WELCOME U. S. Taxation

For International Students and Scholars F, J, M, Q Visa Holders

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Disclaimer

This information was put together by Human Resource Services and International Student and Faculty Office for reference only. It does not constitute legal or tax advice. Individuals should see their tax counsel regarding their tax obligations.

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Program Objectives



To familiarize you with the laws governing, publications and other resources available to you for filing U. S. income tax return

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Lesson 2 Who Must File

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Who Must File

 Filing requirements for NonResident Aliens-Individuals who are not a U.S citizen • All “exempt” individuals - Form 8843 A nonresident alien who is not required to apply the Substantial Presence Test • F, J, M, Q individuals must file 1040NR or 1042NR-EZ only if you have income subject to tax the forms is best for you to fill out) (See IRS Publication 678FS for detail information on which of 5

Who Must File

 If you made $3900.00 or less (personal exemption) and had no taxes withheld, you may only fill out Form 8843.

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IRS FORMS FOR FILING TAX RETURN  Form 1040NR or Form 1040NR-

EZ

(See IRS publication 678FS for detail information on which form is best for you to fill out?

 Form 8843 Statement For Exempt Individuals and Individuals with medical condition. ( Students or scholars who had no income are still required to file Form 8843)  Form IL-1040 Illinois Individual Income Tax Return Form 7

1040NR-EZ instead of 1040NR     You do not claim any dependents You cannot be claimed as someone’s dependent on a U.S. tax return Your only U.S source income was from wages, salaries, tips, taxable refunds of state/local income taxes, & scholarships or fellowships Your taxable income <$100,000 8

1040NR-EZ instead of 1040NR      Only adjustments are student loan interest or scholarship exclusion You do not claim any tax credits If married, you do not claiming exemption for spouse Only itemized deduction you can claim is state/local income taxes Only tax owed is from tax table or social security and Medicare on tip income 9

When, Where, and Why to File

   When • Tax returns by April 15th 2015 • If filing form 8843 only or if only income is scholarship by June 15 Where • Internal Revenue Service Center • Austin, TX 73301-0125 Why • Compliance with all U.S. laws required 10

Form 1040NR-EZ

 If you are filing form 1040NR-EZ, you can claim “Single nonresident alien” or “Married nonresident alien” as your filing status.

Unusual Cases

    Japan, Korea, Mexico, Canada, India may claim dependents to some extent UK and 4 others--retroactive time limit in teaching clauses If German student stays beyond 4 years, all benefits lost retroactively Barbados, Hungary and Jamaica can be U.S. resident upon arrival 12

Filing Status

 Nonresident Aliens Must use: • Unmarried - Single • Married - Married filing separate 13

Spousal Exemption

 Nonresident Aliens from: • Canada • Mexico • Japan • South Korea • India may be able to claim an exemption for their spouse 14

Spousal Exemption

 Nonresident Aliens, rules for claiming: • Canada and Mexico  If no gross income and not a dependent on another U.S. tax return • Japan and South Korea  Must live with taxpayer. If student or scholar has foreign source income - must prorate exemption • India - Only students & business apprentices  If no gross income and not a dependent on another U.S. tax return 15

Tax Credits

  General Rule: • NRA taxpayers do not qualify for any of the following credits:     Child Tax Credit Child Dependent Credit Education Credits Earned Income Tax Credit Exceptions apply for certain countries 16

WAGE INFORMATION FORMS

 W-2 FORM  1042-S 17

Form 8843

    Establishes for the IRS that you and/or your dependents are nonresident for tax purposes Name and number should match your social security card/ITIN card exactly.

Complete Part II for Scholars Complete Part III for Students

* Signature required if not filing 1040NR or EZ

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Form 1040NR This form is 5 pages long 19

Form 1040NR-EZ This form is 2 pages long 20

Form 8843 Establishes for the IRS that you and/or your dependents are nonresident for tax purposes 21

Form IL-1040 22

W-2 form: Wage and Tax statement 23

Form 1042-s: Foreign Person’s U.S. source Income Subject to Withholding 24

When, Where, Why to File

 When • Tax returns by April 15 th 2015  Where • Internal Revenue Service Center • Austin, TX 73301-0125  Why • Compliance with all U.S. laws required 25

How to get forms

•IRS Website: www.irs.gov

•Illinois Department of Revenue website: www.revenue.state.il.us

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IRS CONTACT INFO

 IRS Toll free number 1-800-829-

1040

International Tax Law hotline 1-215-516-2000. This is not a toll free number 27

IRS PUBLICATIONS

 Publication 519, U.S. Tax Guide for Aliens  Publication 901, U.S. Tax Treaties 28

TAX HELP

   DeKalb Senior Center: 330 Grove St DeKalb. Every Tuesday from 1:00 to 4:00. Call for appointment 815-758 4718 SYCAMORE METHODIST CHURCH: 160 Johnson Ave, Sycamore. Wednesdays 12:00 to 4:00. Walk-ins 815-895-9113 DeKalb Public Library: 309 Oak Street. Saturdays from 9:30 to 12:30. Starting Feb 7 th to April 11 th

TAX HELP

STUDENT TAX PREP 151 WEST LINCOLN HWY DEKALB IL 60115 www.studenttaxprep.com

Check their website for hours of operation Goodwill Every Tuesdays starting Feb 3rd. 1037 S. Annie Glidden Road. Must call for appointment 815-987-6200.

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Important Reminders

     Always Keep a copy of any tax papers you send to IRS Be sure to sign your return Attach one copy of Form W-2 to your tax return Attach one copy of Form 1042-S to your tax return Mail your return by April 15, 2014 to IRCS, Austin, TX 73301-0215 31