Federal Tax Information SessionFor International Scholars

AgendaAgenda Tax BasicsTax Basics Forms You RECEIVEForms You RECEIVE Forms You COMPLETEForms You COMPLETE Tax Residency StatusTax Residency Status Tax Filing Information for Non-residentsTax Filing Information for Non-residents Treaty InformationTreaty Information Filling out the Tax ReturnsFilling out the Tax Returns Completing the ProcessCompleting the Process State Tax IssuesState Tax Issues

Tax BasicsTax Basics

DO I DO I HAVEHAVE TO FILL OUT TAX TO FILL OUT TAX FORMS? FORMS? Aahhh!Aahhh!

No Matter What You Have Heard…No Matter What You Have Heard… All All ““tax non-residentstax non-residents”” are are legally requiredlegally required

to file at least one federal income tax form to file at least one federal income tax form for each year they are in the U.S. (by April for each year they are in the U.S. (by April of the following year)of the following year)

Everyone should copy and keep files for 7 Everyone should copy and keep files for 7 years (or until you become a permanent years (or until you become a permanent resident, if applicable)resident, if applicable)

What happens if I donWhat happens if I don’’t?t? You may be overpaying your taxes (i.e., You may be overpaying your taxes (i.e.,

giving away your hard-earned money)giving away your hard-earned money) Non-filing of taxes may affect a future Non-filing of taxes may affect a future

application for U.S. Permanent application for U.S. Permanent Residency (i.e., Residency (i.e., ““green cardgreen card””))

If you owe money, you could be subject If you owe money, you could be subject to substantial monetary finesto substantial monetary fines

In extreme cases involving fraud, you In extreme cases involving fraud, you could lose your legal immigration status could lose your legal immigration status in the U.S.in the U.S.

Which Income Taxes?Which Income Taxes? FederalFederal StateState Local (not in Albuquerque)Local (not in Albuquerque) If you have income you are normally If you have income you are normally

responsible for completing tax forms for responsible for completing tax forms for ALL relevant governmentsALL relevant governments

This presentation only covers FEDERAL This presentation only covers FEDERAL (US) taxes collected by the (US) taxes collected by the Internal Internal Revenue Service Revenue Service (IRS) with some state at (IRS) with some state at the endthe end

3 Things to Remember3 Things to Remember::

1)1)This is NOT a conspiracy against you! (ItThis is NOT a conspiracy against you! (It’’s s just a pain for everyone!)just a pain for everyone!)

2)The rules are 2)The rules are NOT logical!NOT logical!

3)3)YOU are responsible for doing it correctly YOU are responsible for doing it correctly and YOU suffer the consequences even if and YOU suffer the consequences even if you were misinformed. This is more unfair you were misinformed. This is more unfair for internationals as very few people know for internationals as very few people know non-resident non-resident tax laws (including IRS)tax laws (including IRS)

Who Is This Presentation For?Who Is This Presentation For? International ScholarsInternational Scholars: Researchers, : Researchers,

Teachers, Medical Residents in J-1 Teachers, Medical Residents in J-1 ScholarScholar status (may be students in home country, status (may be students in home country, but are not full-time students here)but are not full-time students here)

DependentsDependents: J-2 status here with the : J-2 status here with the scholar and had no income. Most scholar and had no income. Most dependents CANNOT be claimed, but if so dependents CANNOT be claimed, but if so will need an SSN or ITIN# (will need an SSN or ITIN# (requires form requires form W-7 and supporting documents)W-7 and supporting documents)

Other Presentation InformationOther Presentation Information For scholars with income typical at UNM. If For scholars with income typical at UNM. If

you have income from other sources you you have income from other sources you should seek professional tax advice from a should seek professional tax advice from a qualified accountantqualified accountant

Rules for students and scholars are differentRules for students and scholars are different

Special CasesSpecial Cases: Anyone whose total stay will : Anyone whose total stay will be less than one year; some special treaties: be less than one year; some special treaties: Canada, Korea, Mexico, China (we will Canada, Korea, Mexico, China (we will discuss these at the end)discuss these at the end)

What happens if I have questions later?What happens if I have questions later?

Come to the Tax Volunteer Site!Come to the Tax Volunteer Site!"Volunteers in Tax Assistance" (VITA) Site"Volunteers in Tax Assistance" (VITA) SiteVolunteers will be available to help you:Volunteers will be available to help you:No income:No income:Wednesdays 2 – 4:30, March 18–April 8Wednesdays 2 – 4:30, March 18–April 8With Income:With Income:Fridays from 2 – 4:30, from March 20-April 10Fridays from 2 – 4:30, from March 20-April 10

WHEREWHERE: Language Learning Center, Ortega : Language Learning Center, Ortega Hall, 1Hall, 1stst floor.. floor..

You Can Also Consult:You Can Also Consult: Internal Revenue Service (IRS)Internal Revenue Service (IRS): : www.irs.gov or or

call call 267-941-1000, Press 4 and then 4 again for 267-941-1000, Press 4 and then 4 again for an International Tax issue for individualsan International Tax issue for individuals. Tax . Tax treaties and forms are online.treaties and forms are online.

Commercial sitesCommercial sites: : www.sprintax.comwww.sprintax.com, www.arcticintl.com/cintaxorder.htm, , www.thetaxguy.com offer information and paid offer information and paid tax return preparationtax return preparation

Residents for Tax PurposesResidents for Tax Purposes: Go to CNM : Go to CNM website for appointment with the Resident tax website for appointment with the Resident tax volunteers, or seek paid preparersvolunteers, or seek paid preparers

Overview of Tax System:Overview of Tax System: U.S. tax systemU.S. tax system == Employer Employer ““withholdingwithholding”” ++

individual individual ““reportingreporting”” at end of year. They at end of year. They take money out based on forms you fill out take money out based on forms you fill out (W-4, 8233)(W-4, 8233)

At year end YOU need to do the accounting; At year end YOU need to do the accounting; if the calculation was incorrect then either if the calculation was incorrect then either you will owe money or get it backyou will owe money or get it back

If you worked at UNM all year, completed If you worked at UNM all year, completed employment forms correctly, and your employment forms correctly, and your situation did not change, the tax withheld situation did not change, the tax withheld should be should be ““nearnear”” correct correct

Forms you RECEIVEForms you RECEIVE

Copies to be sent to IRS with Copies to be sent to IRS with your tax returnsyour tax returns

Forms From Employer/SchoolForms From Employer/School

W-2W-2:: lists wage income and tax taken for lists wage income and tax taken for federal, state, and local governments (if federal, state, and local governments (if applicable); must be sent to you by 1/31applicable); must be sent to you by 1/31

1042S1042S:: lists scholarship and treaty income; lists scholarship and treaty income; must be sent by 3/15must be sent by 3/15

1098T1098T:: lists school tuition paid; cannot be lists school tuition paid; cannot be used as deduction by tax non-residentsused as deduction by tax non-residents

This information is also sent to IRSThis information is also sent to IRS

Box 1 = WagesBox 2 = Federal Tax WithheldBox 17 = State Tax WithheldNon-residents should not have amounts taken in 5 &6

Money taken out of your pay

Gross Earned Income

Box 1 = Income Code/TypeBox 2 = Income exempt from taxBox 7 = Federal Income tax withheldBox 23 = State Income tax withheld

Income Type (key attached)

Gross Income Federal

tax taken

State tax taken

Other Forms You May ReceiveOther Forms You May Receive

1099-INT1099-INT: : Interest report (Bank sends to Interest report (Bank sends to you if over $10)you if over $10)

1099-DIV1099-DIV: Dividend report (Financial : Dividend report (Financial institution sends to you – if you have institution sends to you – if you have this you will use 1040NR)this you will use 1040NR)

1099-MISC1099-MISC: Honoraria or contractor : Honoraria or contractor income reportincome report

This information is also sent to IRSThis information is also sent to IRS

Forms you COMPLETEForms you COMPLETE

Make copies for your files!Make copies for your files!

Forms You Send to IRSForms You Send to IRS

88438843:: Must be completed by all F and J Must be completed by all F and J students, scholars, and dependents who students, scholars, and dependents who are are ““tax non-residentstax non-residents””

This form is also called, This form is also called, ““Statement for Statement for Exempt Individuals and Individuals with a Exempt Individuals and Individuals with a Medical ConditionMedical Condition””

Forms You Send to IRS Forms You Send to IRS (Cont(Cont’’d)d)

1040NR1040NR:: ““U.S. Nonresident Alien Income U.S. Nonresident Alien Income Tax ReturnTax Return””OROR1040NREZ1040NREZ:: ““U.S. Income Tax Return for U.S. Income Tax Return for Certain Nonresident Aliens with No Certain Nonresident Aliens with No DependentsDependents””

Forms for all tax non-residents with U.S. Forms for all tax non-residents with U.S. income; also called income; also called ““Tax ReturnsTax Returns”” ( (““ReturnReturn”” you get money back)you get money back)

Important Tax Treaty FormImportant Tax Treaty Form

82338233: Must be completed and given to the : Must be completed and given to the UNM payroll office UNM payroll office every yearevery year if you want to if you want to benefit from a tax treaty benefit from a tax treaty in advancein advance (i.e., you (i.e., you dondon’’t want them to take extra money from t want them to take extra money from each paycheck)each paycheck)

You can still get the benefits of any treaty at You can still get the benefits of any treaty at the end of the year even if you did not the end of the year even if you did not complete this form.complete this form.

IRS Information/PublicationsIRS Information/Publications

Publication 519Publication 519:: U.S. Tax Guide for Aliens U.S. Tax Guide for Aliens

Publication 901Publication 901:: U.S. Tax Treaties U.S. Tax Treaties

These publications have additional These publications have additional information for those with unusual situations information for those with unusual situations or for whom a tax treaty exists between the or for whom a tax treaty exists between the U.S. and the country of permanent U.S. and the country of permanent residenceresidence

Tax Residency StatusTax Residency Status

Am I a Resident or Non-resident Am I a Resident or Non-resident for Federal Tax Purposes?for Federal Tax Purposes?

Tax residency determines your basic obligations Tax residency determines your basic obligations under U.S. under U.S. ““federalfederal”” tax law (state is different) tax law (state is different)

You CAN be a You CAN be a ““tax resident,tax resident,”” even if you are not a even if you are not a "permanent resident" of the US (green card)"permanent resident" of the US (green card)

If you are a If you are a residentresident taxpayer you must pay federal taxpayer you must pay federal income tax on your income tax on your worldwideworldwide income. However, income. However, you do not have to file a "tax return," unless your you do not have to file a "tax return," unless your worldwide income exceeds a certain amount (This worldwide income exceeds a certain amount (This year: $10,150 if single and $20,300 if married)year: $10,150 if single and $20,300 if married)

Resident or Non-resident for Resident or Non-resident for Tax Purposes? (ContTax Purposes? (Cont’’d)d)

If you are a If you are a nonresidentnonresident taxpayer, you pay taxpayer, you pay federal income tax only on income you receive federal income tax only on income you receive from U.S. sources, but you must file an annual from U.S. sources, but you must file an annual income tax form, even if you had no incomeincome tax form, even if you had no income

Most J scholars at UNM are tax nonresidentsMost J scholars at UNM are tax nonresidents

If you were in a status other than J since your If you were in a status other than J since your arrival, please see IRS pub 519, U.S. Tax Guide arrival, please see IRS pub 519, U.S. Tax Guide for Aliens you may be for Aliens you may be ““Dual StatusDual Status””

Residency Test for ScholarsResidency Test for ScholarsSCHOLARS (J-1), in the 6 years prior to tax year 2014 SCHOLARS (J-1), in the 6 years prior to tax year 2014

(2008-2013), during how many calendar years were you (2008-2013), during how many calendar years were you present in the US on an J, Q visa?present in the US on an J, Q visa?((EvenEven one day of presence countsone day of presence counts ) )

2 or fewer of the previous 6 years

More than 2 of the previous 6 years

You are probably a non-resident for tax purposes

(If you entered the US for the first time after 12/31/12 this is you)

You are probably a resident for tax purposes

(If you entered the US for the first time before 1/1/2013 in J status and haven’t left this is probably you)

More Info for ScholarsMore Info for Scholars If you have only 3 yrs of presence If you have only 3 yrs of presence andand your your

foreign employer paid foreign employer paid allall of your of your compensation, you may still qualify to be a compensation, you may still qualify to be a non-resident (you will need form 8840)non-resident (you will need form 8840)

Even if you were a tax resident you may still Even if you were a tax resident you may still be able to benefit from a tax treaty for 2014 be able to benefit from a tax treaty for 2014 (see IRS Publication 901)!(see IRS Publication 901)!

Info for Scholars NOT in J StatusInfo for Scholars NOT in J Status If you are on an H-1 visa and arrived in the U.S. If you are on an H-1 visa and arrived in the U.S.

in 2013 or earlier, you were a resident in 2014 in 2013 or earlier, you were a resident in 2014 (but you may still be able to benefit from a treaty)(but you may still be able to benefit from a treaty)

If you are on an H-1 visa and arrived in the U.S. If you are on an H-1 visa and arrived in the U.S. in 2014, or if you are here on any type of visa in 2014, or if you are here on any type of visa other than H or J, please see the discussion of other than H or J, please see the discussion of tax residency and non-residency on pp. 4-11 of tax residency and non-residency on pp. 4-11 of IRS Publication 519, U.S. Tax Guide for AliensIRS Publication 519, U.S. Tax Guide for Aliens

Tax ResidentsTax Residents ““Residents for tax purposesResidents for tax purposes”” will need to go will need to go

elsewhere for tax informationelsewhere for tax information You would file: 1040EZ You would file: 1040EZ OROR Form 1040A Form 1040A OROR

Form 1040 and other forms depending on Form 1040 and other forms depending on your situation; if a treaty applies, you your situation; if a treaty applies, you complete form 8233 also (we can help)complete form 8233 also (we can help)

Get help from the resident volunteers at CNMGet help from the resident volunteers at CNM You are subject to the Affordable Care Act You are subject to the Affordable Care Act

requirements of having health care all year!requirements of having health care all year!

Tax ResidentsTax Residents

Those who were single and earned less than Those who were single and earned less than $10,150 worldwide income in 2014 (or married $10,150 worldwide income in 2014 (or married and earned less than $20,300) do not have to and earned less than $20,300) do not have to file a federal tax return, but file a federal tax return, but may want to get a may want to get a refund if taxes were takenrefund if taxes were taken

Remember, that as a tax resident, you can claim education credits for tuition that you paid. To do so, you will need to contact the UNM Bursar’s office to ask for a 1098-T form to get these credits on your resident tax return.

Filing Information for Filing Information for Non-ResidentsNon-Residents

Which federal forms doWhich federal forms do TAX Non-residentsTAX Non-residents fill out? fill out?

Form # Who Completes?

8843 ALL non-resident students and scholars and their dependents. If you did not have any US income you ONLY need to complete this form

1040NR If you received money from a US source, you also MUST complete form 1040NR if:a.Your income was $100,000 or more, ORb.You had dividend, capital gains or other US income that his not wage or scholarshipYOU MAY ALSO WANT TO COMPLETE FORM 1040NR IF:c.You were married and you can claim your spouse (you can claim an exemption for your spouse ONLY if your spouse did not work AND you are from Canada, Mexico or Korea) (for US-born children ask)OR IF:d. You can claim educational, travel, or living expenses*

1040NREZ If you received money from a US Source and none of the conditions for 1040NR above apply fill out this form with 8843

88438843

Every Tax Non-resident fills out Every Tax Non-resident fills out this form, even dependentsthis form, even dependents

8843 Student Sample

SSN or ITIN otherwise write “None”

Number of days you were in Scholar status

Sign here if no tax return

No Income?No Income?

If you had no US income in 2014 and you If you had no US income in 2014 and you are a non-resident you are DONE!are a non-resident you are DONE!

Make a copy for your files and mail before Make a copy for your files and mail before June 15, 2015June 15, 2015

If you are leaving the US you can find this If you are leaving the US you can find this form in January at form in January at www.irs.gov under form under form 8843!8843!

Mailing AddressMailing Address

Internal Revenue Service CenterInternal Revenue Service Center

Austin, TexasAustin, Texas

73301-021573301-0215

Have Income???Have Income???

Deductions and Exemptions to IncomeDeductions and Exemptions to Income

Remember you will never get back Remember you will never get back more than they took, so there is no more than they took, so there is no need to claim these if you will get all need to claim these if you will get all your money backyour money back

Can I deduct living expenses?Can I deduct living expenses?Scholars can only deduct travel and living expenses Scholars can only deduct travel and living expenses if you are a tax nonresident and your entire if you are a tax nonresident and your entire program in the U.S. lasts less than one year (365 program in the U.S. lasts less than one year (365 days)days)If this applies to you, you may be able to treat your If this applies to you, you may be able to treat your stay in the U.S. as a "business trip" and deduct your stay in the U.S. as a "business trip" and deduct your airfare, rent, local transportation expenses and part airfare, rent, local transportation expenses and part of a daily allowance for food from your income. If of a daily allowance for food from your income. If you will be in the U.S. for a total of less than one you will be in the U.S. for a total of less than one year and your expenses are more than 2% of your year and your expenses are more than 2% of your income, get Form 2106 from the IRS website, income, get Form 2106 from the IRS website, complete it and list your expenses on page 3, line 7 complete it and list your expenses on page 3, line 7 of form 1040NR.of form 1040NR.NO NEED IF YOU GET ALL YOUR MONEY BACK! NO NEED IF YOU GET ALL YOUR MONEY BACK!

Can I Deduct Moving Expenses?Can I Deduct Moving Expenses?

Scholars who will be in the U.S. for more Scholars who will be in the U.S. for more than 365 days may be able to deduct than 365 days may be able to deduct moving expenses (including one way moving expenses (including one way airfares for you and your family)airfares for you and your family)

If you moved to or from Albuquerque to If you moved to or from Albuquerque to accept employment during the year look accept employment during the year look at IRS form 3903 to see if this applies to at IRS form 3903 to see if this applies to you (enter on Line 26 of form 1040NR)you (enter on Line 26 of form 1040NR)

Income types we WILL coverIncome types we WILL cover::

Wages from any U.S. job, on-campus or Wages from any U.S. job, on-campus or off-campus, that you had in 2014 (Included off-campus, that you had in 2014 (Included in this category is all income that your in this category is all income that your employer(s) reported to you on Form W-2 employer(s) reported to you on Form W-2 or 1042S)or 1042S)

Bank interest (Not considered U.S. source Bank interest (Not considered U.S. source income for nonresidents so income for nonresidents so nontaxablenontaxable))

Income types we will NOT coverIncome types we will NOT cover (These are also subject to tax(These are also subject to tax))

Dividends or capital gains from U.S. mutual Dividends or capital gains from U.S. mutual funds, stocks or bondsfunds, stocks or bonds

Any other income (such as rent, royalties, Any other income (such as rent, royalties, copyright earnings) from U.S. sourcescopyright earnings) from U.S. sources

If you had these types of income you will need If you had these types of income you will need form 1040NR and you may want to seek form 1040NR and you may want to seek professional advice in preparing your returnprofessional advice in preparing your return

Treaty InformationTreaty Information

General Treaty InformationGeneral Treaty Information Some countries have tax treaties with the Some countries have tax treaties with the

U.S. which save you money on your U.S. which save you money on your federal income tax. You federal income tax. You cancan get the treaty get the treaty benefit even if you did not complete the benefit even if you did not complete the 8233 in 20148233 in 2014

Treaty benefits depend on country of Treaty benefits depend on country of last last tax residencetax residence, not citizenship, not citizenship

Benefits are different for each country and Benefits are different for each country and depend on your U.S. activity (e.g., depend on your U.S. activity (e.g., teaching or research) and type of incometeaching or research) and type of income

Scholar Treaty InformationScholar Treaty Information

Most treaties allow a scholar to exclude Most treaties allow a scholar to exclude the entire University salary from federal the entire University salary from federal taxation for a period of 2 or 3 years from taxation for a period of 2 or 3 years from the date of arrivalthe date of arrival in the U.S. in the U.S.

But beware!But beware!: some treaties provide no : some treaties provide no benefit at all if you stay in the U.S. more benefit at all if you stay in the U.S. more than two years and back taxes may be than two years and back taxes may be applicable (UK, Lux, NL, India)applicable (UK, Lux, NL, India)

Scholar Treaty InformationScholar Treaty Information

The numbers or Roman numerals in the The numbers or Roman numerals in the third column identify the relevant treaty third column identify the relevant treaty article and paragraph numbers (you will article and paragraph numbers (you will need these for your income tax return)need these for your income tax return)

Also note any letters next to the name of Also note any letters next to the name of your countries; there is a key at the end of your countries; there is a key at the end of the chartthe chart

Scholar Tax Treaty SummaryScholar Tax Treaty SummaryCountry Maximum Presence Amount Article # Special Restrictions* see below

Armenia 2 yrs. No limit VI(1) b, d

Azerbaijan 2 yrs. No limit VI(1) b, d

Bangladesh 2 yrs. No limit 21(1)  

Belarus 2 yrs. No limit VI(1) b, d

Belgium 2 yrs. No limit 19(2) b, e

Canada No limit $10,000 XV f

China (PRC) 3 yrs. No limit 19 b, e

Czech Republic 2 yrs. No limit 21(5) b, c, d

Egypt 2 yrs. No limit 22 b, e

France 2 yrs. No limit 20 b, c

Georgia 2 yrs. No limit VI(1) b, d

Germany 2 yrs. No limit 20(1) b, e

Greece 3 yrs. No limit XII  

Hungary 2 yrs. No limit 17 b

Scholar Tax Treaty SummaryScholar Tax Treaty SummaryIndia 2 yrs. No limit 22 a, b

Indonesia 2 yrs. No limit 20 b, c

Israel 2 yrs. No limit 23 b, e

Italy 2 yrs. No limit 20 b

Jamaica 2 yrs. No limit 22 b, c

Japan 2 yrs. No limit 20 b, d

Korea 2 yrs. No limit 20 b, d

Kyrgyzstan 2 yrs. No limit VI(1) b, d

Luxembourg 2 yrs. No limit 21(2) a, b

Moldova 2 yrs. No limit VI(1) b, d

Netherlands 3 yrs. No limit 21(1) a, b, e

Norway 2 yrs. No limit 15 b, d

Pakistan 2 yrs. No limit XII  

Scholar Tax Treaty SummaryScholar Tax Treaty SummaryPhilippines 2 yrs. No limit 21 b, e

Poland 2 yrs. No limit 17 b, e

Portugal 2 yrs. No limit 22 b, c

Romania 2 yrs. No limit 19 b, e

Slovak Republic 2 yrs. No limit 21(5) b, c, e

Slovenia 2 yrs. No limit 20 (3) b, d

Tajikistan 2 yrs. No limit VI(1) b, d

Thailand 2 yrs. No limit 23 b, e

Trinidad/Tobago 2 yrs. No limit 18 b, d

Turkey 2 yrs. No limit 20 (2)  

Turkmenistan 2 yrs. No limit VI(1) b, d

Uzbekistan 2 yrs. No limit VI(1) d, e

United Kingdom 2 yrs. No limit 20A a, b

Venezuela 2 yrs. No limit 21(3) b

Special Restrictions

a tax is retroactive if the scholar remains past 2 years

b If within the treaty time limit, the scholar may claim tax treaty benefits even if he/she qualifies as a resident for tax purposes. Not applicable for permanent resident or immigrant status

c may only claim treaty exemption once in a lifetime

d if claiming back-to-back student/scholar, 5 year total limit on treaty benefits

e student & teacher benefits may not be claimed back-to-back without re-establishing home country residency

f scholar is taxable on full amount if income is over $10,000

Filling out the Tax ReturnsFilling out the Tax Returns

Completing the Completing the ““Tax ReturnsTax Returns””

Always look to complete the easiest form Always look to complete the easiest form first. If you can get all your money back, first. If you can get all your money back, there is no reason to complete the long there is no reason to complete the long formform

We will review form 1040NREZ; you can We will review form 1040NREZ; you can come to the VITA site to complete the forms come to the VITA site to complete the forms using the software or do it on your ownusing the software or do it on your own

Form 1040NREZForm 1040NREZ

Complete this form first unless you have Complete this form first unless you have non-wage incomenon-wage income

If you get all your money back, you will If you get all your money back, you will send this formsend this form

If you have other income or deductions If you have other income or deductions (such as contributions to US charities), the (such as contributions to US charities), the 1040NR may help you get a larger return1040NR may help you get a larger return

Earnings InformationEarnings Information

Look carefully at all W-2 and 1042S forms Look carefully at all W-2 and 1042S forms NOW: NOW: is all your income included hereis all your income included here??

Is there any treaty income listed on the W-2 Is there any treaty income listed on the W-2 that should have been on the 1042S?that should have been on the 1042S?

Do you have any questions about what is on Do you have any questions about what is on these forms?these forms?

Contact payroll: payroll@unm.eduContact payroll: payroll@unm.edu

Earnings InformationEarnings Information

AddAdd all of your earnings income together from all of your earnings income together from these forms (interest and dividend income are these forms (interest and dividend income are separate)separate)

SubtractSubtract all of the income that should have all of the income that should have been covered by the treatybeen covered by the treaty

For scholarsFor scholars, if you were covered by a treaty , if you were covered by a treaty for the whole year, your taxable earnings for the whole year, your taxable earnings income should have been “0”income should have been “0”

Earnings InformationEarnings Information

The remainder is your EARNED income: this The remainder is your EARNED income: this will go on the wages line of the tax returnwill go on the wages line of the tax return

The treaty income will all go on the treaty line The treaty income will all go on the treaty line (s) of the tax return(s) of the tax return

1040NREZ Student Sample

Use a US address unless you won’t be here through June

1040NREZ Scholar Sample

1040NREZ Scholar Sample

44

44

1040NREZ Scholar Sample

1040NREZ Scholar Sample

1040NREZ Scholar Sample

Box 1 = WagesBox 2 = Federal Tax WithheldBox 17 = State Tax WithheldNon-residents should not have amounts taken in 5 &6

Money taken out of your pay

Gross Earned Income

Box 1 = Income Code/TypeBox 2 = Income exempt from taxBox 7 = Federal Income tax withheldBox 23 = State Income tax withheld

Income Type (key attached)

Gross Income Federal

tax taken

State tax taken

1040NREZ Scholar Sample

1040NREZ Scholar Sample

1040NREZ Scholar Sample

$3,950

1040NREZ Scholar Sample

1040NREZ Scholar Sample

1040NREZ Scholar Sample

Amount to be refunded

Amount Owed

Enter UNM Site ID#

Completing the processCompleting the process

Copy all documents for your filesCopy all documents for your files

Mail TogetherMail Together:: 88438843 1040NREZ1040NREZ Copy of W2Copy of W2 Copy of 1042sCopy of 1042s Any other earnings formsAny other earnings forms Any payment you oweAny payment you owe

Mailing AddressMailing Address If you do NOT need to pay any additional federal tax,

mail to: Department of the Treasury Internal Revenue Service Austin, TX 73301-0215

  If you DO NEED to pay additional federal tax mail with

payment to: Internal Revenue Service P.O. Box 1303 Charlotte, NC 28201-1303

1040NR1040NRCome to the volunteer hoursCome to the volunteer hours:: For scholars with dependents from For scholars with dependents from

Canada, Mexico, or South Korea who Canada, Mexico, or South Korea who cannot get all their money back from cannot get all their money back from completing form 1040NREZcompleting form 1040NREZ

For scholars with income other than wageFor scholars with income other than wage For scholars with income more than For scholars with income more than

$100,000$100,000 For scholars who have other deductions For scholars who have other deductions

(charities, losses, etc.)(charities, losses, etc.)

NM State TaxNM State Tax

Once you complete your federal tax you Once you complete your federal tax you can complete the state tax formscan complete the state tax forms

You will need the You will need the ““Adjusted gross incomeAdjusted gross income””, , ““Itemized deductionItemized deduction”” and and ““exemptionexemption”” amounts to do your forms (see handout)amounts to do your forms (see handout)

Forms and instructions are on the website: Forms and instructions are on the website: http://www.tax.newmexico.gov/Individuals/persohttp://www.tax.newmexico.gov/Individuals/personal-income-tax-forms.aspxnal-income-tax-forms.aspx

NM State TaxNM State Tax People who reside in New Mexico for more People who reside in New Mexico for more

than 185 days are residents for state taxthan 185 days are residents for state tax

You can only e-file if you:You can only e-file if you: You did not have a treaty, ORYou did not have a treaty, OR If you did have a treaty and all of your non-If you did have a treaty and all of your non-

taxable income was listed on the 1042Staxable income was listed on the 1042S

NM State TaxNM State Tax If all your income was exempt by treaty If all your income was exempt by treaty

and was on a 1042S (not a W2) you do and was on a 1042S (not a W2) you do need to file state formsneed to file state forms

If more than $10,000 of your income was If more than $10,000 of your income was on a W-2 OR if you had state taxes on a W-2 OR if you had state taxes withheld and you want the money back, withheld and you want the money back, you will need to file state tax formsyou will need to file state tax forms

NM State TaxNM State Tax If you will file state tax forms, and you have If you will file state tax forms, and you have

a treaty, you should include copies of the a treaty, you should include copies of the federal forms with your state tax formsfederal forms with your state tax forms

You may also want to include a letter You may also want to include a letter stating that you are a federal tax non-stating that you are a federal tax non-resident and that your income is not resident and that your income is not taxable because of the treaty (it would not taxable because of the treaty (it would not hurt to include the relevant text from the hurt to include the relevant text from the treaty (available at www.irs.gov)treaty (available at www.irs.gov)

Happy Tax Preparing!!!Happy Tax Preparing!!!

Come to our VITA site for help!Come to our VITA site for help!No income:No income:Wednesdays 2 – 4:30, March 18–April 8Wednesdays 2 – 4:30, March 18–April 8

With Income:With Income:Fridays from 2 – 4:30, from March 20-April 10Fridays from 2 – 4:30, from March 20-April 10

Language Learning CenterLanguage Learning Center

Ortega Hall, 1Ortega Hall, 1stst Floor Floor

Software ProgramSoftware Program

OR:OR:https://trr.windstar.com/Access Code: BNCTHSG7SEUNYou should follow the instructions for “New” or “Returning” users

Software ProgramSoftware Program You must read all instructions and enter

days in and out of the US in each tax year to get through the program successfully

Once you have completed the information, you click on “Get Forms”

You must print out all forms, attach your earnings statements (W-2, 1042s, etc.)

Copy and Mail to IRS (instruction sheet on “Get forms” page has address)