Transcript Document
2014 T
AX
R
ETURN
F
ILING
International Students
A basic overview of federal/state taxes
T
AX
T
ERMS
• • • • • • • •
Tax Year
: January to December
Tax Season
: January 31 to April 15
Reportable Income
: Income required to be reported to IRS either by payer or individual
Compensation
: Money earned from working
Interest
: Either paid or earned (loans, bank account)
Tax Reporting Form
: Form institution reports income on • Example: W-2, 1099, 1098-T
Tax Return
: Form you file your taxes on • Example: 1040NR-EZ, 1040NR
Filing Requirement
: Amount used to determine if you need to file
T
AX
R
ETURN
F
ILING
P
URPOSE
• You may earn reportable income from various sources during a tax year • When you work, you complete Form W-4 to indicate how taxes should be withheld
NRAs have a mandatory Single, 1, NRA tax withholding
• By January 31 of following calendar year – tax reporting forms are filed by institutions and reported & sent to individuals via mail or electronically • General Rule: You either have too much tax withheld OR not enough which is why you file a tax return If you over paid = REFUND If you did not have enough tax withheld = you OWE $
F
EDERAL
T
AX
1.
2.
Internal Revenue Service (IRS) – www.irs.gov
There are 4 tax categories defined by IRS
I
NDIVIDUAL
T
AX
S
TATUS
If you are an international student working at TU, or received a travel award or scholarship, you need to determine if you are a: • Nonresident Alien for tax purposes or • Resident Alien for tax purposes If you are not sure, log into your Glacier to see: https://www.arcticintl.com/portal/login.asp
If you forgot your login, click on Forgot Login
G
ATHER
Y
OUR
T
AX
F
ORMS
Form W2
G
ATHER
T
AX
F
ORMS
Form 1042-S
(not everyone gets one) Is use for..
F
EDERAL
– H
OW TO
B
EGIN
1. Collect your tax forms! Form W2, 1042-S 2. Do I have to file a tax return?
YES - If you earned more than $3,950 in 2014 and tax was withheld (Look at Box 2 on your W2 Form) NO - If you earned more than $3,950 in 2014 and tax was withheld
3. Educate Yourself about How to File
It’s your responsibility as F1/J1 student!
• Review IRS videos on YouTube • Read Publications & Instructions for Forms • Social Media Updates
F
ILING
R
EQUIREMENTS
C HECK IRS W EBSITE !
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
•
8843 = Everyone
For all F, J, M, and Q “exempt individuals” Spouse and children (F2/J2) • •
Requirements may change each year
Currently no need to file if total income < personal exemption
and
no tax was withheld If tax was withheld should file for refund
State tax return
See state tax agency requirements discussed below
Things to Note:
• Put January – December of year • If no Tax ID #, leave blank • Follow instructions for name & address • All individuals complete Part 1 • Teachers/Trainees go on to complete Part II • Students complete Part III • Leave Part IV & V blank (page 2) • RAs not required to complete
F ORM 8843 F, J, M, Q
All individuals
Rules for Signing & Due Date
• • • • If submitting with tax return, no need to sign Due April 15 th of each year (or required date)
______________________________
If no tax return required, sign and mail to address in instructions Due June 15 th of each year (or required date)
F ORM 8843 – P . 2
Sign if filing alone (no tax return) Don’t sign if submitting with tax return
Signing when not required is not a problem
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
F ORM 1040NR-EZ P AGE 1
Reminder - Current Rule
: − If person earns less than personal exemption amount
AND
no tax withheld (Box 2 of W2) − Then no need to file tax return (just Form 8843) − If tax was withheld, should file to get full/partial refund − If earned over personal exemption amount, must file • • • • • • • • •
Tips
: Collect all tax reporting forms first! (W2, 1099) Always file federal first, state second Line 3 = Add total wages for all jobs in past year Line 5 = Scholarship income (1042-S) Line 6 = Total amount exempt by treaty (same amount as on p. 2) Students from India may take standard deductions; others cannot Treaty Information:
http://www.irs.gov/Individuals/Intern ational-Taxpayers/Tax-Treaties
Line 7: Do the math! Tax Table located in Instructions Line 8 & 9: N/A
Determining Taxable Income
Source: Congressional Research Review
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
F ORM 1040NR-EZ P AGE 2
• • • • • •
Tips
:
Line B
Where were they living visiting) prior to coming to US (not
Line E
F, J, M or Q status Line F (for current visit) Ex: J1 to F1
Lines G & H
OK to estimate
Line I
What type of tax return filed in previous year
Line J
Only those who are eligible for treaty benefits (refer to country list by searching on IRS website)
NRA T
AX
F
ILING
: R
ESOURCES
Internal Revenue Service – NRA VITA Sites
http://www.irs.gov/pub/irs-pdf/p4152.pdf
IRS Link & Learn for Foreign Students
http://www.irs.gov/individuals/students/article/0,,id=177686,00.html
IRS Non Resident Alien Toolkit
http://www.irs.gov/pub/irs-pdf/p4152.pdf
IRS Publication 901 – US Tax Treaties
http://www.irs.gov/pub/irs-pdf/p901.pdf
IRS Publication 519 – US Tax Guide for Aliens
http://www.irs.gov/pub/irs-pdf/p519.pdf
Glacier TaxPrep – Software for NRA Tax Filing!
(Arctic International) https://www.arcticintl.com/gtp.asp
Tax Agencies: State
• • • Comptroller of Maryland – www.marylandtaxes.com
State of Maryland has different definitions for Nonresident Alien Resident Alien – where were you living at end of year MD does not recognize tax treaties
State Taxes: iFile
www.marylandtaxes.com
Do I need to file a state return
?
Yes - if taxes were withheld and:
• • • •
Single
: Under 65 and you earned > $10,000
Head of Household
: < 65 and > $12,850
Married
(Jointly): < 65 and > $20,000
Married
(Separately): No age and > $3,900