1. Individuals claiming exemption from withholding by using an income tax treaty and the treaty paperwork has been accepted by the Tax Department will not be subject to any income tax withholding for federal or state purposes.
2. Individuals performing all services outside of the U.S. are not subject to income tax withholding or reporting in the U.S. This exclusion applies only for services (1) performed in a foreign country (2) by an individual who is not a citizen or resident alien of the United States. The services are considered to be "sourced" in a foreign country and, therefore, are not subject to the income tax withholding. The department should complete a Certification of Activity Outside U.S. to submit with the payment request documentation.

1. The travel expenses are substantiated with receipts or other appropriate documentation to support payment as an IU business expense
2. The individual traveling has provided services to the university regardless of whether they have been compensated for those services.
The travel reimbursement would be characterized as a fellowship payment if no services were performed by the individual for the university or if the travel was incurred to benefit the individual for personal study, research, or training.

1. Individuals on F, J, Q, or M immigration status are subject to 14% federal and 3.4% state income tax withholding
2. Individuals claiming exemption from withholding by using an income tax treaty and the treaty paperwork has been accepted by the Tax Department will not be subject to any income tax withholding for federal or state purposes.

Please refer to Income Tax Treaties for Short-Term Visitors for information on claiming a tax treaty based exemption.