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WELCOMEWELCOME

U. S. TaxationU. S. TaxationFor International Students For International Students

and Scholarsand Scholars

F, J, M, Q Visa HoldersF, J, M, Q Visa Holders

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DisclaimerDisclaimer

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

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Program ObjectivesProgram Objectives

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

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Lesson 2Lesson 2

Who Must FileWho Must File

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Who Must FileWho Must File Filing requirements for Filing requirements for

NNononRResident esident AAliens-Individuals liens-Individuals who are not a U.S citizenwho are not a U.S citizen

• AllAll “exempt” individuals - Form 8843 “exempt” individuals - Form 8843A nonresident alien who is not required to apply the Substantial A nonresident alien who is not required to apply the Substantial Presence TestPresence Test

• F, J, M, Q individuals must file 1040NR F, J, M, Q individuals must file 1040NR or 1042NR-EZ only if you have or 1042NR-EZ only if you have income subject to tax income subject to tax (See IRS Publication (See IRS Publication 678FS for detail information on which of the forms is 678FS for detail information on which of the forms is best for you to fill out)best for you to fill out)

Who Must FileWho Must File

If you made $3900.00 or less If you made $3900.00 or less (personal exemption) and had no (personal exemption) and had no taxes withheld, you may only fill out taxes withheld, you may only fill out Form 8843.Form 8843.

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IRS FORMS FOR FILING TAX IRS FORMS FOR FILING TAX RETURNRETURN

Form Form 1040NR1040NR or Form or Form 1040NR-1040NR-EZEZ (See IRS publication (See IRS publication 678FS678FS for detail information on for detail information on which form is best for you to fill out?which form is best for you to fill out?

Form Form 88438843 Statement For Exempt Statement For Exempt Individuals and Individuals with Individuals and Individuals with medical condition. (medical condition. (Students or scholars who Students or scholars who had no income are still required to file Form 8843)had no income are still required to file Form 8843)

Form Form IL-1040 IL-1040 Illinois Individual Illinois Individual Income Tax Return FormIncome Tax Return Form

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1040NR-EZ instead of 1040NR1040NR-EZ instead of 1040NR

You do not claim any dependentsYou do not claim any dependents You cannot be claimed as someone’s You cannot be claimed as someone’s

dependent on a U.S. tax returndependent on a U.S. tax return Your only U.S source income was Your only U.S source income was

from wages, salaries, tips, taxable from wages, salaries, tips, taxable refunds of state/local income taxes, refunds of state/local income taxes, & scholarships or fellowships& scholarships or fellowships

Your taxable income <$100,000Your taxable income <$100,000

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1040NR-EZ instead of 1040NR1040NR-EZ instead of 1040NR

Only adjustments are student loan interest Only adjustments are student loan interest or scholarship exclusionor scholarship exclusion

You do not claim any tax creditsYou do not claim any tax credits If married, you do not claiming exemption If married, you do not claiming exemption

for spousefor spouse Only itemized deduction you can claim is Only itemized deduction you can claim is

state/local income taxesstate/local income taxes Only tax owed is from tax table or social Only tax owed is from tax table or social

security and Medicare on tip incomesecurity and Medicare on tip income

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When, Where, and Why to FileWhen, Where, and Why to File

WhenWhen• Tax returns by April 15th 2015Tax returns by April 15th 2015• If filing form 8843 only or if only income If filing form 8843 only or if only income

is scholarship by June 15is scholarship by June 15 WhereWhere

• Internal Revenue Service CenterInternal Revenue Service Center• Austin, TX 73301-0125Austin, TX 73301-0125

WhyWhy• 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.

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Unusual CasesUnusual Cases

Japan, Korea, Mexico, Canada, India Japan, Korea, Mexico, Canada, India may claim dependents to some may claim dependents to some extentextent

UK and 4 others--retroactive time UK and 4 others--retroactive time limit in teaching clauseslimit in teaching clauses

If German student stays beyond 4 If German student stays beyond 4 years, all benefits lost retroactivelyyears, all benefits lost retroactively

Barbados, Hungary and Jamaica can Barbados, Hungary and Jamaica can be U.S. resident upon arrivalbe U.S. resident upon arrival

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Filing StatusFiling Status

Nonresident AliensNonresident AliensMust use:Must use:

• Unmarried - SingleUnmarried - Single• Married - Married filing separateMarried - Married filing separate

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Spousal ExemptionSpousal Exemption

Nonresident Aliens from:Nonresident Aliens from:• CanadaCanada• MexicoMexico• JapanJapan• South KoreaSouth Korea• IndiaIndia

may be able to claim an exemption for their may be able to claim an exemption for their spousespouse

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Spousal ExemptionSpousal 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 If no gross income and not a dependent on another U.S. tax returnU.S. tax return

• Japan and South KoreaJapan and South Korea Must live with taxpayer. If student or scholar has Must live with taxpayer. If student or scholar has

foreign source income - must prorate exemptionforeign source income - must prorate exemption

• India - India - OnlyOnly students & business apprentices students & business apprentices If no gross income and not a dependent on another If no gross income and not a dependent on another

U.S. tax returnU.S. tax return

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Tax CreditsTax Credits

General Rule:General Rule:• NRA taxpayers do not qualify for any of NRA taxpayers do not qualify for any of

the following credits:the following credits: Child Tax CreditChild Tax Credit Child Dependent CreditChild Dependent Credit Education CreditsEducation Credits Earned Income Tax CreditEarned Income Tax Credit

Exceptions apply for certain Exceptions apply for certain countriescountries

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WAGE INFORMATION FORMSWAGE INFORMATION FORMS

W-2 FORMW-2 FORM

1042-S1042-S

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Form 8843Form 8843 Establishes for the IRS that you Establishes for the IRS that you

and/or your dependents are and/or your dependents are nonresident for tax purposesnonresident for tax purposes

Name and number should match Name and number should match your social security card/ITIN card your social security card/ITIN card exactlyexactly..

Complete Part II for Scholars Complete Part II for Scholars Complete Part III for StudentsComplete Part III for Students

* Signature required if not filing 1040NR or EZ* Signature required if not filing 1040NR or EZ

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Form 1040NR This form is 5 pages long

2020

Form 1040NR-EZ This form is 2 pages long

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

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Form IL-1040

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W-2 form: Wage andTax statement

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Form 1042-s: ForeignPerson’s U.S. source Income Subject to Withholding

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WhenWhen• Tax returns by April 15Tax returns by April 15thth 2015 2015

WhereWhere• Internal Revenue Service CenterInternal Revenue Service Center• Austin, TX 73301-0125Austin, TX 73301-0125

WhyWhy• Compliance with all U.S. laws requiredCompliance with all U.S. laws required

When, Where, Why to FileWhen, Where, Why to File

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How to get forms How to get forms •IRS Website: www.irs.gov

•Illinois Department of Revenue website: www.revenue.state.il.us

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IRS CONTACT INFOIRS CONTACT INFO

IRS Toll free number IRS Toll free number 1-800-829-1-800-829-10401040

International Tax Law hotline International Tax Law hotline

1-215-516-20001-215-516-2000. This is not a toll . This is not a toll free numberfree number

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IRS PUBLICATIONSIRS PUBLICATIONS

Publication 519, U.S. Tax Guide for Publication 519, U.S. Tax Guide for AliensAliens

Publication 901, U.S. Tax TreatiesPublication 901, U.S. Tax Treaties

TAX HELPTAX HELP DeKalb Senior Center: 330 Grove St

DeKalb. Every Tuesday from 1:00 to 4:00. Call for appointment 815-758-4718

SYCAMORE METHODIST CHURCH: 160 Johnson Ave, Sycamore. Wednesdays 12:00 to 4:00. Walk-ins 815-895-9113

DeKalb Public Library: 309 Oak Street. Saturdays from 9:30 to 12:30. Starting Feb 7th to April 11th

TAX HELPTAX HELP

STUDENT TAX PREPSTUDENT TAX PREP151 WEST LINCOLN HWY151 WEST LINCOLN HWY

DEKALB IL 60115DEKALB IL 60115www.studenttaxprep.com

Check their website for hours of operationCheck their website for hours of operation

GoodwillGoodwill Every Tuesdays starting Feb 3rd. Every Tuesdays starting Feb 3rd. 1037 S. Annie Glidden Road. Must call for 1037 S. Annie Glidden Road. Must call for appointment 815-987-6200.appointment 815-987-6200.

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Important RemindersImportant Reminders Always Keep a copy of any tax Always Keep a copy of any tax

papers you send to IRSpapers you send to IRS Be sure to sign your returnBe sure to sign your return Attach one copy of Form W-2 to your Attach one copy of Form W-2 to your

tax returntax return Attach one copy of Form 1042-S to Attach one copy of Form 1042-S to

your tax returnyour tax return Mail your return by April 15, 2014 to Mail your return by April 15, 2014 to

IRCS, Austin, TX 73301-0215IRCS, Austin, TX 73301-02153131