A formula devised by the internal Revenue Service to determine whether an alien is a resident or nonresident for tax purposes. F, J, and M students do not use the test during their first five calendar years in the United States. An agreement between the United States and another country to determine how the country's nationals will be taxed when temporarily in the United States. A treaty can confer certain tax benefits. A note of caution, however.
Tax treaties are very specific.
Not all residents of a tax-treaty country will qualify for tax benefits. Amounts are deducted by the employer and paid directly to the U.S. Treasury on the individual's behalf. The last day on which residents and nonresidents who have earned wages from U.S. sources may file their U.S. federal income-tax returns. The last day on which nonresident students and their dependents who have no wage income from U.S. sources may file their 104ONR-EZ or 104ONR returns. Essential for individuals from nations having tax treaties with the United States.