Non Resident Tax FAQs |
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I'm an F-1 or J-1 student and I had no U.S. income during 2008, or my only U.S. income was bank interest. Do I need to file any tax forms? Yes. You need to file Form 8843. This is the only form you will need to complete, which is a change from previous rules, which used to require that students with no income file both file 8843 and 1040NR or 1040NR EZ. F-1 or J-1 students with U.S. income from other sources, such as dividend income, salary or wages, scholarships or fellowships, prizes or awards will need to file form 1040NR or 1040NR EZ. |
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What about my F-2 or J-2 dependents? All F-2 and J-2 dependents must file Form 8843 whether or not they are students, even if they had no U.S. income of any kind in 2008, or if the only income they had was bank interest. If they have any other U.S. income, they must file 1040NR or 1040NR-EZ. I'm a new student for the Spring 2009 semester but arrived in the United States in late December 2008. Do I need to file a tax form? Yes. If you are in F-1 or J-1 status, or a F-2 or J-2 dependent, and were in the U.S. for any part of 2008, even if it was just a few days, you will need to file a tax form. If you had no U.S. income in 2008, you will only need to file Form 8843. What happens if I fail to file my taxes? If you owe taxes and don't file, the IRS can assess penalty and interest and seize U.S. bank assests for repayment. Fines and penalties can often amount to more than the original tax debt. There can also be immigration consequences for failing to file taxes. Applicants for permanent residency "green cards" are frequently asked to show proof of tax filing for previous years in the U.S. My bank sent me a form called Form 1099-INT for the interest I earned on my bank accounts. Do I need to include this amount on my tax return? It depends. Non-residents filing form 1040NR-EZ do not include U.S. bank or credit union interest as income. Non-residents filing form 1040NR would include this interest on Item L. If my country has a tax treaty with the U.S. doesn't that mean that I do not have to file any tax returns? No. In order to obtain tax treaty benefits, you must file federal income tax forms 8843 and either 1040NR-EZ or 1040NR. I'm married and have a child who was born in the U.S. Can I claim personal exemptions for my wife and child? Generally, no. Only students & scholars from certain countries can claim exemptions for their dependents (Mexico, Canada, Korea, Japan. and India.) I am from one of the countries that can claim an exemption for my spouse and/or child. Can I claim them if they don't have a social security number or an ITIN? No. In order to claim personal exemptions for dependents they must have a valid social security number or an ITIN (Individual Taxpayer Identification Number). To apply for an ITIN for your dependents, fill out Form W-7 and take the required documentation to the IRS Office. I am a student from India. Can I claim the standard deduction? Yes. Due to a tax treaty provision, ONLY students from India may claim the standard deduction on the non-resident forms. For 2008 the standard deduction is $5350 single or married filing separately. Note: Visiting Scholars and Researchers from India cannot claim the standard deduction. My employer withheld Social Security and Medicare taxes from my salary. Can I get this refunded? Yes. F, J, and M visa holders are not subject to Social Security or Medicare taxes as long as they are considered a "non-resident alien for tax purposes" (IRS Publication 519). Refund of these taxes may be requested from your employer. If your employer is unable to refund these taxes, you may file Form 843 and Form 8316 for a refund from the IRS. What is the deadline for filing tax forms? If you are an employee and receiving wages that are subject to U.S. income tax withholding, file your tax forms by April 15, 2008. Individuals filing only form 8843 must file by June 16, 2008. |
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