Disclaimer
Below are Frequently Asked Questions which former Visiting Scientists
and Intergovernmental Personnel Act (IPA) appointees have posed
to IRS staff during presentations at NSF. NSF cannot provide advice
or assistance on personal income tax issues. Please contact the
IRS or your tax advisor if you have any further questions, especially
since tax laws and regulations often change annually.
Federal Income Tax
If I plan to be at NSF for less than a year, what expenses are
deductible and do I need to save receipts?
Answer: NSF has a non-accountable plan for reimbursing temporary
employees who elect to receive per diem as opposed to a household
move. This means that you receive per diem from NSF and you do not
account to NSF for how it is spent. However, you should keep accurate
records of actual expenses in the event of an IRS audit. Per diem
received in excess of actual expenses must be claimed as income.
Most of your expenses are deductible, that is, they can be claimed
to offset the per diem; these include transportation to and from
work, lodging, laundry and business phone calls, meals (50% of DC
metro area rate), tips on any of these items, automobile actual
expenses such as depreciation, maintenance, repairs, gas, oil, or
the prevailing mileage rate.
If I am at NSF for over 1 year, are these expenses above still
deductible?
Answer: If you agree up front to be in the employ of the Foundation
for more than 1 year, none of these expenses is deductible, and
you should claim the per diem you receive as income on your income
tax return.
Would my tax situation be affected if I went home for a month
at the end of one year and then returned for another year?
Answer: The question here is one of intent; when did you change
your intent to be employed at NSF for more than 1 year? If you went
home fully intending to remain there and then "changed your mind"
and returned to NSF, yes. If you intended all along to work at NSF
for longer than one year, then no. Please consult with your tax
advisor.
Is it best to get a lump sum of all of my per diem up front
or should I request to get it in increments?
Answer: You probably do not want to receive per diem in excess
of your eligibility for the calendar year, because per diem received
in excess of actual expenses must be claimed as income, as explained
in #1. For example, if you arrive in September, you will probably
only want per diem for four months (September-December).
If I am an IPA and get paid by my university, isn't my tax
home where my university (house, family) is?
Answer: If you are here for less than 1 year, you are on a temporary
assignment and your tax home remains your home state. If you are
here more than 1 year, Virginia (where you work) becomes your tax
home. For more information see: http://www.tax.state.va.us/index.htm.
State Income Tax
Do I have to pay VA, MD or DC taxes if I maintain a residence
in another state?
Answer: Virginia law imposes individual income tax filing requirements
on virtually all VA residents, as well as nonresidents who receive
income from VA sources, however residents of DC & MD are exempt
from this requirement if the only VA source of income received was
from salaries or wages. Income taxes paid to other states are addressed
through tax credits. Non-residents are individuals who are neither
domiciliary nor actual residents of VA, but who receive income from
VA during the tax year. They report their income in the same manner
as residents, using VA Form 763. For more information see the website
at: http://www.tax.state.va.us/index.htm.
Motor Vehicle Tax and Registration
Do I have to register my car here in VA, MD or DC?
Answer: You need to register your car in the state in which you
live (MD, DC, VA) within 30 days of moving here. See more information
for Virginia
or Maryland.
DC does not have this information on-line.
Additional Links
|