U.S. or Foreign-Source Income

Nonresident aliens, for tax purposes, unlike U.S. citizens and residents, are only subject to tax on income that is considered U.S.-source income.

Foreign-source Income received by nonresident aliens is not subject to U.S. taxation.

Income is generally considered foreign-source if the location of the activity for which the payment is being issued is outside the U.S.  A clear indication of the location of the activity is necessary on all supporting documentation for the payment to be correctly classified. This applies to both service and non-service income. For Harvard employees (individuals receiving a salary/dependent personal services income), payments must be processed as outlined in Harvard’s Payroll Policy and with the assistance of Harvard Global Support Services.

 

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