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BASIC TAX INFORMATION FORF1 VISA HOLDERS
INTERNATIONAL STUDENTS
TRINITY UNIVERSITY
INTERNATIONAL STUDENTS
TRINITY UNIVERSITY
WHY FILE A TAX RETURN
COMPLY WITH IRS REGULATIONS
REPORT ALL INCOME EARNED AND TAXES WITHHELD ONLY WAY TO RECEIVE REFUND OF TAXES WITHHELD
HOW ARE RESIDENTS AND NON-RESIDENTS TAXED DIFFERENTLY?
RESIDENTS: TAXED ON WORLDWIDE INCOME FILE SAME FORM AS U.S. CITIZENS
NON-RESIDENTS: TAXED ONLY ON U.S. SOURCE INCOME ARE NOT REQUIRED TO PAY FICA TAX USE NON- RESIDENT TAX FORM
FILING REQUIREMENTS
NON-RESIDENT ALIENS - $3800 FOR 2012
HOWEVER; STUDENTS MUST FILE IF:
1. THEY HAVE A TAXABLE SCHOLARSHIP2. INCOME PARTIALLY OR TOTALLY EXEMPT BY TREATY3. ANY OTHER INCOME TAXABLE BY IRS
FILING NOT REQUIRED IF
NON–RESIDENTS HAVE INCOME ONLY FROM FOREIGN SOURCES
INTEREST IS FROM A BANK OR CREDIT UNION
SCHOLARSHIP FUNDS ARE SPENT ONLY ON QUALIFED EXPENSES
RECEIVED ANY OTHER MONEY WHICH IS NONTAXABLE BY IRS.
DETERMINING TAX RESIDENCY STATUS
SUBSTANTIAL PRESENCE TEST IRS FORMULA TO DETERMINE WHEN NON-RESIDENT
ALIENS FOR IMMIGRATION PURPOSES HAVE BEEN IN THE USA LONG ENOUGH TO BE CONSIDERED RESIDENTS FOR TAX PURPOSES
HOWEVER, EXEMPT INDIVIDUALS ARE AUTOMATICALLY NON–RESIDENTS ALIENS FOR TAX PURPOSES
WHO ARE EXEMPT INDIVIDUALS
F1 VISA HOLDERS ARE EXEMPT FROM SUBSTANTIAL PRESENCE TEST FOR ANY PART OF 5 OR FEWER CALENDAR YEARS
BUT STILL MAY BE REQUIRED TO FILE A U. S. TAX RETURN IF MEET FILING REQUIREMENT
TAXABLE INCOME FOR EXEMPT INDIVIDUALS
GENERALLY REPORT ALL INC0ME YOU RECEIVE IN U.S.
EMPLOYMENT ON AND OFF CAMPUS SCHOLARSHIP (MAYBE) PRACTICAL OR ACADEMIC TRAINING DIVIDEND INCOME ETC.
KEY- NON-RESIDENTS PAY INCOME TAX ONLY ON U.S. SOURCE INCOME
ARE SCHOLARSHIP FUNDS TAXABLE? NON-RESIDENTS ARE NOT TAXED ON FOREIGN SOURCE SCHOLARSHIPS
NON-RESIDENT ALIENS ARE TAXED ON U.S. BASED SCHOLARSHIPS NOT USED FOR TUITION, REQUIRED FEES, BOOKS, SUPPLIES, AND EQUIPMENT
KEY POINT- MANY TAX TREATIES ALLOW AN EXEMPTION FOR SCHOLARSHIPS
NON-RESIDENT TAX FORMS
FORM 8843 - STATEMENT FOR EXEMPT INDIVIDUALS FILE EVEN IF NON-RESIDENT HAS NO U.S. SOURCE INCOME - FILE BY JUNE 15
ONE FORM FOR EACH FAMILY MEMBER
PURPOSE- AN INFORMATIONAL FORM STATING EXEMPTION FROM COUNTING DAYS FOR SUBSTANTIAL PRESENCE TEST
IF FILING BOTH FORM 8843 AND A TAX RETURN- MAIL TOGETHER BY APRIL 15
NON-RESIDENT TAX FORMS
FORM 1040NR AND FORM 1040NR-EZ(INCLUDE FORM 8833 WITH TAX RETURN IF TAKE A TREATY BASED POSITION)
FILE BY APRIL 15
NO STATE TAX ISSUES IN TEXAS
IMPORTANT- DO NOT FILE A FORM 1040EZ
TAX TREATIESIMPACT OF TAX TREATIES DISCUSSED IN IRS PUB 901
EXAMPLES:
IN MANY COUNTRIES, SCHOLARSHIPS ARE NOT TAXABLE. (CHINA, KOREA, SPAIN)
ALSO, SOME INCOME IS NOT TAXABLE(CHINA - FIRST $5000; FRANCE - FIRST $8000)
SUPPORTING DOCUMENTSW-2 FORM FROM EMPLOYER – REPORTS WAGES EARNED – MAILED BY JAN 31
FORM 1042s - FOREIGN PERSON WITH INCOME SUBJECT TO WITHHOLDING – MAILED BY MAR 15
1. USED TO REPORT SCHOLARSHIP INCOME NOT EXCLUDED FROM GROSS INCOME AS A “ QUALIFIED SCHOLARSHIP”2. FILE FORM W-8BEN WITH UNIVERSITY OFFICE IF SCHOLARSHIP IS EXEMPT FROM TAXATION3.CAN BE USED TO REPORT WAGES EXEMPT UNDER A TAX TREATY
FAMILY ISSUES- DEDUCTIONS FOR DEPENDENTS GENERALLY NOT ALLOWED
- EXCEPTIONS FOR NON-RESIDENTS FROM CANADA, INDIA, SOUTH KOREA, AND MEXICO
- MARRIED NON-RESIDENT CANNOT FILE JOINTLY WITH NON-RESIDENT SPOUSE
- MOST TAX CREDITS DO NOT APPLY
- STANDARD DEDUCTION NOT ALLOWED EXCEPT FOR STUDENT FROM INDIA
SPOUSE AND DEPENDENTS
- FORM 8843
- U.S. SOURCE INCOME MUST BE REPORTED
FILING STATUS AND DEPENDENTS
MOST NON-RESIDENT ALIENS CANNOT CLAIM THEIR DEPENDENTS – EVEN IF THE DEPENDENT IS A U.S. CITIZEN
SOCIAL SECURITY TAX
NON-RESIDENTS WITH AN F1 VISA ARE EXEMPT FROM SOCIAL SECURITY AND MEDICARE TAXES
IF RESIDENT FOR TAX PURPOSES, USUALLY SUBJECT TO FICA TAXES
FICA REFUNDS
WHEN WITHHELD IN ERROR
ASK EMPLOYER TO REFUND IF NOT REFUNDED, USE IRS FORM 843 TO REQUEST A REFUND
DO I NEED A SSN OR ITIN
IF FILING ONLY FORM 8843 - NO NUMBER REQUIRED
ANY 1040 TAX FORM – NEED A SOCIAL SECURITY NUMBER OR INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER(ITIN)
FILE FORM W-7 TO REQUEST AN ITIN
DEPENDENTS MUST ALSO HAVE SSN OR ITIN IF TAX CODE ALLOWS AN EXEMPTION
ADDITIONAL TAX RESOURCES
IRS PUBLICATIONS
PUB 519 TAX GUIDE FOR ALIENS
PUB 901 TAX TREATIES
TAX PREPARATION SPECIALISTS
ADDITIONAL QUESTIONS
PLEASE CONTACT:
LARRY BARKER
ENROLLED AGENT & MASTER TAX ADVISOR
210-653-6507