Nonresident alien withholding
Nonresident alien withholding is the modified federal income tax withholding for employees who are not U.S. tax residents, figured on wages plus an added amount.
- LAW
- 26 U.S.C. §3402; Publication 15-T procedure
- BOUNDARY
- Income tax only; FICA and FUTA use wages paid
- FORMULA
- Wages plus the Publication 15-T amount, then the tables
- WATCH FOR
- Accepting an exempt claim on Form W-4
Nonresident aliens cannot claim the standard deduction, so you generally add an amount from IRS Publication 15-T to each period’s wages before you apply the withholding tables. The employee completes Form W-4Form W-4. Form W-4 is the IRS form an employee completes to tell their employer how much federal income tax to withhold from each paycheck.Click to open the term under special rules and never claims exempt on it. Social Security and Medicare taxes (FICAFICA. FICA is the federal law, and the payroll tax under it, that funds Social Security and Medicare through matching employee and employer shares.Click to open the term) generally apply as they do for any employee, but pay to employees in F-1, J-1, M-1, or Q status for work that carries out the visa’s purpose is exempt. A tax treaty exemption is claimed on Form 8233 instead of Form W-4.
How do you figure the withholding each pay period?
Federal law has employers withhold under tables or computational procedures the IRS prescribes, and Publication 15-T adds one step for nonresident aliens other than students and business apprentices from India. Add the amount for the payroll period to the wages paid: $309.60 weekly or $619.20 biweekly (2026), for an employee with a 2020-or-later Form W-4 or first paid in 2020 or later. Older forms use smaller amounts. Run the total through the usual worksheet.
| WEEKLY FIGURE | INCOME TAX WITHHOLDING | FICA |
|---|---|---|
| Wages paid | $600.00 | $600.00 |
| Publication 15-T amount (2026) | $309.60 | Not added |
| Wages used | $909.60 | $600.00 |
What changes on a nonresident alien’s Form W-4?
Publication 15 sets four rules for the form. Point nonresident alien employees to IRS Notice 1392 before they complete it. An electronic Form W-4 system should give them a field to enter nonresident alien status instead of writing it in.
| FORM W-4 ENTRY | NONRESIDENT ALIEN RULE |
|---|---|
| Step 1(c) | Withholding as if single, whatever the actual filing status |
| Step 3 | No dependent credits, except in some cases for residents of Canada, Mexico, or South Korea, and students or business apprentices from India |
| Step 4(c) | “Nonresident Alien” or “NRA” written below it |
| Exempt claim | Not allowed, even when the usual conditions are met |
Which nonresident alien employees are exempt from FICA?
Nonresident alien employees generally owe FICA like any other employee; the exceptions follow the visa and the work. Pay to employees in F-1, J-1, M-1, or Q status is exempt only for work that carries out the purpose of their visa, and only while they remain nonresident aliens. The same pay is exempt from federal unemployment tax (FUTAFUTA. FUTA is the federal unemployment tax you pay on the first $7,000 of each employee’s wages a year, with nothing withheld from pay.Click to open the term).
- F-1 students’ pay for work that carries out the visa’s purpose
- J-1 students, teachers, researchers, and trainees, on the same terms
- M-1 and Q visa holders, on the same terms
- Curricular and Optional Practical Training (CPT, OPT) these students do with USCIS authorization
- H-2A visa holders’ pay for agricultural labor under that visa
- A second job outside the visa’s purpose
- Pay after the employee becomes a resident alien, even in F, J, M, or Q status
- Other nonimmigrant visas, unless an exemption applies
- Refugees and asylees, unless an exemption applies
How does a tax treaty exemption change withholding?
Form 8233 replaces Form W-4 for income a treaty exempts. The employee files a separate Form 8233 for each tax year, each withholding agent, and each type of income. If you are satisfied the exemption is warranted, you sign the acceptance and forward a copy to the IRS. Treaty-exempt wages go on Form 1042-S, not in box 1 of Form W-2Form W-2. Form W-2 is the annual wage and tax statement you give employees and file with the Social Security Administration, reporting wages paid and taxes withheld.Click to open the term. They may still be reported in the state and local, or Social Security and Medicare, wage boxes of Form W-2 when those taxes apply.
- 5 daysYour deadline to forward a copy to the IRS after you accept Form 8233.
- 10 daysThe minimum wait after mailing to see whether the IRS objects; the exemption still applies from the first covered payment.
- Each tax yearThe employee gives you a new Form 8233.
Frequently asked
- Publication 15-T (2026), Federal Income Tax Withholding Methods
- Publication 15 (2026), (Circular E), Employer’s Tax Guide
- Publication 515 (2026), Withholding of Tax on Nonresident Aliens and Foreign Entities
- 26 U.S. Code § 3402 - Income tax collected at source
General information, not legal or tax advice. Apply current federal and state rules with qualified guidance.