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Taxes as an International Student

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Centro Hispano

on 1 November 2013

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Transcript of Taxes as an International Student

As an International Student
Taxes
Where To Get
Help

Tax Credits
1040
VS.
1040NR

Rights
&
Responsibilities

How to Choose
a Tax Preparer

Declaring your Taxes
Reasons to Declare
When to File
W-2
W-4
IT IS REQUIRED
U.S. Gov't. Determines if you owe
You should declare even if you don't think you owe anything
Show Compliance with U.S. Law
Refund
Establish Future Legal Permanent Residence
April 15 is the Deadline
It Arrives the 31st of January
Is Used for Filing your Taxes
You need one for each job you received an income from
If you lose your W-2 you can request a copy from your employer
You must fill a new one out for each new job you work at
How many dependents can/should you claim?
The Number of Dependents you claim affects your Check Amount
What are the consequences?
YOU'RE RESPONSIBLE
Accuracy of Information
for:
Mathematical Accuracy
Filing on Time
Forms that are Filed
Regardless Of Who Prepares
Your Returns
Consequences
You may owe the IRS
resulting in:
Penalty and Interest
Levy or Lien
Risk of Additional Audit and/or Restrictions
Delay or Hurt Application
for
Citizenship
Look for an Honest Preparer
Do Research:
Make Sure they are Qualified
IRS
State's Bar Association for Attorneys
State's Board of Accountancy for CPAs
Better Business Bureau
AVOID
Asking you to sign a blank tax return
That do not sign returns
Does not explain every form and deduction before having you sign it
Giving direct tax advice without asking in-depth or challenging questions
Requiring refunds to be sent directly to them
Claiming they can get you a larger refund
Trying to Persuade you to say something
untrue on tax return
Completely closes their office right after April 15th
Bases fees on a percentage of your refund
Guaranteeing refunds
Preparers
Who Files This?
Form 1040NR
Form 1040
Residents/Citizens of the U.S.
Resident aliens of the U.S.
Do I Qualify?
1040-EZ
1040NR - EZ
Do I Qualify?
Who Files This?
Non-Residents of the U.S.
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
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?
Are you a full time student?
Are you in substantial compliance with your visa?
Have you been in the U.S. for any part of more than 5 calendar years?
NO
NO
NO
You Must Apply the Substantial Presence Test
Substantial Presence Test
Total days in U.S. = 183+
Present in the U.S. for 31 days of the current year (2012)
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 (2012, 2011, 2010). Use the following formula to test:
&
You are a Resident for
U.S. Tax Purposes
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
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?
Are you a full time student?
Are you in substantial compliance with your visa?
Have you been in the U.S. for any part of more than 5 calendar years?
NO
NO
NO
You Must Apply the Substantial Presence Test
Substantial Presence Test
Total days in U.S. = 183+
Present in the U.S. for 31 days of the current year (2012)
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 (2012, 2011, 2010). Use the following formula to test:
&
You are NOT a U.S. Resident for Tax Purposes
&
Meet the Substantial Presence Test, but chooses to be treated as a resident of a foreign Country
Filed Form
8833
or
8843
YOU QUALIFY TO FILE
FORM 1040NR
YOU QUALIFY TO FILE
FORM 1040
1
2
3
4
5
6
7
8
9
10
11
No Dependents Claimed
Can not be claimed as a dependent
U.S. sources of income only came from wages, salaries, tips, taxable state and local income tax refunds, scholarships, and grants
Taxable income is less than $100,000
Only exclusion is for scholarship and fellowship grants, and only adjustment to income is for the student loan interest deduction
No Tax Credits Claimed
If married, no exemption claimed for the spouse
Only itemized deduction claimed is for state and local income taxes
Only owe income taxes
No claim for excess social security and tier 1 RRTA tax withheld
Not filing an "expatriation" return
If you don't meet all the Requirements for a 1040NR-EZ then you must file
1040NR
Social Security
&
Medicare Taxes
Tax Treaties
1040
Generally must file as "
SINGLE
" or "
MARRIED FILING SEPARATELY
" for the filing status
FILING FORM 1040NR
Can
NOT
file as
HEAD OF HOUSEHOLD
Nonresidents married to residents may choose to file as
MARRIED FILING JOINTLY
Generally can claim only
ONE PERSONAL EXEMPTION
Nonresidents from
CANADA
,
INDIA
,
MEXICO
, and
SOUTH KOREA

may
be able to claim their spouse and children as dependents
Generally
NOT
Eligible for the standard deduction
Australia
Austria
Bangladesh
Barbados
Belgium
Bulgaria
Canada
China
Cyprus
Czech
Republic
Denmark
Egypt
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
India
Indonesia
Ireland
Israel
Italy
Jamaica
Japan
Kazakhstan
Korea, South
Latvia
Lithuania
Luxemberg
Malta
Mexico
Morocco
Netherlands
Norway
New Zealand
Pakistan
Philippines
Poland
Portugal
Romania
Russia
Slovak Republic
Slovenia
South Africa
Spain
Sri Lanka
Sweden
Switzerland
Thailand
Trinidad & Tobago
Tunisia
Turkey
Ukraine
United Kingdom
Venezuela
Armenia
Uzbekistan
Azerbaijan
Belarus
Georgia
Kyrgyzstan
Moldova
Tajikistan
Turkmenistan
Nonresidents generally
DO NOT

qualify for tax Credits.
CHILD TAX CREDIT
EARNED INCOME CREDIT
EDUCATION CREDITS
FOREIGN TAX CREDIT
Nonresidents may be able to claim if
ALL
of the following are met:

Child is
U.S. Citizen
,
National
, or
Resident Alien
Child is
Son
,
Daughter
,
Adopted Child
,
Grandchild
,
Stepchild,
or
Foster Child
Child was
Under Age 17
at the end of the year
Child is claimed as their
dependent
Child has a
SSN
If you are a nonresident for any part of the year then you generally will
NOT
qualify for Education Credits, such as:

American Opportunity
Lifetime Learning
Hope
This is usually not available to nonresidents, since their foreign income is usually not reported on the U.S. income tax return
An individual who is a nonresident for
ANY
part of the year does not qualify for this.
You are responsible for knowing if your country has a tax treaty with the U.S. and how it will influence your income tax return
Your current citizenship determines which tax treaty you can apply to your income tax return
If you have dual citizenship, then you apply the treaty for the country where you most recently resided
If you want to take a treaty position in order to file form 1040NR and claim the benefits of a tax treaty you would file
Form 8833
.
Medicare and Social Security taxes should not be withheld from your pay
If they are withheld, contact your employer for a refund of those taxes
If your employer does not refund the withheld taxes, then file
Form 843
for a reimbursement of the wages removed
If you file Form 1040 you may be eligible to claim any of the tax credits available, so long as you meet the requirements
However, your wages are not exempt from taxes
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
V.I.T.A
(Volunteer Income Tax Assitance)
They can help you file current year taxes for FREE

You can Volunteer and be trained on how to file your taxes
TAS
IRS.GOV
IRS Assistance Center
Taxpayer Advocate Service
817 S. Freedom Blvd
Provo, UT 84601
www.centrohispanouc.org
litc@centrhispanouc.org
801-655-0258
801-691-5293
&
You Could become your own tax preparer by Volunteering with V.I.T.A and getting trained on Taxes!
Become more proficient about the requirements and restrictions associated with each form through
Volunteering
with
V.I.T.A
and going through their training
You can get more information about how tax treaties can influence your income tax return by
VOLUNTEERING
with
V.I.T.A.
10
1
2
3
4
5
6
7
8
9
Your filing status is single or married filing jointly.
You do not claim any dependents.
You do not claim any adjustments to income.
You claim only the earned income credit.
You (and your spouse if filing a joint return) were under age 65 and not blind at the end of 2011.
Your taxable income is less than $100,000.
You had only wages, salaries, tips, taxable scholarship or felowship grants, unemployment compensation, or Alaska Permanent Fund dividends, and your taxable interest was not over $1,500
If you earned tips they are included in boxes 5 and 7 on your Form W-2
You do not owe any household or employment taxes on wages you paid to a household employee.
You are not a detor in a cahpter 11 bankruptcy case filed after October 16, 2005
If you don't meet all the Requirements for a 1040-EZ then you must file
Full transcript