms to claim tax treaty benefits?

This could be due to one or more of the following factors:

  • GLACIER has indicated that you're eligible for tax exemption on a dollar limit for the tax year, however, administrative/technical restrictions at Harvard prevent us from granting treaty benefits when there's a dollar limit.
  • On average, it takes around 1 month to process tax classification/treaty forms, and your submission is still in the queue.  Once it has been processed, however, your earnings will be tax exempt and we can refund Federal and State tax...
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Honoraria

An Honoraria is defined as a gratuitous payment of money, or any other thing of value, to a person for the person’s participation in a usual academic activity for which no fee is legally required.

Various IRS and USCIS regulations should be taken into account when guest speakers and other  "performers" receive compensation for services or payments to cover travel expenses. Harvard University administrators adhere to a broad array of tax and immigration regulations, including restrictions on payments to certain visa holders, tax withholding obligations, and service...

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