Nonresident Alien Tax Office Towson University
U.S. Taxes - Income Tax Treaties
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  • As of January 1, 2011 Towson University's practice is to allow tax treaties only for non-qualified scholarships and independent compensation payments.
  • Individuals can still claim treaty benefits (if applicable) when filing his/her tax return.
    • An income tax treaty is an agreement between the U. S. and a foreign country to minimize double taxation.  The United States maintains income tax treaties with over 60 countries throughout the world.  No two tax treaties are alike. Tax treaty exemptions are typically valid for a specified number of years and specified annual dollar amount.

    • The existence of an income tax treaty does not guarantee an exemption from tax withholding.

    • Income tax treaties apply to federal tax but not necessarily to state tax. The State of Maryland does not recognize tax treaties.

    • Certain taxable payments made to foreign nationals may be exempt from (not subject to) U. S. tax based on the terms of the income tax treaty between the U. S. and a foreign national’s country of tax residency.

    • IRS Publication 901 - U. S. Tax Treaties provides more extensive information regarding tax treaties. All IRS publications and tax treaty texts are available on the IRS website: http://www.irs.gov/pub/irs-pdf/p901.pdf

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