Controller’s Office Tracy Lee 415-476-4006 t racy.lee@ucsf.edu

1. Nonresident Alien Tax Workshop Using GLACIER Tax Prep as a tool for self-preparation of 2011 Federal Tax Returns for Nonresident Alien Employees and Fellows/Scholars Controller’s Office Tracy Lee 415-476-4006 tracy.lee@ucsf.edu

2. Keep in mind • Resident or Non-resident Alien Tax Status • NOT the same as immigration status • Form 8843 • Required for ALL nonresident aliens who were present in 2011 regardless of payments or work status. This includes spouses and dependents. • State of California Tax Workshop • February 28, 2012 @ 11am Cole Hall, Parnassus • URL for live stream and on-demand playback for today’s session: • http://lecture.ucsf.edu/ETS/Catalog/pages/catalog.aspx?catalogld=26643771-Occ9-45af-8566-8c3ccb203f52 Please save questions until the end of the presentation Please note this is an info session. UCSF personnel are prohibited from giving individual tax advice. Please consult with a tax advisor.

3. Residency status for J professor and researcher visa holders

4. Residency status for F and J student visa holders

5. What is Form 1042-S? Form 1042-S is similar in purpose to Form W-2 for reporting certain income paid to nonresident alien employees, fellows and scholars Nonresident alien employees might receive a 1042-S only, a W-2 only, or both a 1042-S and a W-2 There is no overlap for amounts reported on Form 1042-S and amounts reported on Form W-2. If you receive both, then information from both forms must be considered when completing Federal and state tax returns

6. What is Form 1042-S? • Form 1042-S is used to report each payee’s • Type of income paid • Applicable tax rate or reason for tax exemption • Total amount of income tax withheld, if any • Country of tax residence • Other miscellaneous payee information

7. Who is eligible to receive Form 1042-S? • Employees (income codes 18 or 19) with an amount in “Gross Income” and an amount in “Tax Treaty Exemption Claimed” will trigger a form • Nonresident alien students/scholars who received a non-service scholarship/fellowship (income code 15). An amount in “Gross amount paid” will trigger a form • This includes Postdoc Paid Directs who pay imputed income on their health benefits

8. How to complete your tax return using GLACIER Tax Prep? • There are two methods of getting into GLACIER Tax Prep (GTP) • Through the GLACIER portal • Only for clients who have a GLACIER login ID • https://www.online-tax.net/ • Through the GTP portal • For individuals who have never used GLACIER • Must use special Access Code • https://www.glaciertax.com

9. Using GTP via GLACIER Portal • Point your browser to the GLACIER portal. https://www.online-tax.net/ • Click “Login Now” and enter your User ID and Password • From the User Activities Menu, select “I am ready to complete my tax return using GTP” • On the next screen, GLACIER will ask you to verify important information before it automatically directs you to the GTP site • Verify that the information is complete & correct, edit the information (if necessary) on the GLACIER Information Update or Verification screen . If correct, select “Yes,” and click “Next”

11. Using GTP via GLACIER cont’d. • You will see the “Welcome to GLACIER Tax Prep” screen and you can now enter GTP to complete your U.S. income tax return • GLACIER automatically transfers some of your information into GTP so you don’t need to enter all of your personal information again • Please review this information carefully to ensure that it is accurate and up to date

12. Accessing GTP for those NOT in GLACIER • https://www.glaciertax.com • A Common Access Code has been generated for individuals not in GLACIER • Please refer to ISSO handout for access code • If you don’t have a GLACIER user ID, but you logged directly into CINTAX last year, you will need the user ID you previously established

27. Tax Filing for Residents for Tax Reporting Purposes with a Tax Treaty Exemption Even with a tax treaty, individuals who become Residents for Tax purposes during 2011 cannot file using GTP A Nonresident Alien with a tax treaty who became a Resident for tax reporting purposes during 2011 should have received both a W-2 and a 1042-S Must file as a Resident Alien using Form 1040 (not Form 1040A or Form 1040-EZ) Complete all the income lines as applicable including any amount that is tax treaty exempt On Line 21 (Other Income), enter a negative number for the total amount of your tax treaty exempted income so that when Line 22 is totaled, the tax treaty exempt amount will in effect be subtracted

28. Tax Filing for Residents for Tax Reporting Purposes with a Tax Treaty Exemption (continued) In the box on Line 21, write “U.S-(country) tax treaty, Article (article number) Attach page 5 of Form 1040-NR to the back of Form 1040. On Page 5, write your name, SSN, and “Resident Alien with Tax Treaty exemption” written at the top and ONLY question L completed Attach Form 1042-S Copy C to the documents Mail the tax return and Page 5 of Form 1040-NR to U.S. Treasury Department Internal Revenue Service Center Austin, TX 73301-0215

29. Nonresident Aliens Eligible for a Tax Treaty Who Did Not Claim in 2011 • Nonresident Aliens for tax purposes who may be eligible to claim a tax treaty but did not in 2011 are still eligible • After filling in W-2 information, if eligible, GTP will ask whether individual wants to claim a tax treaty (Step 2)

31. Country without U.S. Treaty Agreement • Nonresident Alien employees from a country without a tax treaty should have received only a W-2 • Nonresident Alien students/fellows/scholars (non-employees) should have received at least a 1042-S • GTP is accessible for them to prepare a tax return

32. When to File? • Do not file your tax return late! • Deadline is Tuesday, April 17, 2012 • Tax Forms completed via GTP must be printed and mailed to the IRS (no E-File) • Those who became “residents for tax reporting purposes” during 2011 should consider using TurboTax or consulting a tax professional • Nonresidents must file as individuals, and cannot file as “Married filing Jointly” 32

33. Update your Records • To prevent documents being sent to a wrong address, you must update personal information changes in GLACIER as well as AYSO (employee self service). • New home or mailing address and/or e-mail address • Nonresident aliens going back to home country • In GLACIER, click “individual does not live in the U.S.” box before you leave • AYSO: http://atyourservice.ucop.edu/ 33

34. Thank You! Questions?