Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident...
Transcript of Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident...
![Page 1: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/1.jpg)
Federal Taxes for
International Students
Office for International
Students and Scholars
Updated 2/18/15
![Page 2: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/2.jpg)
Why File an Income TaxReturn?
It is the law!
Compliance with U.S. visa requirements
Get a refund of withheld taxes
Pay additional taxes if they are owed
![Page 3: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/3.jpg)
HowTaxes Work
• Employment
• GraduateAssistantships
• Scholarships
INC O ME
TAXES
Taxed scholarship/treaty
benefits= 14%
Employment= amount
depends on how often
you are paid and your
wages.
TAX RETURN
Used to determine
the amount of tax
you paid vs. the
amount of tax you
owed. Determines
whether you owe
more tax or if you
are owed a refund.
![Page 4: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/4.jpg)
Resident vs.Nonresident
Resident alien
Been in the U.S. for more than 5 calendar years, then
determined via Substantial Presence Test.
CurrentYear Days x1, plus 1st Previous Year Days x1/3, plus 2nd
Previous Year Days x1/6.
If total equals 183+, you are considered a resident for taxes
Cannot use GLACIER Tax Prep to file 1040/1040-EZ
Nonresident alien
Been in the U.S. for less than 5 calendar years
If no income (no employment/no scholarships)-Form 8843
If income- Form 8843 and 1040NR/1040NR-EZ
![Page 5: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/5.jpg)
International students need to file tax
documents to the U.S. Internal Revenue
Service (IRS) All students on F-1 or J-1 visas who have been in the
United States for any time during 2014.
F-1 or J-1 students who received any income within the
United States or taxable scholarships from U.S. source.
Money earned from OPT/CPT is also taxable.
Filing your tax documents is mandatory!
Basics
![Page 6: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/6.jpg)
You may get into trouble with the IRS
If taxes are owed and not paid, the IRS cancharge a penalty and interest, and seize themoney from bank accounts you have in theUnited States
Filing incorrectly can be just as costly!
The right software and tax forms can help you file correctly. Use GLACIER Tax Prep!
Beware of Turbo Tax (or similar programs) asa non-resident!
If you do not file a tax return…
![Page 7: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/7.jpg)
Using GLACIER Tax Prep is the best way!
GLACIER Tax Prep requires an access code. Obtain an access code by visiting OISS front desk or emailing [email protected] has free access codes for only 399students.
Nonresidents cannot file electronically!
GLACIER Tax Prep helps you prepare electronically, but you must print and send hard copies.
All students must file by April 15, 2015!
How to file your tax returns
![Page 8: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/8.jpg)
If you were employed in 2014: W-2 form issued by employer
Mailed to your local address
Available under my.emich.edu, if EMU was your employer
Understanding your tax forms— W-2
![Page 9: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/9.jpg)
Understanding your tax forms— 1042-S
You will get a 1042-S:
If you had more than one scholarship that exceeded your tuition costs
If you were awarded scholarships that included tuition, PLUS room/board (EMU athletes mostly)
If you had income and tax-treaty benefits
********************************************************
Should have received in the mail (local address)
If you have questions about the 1042-S, or you areeligible for a 1042-S but didn’t receive one, contactPayroll at [email protected].
![Page 10: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/10.jpg)
Form 1042-S
![Page 11: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/11.jpg)
Understanding your tax forms— 1098-T
Form1098-T (statement of tuition and fees paid). Used to claim credits. Nonresident aliens (in U.S. for less than 5 years) CANNOT claim this in order to get return on tuition/fees.
![Page 12: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/12.jpg)
1099INT: from a bank for interest earned on checking or savings accounts.
1099DIV: Interest earned on investments.Tax Prep.
Understanding your tax forms
![Page 13: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/13.jpg)
Social Security Number (SSN) If you have employment, you must have an SSN
Individual Taxpayer Identification Number (ITIN) If you have a taxable scholarship, but no income from employment, you
need to request an ITIN.
You can apply for an ITIN when filing your return.
GLACIER Tax Prep will issue you Form W-7 with your other tax documents if it recognizes that you will get a return.
Must submit a certified copy of your passport with Form W-7 A N Dan ITIN letter from OISS.
ITIN is only for tax purposes. Cannot be used in place of a SSN.
Read the GLACIER Tax Prep filing instructions CAREFULLY!
SSN and ITIN
![Page 14: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/14.jpg)
As soon as you have all necessary documents
and forms, you can file!
Different forms are issued at different times,
but all must be in-hand when you file.
File before April 15, 2015 (earlier isbest).
When is best to file
![Page 15: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/15.jpg)
Instructions
Read www.emich.edu/ois/tax.html
Obtain access code
Read instruction sheet
Go to www.glaciertax.com to begin/create log-in Use your GLACIER account from last year (if you had one)
If cannot remember previous one, select “Forgot Login”
Collect tax forms and immigration documents
Return as needed to complete process
When complete, mail tax documents according to instructions (mailing address included on instructions).
![Page 16: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/16.jpg)
Creating your account
![Page 17: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/17.jpg)
Enter Biographical Information
Enter name according to
SSN/ITIN, or passport ifyou
don’t have SNN/ITIN
Country of Tax Residence: U.S. not an option.“Typically,
your Country of Tax Residence is the same as you
Country of Permanent Residence; however, if you have
lived in a country other than your Country of
Permanent Residence immediately before coming to the
U.S. to study/work, you may have establishedTax
Residency in that country.”
![Page 18: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/18.jpg)
Step 1: Determine Residency
![Page 19: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/19.jpg)
Enter information about your visits
![Page 20: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/20.jpg)
Verify information from previous screen
![Page 21: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/21.jpg)
Results of resident status
![Page 22: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/22.jpg)
Enter Income
Add all the forms you
received.
Click this if you did not
receive any forms/did not
have income in 2014.
![Page 23: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/23.jpg)
Enter ApplicableForms
![Page 24: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/24.jpg)
FICA Taxes- SocialSecurity/Medicare
FICA
Taxes?
![Page 25: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/25.jpg)
FICA Taxes
![Page 26: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/26.jpg)
Withheld Social Security and Medicare-
How to get it back
Contact Employer first (by email/mail better
than verbal)
Form 843
Supplemental form 8316
Publication 519 -Page 43 “RefundofTaxes
Withheld in Error”
![Page 27: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/27.jpg)
TaxTreaties
![Page 28: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/28.jpg)
Step 3: Address- need to be able to receive mail
here (even in 3-4 months!)
![Page 29: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/29.jpg)
SSN or ITIN
Double check for
accuracy!!!
![Page 30: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/30.jpg)
Designated School Official Information
Already entered for you.
Do notchange.
![Page 31: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/31.jpg)
Step 4: Generate and Print Forms
If due a refund, choose payment option
Check will be in $USD and will take 4 more
weeks than deposit.
![Page 32: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/32.jpg)
Direct Deposit Option
Double check numbers!
Cannot be a foreign bank.
U.S. government will only deposit once!
![Page 33: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/33.jpg)
Married?
If yes, you need to
file 8843 forms for
them. If they had
jobs, they need to
file on own.
![Page 34: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/34.jpg)
Spouse/Children in U.S.?
![Page 35: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/35.jpg)
Additional Information
![Page 36: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/36.jpg)
Forms
![Page 37: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/37.jpg)
Common Misconceptions
Eligibility for treaty benefits exempts one from filing a tax return= NO
Nonresident aliens are eligible for education credits= NO
Nonresident aliens can use Turbo Tax, H & R Block,Taxslayer, etc.=NO
It is ok not to file the 8843= NO
Definition of word “Resident” Immigration definition
U.S. income tax definition
Tuition purposes definition
![Page 38: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/38.jpg)
Read and follow ALL instructions,including
copies of documents for ITIN request
Print and sign
Make copy and keep for 4 calendar years
Mail to address given on instructions! You
cannot file electronically!
Remember
![Page 39: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/39.jpg)
Mailing to the IRS
Your Name and Address
Internal Revenue Service
Address, per Instruction
Sheet
Stamp (Lobby Shop)
46 cents/stamp
![Page 40: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/40.jpg)
Tips for an easier filing
Read and utilize resources! OISS website
Use GLACIER Tax Prep buttons- “Help”,“More Info”
Use the GLACIER Tax Prep Frequently Asked Questions
Watch tutorial video on your main menu
Start early. You don’t need to complete the process at one time. You can return and continue filing.
Be sure to mail by April 15,2015
Can take up to 4 months to get your tax return (if you are due money)
![Page 41: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/41.jpg)
Utilize Support Options
More Info
FAQs
Help- Best way!!!
Video
![Page 42: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/42.jpg)
Help Email to Support Center
Generally answer within 24 hours.
No phone supportavailable.
![Page 43: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/43.jpg)
State of MichiganTaxes
Prepare your federal tax form first. If you only file Form 8843, you are not
required to file a State of Michigan Tax Form.
If you file 1040NR-EZ, look at Line 10 (Adjusted Gross Income). If the
amount listed on line 10 is less than $4,000, you are not required to file a
State of Michigan tax form.
If you file Federal Form 1040-NR look at line 7d (total number of
exemptions). Multiply line 7d by $4,000. If the result is greater than the
amount on Line 36 (Adjusted Gross Income), then you are not required
to file a State of Michigan tax form.
If you are required to file a State of Michigan tax form (MI 1040), you
should also file Schedule NR.
If you are due a refund, you may want to file even though it is not a
requirement.
![Page 44: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/44.jpg)
BEST RESOURCE- GLACIER Tax Prep
Office for International Students and scholars
Emily ([email protected])
Walk-In advising for Emily
Make appointment
EMU Payroll Office,[email protected]
Internal Revenue Service
www.irs.gov, 215-516-2000
If you have questions…
![Page 45: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/45.jpg)
Any other questions?
![Page 46: Taxes for International Students - Eastern Michigan … presentation.pdf · Resident vs.Nonresident Residentalien Been in the U.S. for more than 5 calendar years, then determined](https://reader031.fdocuments.in/reader031/viewer/2022030412/5a9e33367f8b9a75458bee25/html5/thumbnails/46.jpg)
THANK YOU!