1 WELCOME U. S. Taxation For International Students and Scholars F, J, M, Q Visa Holders

2 Disclaimer This information was put together by Human Resource Services and International Student and Faculty Office for reference only. It does not constitute legal or tax advice. Individuals should see their tax counsel regarding their tax obligations. This information was put together by Human Resource Services and International Student and Faculty Office for reference only. It does not constitute legal or tax advice. Individuals should see their tax counsel regarding their tax obligations.

3 Program Objectives l To familiarize you with the laws governing, publications and other resources available to you for filing U. S. income tax return

4 Lesson 2 Who Must File

5 Filing requirements for NonResident Aliens-Individuals who are not a U.S citizen Filing requirements for NonResident Aliens-Individuals who are not a U.S citizen All “exempt” individuals - Form 8843All “exempt” individuals - Form 8843 A nonresident alien who is not required to apply the Substantial Presence Test F, J, M, Q individuals must file 1040NR or 1042NR-EZ only if you have income subject to tax (See IRS Publication 678FS for detail information on which of the forms is best for you to fill out)F, J, M, Q individuals must file 1040NR or 1042NR-EZ only if you have income subject to tax (See IRS Publication 678FS for detail information on which of the forms is best for you to fill out)

Who Must File If you made $ or less (personal exemption) and had no taxes withheld, you may only fill out Form If you made $ or less (personal exemption) and had no taxes withheld, you may only fill out Form

7 IRS FORMS FOR FILING TAX RETURN Form 1040NR or Form 1040NR- EZ (See IRS publication 678FS for detail information on which form is best for you to fill out? Form 1040NR or Form 1040NR- EZ (See IRS publication 678FS for detail information on which form is best for you to fill out? Form 8843 Statement For Exempt Individuals and Individuals with medical condition. ( Students or scholars who had no income are still required to file Form 8843) Form 8843 Statement For Exempt Individuals and Individuals with medical condition. ( Students or scholars who had no income are still required to file Form 8843) Form IL-1040 Illinois Individual Income Tax Return Form Form IL-1040 Illinois Individual Income Tax Return Form

8 1040NR-EZ instead of 1040NR You do not claim any dependents You do not claim any dependents You cannot be claimed as someone’s dependent on a U.S. tax return You cannot be claimed as someone’s dependent on a U.S. tax return Your only U.S source income was from wages, salaries, tips, taxable refunds of state/local income taxes, & scholarships or fellowships Your only U.S source income was from wages, salaries, tips, taxable refunds of state/local income taxes, & scholarships or fellowships Your taxable income <$100,000 Your taxable income <$100,000

9 1040NR-EZ instead of 1040NR Only adjustments are student loan interest or scholarship exclusion Only adjustments are student loan interest or scholarship exclusion You do not claim any tax credits You do not claim any tax credits If married, you do not claiming exemption for spouse If married, you do not claiming exemption for spouse Only itemized deduction you can claim is state/local income taxes Only itemized deduction you can claim is state/local income taxes Only tax owed is from tax table or social security and Medicare on tip income Only tax owed is from tax table or social security and Medicare on tip income

10 When, Where, and Why to File When When Tax returns by April 15th 2015Tax returns by April 15th 2015 If filing form 8843 only or if only income is scholarship by June 15If filing form 8843 only or if only income is scholarship by June 15 Where Where Internal Revenue Service CenterInternal Revenue Service Center Austin, TX Austin, TX Why Why Compliance with all U.S. laws requiredCompliance with all U.S. laws required

Form 1040NR-EZ If you are filing form 1040NR-EZ, you can claim “Single nonresident alien” or “Married nonresident alien” as your filing status.

12 Unusual Cases Japan, Korea, Mexico, Canada, India may claim dependents to some extent Japan, Korea, Mexico, Canada, India may claim dependents to some extent UK and 4 others--retroactive time limit in teaching clauses UK and 4 others--retroactive time limit in teaching clauses If German student stays beyond 4 years, all benefits lost retroactively If German student stays beyond 4 years, all benefits lost retroactively Barbados, Hungary and Jamaica can be U.S. resident upon arrival Barbados, Hungary and Jamaica can be U.S. resident upon arrival

13 Filing Status Nonresident Aliens Nonresident Aliens Must use: Unmarried - SingleUnmarried - Single Married - Married filing separateMarried - Married filing separate

14 Spousal Exemption Nonresident Aliens from: Nonresident Aliens from: CanadaCanada MexicoMexico JapanJapan South KoreaSouth Korea IndiaIndia may be able to claim an exemption for their spouse

15 Spousal Exemption Nonresident Aliens, rules for claiming: Nonresident Aliens, rules for claiming: Canada and MexicoCanada and Mexico If no gross income and not a dependent on another U.S. tax return If no gross income and not a dependent on another U.S. tax return Japan and South KoreaJapan and South Korea Must live with taxpayer. If student or scholar has foreign source income - must prorate exemption Must live with taxpayer. If student or scholar has foreign source income - must prorate exemption India - Only students & business apprenticesIndia - Only students & business apprentices If no gross income and not a dependent on another U.S. tax return If no gross income and not a dependent on another U.S. tax return

16 Tax Credits General Rule: General Rule: NRA taxpayers do not qualify for any of the following credits:NRA taxpayers do not qualify for any of the following credits: Child Tax Credit Child Tax Credit Child Dependent Credit Child Dependent Credit Education Credits Education Credits Earned Income Tax Credit Earned Income Tax Credit Exceptions apply for certain countries Exceptions apply for certain countries

17 WAGE INFORMATION FORMS W-2 FORM W-2 FORM 1042-S 1042-S

18 Form 8843 Establishes for the IRS that you and/or your dependents are nonresident for tax purposes Establishes for the IRS that you and/or your dependents are nonresident for tax purposes Name and number should match your social security card/ITIN card exactly. Name and number should match your social security card/ITIN card exactly. Complete Part II for Scholars Complete Part II for Scholars Complete Part III for Students Complete Part III for Students * Signature required if not filing 1040NR or EZ

19 Form 1040NR This form is 5 pages long

20 Form 1040NR-EZ This form is 2 pages long

21 Form 8843 Establishes for the IRS that you and/or your dependents are nonresident for tax purposes

22 Form IL-1040

23 W-2 form: Wage and Tax statement

24 Form 1042-s: Foreign Person’s U.S. source Income Subject to Withholding

25 When When Tax returns by April 15 th 2015Tax returns by April 15 th 2015 Where Where Internal Revenue Service CenterInternal Revenue Service Center Austin, TX Austin, TX Why Why Compliance with all U.S. laws requiredCompliance with all U.S. laws required When, Where, Why to File

26 How to get forms IRS Website: Illinois Department of Revenue website:

27 IRS CONTACT INFO IRS Toll free number IRS Toll free number International Tax Law hotline International Tax Law hotline This is not a toll free number This is not a toll free number

28 IRS PUBLICATIONS Publication 519, U.S. Tax Guide for Aliens Publication 519, U.S. Tax Guide for Aliens Publication 901, U.S. Tax Treaties Publication 901, U.S. Tax Treaties

TAX HELP DeKalb Senior Center: 330 Grove St DeKalb. Every Tuesday from 1:00 to 4:00. Call for appointment SYCAMORE METHODIST CHURCH: 160 Johnson Ave, Sycamore. Wednesdays 12:00 to 4:00. Walk-ins DeKalb Public Library: 309 Oak Street. Saturdays from 9:30 to 12:30. Starting Feb 7 th to April 11 th

TAX HELP STUDENT TAX PREP 151 WEST LINCOLN HWY DEKALB IL Check their website for hours of operation Goodwill Every Tuesdays starting Feb 3rd S. Annie Glidden Road. Must call for appointment

Important Reminders Always Keep a copy of any tax papers you send to IRS Always Keep a copy of any tax papers you send to IRS Be sure to sign your return Be sure to sign your return Attach one copy of Form W-2 to your tax return Attach one copy of Form W-2 to your tax return Attach one copy of Form 1042-S to your tax return Attach one copy of Form 1042-S to your tax return Mail your return by April 15, 2014 to IRCS, Austin, TX Mail your return by April 15, 2014 to IRCS, Austin, TX