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TAXES
DUE APRIL 15, 2009
The information below is
intended to provide general information on federal and state income
taxes for international students. This resource guide does not constitute
legal advice or an endorsement of tax professionals. ISSS advisors are
not tax specialists and are unable to provide you with tax advice. We
recommend that students check all information with IRS
resources or a professional Certified Public Account (CPA).
Taxes are complicated even for U.S. citizens
and the tax laws change yearly. If you have questions about your taxes
please seek professional assistance from an accountant or CPA.
Anyone in F-1 , J-1, F-2*, or J-2* status, even if they
did not work or have taxable scholarships or other income in the U.S.
during 2008:
Use the free CINTAX program under your International
Student/Scholar Profile in my.american.edu to file form 8843.
* Dependents who do not have access to CINTAX through
my.american.edu should fill out the 8843
form manually
If you worked or had taxable income
from scholarships or other sources, you are responsible for
filing:
1) Federal Tax Forms (completed
online through CINTAX for nonresidents)
2) Form 8843 (completed online through CINTAX for nonresidents)
3) State (or District) tax forms
FREE ONLINE CINTAX SOFTWARE FOR NONRESIDENT FEDERAL
TAX RETURNS:
ISSS is pleased to announce that American
University has purchased a license with CINTAX to allow international
students, scholars and alums to file your FEDERAL TAXES on-line via
your International Student/Scholar Profile in my.american.edu. Once
logged into your profile click on the link for CINTAX Complete International
Tax Preparation Software.
Alumni: please contact Chemayn at cgray@american.edu or
202 885-3355 for access to the tax software.
Please have the following documents before
completing CINTAX:
* Visa/Immigration Status;
* Passport;
* Form DS-2019, if J status individual;
* Form I-20, if F status individual;
* Social Security or Individual Taxpayer Identification Number;
* U.S. Entry and Exit Dates for current and past visits to the U.S.;
* Academic Institution or Host Sponsor Information (name/address/phone
for Academic Director);
* Forms W-2, 1042-S and/or 1099 (if any);
* Scholarship/fellowship grant letter you may have received (if any);
and
* A copy of your 2006 federal income tax return (Form 1040NR or 1040NR-EZ),
if you filed a federal income tax return last year.
Please note that you will need to complete a separate state or District
tax return as well as the federal form completed through CINTAX.
Please contact Chemayn Gray in ISSS at 202 885-3355 cgray@american.edu
if you have questions about this process.
TAX DOCUMENTS:
Tax Forms from: Employers, Scholarships,
Banks, Investments
W-2: All employees who have taxable income from employment
in the United States will receive a Form W-2, which is a statement of
earnings. The Form W-2 is essential for filing a tax return. This form
will be sent to the home address of the employee in mid-January.
1042-S: All nonresident aliens who received income
as Graduate Financial Aid Stipends, Taxable Room and Board, Prizes and
Awards for achievements, Consultant fees, Honorarium payments, wages
exempt from taxes due to Tax Treaty Benefits with their home countries
and Per Diem expenses will receive a Form 1042-S, which is a statement
of that type of income received during the year. This form will be sent
to the home address of the employee in mid-February.
1098-T: This is information relating to the Hope and
Lifetime Learning credits. Generally, Forms 1098-T are not applicable
to students who are nonresidents for tax purposes.
1099R: Students who had income withheld as part of
the Public Employment Retirement System (PERS). Such a withholding happens
when students work and are not enrolled (typically over the summer).
1099INT: From a bank for interest earned on checking/savings
accounts. This is not reportable income for nonresident aliens.
1099DIV: Interest earned on investments. This is reportable
income.
1099G: State income tax return received from the previous
tax year. It is reportable income if it was used to lower a federal
income earned from the previous tax year.
1099MISC: Income earned from various sources other
than as an employee.
What if you did not receive your tax documents?
Contact your employer immediately to get one. If you worked on campus
and did not receive your tax forms in the mail, please go on line and
print another W-2:
Go to: www.my.american.edu.
Click: HR/Payroll
Click: Finances and Employment.
Go to: Pay Advices (Pay Stub) to print your W-2 Form
Should you have any questions on W-2 and 1042-S Forms from American
University, please contact in AU Payroll:
Simona Assenova 202 885-3506 simona@american.edu or
Tarek Mahfouz 202 885-6171mahfouz@american.edu
When to File Taxes
Deadline: April 17, 2009
WHO NEEDS TO FILE
WHAT?
What tax forms you file depend upon whether you had been in the U.S.
for 5 calendar years in 2006 (or 2 years for J-1 scholars) according
to the IRS
Substantial Presence Test. Students are considered U.S. residents
for tax purposes if they meet the substantial presence test for 2007.
This means that you were physically present in the United States for
at least:
1) 31 days during 2007, and
2) 183 days during the period 2007, 2006, and 2005, counting all the
days of physical presence in 2007, but only 1/3 the number of days of
presence in 2006 and only 1/6 the number of days in 2005.
As long as you have the dates of entry
and exit to the US during these years, this will be calculated for you
by the free CINTAX program.
Nonresidents
for tax purposes:
F-1 & J-1 Students who were in the US less than 5 years
and J-1 Scholars/Researchers who were in the US less than 2 years
NONRESIDENT ALIEN F, J, and M visa holders who earned any US
source income during the tax year must file tax returns on Form 1040NR,
or Form 1040NR-EZ, and Form 8843
• Step one: complete form
8843
• Step two: if US source of income was earned, complete appropriate
form below, either:
- 1040NR-EZ
(1040NR-EZ
Instructions) or
- 1040NR
(1040-NR
Instructions)
To find out which form you should file, please see: Instructions
on who should file 1040NR, and who should file 1040NR-EX
Residents for tax purposes
F-1 & J-1 Students In the US
more than 5 years and
J-1 Scholars/Researchers In the US more than 2 years
RESIDENT ALIENS: students in F-1 and J-1 nonimmigrant status who had
been in the U.S. for 5 calendar years in 2006 according to the IRS
Substantial Presence Test are considered residents for tax purposes,
and are liable for Social Security/Medicare taxes. If you earned an
income you will have to file the same tax forms as a U.S. citizen
- 1040EZ
(1040EZ
Instructions)
or Form
1040 (1040
Instructions)
If you prefer to use a paid online tax return program, you can use the
Tax
Back International link under your my.american.edu International
Student/Scholar Profile.
If you are currently outside the U.S.
If you are currently outside the U.S. and cannot receive or cash a check
in U.S. dollars, you can pay to use the online tax return program Tax
Back International. This program applies to both residents and nonresidents
for tax purposes.
FOR MORE INFORMATION:
Publication
519 U.S. Tax Guide for Aliens
If you have any questions please refer to IRS
Publication 519 for your answers - ALL YOU NEED TO KNOW about international
tax issues is in here.
Free Tax Services:
Volunteer
Income Tax Assistance Program (VITA)
The VITA Program offers free tax help to low- to moderate-income
(generally, $39,000 and below) people who cannot prepare their own tax
returns. Certified volunteers sponsored by various organizations receive
training to help prepare basic tax returns in communities across the
country. VITA sites are generally located at community and neighborhood
centers, libraries, schools, shopping malls, and other convenient locations.
Most locations also offer free electronic filing. To locate the nearest
VITA site, call 1-800-829-1040. Please note that VITA volunteers
may not have special training in nonresident tax issues.
IRS
Taxpayer Assistance Centers
The IRS offers on-line E-File services and a list of
authorized companies to assist you with filing your taxes on-line.
FREQUENTLY ASKED QUESTIONS
* Social Security an Individual Taxpayer Identification
Number (ITIN)
* Scholarships
* Social Security and Medicare tax
* Refunding your Social Security/Medicare Taxes
* Amending a Prior Year's Return
* Tax Treaty Benefits
Social Security an Individual Taxpayer
Identification Number (ITIN)
Chapter
5 Publication 519
A taxpayer identification number must be furnished on returns, statements,
and other tax-related documents. For an individual, this is a social
security number (SSN). If you do not have and are not eligible to get
an SSN, you must apply for an Individual
Taxpayer Identification Number (ITIN). This must be done before
you file your return.
Are scholarships and prize awards
taxable?
Chapter
3 Publication 519
If you are a candidate for a degree, you may be able to exclude from
your income part or all of the amounts you receive as a qualified scholarship.
The rules discussed here apply to both resident and nonresident aliens.
Social Security and Medicare Tax
Chapter
8 Publication 519
Lawfully employed NONRESIDENT F-1, J-1, M-1, and Q are not subject to
social security withholding or reporting requirements until their 6th
year in the U.S.
If an F, J, or M is a RESIDENT ALIEN for tax purposes, their wages are
subject to social security (FICA) and unemployment (FUTA) as U.S. citizens.
J-2 and H visa holders, whether RESIDENT or NONRESIDENT, must pay social
security tax.
Refunding your Social Security/Medicare
Taxes
Chapter
8 Publication 519
If social security or Medicare taxes were withheld in error from pay
that is not subject to these taxes, contact the employer who withheld
the taxes for a refund. If you are unable to get a full refund of the
amount from your employer, file a claim for refund with the Internal
Revenue Service on Form
843, Claim for Refund and Request for Abatement (843
Instructions), with the required attachments.
Changing a Prior Year's Return
Chapter
7 Publication 519
If you find changes in your income, deductions, or credits after you
mail your return, file Form
1040X, Amended U.S. Individual Income Tax Return (1040X
Instructions). Also use Form 1040X if you should have filed Form
1040, 1040A, or 1040EZ instead of Form 1040NR or 1040NR-EZ, or vice
versa. If you amend Form 1040NR or Form 1040NR-EZ or file the correct
return, attach the corrected return (Form 1040, Form 1040NR, etc.) to
Form 1040X. Print “Amended” across the top. Ordinarily,
an amended return claiming a refund must be filed within 3 years from
the date your return was filed or within 2 years from the time the tax
was paid, whichever is later. A return filed before the final due date
is considered to have been filed on the due date.
Tax Treaty Benefits
Chapter
9 Publication 519 and Publication
901
http://www.irs.gov/publications/p519/ch09.html
IRS Publication 901 (U.S. Tax Treaties) will tell you whether a tax
treaty between the United States and a particular country offers a reduced
rate of, or possibly a complete exemption from, U.S. income tax for
residents of that particular country. A nonresident alien (and certain
resident aliens) from a country with which the United States has an
income tax treaty may qualify for certain benefits.
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