Before You Come to Caltech

Tax Considerations

Please note that your visa “clock” starts ticking the day you arrive in the U.S., an important factor for those foreign nationals who come from countries that maintain a tax treaty with the U.S. The date of arrival is the date that the Internal Revenue Service (IRS – the tax collection agency of the U.S. government) uses, as opposed to your effective start date of employment at Caltech.

The U.S. federal government and the state of California collect a tax on U.S. income, which includes wages and scholarships. These taxes will be automatically deducted from your paycheck every month. Caltech will provide each employee an itemized statement of taxable income for the prior calendar year (i.e. W2, 1099, 1042S or 592B) around mid-February. At the end of each calendar year, every taxpayer in the U.S. must file a tax return form. This tax form is basically a worksheet reporting all income and calculating the appropriate taxes owned. The deadline for filing a tax form is April 15th each year for those who received an income in the U.S. during the prior year (January 1 - December 31).

Each non-immigrant visa type has certain tax consequences for international postdoctoral scholar and visitors. Depending on your eligibility, a tax treaty between your country and the U.S. may provide an exception from paying U.S. federal taxes and payroll taxes for a limited amount of time. Everyone, however, must pay the California state tax. Please note that for some countries such as the U.K., Germany, the Netherlands, etc…. the tax treaty is valid only if your stay in the U.S. does not exceed exactly two years from your date of arrival. That is, if you stay one day beyond two years, you will be responsible for all past taxes. You may choose to waive the treaty benefits and pay the federal taxes if you know that you will be in the U.S. beyond two years. For your information, the tax treaties between countries are based on the international reciprocity rule: The U.S. will treat citizens from your country the same way your country treats U.S. citizens working in your home country.

The postdoctoral office and payroll staff in Human Resources can explain your individual tax situation. However, they are not allowed to offer any tax advice.

Each year, the International Scholars Services sponsors a seminar by international tax accountants regarding filing tax forms. Contact either the International Scholars Services or the Postdoctoral office for scheduling details. In addition, the University of Texas at Austin has designed a website to assist international students, scholars and researchers in preparing U.S. tax returns. UT Austin welcomes users from across the country to access their site. The site contains step-by-step instructions for determining which forms are required, Frequently Asked Questions, and many more links to sites with additional information about the federal tax filing requirements of nonresident aliens.

For those of you who pay tax in U.S. and have one child or more placed in a daycare facility, it may be in your best interest to enroll in the Dependent Care Spending Account. Using this program, you may direct Caltech to set aside money every month from your paycheck for your spending account - which is not subject to federal, state income taxes, or social security tax. You may use the funds in these accounts to pay for eligible expenses with tax-free dollars.

For more information regarding eligibility requirements, see Dependant Care Spending Account and choose dependant care Spending Account

A tax software program specifically for foreign nationals is also available through the International Scholar Services (ISS) office at no cost. Contact the ISS office directly for access and instructions for this tax software. You can also find some useful tax information by yourself.

To know if your home country has established a tax treaty with US, visit The Tax Treaties with Foreign countries 

Tax forms are also available at the U.S. Post Office located in the Keith Spalding building (California and Wilson) or any other post office in Pasadena.