Transcript International Students and Taxes Tax Year 2004

International Students and Taxes
Tax Year 2004
International Student Services
Tidewater Community College
Spring 2005
IMPORTANT: PLEASE READ
The following information is only a guide and was not
prepared by a tax professional. Neither Tidewater
Community College and/or the staff of International
Student Services is liable for issues related to your taxes.
Remember—satisfying U.S. tax requirements is solely
your responsibility.
Links to additional resources of information are located at
the end of this presentation.
For specific tax information, please contact a tax
professional.
Basics of the U.S. Tax System
The U.S. income tax system is based upon collection of
anticipated taxes during the year and the annual filing of a
statement of income and exemptions.
The federal government and state government are separate
taxing entities with separate filing requirements.
The penalties for knowingly filing a false tax return are
severe.
Basics of the U.S. Tax System
A “tax” return is filed each year with the Internal Revenue
Service (IRS) to determine the taxes owed on income the
prior year. (Although we are now in 2005, you will file tax
returns based on income in 2004)
“Exemptions” and “Deductions” are subtractions for
income and are used to determine the final tax bill.
Exemption: an amount of income each taxpayer may take before
any taxes are due.
Deduction: a payment or contribution that can be deducted from
income before taxes are determined.
Determine Your Federal Tax Residence Status
For the first 5 calendar years that you are in the U.S. as an
F-1 student, you do not count the days present towards tax
residence so you will be a non-resident for tax purposes.
If you entered the U.S. as a student before January 1, 1999,
you may be a resident for tax purposes and need to follow
the IRS resident/nonresident determination instructions.
For this evaluation, go to the IRS website listed below:
http://www.irs.gov/businesses/small/international/articl
e/0,,id=129390,00.html
Federal Tax Forms for Nonresidents
If you had any earnings in 2004, you must complete:
1040NR or 1040NR-EZ
• Most students can use the EZ.
– Can’t claim dependents on the EZ.
– If you have any income other than work or scholarships, you can’t
use the EZ.
– Can’t claim deductions except for state income tax paid.
8843
• Statement that you are an “exempt individual.”
IF YOU HAD NO EARNINGS IN 2004, YOU ONLY
COMPLETE THE 8843.
If You Have Worked . . .
Obtain copies of all appropriate federal and state tax forms.
Have W-2 forms from all employers you worked for in
2004.
Have 1042-S forms from any employer that reduced
withholding due to a tax treaty or taxable scholarship
benefits, if applicable.
Complete the appropriate 1040 form and form 8843.
Steps for Completing All Tax Forms
READ the instructions.
FOLLOW the instructions.
FORM 8843
If you have not worked in 2004, only complete
form 8843.
http://www.irs.gov/businesses/small/internation
al/article/0,,id=96349,00.html
If you do not have a social security number,
leave that section at the top of the form blank.
Do not use your TCC student number or
EMPL ID!
Complete Part I and Part III and sign.
Filing your Federal Tax Forms
Forms must be postmarked by:
April 15 if you have earned income.
June 15 if you have NO income.
Send forms to:
Internal Revenue Service Center, Philadelphia, PA
19255.
Virginia Income Tax
If you had no earned income in 2004, you do
NOT need to file any type of Virginia tax return.
If you have earned income and lived in Virginia all
of 2004, you file a resident form.
If you have earned income and lived in Virginia
for part of 2004, you file a part-year resident form.
Virginia Income Tax Filing Deadline
Virginia tax returns must be filed by May 1st.
The filing address is given in the tax instructions
on the Virginia tax forms.
Other Concerns
As a nonresident, you are not eligible for any
tuition tax credits.
Any decisions on whether to claim tax treaty
benefits on your tax return is up to you.
If you believe that Social Security taxes were
incorrectly withheld and you cannot get a refund
from your employer, use form 843 to claim a
refund from the IRS.
REMEMBER . . .
Not filing tax forms can create future immigration
problems.
If you forget to file on time, send the form in
anyway. The sooner you file, the less you might be
penalized.
For More Help . . .
Federal Tax info: http://www.irs.gov/
Virginia tax info: http://www.tax.virginia.gov/
For additional tax information, contact a tax
professional. Do not contact ISS with specific
tax questions.