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.