1. New York State Department of Taxation and Finance Resident Alien International Students and Scholars Spring 2009 Workshop

2. Please Note: The PowerPoint presentation, handout and a webcast of this presentation are available at www.buffalo.edu/intlservices/ tax4.html

3. Toll Free Tax Information 1-800-225-5829 (foreign language assistance is available) VISIT OUR WEB SITE www.nystax.gov

4. New York State (NYS) Income Taxes New York State’s definition of Resident and Nonresident, for income tax purposes, differs from the Internal Revenue Service’s definition. Therefore, you may be considered a resident alien for federal income tax purposes and still be considered a nonresident for New York State tax purposes or vice versa.

5. NYS Conforms with Internal Revenue Service  Your Federal Adjusted Gross Income (from Form 1040-EZ, 1040-A or 1040) is the starting point in computing your NYS personal income tax return.  NYS Source Income for nonresidents is the Federal Income you reported to the IRS that was received in New York State.  NYS Income for residents is the TOTAL Federal Income you reported to the IRS. Note: If you earned income in any other state in the U.S., please consult that state for income tax filing requirements.

6. Changes in 2008  PLEASE NOTE: The NYS regulations have changed regarding rules which determine whether you are a resident or nonresident for New York State Income Tax Purposes.  If you filed a New York State income tax return for tax year 2007, you may be required to complete a different New York State income tax form for tax year 2008.  The form you may be required to file may be different for you than for your friend and may differ from year to year, depending on your living arrangements and the amount of time you were present in New York State.

7. New York State Income Tax for Nonresident Alien Students & Scholars  If your domicile (a place you intend to return to as your permanent home) is outside New York State, you maintained a permanent place of abode (residence) in New York State, and you had New York Income, you may be required to file a New York State resident income tax return.  You can only have ONE domicile. (For most of you, that is the home you intend to return to after you finish school.)

8. New York State Income Tax for Nonresident Alien Students & Scholars  A "permanent place of abode" is a dwelling place permanently maintained by the taxpayer, whether or not it is owned by the taxpayer.  Any construction (place where you reside) which does not contain facilities ordinarily found in a dwelling (Ex. facilities for cooking, bathing, etc.) will generally not be deemed a permanent place of abode.  Therefore, dormitory rooms (residence halls) that are NOT apartment style are not considered a permanent place of abode under NYS tax law.

9. Resident or Nonresident?  If your domicile is NOT New York State, but you maintained a permanent place of abode (Ex. an apartment) for more than 11 months during 2008) AND spent more than 183 days in New York, THEN you may be required to file a NYS resident income tax return short form (Form IT-150). Note: If you have taxable scholarship, then you will need to file a NYS resident income tax return long form (Form IT- 201) to report the taxable scholarship. Note: It does not matter if your stay was temporary.

10. Resident or Nonresident?  If your domicile is NOT New York State and you did NOT maintain a permanent place of abode for more than 11 months during 2008, THEN then you may be required to file a NYS nonresident income tax return (Form IT-203)

11. YesNo Did you live in apartment housing on campus, an apartment or a house off campus ? If yes, did you maintain it (rent) for more than 11 months in the calendar year 2008? Did you spend more than 183 days in New York State during the calendar year 2008? If you answered YES to ALL of the above, you are considered a resident for NYS income tax purposes.

12. Who Must File a NYS Income Tax Return? Note: Filing requirements differ for NYS residents and NYS nonresidents

13. If I am a nonresident, do I need to file a NYS income tax return? Yes, if you meet any of the following conditions: :  You had New York-source income and your New York adjusted gross income (Federal amount column) is more than: $7,500 for single individuals $3,000 if single & can be claimed on another taxpayer’s federal (IRS) income tax return $7,500 if married & filing separate income tax returns  You want to claim a refund.

14. If I am a resident, do I need to file a NYS income tax return? Yes, if you meet any of the following conditions: :  You are required to file a federal (IRS) income tax return.  If your federal income is more than: $4,000 for single and married $3,000 if single & can be claimed on another taxpayer’s federal (IRS) income tax return  You want to claim a refund or credit

15. New York State Tax Filing Status  In most cases, the taxpayer must use the same filing status on the New York State income tax return that was used on the federal (IRS) income tax return.  EXCEPTIONS: Married taxpayer filing a federal (IRS) joint income tax return when: 1)If one spouse is a NYS resident and the other spouse is a non-resident or part-year resident of NYS, then you would either: a) file a joint NYS income tax return as if you were both NYS residents. b) file separate NYS income tax returns and check the box for “married filing separate”.

16. New York State 2008 Exemptions  Dependent Exemption: $1000  New York State Personal Exemptions for the taxpayer and spouse are NOT allowed.

17. New York State Standard Deduction Amount  2008 NYS Standard Deduction amount: $7,500 for single individuals $3,000 if single & can be claimed on another taxpayer’s federal (IRS) income tax return $7,500 if married & filing separate NYS income tax returns

18. General Guidelines  If any part or your scholarship or fellowship was included as INCOME (for room and board) on your federal (IRS) income tax return, then enter it on the line for OTHER INCOME on your NYS income tax return. Remember: If you are filing as a resident, you should file Form IT-201 to report your taxable scholarship.  If you included your 2007 State income tax refund as income on your federal (IRS) income tax return, you can subtract it on your NYS income tax return.  Only enter the income reported on your federal (IRS) income tax return onto your NYS income tax return.

19. Who is entitled to a NYS household credit? Individuals who:  Cannot be claimed on another person’s federal (IRS) income tax return AND  Whose tax filing status and income on the NYS income tax return are: Single and federal adjusted gross income is $28,000 or less (Form IT-150, line 11 OR Form IT-201, line 18 OR Form IT-203, federal amount column, line 18) Married and federal adjusted gross income is $32,000 or less (Form IT-150, line 11 OR Form IT-201, line 18 OR Form IT-203, federal amount column, line 18)

20. Who is entitled to a NYS household credit?  The household credit is NOT refundable and will only reduce your New York State tax.  See Instructions booklet for household credit chart. Page 39 in IT-203 instruction booklet Page 22 in IT-150/IT-201 instruction booklet

21. New York State and Local Sales and Use Tax You owe a sales and use tax if: You purchase property or a service delivered to YOU in New York State without payment of sales and use tax (Ex. Internet, catalog purchases). Most tangible personal property is subject to New York and Local Sales tax. Examples: clothing, jewelry, electronic equipment, furniture, prewritten software, books (excluding textbooks), compact disks, videos, etc. For more information see Publication 774, “Purchasers’ Obligations to Pay Sales and Use Tax Directly to the Tax Department, Questions and Answers”

22. Which NYS tax form do I need to file?  If you are a resident for NYS income tax purposes and are required to file an income tax return, you will need to file: Form IT-150 “Resident Income Tax Return (short form)” or IT-201 (to report taxable scholarships) Form IT-2: for wages (if W-2 received)  If you are a nonresident for NYS income tax purposes and are required to file an income tax return, you will need to file: Form IT-203, “Nonresident and Part-Year Resident Income Tax Return” Form IT-203-B: to report where you lived when you maintained a permanent place of abode Form IT-2: for wages (if W-2 received)

23. W-2 from the State of New York

24. What do I do with the state copy of the W-2?  If you are filing a NYS income tax return and have a W-2(s), transfer your W-2 information onto NYS Form IT-2.  DO NOT attach a W-2 to your NYS income tax return (either the IT-203 or IT-150 or IT-201). Keep the state copy for your records.  DO NOT forget to complete the NYS withholding information on the IT-2.  Attach the IT-2 to your NYS income tax return (either the IT-203 or IT-150 or IT-201). Note: Obtain Form IT-2 from www.nystax.gov

25. Transfer ALL W-2 Information to Form IT-2

26. You must complete federal (IRS) Form 1040-EZ, 1040-A, or 1040 before filling out your NYS Income Tax Return

27. Whether you are completing a NYS nonresident or resident income tax return, you will transfer the income amounts from the Form 1040-EZ to your NYS income tax return.

28. Completing IT-150 – Joy, a graduate student, lives in an apartment in New York and maintained it for all of calendar year 2008.

29. Transfer the amounts from Form 1040-EZ.

30. Line 26 amount for NYS taxes – see next slide for Tax Chart

31. If you have NYS taxable income, find your income tax in the tables in the Instruction booklet.

32. Household Credit

33. NYS Household Credit chart for a single person who CANNOT be claimed on another taxpayer’s federal income tax return

34. Note: Line 40 Earned Income Tax Credit

35. Sign and Date New York State Income Tax Return JOY KIM Student 2/19/08 Joy Kim

36.  IT-215 – Earned Income Tax Credit You must claim the federal Earned Income Tax Credit for 2008 30% of the federal Earned Income Tax Credit - However, the New York State Earned Income Credit must be reduced by the amount of any Household Credit you are allowed.

37. IT-215 – Earned Income Tax Credit

38. Credits available to full-year NYS residents only  IT-213 - Empire State Child Credit Must qualify for Federal (IRS) Child Tax Credit Refundable for children ages 4-16 Resident taxpayers may claim a credit equal to the greater of a) $100 times the number of children who qualify for the Federal Child Tax Credit, or b) 33 percent of the taxpayer’s allowed Federal Child Tax Credit. Must qualify for Federal Child Tax Credit.  IT-272 – Claim For College Tuition Credit up to $10,000 per eligible student for undergraduate tuition expenses only 4% refundable credit with a maximum of $400 Cannot be claimed as a dependent on another person’s federal income tax return

39. Mail your New York State income tax return by April 15, 2009 Mail to: State Processing Center PO BOX 61000 Albany, New York 12261-0001

40. E-filing your NYS Income Tax Return  NYS has free e-filing for certain NYS resident aliens filing a federal 1040-EZ, 1040-A or 1040.  Visit our website to determine if you are eligible for free e-filing: www.tax.state.ny.us/elf/free_efile_info.htm  If you qualify, you can free e-file your IRS income tax return and your NYS income tax return from our website.

41. Nonresidents of New York State  There are detailed instructions for completing a NYS nonresident income tax return on the website of the Office of International Student & Scholar Services at the University at Buffalo. www.buffalo.edu/intlservices/tax2.html

42. Income Tax Filing TIPS  Remember to: Sign your NYS income tax return. Enter your Social Security Number on your income tax return. Complete Form IT-2 from your W-2 information and attach the IT-2.

43. Thank you for coming! For more information, please refer to New York State Division of Taxation and Finance forms, instructions and publications.