Federal Tax Information for International Students

Are you an international student? If so, you are required to complete U.S. income tax forms each year, even if you did not earn income here. Everyone who was physically present in the United States at any time between January 1, 2004 and December 31, 2004 must file a 2004 Federal Income Tax Return.

In the U.S., as in most countries, income is taxed by the government. After each year is over, people fill out tax paperwork to mail to the government. If too much tax was taken from paychecks, those people will receive a refund. Other people may have to pay additional money in taxes. Maybe you did not receive any money for working last year; however, you will still need to send a one-page information form.

There are many regulations about U.S. taxes and it can be confusing. This information is meant to give you a general understanding of your responsibilities and tell you where to get more information.

DEFINITIONS:

Tax return: this is the paperwork that must be completed; it may be just one form or several forms depending on your financial situation. Even though it is called a Federal Income Tax Return, not everyone who files a "return" is going to get a refund. Many of you will find out that everything will balance out to "0", and some of you may find out that you owe more taxes to the Federal Government.

Filing: the process of completing the paperwork and sending it to the IRS.

Why should I file a tax return?

Many students choose to ignore U.S. taxes, but this is NOT a good idea. It's possible that requests for visa renewals or change of status (especially to permanent resident) will be denied if you do not file tax forms. If you ever apply for permanent residency (green cards), the Department of Homeland Security may ask you to show proof of tax filing for previous years in the U.S. It is strongly recommended that you complete all the required forms!

Deadline to mail your paperwork:

April 15: if you earned income in the U.S. (This includes job, practical training & interest on investments; it does not include simple interest on bank accounts.)

June 15: if you are currently overseas or have no income to report and are sending only Form 8843.

**It's a good idea to start looking at the paperwork early. Then if you have questions you will be able to talk to someone before the deadlines.

SSN vs. ITIN:

You will need an Individual Taxpayer Identification Number (ITIN) or a valid Social Security Number (SSN) for the tax forms. If you are not eligible for a SSN, you should apply for an ITIN using Form W-7. (The form and instructions can be downloaded from the IRS web site.) It may take 6-8 weeks for the IRS to process your request, so apply as soon as possible!

Other notes:

Always make copies of your tax return documents before you mail them to the IRS. Keep copies of other forms also (W-2, 1042-S, 1099 bank interest statements, etc.).

If you go back to your country, you should still complete the proper forms and mail them from your home country. You will be able to download the forms and instructions from the IRS web site.

FORMS for you TO FILL OUT:

Form 8843: ALL students and dependents (F, J, M and Q status) must complete this form, whether or not you earned money in the U.S. It is a one page informational form and is very easy.

1040NR or 1040NR-EZ: If you earned any income last year you must complete one of these forms. Sources of income include any employment, practical training, and any compensation received for labor. It also includes money from scholarships, fellowships and assistantships that is used for housing or meal expenses. Most F-1 and J-1 students may use the 1040NR-EZ (this form is easier, but you must meet all the conditions). Students with dependents or certain types of income must file the 1040NR.

INFORMATION and INSTRUCTIONS to help you:

Publication 519: "U.S. Tax Guide for Aliens": This booklet can answer many of your questions. It contains information about resident/non-resident status and how to prepare your tax return papers.

W2: "Wage and Tax Statement": If you worked in the U.S. during 2004, your employer will send you this information form; it tells how much money you earned last year. It will include several copies of the same information. One copy should be mailed to the IRS with your tax forms; keep the others for your records. If you did not receive this form, contact your employer.

Form 1098-T: IRS Form 1098-T, "Tuition Payments Statement", were mailed from SCCC so that the taxpayers can claim certain credits, if applicable, on their tax returns. However, non-resident aliens are not eligible for these credits. If you are an F-1 student, you do not need a 1098T and should not worry about this form; you can keep it for your personal records or disregard it.

1099INT: Your bank will send you this form if you earned interest on checking or savings accounts. This income is not taxable.

1099DIV: This form reports interest earned on U.S. investments (stocks, bonds, dividends, etc). This is taxable income.

1042S: Scholarship information. You may not receive this information, depending on your situation.

Other Documents: You will need your passport, Visa, I-94 card, and I-20 or IAP-66 in order to complete the tax forms. It will also help to have the dates you entered and left the U.S. during 2004.

Where can I get the forms?

The IEP office will have limited numbers of forms to give to our international students. We have ordered copies of Publication 519, Forms 8843, 1040NR and 1040NR-EZ, as well as instructions for these forms. Check in the lobby of the South Annex or the IEP Office (it may take a week or two for the forms to arrive). If you need the forms sooner, or if you need different forms, they are available from the IRS web site or by calling the IRS and requesting what you need.

FAQ's Follow this link to find answers to Frequently Asked Questions.

Information contained here should not be used as the sole source of information for making decisions that may affect one's legal status in the U.S. Please note that IEP staff members are NOT trained to give you individual tax advice. If the questions you have cannot be answered by contacting the IRS, you should contact an accountant or a company that specializes in income tax preparation, e.g. H&R Block.