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Federal Taxes for International Students Office for International Students and Scholars Updated 2/18/15
Federal Taxes for
International Students
Office for International
Students and Scholars
Updated 2/18/15
Why File an Income TaxReturn?
It is the law!
Compliance with U.S. visa requirements
Get a refund of withheld taxes
Pay additional taxes if they are owed
HowTaxes Work
• Employment
• GraduateAssistantships
• Scholarships
INC O ME
TAXES
Taxed scholarship/treaty
benefits= 14%
Employment= amount
depends on how often
you are paid and your
wages.
TAX RETURN
Used to determine
the amount of tax
you paid vs. the
amount of tax you
owed. Determines
whether you owe
more tax or if you
are owed a refund.
Resident vs.Nonresident
Resident alien
Been in the U.S. for more than 5 calendar years, then
determined via Substantial Presence Test.
CurrentYear Days x1, plus 1st Previous Year Days x1/3, plus 2nd
Previous Year Days x1/6.
If total equals 183+, you are considered a resident for taxes
Cannot use GLACIER Tax Prep to file 1040/1040-EZ
Nonresident alien
Been in the U.S. for less than 5 calendar years
If no income (no employment/no scholarships)-Form 8843
If income- Form 8843 and 1040NR/1040NR-EZ
International students need to file tax
documents to the U.S. Internal Revenue
Service (IRS) All students on F-1 or J-1 visas who have been in the
United States for any time during 2014.
F-1 or J-1 students who received any income within the
United States or taxable scholarships from U.S. source.
Money earned from OPT/CPT is also taxable.
Filing your tax documents is mandatory!
Basics
You may get into trouble with the IRS
If taxes are owed and not paid, the IRS cancharge a penalty and interest, and seize themoney from bank accounts you have in theUnited States
Filing incorrectly can be just as costly!
The right software and tax forms can help you file correctly. Use GLACIER Tax Prep!
Beware of Turbo Tax (or similar programs) asa non-resident!
If you do not file a tax return…
Using GLACIER Tax Prep is the best way!
GLACIER Tax Prep requires an access code. Obtain an access code by visiting OISS front desk or emailing [email protected] has free access codes for only 399students.
Nonresidents cannot file electronically!
GLACIER Tax Prep helps you prepare electronically, but you must print and send hard copies.
All students must file by April 15, 2015!
How to file your tax returns
If you were employed in 2014: W-2 form issued by employer
Mailed to your local address
Available under my.emich.edu, if EMU was your employer
Understanding your tax forms— W-2
Understanding your tax forms— 1042-S
You will get a 1042-S:
If you had more than one scholarship that exceeded your tuition costs
If you were awarded scholarships that included tuition, PLUS room/board (EMU athletes mostly)
If you had income and tax-treaty benefits
********************************************************
Should have received in the mail (local address)
If you have questions about the 1042-S, or you areeligible for a 1042-S but didn’t receive one, contactPayroll at [email protected].
Form 1042-S
Understanding your tax forms— 1098-T
Form1098-T (statement of tuition and fees paid). Used to claim credits. Nonresident aliens (in U.S. for less than 5 years) CANNOT claim this in order to get return on tuition/fees.
1099INT: from a bank for interest earned on checking or savings accounts.
1099DIV: Interest earned on investments.Tax Prep.
Understanding your tax forms
Social Security Number (SSN) If you have employment, you must have an SSN
Individual Taxpayer Identification Number (ITIN) If you have a taxable scholarship, but no income from employment, you
need to request an ITIN.
You can apply for an ITIN when filing your return.
GLACIER Tax Prep will issue you Form W-7 with your other tax documents if it recognizes that you will get a return.
Must submit a certified copy of your passport with Form W-7 A N Dan ITIN letter from OISS.
ITIN is only for tax purposes. Cannot be used in place of a SSN.
Read the GLACIER Tax Prep filing instructions CAREFULLY!
SSN and ITIN
As soon as you have all necessary documents
and forms, you can file!
Different forms are issued at different times,
but all must be in-hand when you file.
File before April 15, 2015 (earlier isbest).
When is best to file
Instructions
Read www.emich.edu/ois/tax.html
Obtain access code
Read instruction sheet
Go to www.glaciertax.com to begin/create log-in Use your GLACIER account from last year (if you had one)
If cannot remember previous one, select “Forgot Login”
Collect tax forms and immigration documents
Return as needed to complete process
When complete, mail tax documents according to instructions (mailing address included on instructions).
Creating your account
Enter Biographical Information
Enter name according to
SSN/ITIN, or passport ifyou
don’t have SNN/ITIN
Country of Tax Residence: U.S. not an option.“Typically,
your Country of Tax Residence is the same as you
Country of Permanent Residence; however, if you have
lived in a country other than your Country of
Permanent Residence immediately before coming to the
U.S. to study/work, you may have establishedTax
Residency in that country.”
Step 1: Determine Residency
Enter information about your visits
Verify information from previous screen
Results of resident status
Enter Income
Add all the forms you
received.
Click this if you did not
receive any forms/did not
have income in 2014.
Enter ApplicableForms
FICA Taxes- SocialSecurity/Medicare
FICA
Taxes?
FICA Taxes
Withheld Social Security and Medicare-
How to get it back
Contact Employer first (by email/mail better
than verbal)
Form 843
Supplemental form 8316
Publication 519 -Page 43 “RefundofTaxes
Withheld in Error”
TaxTreaties
Step 3: Address- need to be able to receive mail
here (even in 3-4 months!)
SSN or ITIN
Double check for
accuracy!!!
Designated School Official Information
Already entered for you.
Do notchange.
Step 4: Generate and Print Forms
If due a refund, choose payment option
Check will be in $USD and will take 4 more
weeks than deposit.
Direct Deposit Option
Double check numbers!
Cannot be a foreign bank.
U.S. government will only deposit once!
Married?
If yes, you need to
file 8843 forms for
them. If they had
jobs, they need to
file on own.
Spouse/Children in U.S.?
Additional Information
Forms
Common Misconceptions
Eligibility for treaty benefits exempts one from filing a tax return= NO
Nonresident aliens are eligible for education credits= NO
Nonresident aliens can use Turbo Tax, H & R Block,Taxslayer, etc.=NO
It is ok not to file the 8843= NO
Definition of word “Resident” Immigration definition
U.S. income tax definition
Tuition purposes definition
Read and follow ALL instructions,including
copies of documents for ITIN request
Print and sign
Make copy and keep for 4 calendar years
Mail to address given on instructions! You
cannot file electronically!
Remember
Mailing to the IRS
Your Name and Address
Internal Revenue Service
Address, per Instruction
Sheet
Stamp (Lobby Shop)
46 cents/stamp
Tips for an easier filing
Read and utilize resources! OISS website
Use GLACIER Tax Prep buttons- “Help”,“More Info”
Use the GLACIER Tax Prep Frequently Asked Questions
Watch tutorial video on your main menu
Start early. You don’t need to complete the process at one time. You can return and continue filing.
Be sure to mail by April 15,2015
Can take up to 4 months to get your tax return (if you are due money)
Utilize Support Options
More Info
FAQs
Help- Best way!!!
Video
Help Email to Support Center
Generally answer within 24 hours.
No phone supportavailable.
State of MichiganTaxes
Prepare your federal tax form first. If you only file Form 8843, you are not
required to file a State of Michigan Tax Form.
If you file 1040NR-EZ, look at Line 10 (Adjusted Gross Income). If the
amount listed on line 10 is less than $4,000, you are not required to file a
State of Michigan tax form.
If you file Federal Form 1040-NR look at line 7d (total number of
exemptions). Multiply line 7d by $4,000. If the result is greater than the
amount on Line 36 (Adjusted Gross Income), then you are not required
to file a State of Michigan tax form.
If you are required to file a State of Michigan tax form (MI 1040), you
should also file Schedule NR.
If you are due a refund, you may want to file even though it is not a
requirement.
BEST RESOURCE- GLACIER Tax Prep
Office for International Students and scholars
Emily ([email protected])
Walk-In advising for Emily
Make appointment
EMU Payroll Office,[email protected]
Internal Revenue Service
www.irs.gov, 215-516-2000
If you have questions…
Any other questions?
THANK YOU!
