Overview
Income tax treaties are agreements between the United States and certain foreign countries that allow their residents a reduced rate or exemption from U.S. federal income tax. Treaty benefits vary according to the country of residence and type of income.
Tax treaties offer exemption from federal income tax only. There are no treaties for
- California State tax
- Labor union dues
- Medical premium payments
- UC Retirement Program (UCRP)
- DCP Safe Harbor
- OASDI (Social Security)
- Medicare
General
Can I get a refund of tax withheld from previous payments?
UC San Diego remits tax withheld from payments to the U.S. federal government immediately, so we are not able to refund it when you claim a treaty. You can claim the treaty on your tax return to get a refund of any tax withheld on treaty-exempt income.
Each spring, UC San Diego offers free access to Glacier Tax Prep (GTP), a federal tax return preparation system to aliens associated with UC San Diego in the previous calendar year. GTP will guide you through the process of claiming the tax treaty and getting a refund from the federal government.
Tax returns are due on April 15 of the following calendar year. For more information about tax returns, see the "Filing Information" section of IRS Publication 519 "U.S. Tax Guide for Aliens."
Note that filing tax returns is a personal responsibility. The information provided on this page is for general guidance only.
Why did UC San Diego withhold tax from my payment when I claimed a tax treaty exemption?
- You haven’t submitted the Glacier-generated forms and required document copies to the UC San Diego Glacier & Taxation Team in the Payroll Division.
- The Team didn't have time to process your Glacier & treaty documents before the payroll compute, which is 10-14 days before the pay date.
- Please allow five business days for the Team to review your Glacier materials and update the payroll system. Between October 1 and February 15, allow ten days.
- When renewing your treaty for the following calendar year, Glacier treaty forms received on or before November 20 will be facilitated in time for the first payment in the new calendar year. Treaties received after a deadline will be processed in the order received, but may not take effect until a later payment date.
- The Glacier materials you submitted were missing signatures, forms, or the required document copies. You’ll receive an email from the Team (glacier@ucsd.edu) explaining the problem and what action to take.
Why has UC San Diego suddenly begun withholding federal tax after not withholding it from previous payments?
- Your tax treaty eligibility has ended. Your Glacier Tax Summary Report will show your dates of eligibility.
- You are getting a different type of payment. For example, treaties claimed for fellowship income do not apply to wage/salary income. Go through your Glacier record to make sure it contains all of your income types and payment relationships with UC San Diego. Glacier will evaluate your eligibility for tax treaties for each type of income, and generate the forms to mail to UC San Diego to claim the treaty.
- Your treaty needs to be renewed. Form 8233, the form used to claim tax treaties for wage income, expires on December 31. The new year’s payments will be subject to federal tax withholding until/unless you claim the treaty for that year. Those with complete Glacier records will get an email from Glacier (support@online-tax.net) in November when it's time to claim the treaty for the following year by going through Glacier and submitting new forms. See the UC San Diego page Tax Treaty Renewal for more information.
Glacier says I'm not eligible for a tax treaty exemption, but I think I am. Why is this?
Look for a “hold” on at the upper right corner of the Glacier-generated Tax Summary Report. Common problems are listed as holds. Each "HOLD" indicates that you are potentially eligible for a tax treaty exemption, but there is an unresolved issue:
- HOLD 1: Missing the US-issued social security number (SSN) or individual taxpayer identification number (ITIN) in Glacier. Glacier won’t evaluate your tax treaty eligibility until you enter your U.S. Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) in your Glacier record and go through all of the screens.
- HOLD 2: Your countries of permanent residence, tax residence, and citizenship are not the same. UC San Diego will not facilitate a tax treaty exemption at the time of payment because we do not know (nor are we required to know) the residency laws of other countries. You can claim the treaty on your U.S. federal tax return. If the U.S.. government grants the treaty, they’ll refund any excess tax withheld.
- HOLD 3: Your immigration status changed after your date of entry to the U.S., or you have a prior visit that may limit the treaty exemption. UC San Diego will not facilitate the tax treaty exemption at the time of payment for those with a HOLD 3 on their records, as we cannot be sure you qualify. You can claim the treaty on your U.S. federal tax return. If the U.S.. government grants the treaty, they’ll refund any excess tax withheld.
- HOLD 4: Your immigration status is not sponsored by UC San Diego. UC San Diego may override the Hold 4 in certain cases. Email glacier@ucsd.edu to request a treaty review of your Glacier materials if your Tax Summary Report shows Hold 4.
If there is no HOLD on your record and you think you qualify for a tax treaty exemption, email glacier@ucsd.edu.
Form W-9 requires the signature of "U.S. person." Do I sign it?
Yes. Glacier generates only the signature page of "Form W-9 Request for Taxpayer Identification Number and Certification." Page 2 of the form defines a U.S. person as “an individual who is a U.S. citizen or U.S. resident alien."
How do I stop my tax treaty?
Go through your Glacier record, decline the treaty, print the forms Glacier generates, sign them, and then create a pdf of the signed forms and the required document copies listed in the bottom right section of the Glacier Tax Summary Report. Email the pdf to glacier@ucsd.edu from your ucsd.edu email address.
I will not get payment or benefits from UC San Diego next year. Do I need to do anything?
You do not need to renew your tax treaty unless you will receive a January payment for December wages or fellowship. Email the UCSD Glacier & Taxation Team at glacier@ucsd.edu so we can remove you from the Glacier database.
What if I miss the November 30 deadline for submitting tax treaty renewal forms?
Your forms will be processed as soon as possible, but they may not be processed in time to affect your first payment(s) of the New Year.
You will still be able to claim the tax treaty exemption on your U.S. federal tax return for the year in question, and get a refund of over-withheld tax from the government a few months later.
Will I be notified when UC San Diego receives my tax treaty renewal forms?
No. Unfortunately, the UC San Diego Payroll Division cannot email each person when their forms are received or reviewed.