1 / 22

BASIC TAX INFORMATION FOR F1 VISA HOLDERS

INTERNATIONAL STUDENTS TRINITY UNIVERSITY. BASIC TAX INFORMATION FOR F1 VISA HOLDERS. INTERNATIONAL STUDENTS TRINITY UNIVERSITY. COMPLY WITH IRS REGULATIONS REPORT ALL INCOME EARNED AND TAXES WITHHELD ONLY WAY TO RECEIVE REFUND OF TAXES WITHHELD. WHY FILE A TAX RETURN. RESIDENTS:

betrys
Download Presentation

BASIC TAX INFORMATION FOR F1 VISA HOLDERS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. INTERNATIONAL STUDENTS TRINITY UNIVERSITY BASIC TAX INFORMATION FORF1 VISA HOLDERS

  2. INTERNATIONAL STUDENTS TRINITY UNIVERSITY

  3. COMPLY WITH IRS REGULATIONS REPORT ALL INCOME EARNED AND TAXES WITHHELD ONLY WAY TO RECEIVE REFUND OF TAXES WITHHELD WHY FILE A TAX RETURN

  4. 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 HOW ARE RESIDENTS AND NON-RESIDENTS TAXED DIFFERENTLY?

  5. NON-RESIDENT ALIENS - $3800 FOR 2012 HOWEVER; STUDENTS MUST FILE IF: THEY HAVE A TAXABLE SCHOLARSHIP INCOME PARTIALLY OR TOTALLY EXEMPT BY TREATY ANY OTHER INCOME TAXABLE BY IRS FILING REQUIREMENTS

  6. 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. FILING NOT REQUIRED IF

  7. 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

  8. 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 WHO ARE EXEMPT INDIVIDUALS

  9. TAXABLE INCOME FOR EXEMPT INDIVIDUALS GENERALLY 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

  10. 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 ARE SCHOLARSHIP FUNDS TAXABLE?

  11. 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 NON-RESIDENT TAX FORMS

  12. 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 NON-RESIDENT TAX FORMS

  13. IMPACT 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) TAX TREATIES

  14. W-2 FORM FROM EMPLOYER – REPORTS WAGES EARNED – MAILED BY JAN 31 FORM 1042s - FOREIGN PERSON WITH INCOME SUBJECT TO WITHHOLDING – MAILED BY MAR 15 USED TO REPORT SCHOLARSHIP INCOME NOT EXCLUDED FROM GROSS INCOME AS A “ QUALIFIED SCHOLARSHIP” FILE FORM W-8BEN WITH UNIVERSITY OFFICE IF SCHOLARSHIP IS EXEMPT FROM TAXATION CAN BE USED TO REPORT WAGES EXEMPT UNDER A TAX TREATY SUPPORTING DOCUMENTS

  15. - 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 FAMILY ISSUES

  16. - FORM 8843 - U.S. SOURCE INCOME MUST BE REPORTED SPOUSE AND DEPENDENTS

  17. MOST NON-RESIDENT ALIENS CANNOT CLAIM THEIR DEPENDENTS – EVEN IF THE DEPENDENT IS A U.S. CITIZEN FILING STATUS AND DEPENDENTS

  18. NON-RESIDENTS WITH AN F1 VISA ARE EXEMPT FROM SOCIAL SECURITY AND MEDICARE TAXES IF RESIDENT FOR TAX PURPOSES, USUALLY SUBJECT TO FICA TAXES SOCIAL SECURITY TAX

  19. WHEN WITHHELD IN ERROR ASK EMPLOYER TO REFUND IF NOT REFUNDED, USE IRS FORM 843 TO REQUEST A REFUND FICA REFUNDS

  20. 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 DO I NEED A SSN OR ITIN

  21. IRS PUBLICATIONS PUB 519 TAX GUIDE FOR ALIENS PUB 901 TAX TREATIES TAX PREPARATION SPECIALISTS ADDITIONAL TAX RESOURCES

  22. PLEASE CONTACT: LARRY BARKER ENROLLED AGENT & MASTER TAX ADVISOR LARRY.BARKER@TAX.HRBLOCK.COM 210-653-6507 ADDITIONAL QUESTIONS

More Related