Non U.S. Residents Taxes (NRA) · Taxes (NRA) Tax Year 2018. Agenda > Important Information for...
Transcript of Non U.S. Residents Taxes (NRA) · Taxes (NRA) Tax Year 2018. Agenda > Important Information for...
Non U.S. Residents
Taxes (NRA)
Tax Year 2018
Agenda
> Important Information for 2018 Returns
> U. S. Source of Income
– Scholarships, Fellowship, Stipend payments
– Tuition Waivers
– Prizes
– Wages & Salary
– Child Care Payment From UW
> Social Security Number / ITIN
> Tax Treaty Benefits & Tax Forms
> Two Different Glacier programs
> Questions
2 | Revised March 26, 2019
Important Information
> Deadline to file tax return: April 15, 2019
> No personal exemption in 2018
> Two Separate Glacier Programs
– Glacier Tax Compliance from Payroll office
– Glacier Tax Prep from ISS Office
3 | Revised March 26, 2019
Nonresident Alien
Any student on a visa status is considered
a nonresident alien.
4 | Revised March 26, 2019
> Under special conditions, you may elect to file
income tax as a resident alien
> Even if you can file a tax return as a resident,
your visa status will not change, you are still a
nonresident for immigration purposes
> See IRS publication 515 for more information: https://www.irs.gov/pub/irs-pdf/p515.pdf
U.S. Source Income(Includes funds received from the University of Washington)
> UW reportable income is summarized on the
following tax documents:
– W-2: Taxable Wage or Salary Income
– 1042-S: Scholarships or Stipend Income
– 1042-S: Wages covered under claimed tax treaty
– 1098T: Tuition Statement
– 1099-Misc: Other Income
Income from outside the U.S. is not considered in
calculations for U.S. tax
5 | Revised March 26, 2019
U.S. Source Income - Childcare
Childcare funds received from the Financial Aid Office
that were disbursed into your student account in 2018
will be counted as taxable income.
6 | Revised March 26, 2019
Scholarships, Awards and Stipends (paid through Student Fiscal Services)
> Scholarships, awards and stipends given to nonresident alien
students are taxable income except when it is used to pay for:
– Tuition and fees required for enrollment or attendance
– Fees and books required for courses
> If the award is greater than $3,000 in a quarter, SFS will withhold
tax at 14% prior to disbursement to student
> SFS may also withhold federal taxes by the year end
7 | Revised March 26, 2019
U.S. Source Income –
Taxable Scholarship or Fellowship Grants
> Paid to F, J, M, and Q visa holders
> Subject to withholding at a rate of 14% to the extent
that the amount awarded exceeds tuition charges and
you have a Social Security number
> Other income (non scholarship) may be subject to
rates of federal withholding up to 30%
8 | Revised March 26, 2019
Tax Treaty Benefit for Scholarship
To claim a tax treaty benefit for scholarship money from Student
Fiscal Service:
> A SSN or ITIN is required and
> Form W-8Ben must be submitted each year for those eligible to
claim the benefit
– Send W-8Ben to Box 355870 or
– Deliver Form Form W-8Ben to Room 129 Schmitz Hall
> Otherwise, federal withholding taxes will be withheld on
scholarship payments
> IRS List of tax treaty countries :
https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables
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Tax Treaty Benefit Information for Scholarship Earnings
> Form W-8Ben
– https://www.irs.gov/pub/irs/fw8ben.pdf
> Form W-8Ben instructions
– https://www.irs.gov/pub/irs-pdf/iw8ben.pdf
> IRS List of tax treaty countries---Publication 901
– https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables
> IRS Publication 515: Withholding of Tax on Nonresident Aliens
– https://www.irs.gov/pub/irs-pdf/p515.pdf
10 | Revised March 26, 2019
IRS Form W-8BEN
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Social Security Number (SSN)
> Please review the International Student Services
(ISS) website to check your eligibility and the
procedures for applying for an SSN:
– iss.washington.edu/employment/ssn
> When you receive your SSN:
– Submit a copy to the Registrars Office and
– Update your Glacier Tax Compliance record and
– Submit a copy to the ISC-Payroll
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Individual Tax ID Number (ITIN)
If you are not eligible for a SSN:
> Gather the necessary documents and information to complete
the online request for ITIN support letters form ISS
– Scan a photo of your UW scholarship/fellowship/grant letter
> Complete the online request for ITIN support letters from ISS
> Allow 10 business days for ISS processing
> After you pick up the ITIN support letters from ISS, email the UW
ITIN office at [email protected] to schedule an appointment
– Bring: Original I-20 or DS-2019, passport, and visa
> ITIN procedures: https://iss.washington.edu/procedures/itin
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Payroll – Integrated Service CenterGlacier Tax Compliance Software
Compiles employee foreign national information to determine the accurate
taxing of our foreign national students, faculty and staff through the Payroll
Workday system
> This is a secure web-based system that enables the tracking of visa,
passport, entry dates, country of residence, country of citizenship, U.S.
address, foreign address, Social Security number or ITIN for accurate
reporting
> Generates an individualized tax summary page for each employee
> Glacier evaluates each individual tax situation and populates the
appropriate tax forms. Examples of these forms are the 8233, W-8Ben,
and W-4 federal withholding form
> You can contact a Payroll Foreign National Specialist at
ics.uw.edu/your-pay-taxes/foreign-nationals14 | Revised March 26, 2019
Scholarships, Awards and Stipends (paid through Payroll – Workday)
> The Payroll Office determines tax status based on Glacier Tax
Compliance information
– Withholds employment taxes from salary and wage payments
– Withholds federal taxes from stipend earnings at 14%
> Earnings may be exempt from federal withholding taxation if the
employee is eligible for tax treaty benefits
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Tax Treaty Benefit
To claim a tax treaty benefit for Payroll wages and or
scholarship money, you must complete Glacier Tax
Compliance web program:
> Submit Glacier Tax Compliance packet with all required
documents and forms to:
– ICS-Payroll Box 359555
> Treaty Benefits for eligible employees require a SSN or
ITIN
> Treaty benefits require annual renewal
> Employees eligible for treaty renewals will be notified each
November
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Tax Form Information
> The University of Washington prepares many different IRS
federal tax documents
> The most common are Form W-2, Form 1098-T, Form
1042-S and Form 1099-Misc
> The following webpage has information about each form
and how to retrieve your tax documents:
– https://isc.uw.edu/your-pay-taxes/year-end-tax-resources/
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Tax Form W-2
You may receive this form from your employer if you
have a job on campus or off campus.
> Reports taxable wages & taxes paid, not claimed
under a valid tax treaty
> Issued before January 31 every year
> UW Form W-2 is available online in Workday under
the Pay worklet
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Tax Form 1042-S
> You will receive a 1042-S for:
– Wages claimed under a tax treaty benefit paid through Payroll
– Stipends claimed under a tax treaty benefit paid through Payroll
– Scholarship or stipend money that is in excess of tuition fees AND
is U.S. source of funds
> You will not receive a 1042-S for:
– Scholarship money that is paying tuition & fees only
OR
– Is not U.S. source of funds
You may receive multiple forms 1042-S, one for each type of income
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Tax Form 1042-S continued…
> 1042-S Tax Forms will be available in Glacier Tax
Compliance
– Electronic notifications were sent on March 5th
– Paper 1042-S tax forms will be postmarked by March 8th
> Glacier Tax Compliance determines how the University
of Washington should tax an individual employee’s pay.
This system also prepares the IRS Form 1042-S
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Tax Form 1042-S Sample
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Tax Form 1098-T
> Nonresident alien students do not qualify for American
Opportunity or Lifetime Learning tax credits.
> You will not receive the 1098T tax form
– Exception:
> When you meet the Substantial Presence Test or if you are married to a resident
or citizen
and
> You elect to file a tax return as a resident alien
You can request a 1098T by email to: [email protected] with your
student number
22 | Revised March 26, 2019
Canadian Tax Form TL11A
Tuition, Education and Textbook
Amounts Certificate
> University outside Canada
Include your student number when
contacting Student Fiscal Services
for help completing the form:
finance.uw.edu/fm/sfs/tax/canada
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IRS Tax Form
Employers & Businesses are required to submit tax data to the IRS
> The most common forms submitted by employers & the UW
include Forms W-2, 1042-S, 1098-T & 1099-Misc
> Students who received any of these forms are required to file a
personal tax return with the IRS
> Non Resident Alien Students use Tax Form 1040NR or 1040NR-
EZ
The IRS compares employer/business information submitted
against personal individual tax returns
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University of
Washington
Prepares IRS Form W-2,
1042-S & 1098-T
Forms submitted to IRS &
Employee/Student
Internal Revenue
Service
Matches tax data submitted by
employers/businesses to tax
forms submitted by individuals
Employee/Student
Combines all tax documents
from all sources & submits an
individual tax return to the
Internal Revenue Service
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IRS Tax Form 1040NR or 1040NR-EZ
To determine if you need to file a tax return:
> Read “Who Must File” in the instructions at:
www.irs.gov/pub/irs-pdf/i1040nre.pdf
If you need to file a tax return:
> Use 1040NR or 1040NR-EZ tax form
> Make sure you print out the tax form and mail it with a copy of
the W-2, 1042-S or 1099 Misc
> You cannot do E-file in Turbo Tax or H&R Block website or other
online tax programs when you file as a Nonresident Alien
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1040NR
Mail your tax return form to:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
U.S.A.
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1040NR-EZ
Mail your tax return form to:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
U.S.A.
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8843
If you do not have to file a
tax return, fill out Form
8843:
> If spouse is working, they
will need to file a tax return.
> If spouse is not working,
only file 8843.
Mail Form 8843 to:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
U.S.A.
29 | Revised March 26, 2019
ISS Tax Resources
iss.washington.edu/tax-information
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ISS Tax Resources
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Glacier Tax Prep
> Glacier Tax Prep helps the individual student prepare
their personal tax return file with the Internal Revenue
Service
– Tax filing due date for the IRS is on April 15 each year (except when
it falls on a weekend or holiday)
– Contact the ISS office if you have any questions for the access
code
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Glacier Tax Prep
Please be sure you have all of the following items ready and available:
> Visa
> I-94 Card
> Passport
> Form DS-2019, if J status individual
> Form I-20, if F status individual
> Social Security or Individual Taxpayer Identification Number
> U.S. Entry and Exit Dates for current and past visits to the U.S.
> Academic Institution or Host Sponsor Information (name/address/phone for Academic Director)
> Forms W-2, 1042-S and/or 1099 (if any)
> Scholarship/fellowship grant letter you may have received (if any)
> A copy of last year’s federal income tax return (Form 1040NR or 1040NR-EZ), if you filed a
federal income tax return last year
This tax preparation software program is provided for your use by the ISS Office at
the University of Washington. It is your personal responsibility as an international
student or scholar to file federal tax forms.
iss.washington.edu/tax-information
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IRS Resources
www.irs.gov
> IRS Publication 515 – Withholding of Tax on
Nonresident Aliens and Foreign Entities
– https://www.irs.gov/pub/irs-pdf/p515.pdf
> IRS Publication 519 – U.S. Tax Guide for Aliens
– https://www.irs.gov/pub/irs-pdf/p519.pdf
Individual Tax Help
1-800-829-1040
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Free Tax Preparation Assistance
> Help for students & foreign nationals is available through
the United Way VITA program, in conjunction with the UW
Foster School of Business Masters in Tax Program. More
details can be found here:
– http://faculty.washington.edu/elw4/
> Glacier Tax Preparation software is available for foreign
nationals holding an F or J status and who are
nonresident aliens for tax purposes
Important: No University of Washington department or
employee can provide tax advice to individuals
35 | Revised March 26, 2019
Free Tax Help
ON CAMPUS
File your tax return byUnited Way of King County VITA Site &the Foster School of Business
Ground Floor of Mackenzie HallJanuary 15 – April 19Monday & Wednesday: 4pm to 7pm Friday: 12pm – 3pm
https://www.uwkc.org/need-help/tax-help/
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UW Tax Resources
For Student Account questions (Form 1098-T) contact Student Fiscal
Services. Remember to always provide your student ID number.
UW student tax website:
finance.uw.edu/fm/sfs/tax
Student account questions?
Send email to: [email protected]
Student Fiscal Services
206-543-4694
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UW Tax Resources
For Payroll questions (Form W-2 & Form 1042-S) contact ISC - Payroll.
Remember to always provide your employee identification number.
UW ISC – Payroll website:
isc.uw.edu/your-pay-taxes/foreign-nationals or
FAQ: isc.uw.edu/your-pay-taxes/year-end-tax resources
Payroll questions?
Send email to: [email protected]
ISC – Payroll
206-543-8000
38 | Revised March 26, 2019