BASIC TAX INFORMATION FOR F1 VISA HOLDERS
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BASIC TAX INFORMATION FORF1 VISA HOLDERS
INTERNATIONAL STUDENTSTRINITY UNIVERSITY
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INTERNATIONAL STUDENTSTRINITY UNIVERSITY
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WHY FILE A TAX RETURN
COMPLY WITH IRS REGULATIONS
REPORT ALL INCOME EARNED AND TAXES WITHHELD ONLY WAY TO RECEIVE REFUND OF TAXES WITHHELD
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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
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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
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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.
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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
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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
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TAXABLE INCOME FOR EXEMPT INDIVIDUALSGENERALLY 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
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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
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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
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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
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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)
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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
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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
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SPOUSE AND DEPENDENTS
- FORM 8843
- U.S. SOURCE INCOME MUST BE REPORTED
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FILING STATUS AND DEPENDENTS
MOST NON-RESIDENT ALIENS CANNOT CLAIM THEIR DEPENDENTS – EVEN IF THE DEPENDENT IS A U.S. CITIZEN
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SOCIAL SECURITY TAXNON-RESIDENTS WITH AN F1 VISA ARE EXEMPT FROM SOCIAL SECURITY AND MEDICARE TAXES
IF RESIDENT FOR TAX PURPOSES, USUALLY SUBJECT TO FICA TAXES
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FICA REFUNDS
WHEN WITHHELD IN ERROR
ASK EMPLOYER TO REFUND IF NOT REFUNDED, USE IRS FORM 843 TO REQUEST A REFUND
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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
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ADDITIONAL TAX RESOURCES
IRS PUBLICATIONS
PUB 519 TAX GUIDE FOR ALIENS
PUB 901 TAX TREATIES
TAX PREPARATION SPECIALISTS
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ADDITIONAL QUESTIONSPLEASE CONTACT:
LARRY BARKERENROLLED AGENT & MASTER TAX
210-653-6507