Foreign National Glossary Terms
Internal Revenue Code 117 (IRC 117): tax code that regulates the taxability administration of scholarships.
Qualified Scholarship: portion of scholarship funds that is used for tuition, required fees and books
Non-Qualified Scholarship: portion of a scholarship funds that exceed the Qualified Scholarship. A full scholarship that covers tuition, fees, books and room and board has both Qualified and Non-Qualified portions. The Non-Qualified portion, such as Room and Board, is taxable at 14% unless the student is eligible for tax treaty benefits.
Substantial Presence Test: a physical presence test that is used to determine the tax residency of an individual who is not a U. S. Citizen.
Designated School Official (DSO): A designated school official is an employee or agent of UTSA who has been authorized by the Department of Homeland Security to verify information about and certify visa related documents. The DSO insures institutional and individual compliance with the law.
Employment Authorization Document (EAD): INS document allowing foreign visitor to be employed.
I-94 Card - Admission/Departure Record: INS Arrival/Departure Record that the visitor receives upon entry to the USA. An I-94 indicates Admission Number, Visa Type, place/date or admission to the USA, and specific period of authorization stay (or duration of status – D/S).
Form I-20: Certification of Eligibility used to obtain an F-1 student visa. F-1s are usually privately funded, full-time degree seeking students. The specific program and expected date of completion of studies are on the form. Can only be issued or endorsed by the DSO.
Form DS-2019: Certificate of Eligibility used to obtain a J-1 Exchange Visitor visa. The form can only be issued and endorsed by a Responsible/Alternative Responsible Officer (in the International Office). J-1 Students are usually those funded by a government or institution, and may be participating in an exchange or cooperative education program. Other IAP-66 categories include Research Scholar, Professors, etc.
FICA Tax: taxes withheld from U.S. tax residents for retirement. FICA tax is authorized under the Federal Income Contributions Act (FICA) and is also referred to as OASI (Old Age Survivors Insurance) tax. FICA tax is also commonly referred to as Social Security tax, because the payments are made to the Social Security Administration.
240 day Rule: If the employer files a timely extension of stay, the employee may continue to work for a period not to exceed 240 days during the time the application is pending, beginning on the date of expiration of the authorized period of stay.
Non-Resident Alien (NRA) for Tax Purposes: an individual who has not met or “passed” the substantial presence test by virtue of the number of days physically present in the USA or has not been granted lawful permanent residence in the USA as a permanent resident alien. A nonresident alien has been present in the USA for a period of time short enough or for a particular reason so as to be treated more closely connected to his home country rather than to the USA. A nonresident alien is taxed only on his income from the USA sources, using special tax withholding, reporting, and filing guidelines different than those applied to USA citizens and resident aliens for tax purposes.