The Chinese and American governments have reached an agreement on avoiding double taxation and preventing tax evasion.

Articles 19 and 20 of the agreement concern the tax exemption of China students in the United States, and China students can apply to the United States tax authorities for exemption from federal income tax accordingly.

Generally speaking, international students in China are only related to the following four taxes (those who have not received any income from the US government, such as state-sponsored international students, do not have to pay taxes).

1, FICA tax, which is a federal retirement fund, the full name of which is the Federal Insurance Contribution Act, accounting for 7% of income, and J- 1 and F- 1 visa holders do not have to pay it. If it is the first time to deduct, you can go through the formalities of exemption from inspection at the international student office or personnel office of the school with your passport.

2. Federal tax, which is the highest proportion. According to income, international students account for about 1 1%- 15%. Because China and the United States have an agreement to avoid double taxation, international students can be exempted from taxes in whole or in part.

3. State tax. Tax rates vary from state to state. Take Pennsylvania for example. The annual income is less than 4,500 yuan, and 2% is paid for more than 5,400 yuan. The ratio of the two varies according to income. The tax exemption agreement does not apply to state taxes, but some income (such as scholarships and friendships) is still tax-free, but you have to go to the dean to issue a certificate.

4. Local taxes, tax rates and tax laws vary from place to place. Take the state college where Pennsylvania State University is located as an example, 65438+ 0.8% of local income, while foreigners only need to pay 0.5%. Withholding 65,438+0.8% from the income each time, and returning 65,438+0.3% to the local tax authorities with the passport when filing tax returns in the next spring.

Exemption from federal tax: if the income of international students is a scholarship, there is no need to pay taxes; If it belongs to personal labor income, you can deduct 5000 yuan from the total income and then calculate the federal tax. As for what kind of income TA and RA belong to, you can ask the local tax authorities when filing tax returns, and their answers will prevail.

If you don't make it clear, the monthly income tax of international students will be deducted automatically, although a large part of it is not required. To avoid this kind of loss, you can apply for exemption. FICA only needs to apply once, and local taxes cannot be exempted.

For federal tax, you can get W-4 and W-4E cards from the department office, fill them out and hand them in before February 25th every year, and you will be exempted from deduction.

Every spring, foreign students will receive a tax return form, allowing you to calculate the tax payable for one year, and refund more and make up less. When filling out the form, you can consult with your old classmates and international students' offices. The deadline for filing tax returns every year is April 15. If you have not paid or refunded the tax, you can send it before this date. If you want a tax refund, the sooner you send the tax refund form, the sooner you will get the tax refund.

I hope it helps you.