2014 T AX R ETURN F ILING International Students A basic overview of federal/state taxes.

2014 TAX RETURN FILINGInternational Students

A basic overview of federal/state taxes

TAX TERMS

• Tax Year: January to December

• Tax Season: January 31 to April 15

• Reportable Income: Income required to be reported to IRS either by payer or

individual

• Compensation: Money earned from working

• Interest: Either paid or earned (loans, bank account)

• Tax Reporting Form: Form institution reports income on

• Example: W-2, 1099, 1098-T

• Tax Return: Form you file your taxes on

• Example: 1040NR-EZ, 1040NR

• Filing Requirement: Amount used to determine if you need to file

TAX RETURN FILING PURPOSE

• You may earn reportable income from various sources during a tax year

• When you work, you complete Form W-4 to indicate how taxes should be withheld

NRAs have a mandatory Single, 1, NRA tax withholding

• By January 31 of following calendar year – tax reporting forms are filed by institutions and reported & sent to individuals via mail or electronically

• General Rule: You either have too much tax withheld OR not enough which is why you file a tax return

If you over paid = REFUND If you did not have enough tax withheld = you OWE $

FEDERAL TAX

1. Internal Revenue Service (IRS) – www.irs.gov

2. There are 4 tax categories defined by IRS

INDIVIDUAL TAX STATUS

If you are an international student working at TU, or received a travel award or scholarship, you need to determine if you are a:

• Nonresident Alien for tax purposes or• Resident Alien for tax purposes

If you are not sure, log into your Glacier to see:

https://www.arcticintl.com/portal/login.asp

If you forgot your login, click on Forgot Login

GATHER YOUR TAX FORMS

Form W2

GATHER TAX FORMS

Form 1042-S (not everyone gets one) Is use for..

FEDERAL – HOW TO BEGIN

1. Collect your tax forms! Form W2, 1042-S

2. Do I have to file a tax return? YES - If you earned more than $3,950 in 2014 and tax was withheld (Look at Box 2 on your W2 Form)

NO - If you earned more than $3,950 in 2014 and tax was withheld

3. Educate Yourself about How to File It’s your responsibility as F1/J1 student!

•Review IRS videos on YouTube

•Read Publications & Instructions for Forms

•Social Media Updates

FILING REQUIREMENTS CHECK IRS WEBSITE!

• 8843 = Everyone For all F, J, M, and Q “exempt individuals”

Spouse and children (F2/J2)

• Requirements may change each year Currently no need to file if total income < personal

exemption and no tax was withheld If tax was withheld should file for refund

• State tax return See state tax agency requirements discussed below

http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens

FORM 8843F, J, M, Q

All individuals

Rules for Signing & Due Date

•If submitting with tax return, no need to sign•Due April 15th of each year (or required date)______________________________

•If no tax return required, sign and mail to address in instructions•Due June 15th of each year (or required date)

Things to Note:•Put January – December of year•If no Tax ID #, leave blank•Follow instructions for name & address•All individuals complete Part 1•Teachers/Trainees go on to complete Part II•Students complete Part III•Leave Part IV & V blank (page 2)•RAs not required to complete

FORM 8843 – P. 2

Signing when not required is not a problemSign if filing alone (no tax return)

Don’t sign if submitting with tax return

FORM 1040NR-EZ

PAGE 1Tips:•Collect all tax reporting forms first! (W2, 1099)•Always file federal first, state second•Line 3 = Add total wages for all jobs in past year•Line 5 = Scholarship income (1042-S)•Line 6 = Total amount exempt by treaty (same amount as on p. 2)•Students from India may take standard deductions; others cannot

Treaty Information: http://www.irs.gov/Individuals/International-Taxpayers/Tax-Treaties

•Line 7: Do the math! •Tax Table located in Instructions•Line 8 & 9: N/A

Reminder - Current Rule:−If person earns less than personal exemption amount AND no tax withheld (Box 2 of W2)−Then no need to file tax return (just Form 8843)−If tax was withheld, should file to get full/partial refund−If earned over personal exemption amount, must file

http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens

Determining Taxable IncomeSource: Congressional Research Review

FORM 1040NR-EZ

PAGE 2Tips:

•Line B Where were they living (not

visiting) prior to coming to US•Line E

F, J, M or Q status•Line F (for current visit)

Ex: J1 to F1•Lines G & H

OK to estimate•Line I

What type of tax return filed in previous year

•Line J Only those who are eligible for

treaty benefits (refer to country list by searching on IRS website)

http://www.irs.gov/Individuals/International-Taxpayers/Taxation-of-Nonresident-Aliens

NRA TAX FILING: RESOURCES Internal Revenue Service – NRA VITA Sites

http://www.irs.gov/pub/irs-pdf/p4152.pdf

IRS Link & Learn for Foreign Students

http://www.irs.gov/individuals/students/article/0,,id=177686,00.html

IRS Non Resident Alien Toolkit

http://www.irs.gov/pub/irs-pdf/p4152.pdf

IRS Publication 901 – US Tax Treaties

http://www.irs.gov/pub/irs-pdf/p901.pdf

IRS Publication 519 – US Tax Guide for Aliens

http://www.irs.gov/pub/irs-pdf/p519.pdf

Glacier TaxPrep – Software for NRA Tax Filing! (Arctic International)

https://www.arcticintl.com/gtp.asp

Tax Agencies: State

• Comptroller of Maryland – www.marylandtaxes.com

• State of Maryland has different definitions for Nonresident Alien Resident Alien – where were you living at end of year

• MD does not recognize tax treaties

State Taxes: iFilewww.marylandtaxes.com

Do I need to file a state return? Yes - if taxes were withheld and:

•Single: Under 65 and you earned > $10,000

•Head of Household: < 65 and > $12,850

•Married (Jointly): < 65 and > $20,000

•Married (Separately): No age and > $3,900