basic tax information for f1 visa holders

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BASIC TAX INFORMATION FOR
F1 VISA HOLDERS
INTERNATIONAL STUDENTS
TRINITY UNIVERSITY
INTERNATIONAL STUDENTS
TRINITY UNIVERSITY
WHY FILE A TAX RETURN
COMPLY
WITH IRS REGULATIONS
REPORT ALL INCOME
EARNED AND
TAXES WITHHELD
ONLY
WAY TO RECEIVE REFUND OF
TAXES WITHHELD
HOW ARE RESIDENTS AND NON-RESIDENTS
TAXED DIFFERENTLY?
RESIDENTS:
 TAXED ON WORLDWIDE INCOME
 FILE SAME FORM AS U.S. CITIZENS
NON-RESIDENTS:
 TAXED ONLY ON U.S. SOURCE INCOME
 ARE NOT REQUIRED TO PAY FICA TAX
 USE NON- RESIDENT TAX FORM
FILING REQUIREMENTS
NON-RESIDENT ALIENS
HOWEVER;
- $3800 FOR 2012
STUDENTS MUST FILE IF:
THEY HAVE A TAXABLE SCHOLARSHIP
2. INCOME PARTIALLY OR TOTALLY EXEMPT BY
TREATY
3.
ANY OTHER INCOME TAXABLE BY IRS
1.
FILING NOT REQUIRED IF
NON–RESIDENTS HAVE INCOME ONLY FROM
FOREIGN SOURCES


INTEREST IS FROM A BANK OR CREDIT UNION
SCHOLARSHIP FUNDS ARE SPENT ONLY ON
QUALIFED EXPENSES

RECEIVED ANY OTHER MONEY WHICH IS
NONTAXABLE BY IRS.

DETERMINING TAX RESIDENCY STATUS
SUBSTANTIAL PRESENCE TEST
IRS FORMULA TO DETERMINE WHEN NON-RESIDENT
ALIENS FOR IMMIGRATION PURPOSES HAVE BEEN IN THE
USA LONG ENOUGH TO BE CONSIDERED RESIDENTS FOR
TAX PURPOSES
 HOWEVER, EXEMPT INDIVIDUALS ARE AUTOMATICALLY
NON–RESIDENTS ALIENS FOR TAX PURPOSES

WHO ARE EXEMPT INDIVIDUALS
F1 VISA HOLDERS ARE EXEMPT FROM
SUBSTANTIAL PRESENCE TEST FOR ANY PART OF
5 OR FEWER CALENDAR YEARS

BUT STILL MAY BE REQUIRED TO FILE A U. S.
TAX RETURN IF MEET FILING REQUIREMENT

TAXABLE INCOME FOR EXEMPT INDIVIDUALS
GENERALLY REPORT ALL INC0ME YOU RECEIVE
IN U.S.
 EMPLOYMENT ON AND OFF CAMPUS
 SCHOLARSHIP (MAYBE)
 PRACTICAL OR ACADEMIC TRAINING
 DIVIDEND INCOME
 ETC.
KEY- NON-RESIDENTS PAY INCOME TAX ONLY
ON U.S. SOURCE INCOME
ARE SCHOLARSHIP FUNDS
TAXABLE?
NON-RESIDENTS ARE NOT TAXED ON FOREIGN
SOURCE SCHOLARSHIPS

NON-RESIDENT ALIENS ARE TAXED ON U.S.
BASED SCHOLARSHIPS NOT USED FOR TUITION,
REQUIRED FEES, BOOKS, SUPPLIES, AND
EQUIPMENT

KEY POINT- MANY TAX TREATIES ALLOW AN
EXEMPTION FOR SCHOLARSHIPS

NON-RESIDENT TAX FORMS
FORM 8843 - STATEMENT FOR EXEMPT
INDIVIDUALS
FILE EVEN IF NON-RESIDENT HAS NO U.S. SOURCE
INCOME - FILE BY JUNE 15

ONE FORM FOR EACH FAMILY MEMBER
PURPOSE- AN INFORMATIONAL FORM STATING
EXEMPTION FROM COUNTING DAYS FOR
SUBSTANTIAL PRESENCE TEST

IF FILING BOTH FORM 8843 AND A TAX RETURNMAIL TOGETHER BY APRIL 15
NON-RESIDENT TAX FORMS
FORM 1040NR AND FORM 1040NR-EZ
(INCLUDE FORM 8833 WITH TAX RETURN IF
TAKE A TREATY BASED POSITION)
FILE BY APRIL 15
NO STATE TAX ISSUES IN TEXAS
IMPORTANT- DO NOT FILE A FORM 1040EZ
TAX TREATIES
IMPACT OF TAX TREATIES DISCUSSED IN IRS
PUB 901
EXAMPLES:
IN
MANY COUNTRIES, SCHOLARSHIPS
ARE NOT TAXABLE. (CHINA, KOREA, SPAIN)
ALSO,
SOME INCOME IS NOT TAXABLE
(CHINA - FIRST $5000; FRANCE - FIRST
$8000)
SUPPORTING DOCUMENTS
FORM FROM EMPLOYER – REPORTS WAGES
EARNED – MAILED BY JAN 31
W-2
FORM
1042s - FOREIGN PERSON WITH INCOME
SUBJECT TO WITHHOLDING – MAILED BY MAR 15
USED TO REPORT SCHOLARSHIP INCOME NOT
EXCLUDED FROM GROSS INCOME AS A “ QUALIFIED
SCHOLARSHIP”
2. FILE FORM W-8BEN WITH UNIVERSITY OFFICE IF
SCHOLARSHIP IS EXEMPT FROM TAXATION
3. CAN BE USED TO REPORT WAGES EXEMPT UNDER A
TAX TREATY
1.
FAMILY ISSUES
-
DEDUCTIONS FOR DEPENDENTS GENERALLY NOT
ALLOWED
-
EXCEPTIONS FOR NON-RESIDENTS FROM CANADA, INDIA,
SOUTH KOREA, AND MEXICO
-
MARRIED NON-RESIDENT CANNOT FILE JOINTLY WITH
NON-RESIDENT SPOUSE
-
MOST TAX CREDITS DO NOT APPLY
STANDARD DEDUCTION NOT ALLOWED EXCEPT FOR
STUDENT FROM INDIA
SPOUSE AND DEPENDENTS
-
FORM 8843
U.S. SOURCE INCOME MUST BE
REPORTED
FILING STATUS AND
DEPENDENTS
MOST NON-RESIDENT ALIENS CANNOT
CLAIM THEIR DEPENDENTS – EVEN IF
THE DEPENDENT IS A U.S. CITIZEN
SOCIAL SECURITY TAX
NON-RESIDENTS
WITH AN F1 VISA ARE
EXEMPT FROM SOCIAL SECURITY AND
MEDICARE TAXES
IF
RESIDENT FOR TAX PURPOSES,
USUALLY SUBJECT TO FICA TAXES
FICA REFUNDS
WHEN WITHHELD IN ERROR
ASK EMPLOYER TO REFUND
 IF NOT REFUNDED, USE IRS FORM 843
TO REQUEST A REFUND

DO I NEED A SSN OR ITIN
 IF FILING ONLY FORM 8843 - NO NUMBER
REQUIRED
1040 TAX FORM – NEED A SOCIAL SECURITY
NUMBER OR INDIVIDUAL TAXPAYER
IDENTIFICATION NUMBER(ITIN)
ANY
FILE
FORM W-7 TO REQUEST AN ITIN
DEPENDENTS
MUST ALSO HAVE SSN OR ITIN IF
TAX CODE ALLOWS AN EXEMPTION
ADDITIONAL TAX RESOURCES
IRS
PUBLICATIONS
PUB
519 TAX GUIDE FOR ALIENS
PUB
901 TAX TREATIES
TAX
PREPARATION SPECIALISTS
ADDITIONAL QUESTIONS
PLEASE CONTACT:
LARRY BARKER
ENROLLED AGENT & MASTER TAX ADVISOR
[email protected]
210-653-6507
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