Post on 16-Dec-2015
TAX TERMS
• Tax Year: January to December
• Tax Season: January 31 to April 15
• Reportable Income: Income required to be reported to IRS either by payer or
individual
• Compensation: Money earned from working
• Interest: Either paid or earned (loans, bank account)
• Tax Reporting Form: Form institution reports income on
• Example: W-2, 1099, 1098-T
• Tax Return: Form you file your taxes on
• Example: 1040NR-EZ, 1040NR
• Filing Requirement: Amount used to determine if you need to file
TAX RETURN FILING PURPOSE
• You may earn reportable income from various sources during a tax year
• When you work, you complete Form W-4 to indicate how taxes should be withheld
NRAs have a mandatory Single, 1, NRA tax withholding
• By January 31 of following calendar year – tax reporting forms are filed by institutions and reported & sent to individuals via mail or electronically
• General Rule: You either have too much tax withheld OR not enough which is why you file a tax return
If you over paid = REFUND If you did not have enough tax withheld = you OWE $
FEDERAL TAX
1. Internal Revenue Service (IRS) – www.irs.gov
2. There are 4 tax categories defined by IRS
INDIVIDUAL TAX STATUS
If you are an international student working at TU, or received a travel award or scholarship, you need to determine if you are a:
• Nonresident Alien for tax purposes or• Resident Alien for tax purposes
If you are not sure, log into your Glacier to see:
https://www.arcticintl.com/portal/login.asp
If you forgot your login, click on Forgot Login
FEDERAL – HOW TO BEGIN
1. Collect your tax forms! Form W2, 1042-S
2. Do I have to file a tax return? YES - If you earned more than $3,950 in 2014 and tax was withheld (Look at Box 2 on your W2 Form)
NO - If you earned more than $3,950 in 2014 and tax was withheld
3. Educate Yourself about How to File It’s your responsibility as F1/J1 student!
•Review IRS videos on YouTube
•Read Publications & Instructions for Forms
•Social Media Updates
FILING REQUIREMENTS CHECK IRS WEBSITE!
• 8843 = Everyone For all F, J, M, and Q “exempt individuals”
Spouse and children (F2/J2)
• Requirements may change each year Currently no need to file if total income < personal
exemption and no tax was withheld If tax was withheld should file for refund
• State tax return See state tax agency requirements discussed below
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
FORM 8843F, J, M, Q
All individuals
Rules for Signing & Due Date
•If submitting with tax return, no need to sign•Due April 15th of each year (or required date)______________________________
•If no tax return required, sign and mail to address in instructions•Due June 15th of each year (or required date)
Things to Note:•Put January – December of year•If no Tax ID #, leave blank•Follow instructions for name & address•All individuals complete Part 1•Teachers/Trainees go on to complete Part II•Students complete Part III•Leave Part IV & V blank (page 2)•RAs not required to complete
FORM 8843 – P. 2
Signing when not required is not a problemSign if filing alone (no tax return)
Don’t sign if submitting with tax return
FORM 1040NR-EZ
PAGE 1Tips:•Collect all tax reporting forms first! (W2, 1099)•Always file federal first, state second•Line 3 = Add total wages for all jobs in past year•Line 5 = Scholarship income (1042-S)•Line 6 = Total amount exempt by treaty (same amount as on p. 2)•Students from India may take standard deductions; others cannot
Treaty Information: http://www.irs.gov/Individuals/International-Taxpayers/Tax-Treaties
•Line 7: Do the math! •Tax Table located in Instructions•Line 8 & 9: N/A
Reminder - Current Rule:−If person earns less than personal exemption amount AND no tax withheld (Box 2 of W2)−Then no need to file tax return (just Form 8843)−If tax was withheld, should file to get full/partial refund−If earned over personal exemption amount, must file
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
FORM 1040NR-EZ
PAGE 2Tips:
•Line B Where were they living (not
visiting) prior to coming to US•Line E
F, J, M or Q status•Line F (for current visit)
Ex: J1 to F1•Lines G & H
OK to estimate•Line I
What type of tax return filed in previous year
•Line J Only those who are eligible for
treaty benefits (refer to country list by searching on IRS website)
http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens
NRA TAX FILING: RESOURCES Internal Revenue Service – NRA VITA Sites
http://www.irs.gov/pub/irs-pdf/p4152.pdf
IRS Link & Learn for Foreign Students
http://www.irs.gov/individuals/students/article/0,,id=177686,00.html
IRS Non Resident Alien Toolkit
http://www.irs.gov/pub/irs-pdf/p4152.pdf
IRS Publication 901 – US Tax Treaties
http://www.irs.gov/pub/irs-pdf/p901.pdf
IRS Publication 519 – US Tax Guide for Aliens
http://www.irs.gov/pub/irs-pdf/p519.pdf
Glacier TaxPrep – Software for NRA Tax Filing! (Arctic International)
https://www.arcticintl.com/gtp.asp
Tax Agencies: State
• Comptroller of Maryland – www.marylandtaxes.com
• State of Maryland has different definitions for Nonresident Alien Resident Alien – where were you living at end of year
• MD does not recognize tax treaties