Transcript NONRESIDENT ALIEN TAX ISSUES
UNLV TAX Workshop
WELCOME UNLV INTERNATIONAL STUDENTS AND SCHOLARS Before having a seat…
Please sign-in
Pickup info at desk on how and where to change your address if your address has changed
If you worked at UNLV during 2010, and have not received your W-2 Form, download in EQUUS (HR website)
If you are on a treaty benefit exemption or have had tax withheld from your scholarships during 2010, the 1042-S forms were mailed to you on 2/14/2011.
Pick up your Windstar (FNTR) instructions
Welcome and go ahead and get started!
International Students and Scholars
U.S. Taxing Authority is the Internal Revenue Service (IRS) www.irs.gov
800-829-1040 (phone)
• It is your responsibility (not UNLV or the company that
you work for) to file a U.S. tax return every year that you reside in the U.S.
• U.S. tax returns must be postmarked to the IRS by April
15 th of every year. (for 2010 returns, deadline is April 18, 2011).
• If you do not file a tax return each year or you do not file
on time, the IRS could assess back interest and penalties.
• Even if you are not working in the U.S., all nonresident
aliens who are present in the U.S. under a F-1, F-2, J-1, J 2, M-1, M-2, Q-1, or Q-2 MUST file Form 8843 with the IRS each year.
• UNLV provides our international community with free tax software
(Windstar FNTR) to help you prepare any tax forms needed to be sent to the IRS each year.
Who is a Nonresident Alien?
• F-1 or J-1 Student who has been in the U.S.
for less than 5 Years.
• J-1 Non-Student (Research Scholar,
Professor or Short-Term Scholar) who has been in the U.S. for less than 2 years.
• If you are unsure of your tax residency,
Windstar FNTR will determine that after you input your information.
If you are a Resident Alien (based on the IRS substantial presence test) for tax purposes, you will not be able to use the FNTR software. Check out www.irs.gov
(click on efile) for other free online filing programs, or contact [email protected]
referral to VITA. VITA is located on the UNLV campus and will prepare your tax return for free.
for
Type of tax forms you may receive
• W-2 Form: Statement issued by your employer(s) of
wages/compensation you received as an employee. Issued by the Payroll Dept in January for earnings paid to you during the previous calendar year.
• 1042-S Form: Statement issued by your employer or
school. Represents wages/compensation you received as an employee of which no federal income tax was withheld on these earnings because you were eligible for a treaty benefit, or can represent taxable scholarships you received from UNLV of which either federal income tax was withheld at 14% tax, or no tax was withheld because you were eligible for a treaty benefit.
• 1098-T Form: Statement issued by your school of
amounts paid for tuition and fees. Nonresident aliens are not able to use this form because they are not eligible to take any tax credit on their tax return (if you are a Resident Alien , you may be able to use this form when completing your tax return).
Type of tax forms you may receive
• 1099-INT Form: Statement issued by your Financial
Institution of interest income earned on deposits in banks, insurance companies, etc. Interest is not subject to income tax when earned by nonresident aliens with one exception. If the bank account is connected to a US trade or business, such as rental of US property, the interest is taxable. *The bank may have issued a Form 1099-INT to a nonresident account holder. IRS tax return reviewers ignore it for purposes of Form 1040NR (tax return). The nontaxable interest is disclosed in Question L on Form 1040NR.
• 1099-MISC Form: Statement issued by a company of
income paid to you as an independent contractor, or misc income such as a prize or award. 1099-MISC Forms should not be issued to nonresident aliens (proper forms are either a 1042-S or include on employee’s W-2 form). If you receive a 1099-MISC, this must be included as income on your tax return (input into FNTR).
Type of annual Tax Return Form to complete
• Windstar FNTR will determine the tax return forms that
you need to sign and mail to the IRS
• The annual U.S. Tax Return Form for nonresident aliens is
the 1040NR (long form) or 1040NR-EZ. There may be other attached forms that go along with your tax return however FNTR will complete all forms necessary.
• If you are a nonresident alien for tax purposes, you
should not fill out a 1040 or 1040-EZ Tax Return Form as these should only be completed by at the IRS website at www.irs.gov
Resident Aliens past, your tax return may be incorrect.
complete the forms for you once you enter your . If you have filled out one of these tax return forms in the
• All tax return forms and instructions may be downloaded
although FNTR will information.
Other helpful IRS Publications are: PUB 519 – U.S. Tax Guide for Aliens PUB 901 – U.S. Tax Treaties
2010 Federal Tax Rate Schedule www.irs.gov
The IRS publishes the tax rates each year so that individuals can compute their estimated income tax. To calculate the actual amount of income tax due, you must complete an annual tax return (1040NR or 1040NREZ).
• Tax Exemption for 2010
= $3650.00
• Standard Deduction for
2010 (only available to India students) = $5700.00
• Tax Treaties will also reduce
your taxable income if available for your situation
•2010 Tax Return must be
postmarked to IRS no later than April 18, 2011 If taxable income is over- $0 $8,375 $34,000 $82,400 $171,850 $373,650 But not over- $8,375 $34,000 $82,400 $171,850 $373,650 No limit The tax is: 10% of the amt over $0 $837.50 plus 15% of the amt over 8,375 $4,681.25 plus 25% amt over 34,000 of the $16,781.25 plus 28% amt over 82,400 of the $41,827.25 plus 33% of the amt over 171,850 $108,421.25 plus 35% of the amt over 373,650
Other Taxes
• Other Payroll Taxes in the U.S. other than Federal Income
Tax are FICA (Social Security) Tax and Medicare Tax. Generally, nonresident aliens in F-1 or J-1 status should not have to pay these taxes. If your employer withheld FICA and Medicare tax from your wages, you may be eligible for a refund from the IRS. Check your W-2 form to be sure that there was no amounts in box 4 or box 6.
*If this is your situation, pick up some information up front. The information will explain how to get these taxes refunded to you from the IRS. These forms are sent separately to the IRS from your Federal Tax Return.
Other new 2010 tax information
Contact Info and Resources
• Debbie Honrath, Nonresident Alien Tax
Specialist:
Student Services Complex (SSC-A 132C) Phone 702-895-0872
email: [email protected]
Walk-in Hours: Tues & Thurs: 10 a.m. – 12 p.m.
Wed & Fri: 11 p.m. – 1 p.m.
RESOURCES: U.S. Taxing Authority – Internal Revenue Service After you file your tax return, you can check the status of your tax refund at the IRS website located at: www.irs.gov
For additional information: Publication 519 – U.S. Tax Guide for Aliens
U.S. Social Security Administration www.ssa.gov
Office Location: SSC-133
Student Services Complex (SSC-A) – 1st Floor, Room 132C Same Building as Office of International Students & Scholars
Website Information
http://controller.unlv.edu/NRA /