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Filing Taxes as an International Student

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Centro Hispano

on 20 November 2014

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Transcript of Filing Taxes as an International Student

Filing Taxes as an International Student
Non-Resident for Tax Purposes
If you are a Non-Resident for Tax Purposes you will be filing your Taxes on:
DO I NEED TO FILE?
Typically if you earned less than
$3,900
then you do not need to file a tax return.
You are responsible to know if your country has a tax treaty with the USA
Filling Out Your Tax Return
1040NR vs. 1040NR-
EZ

Resident or Non-Resident?
Tax Treaties
So, you have received your
W-2/1042-S
from your employer and you have filled out
Form 13614NR
, and
Form 8843
, where do you put all that information?

FORM 8233
If you want to receive your tax treaty benefits on your paycheck, then submit
THREE (3)
copies of
Form 8233
to your employer when you first start working.
Are you temporarily present in the U.S. on an
F
,
J
,
M
, or
Q
visa?
Yes
Are you a full time student?
Yes
Are you in substantial compliance with your visa?
Yes
Have you been in the U.S. for
any
part of more than
5
calendar years?
NO
YOU are NOT a U.S. Resident for Tax Purposes
Are you temporarily present in the U.S. on an
F
,
J
,
M
, or
Q
visa?
Substantial Presence Test
Total days in U.S. = 183+
Present in the U.S. for 31 days
of the current year
Current Year days in U.S. x 1 =
1st preceding year days in U.S. x 1/3 =
2nd preceding year days in U.S. x 1/6 =
+
You may be a resident alien of the U.S. for a given year if:
183+ days during the last 3 years .
Use the following formula to test:
&
You are a Resident for
U.S. Tax Purposes
IF you meet the requirements for the substantial Presence Test, you may be able to be considered a
NON-RESIDENT
for tax purposes by filing:
or
Form 1040NR
ADVICE!
To help expedite the process of filling out and preparing your taxes first fill out
FORM 13614NR
"Nonresident Alien Intake and Interview Sheet"
(This is the same form used by tax preparers in the
V.I.T.A. Lab
to help them file your taxes properly)
HOWEVER
There are numerous benefits to filing your taxes such as:
REFUND
SHOW COMPLIANCE WITH U.S. LAW
ASSIST PETITION FOR FUTURE U.S. CITIZENSHIP/RESIDENCY
WARNING!
FORM 8843
If you made more than
$3,900

and are exempt from

paying U.S. Taxes for

ANY

reason, you still

MUST

file your Income Tax Return and include:
or
Form 8840
FORM 8843
MUST be filed with your taxes if you wish to have days excluded from the Substantial Presence Test
FORM 8840
You can ONLY file this if you do NOT INTEND to reside permanently in the USA
Form 8843
(Students Fill out sections 1 and 3 of the form only)
MUST be filed if you wish to demonstrate/establish that you have closer ties to another country of citizenship
You can
ONLY
file this if you have
NOT
taken any actions to become a permanent resident of the USA
REMEMBER!
FILE BY APRIL 15
th
The Main difference between Form 1040NR and 1040NR-
EZ
is how
EASY
it is to fill out!
Form 1040NR-
EZ
is a simplified form that you can use to file your taxes,
ONLY IF
you meet
ALL
of the following requirements:
Not filing an "expatriation tax" return
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
No dependents are claimed
The taxpayer cannot be claimed as a dependent on another U.S. tax return
The only sources of income were wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or fellowship grants
Taxable income is under $100,000
The only adjustment to income is the student loan interest deduction or scholarship exclusion
No tax credits are claimed
No exemption is claimed for a spouse, if married
The only itemized deduction is state and local income tax
The only taxes owed are income tax
No claim for excess social security and tier 1 RRTA tax withheld
Only Non-residents from Canada, India, Mexico, and South Korea are eligible to claim dependents
Only Non-residents from Canada, India, Mexico, and South Korea are eligible to claim spousal exemptions
Generally, Non-Residents can NOT claim tax credits
You can NOT include deductions for charitable donations to a church
REGARDLESS OF WHICH FORM YOU FILE YOUR FILING STATUS MUST BE ONE OF THE FOLLOWING
SINGLE
MARRIED FILING SEPARATELY
MARRIED FILING JOINTLY
Only applies
IF
you are married to a resident of the
USA
, or you and your spouse are
BOTH
residents of
CANADA
or
MEXICO
Your current citizenship determines which tax treaty you can apply to your income tax return
If you have dual citizenship then you apply the tax treaty for the country where you most recently resided
If you submitted
Form 8233
then you should receive
Form 1042-S
instead of/in addition to
Form W-2
at the beginning of the Tax Season
If you didn't submit
FORM 8233
when you first started working, you can still receive the tax benefit from a tax treaty!
Fill out and include
FORM 8833
with your income tax return to receive the full benefit of the tax treaty for the given tax year.
To Learn more about Tax Treaties
PUBLICATION 4011
PUBLICATION 901
Form 13614NR
Form 1040NR
Form 1040NR-EZ
If you pay someone to take care of your child while you are at work or at school these costs may be deductible
If you are married and you are a resident of Canada, Mexico, South Korea, or India you may want to consider filing Form 1040NR
Regardless of your marital status if you are not a resident of Canada, Mexico, South Korea, or India then you should consider filing Form 1040NR-EZ
If you have any charitable donations to churches that would be included in this category
This does NOT include expenses for traveling to the USA, but could include expenses for transferring from one school/work to another 58+ miles away. School transfers only count if you worked on both school campuses
If you have student loans that you are paying interest on that you want to include in your deductions that is included in this category
If you have gained interest from a bank account or from investments that is included here
IF you said yes to
ANY
of the checked boxes then you
MUST
file Form 1040NR
John
Nash
555-55-5555
817 South Freedom Blvd
Provo, UT 84601
Spain
X
X
Angelica
Nash
000-00-0000
X
1
1
Form 1099-INT
Form 1099-DIV
Form 1099-G
Form W-2 Box 1
Form 1042-S Box 2 Income code 18/19 in Box 1
+
Total
Treaty Exemption for Wages
-
Amount you place in this box
Spain
Spain
X
X
X
F-1
X
05/17/11
229
356
X
12/31/2011
Form 1040NR-EZ
X
X
Spain
Spain
22(1)
22(2)
8
8
5,000
8,000
13,000
Amount on Form W-2 for State Taxes
You would include charitable donations in this box.
I.E. Church Donations
Blood doesn't count
Make sure you have a receipt(s) from the organization you donated to
NO
Are you a full time student?
NO
Are you in substantial compliance with your visa?
NO
Have you been in the U.S. for
any
part of more than
5
calendar years?
Yes
You Must Apply the
Substantial Presence Test
X
Use Form 1042-S
Box 2
with
Income Code 15
in
Box 1
. This should only include the amount of Scholarship & Grants used for Living Expenses.
If amount listed in Box 2 includes the total amount of tuition and grants received, fill out
line 31 of 1040NR
Ex: You receive $1,000 in Scholarship and Grants. $800 is used for Tuition, Books, and Fees. $200 is used for Rent and Food.
You receive Form 1042-S and Box 2 includes $1,000 in it. What do you do?
Answer: Put $1,000 on
line 12
, and then fill out
line 31
with $800.
Ex: You receive $1,000 in Scholarship and Grants. $800 is used for Tuition, Books, and Fees. $200 is used for Rent and Food.
You Receive Form 1042-S and Box 2 includes $200 in it. What do you do?
Answer: Put $200 on
line 12
and nothing on
line 31
This is the Total amount being exempted from
line 8
. It should not include Social Security or Medicare Taxes that have been excluded. It should not include Scholarship or Grant Exemptions
Form 3903/Personal Records
Form 1099-INT
See Line 12
Form 1098-E
This should be the total amount from page 3 line 15
This will be the amount for 1 exemption unless from Mexico, India, South Korea, or Canada. See Instructions for 1040NR.
Only if you pay taxes in another Country
Only if you pay someone to take care of your child
Only if you have a qualifying child that meets all the requirements
The total of lines 45-50 can not exceed line 44, either in the sum or individually.
Page 4 Line 15 Total
If you're a Truck Driver
Box 9 Form 1042-S
Amount Refunded
Amount Owed
You can deduct your loss of property for things that were
stolen
or
damaged
as a result of Fire, Storm, Shipwreck, or other casualty loss
The amount you can deduct is limited to the
Fair Market Value
of the item, or the
Cost of the Property
, whichever is cheaper
The amount deducted can
not
exceed
10%
of your income, and the first $100 is
not
deductible
If your loss was
fully covered
by insurance, you can
NOT
deduct the loss. If it was only
partially covered
, you
can deduct
the amount not covered by insurance
Fill out
Form 4684
You can deduct
UNREIMBURSED
job expenses such as:
Union Dues
Safety Equipment
Small Tools
Dues to a Professional Organization
Job Related Travel
Only the amount
above 2%
of your
AGI
can be deducted
ADD lines 1, 5, 6, 13, and 14 together
NOTE:
If one of the treaty articles indicates an
UNLIMITED
amount, simply put the amount you are claiming in Box D
The tax rate per item is determined by:
1)
your Tax treaty if you have one, and then
2)
U.S. law.
To determine the
tax rate
listed in your treaty look up the
Income type
on your Tax treaty's
Content Page
Filed when you leave US
Form 8885: You paid for Health Care Coverage
You had Social Security or Medicare tax that should have been reported that was not reported for Tips or Wages
John Nash
1/31/2013
LITC Community Outreach Educator
TAS
Taxpayer Advocate Services
IRS.Gov
IRS Assistance Center
We don’t prepare current year taxes

We help prepare taxes from previous years

We can help you understand and respond to a IRS notice

We can represent you before the IRS on tax controversy that you might have

We can only help qualifying Low Income Taxpayers
817 S. Freedom Blvd
Provo, UT 84601
www.CentroHispanoUC.org
Facebook.com/Centro.Hispano.LITC
LITC@CentrohispanUC.org
801-655-0258
801-691-5293
V.I.T.A
(Volunteer Income Tax Assistance)
Call 211
"Link and Learn" Taxes
Form 1040NR-EZ
Previous year's refund that you indicated on your taxes to be applied to this years taxes
If you filed an extension and paid some taxes, and are now filing the return for the first time for the same year
This would only occur with income that is "not effectively" connected to your reason for being in the U.S.A. such as:
Investments Income
Stock Market Investment Dividends
Gambling Income
Personal Business Income
They can help you file current year taxes for FREE

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