Federal Tax Information Session For International Students

Federal Tax Information SessionFor International Students

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 formsFilling out the forms 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 following year) of 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., giving You may be overpaying your taxes (i.e., giving

away your hard-earned money)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 Residency (i.e., application for U.S. Permanent Residency (i.e., ““green cardgreen card””))

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

In extreme cases involving fraud, you could In extreme cases involving fraud, you could lose your legal immigration status in the U.S.lose your legal immigration status 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 ServiceRevenue Service (IRS) with some state at (IRS) with some state at the endthe end

3 Important things to remember3 Important things to remember::

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

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

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

Who Is This Presentation For?Who Is This Presentation For? International StudentsInternational Students: Full-time students : Full-time students

in F-1 or J-1 in F-1 or J-1 Student Student Status (individuals in Status (individuals in degree programs, CELAC, exchange degree programs, CELAC, exchange students)students)

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

Other Presentation InformationOther Presentation Information For students with income typical at UNM. For students with income typical at UNM.

Otherwise seek professional tax advice from Otherwise seek professional tax advice from a qualified accountant or attorneya qualified accountant or attorney

Rules for students and scholars are Rules for students and scholars are differentdifferent

Special CasesSpecial Cases: Anyone whose total stay will : Anyone whose total stay will be less than one year; special treaties: be less than one year; special treaties: Canada, India, Korea, Mexico (we will Canada, India, Korea, Mexico (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 on Volunteers will be available to help you on Fridays from 2:00 – 4:30, from March 14 Fridays from 2:00 – 4:30, from March 14 through April 11through April 11thth..

WHERE: Language Learning Center, Ortega WHERE: Language Learning Center, Ortega Hall, 1Hall, 1stst floor. Will have tax software to help. floor. Will have tax software to help.

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.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 or the GOVERNMENT will owe moneyYOU or the GOVERNMENT will owe money

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 (RAs and PAs may correct (RAs and PAs may owe money)owe money)

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/SchoolW-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 this institution sends to you – if you have this you will use 1040NR)you will use 1040NR)

1099-MISC1099-MISC: Honoraria or contractor income : Honoraria or contractor income reportreport

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 are students, scholars, and dependents who are ““tax non-residents.tax 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 (Continued)Forms You Send to IRS (Continued)

1040NR1040NR:: ““U.S. Nonresident Alien Income Tax U.S. Nonresident Alien Income Tax ReturnReturn””

OROR

1040NREZ1040NREZ:: ““U.S. Income Tax Return for Certain U.S. Income Tax Return for Certain Nonresident Aliens with No DependentsNonresident Aliens with No Dependents””

These forms must be completed by tax non-These forms must be completed by tax non-residents with U.S. income. They are also residents with U.S. income. They are also called called ““Tax ReturnsTax Returns”” ( (““ReturnReturn”” you get you get money back)money back)

Important Tax Treaty FormImportant Tax Treaty Form

82338233: Must be completed and given to the : Must be completed and given to the payroll office payroll office every yearevery year if you want to if you want to benefit from a tax treaty in advance (i.e., you benefit from a tax treaty in advance (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 formcomplete this form

IRS PublicationsIRS 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: $10,000 if single and $20,000 if married)year: $10,000 if single and $20,000 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 federal taxpayer, you pay federal income tax only on the income you receive from U.S. income tax only on the income you receive from U.S. sources, but you must file an annual income tax form, sources, but you must file an annual income tax form, even if you had no incomeeven if you had no income

Most F and J students at UNM are Most F and J students at UNM are ““tax nonresidentstax nonresidents””

If you were in a status other than F or J since your If you were in a status other than F or J since your arrival, please see pp. 4-11 of IRS pub 519, U. S. Tax arrival, please see pp. 4-11 of IRS pub 519, U. S. Tax Guide for Aliens you may be Guide for Aliens you may be ““Dual StatusDual Status””

Residency Test for StudentsResidency Test for Students

STUDENTS (F-1 or J-1):STUDENTS (F-1 or J-1):How many years have you been in the U.S. in How many years have you been in the U.S. in

F, J, M or Q status?F, J, M or Q status?

Less than 5 years(e.g., You arrived AFTER 12/31/2008 and you were never in the US before on F, J, M, or Q status)

More than 5 years(e.g., You arrived BEFORE 1/01/2009 or you were in the US for more than 5 years total in F, J, M, or Q status since 1985)

You were probably a “nonresident for tax purposes” in 2013

You were probably a “resident for tax purposes” in 2013

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 1040Form 1040

Get help from the resident volunteers at CNMGet help from the resident volunteers at CNM

Tax ResidentsTax Residents

Those who were single and earned less than Those who were single and earned less than $10,000 worldwide income in 2013 (or $10,000 worldwide income in 2013 (or married and earned less than $20,000) do not married and earned less than $20,000) do not have to file a federal tax return, but have to file a federal tax return, but may want may want to get a refund if taxes were takento get a refund if taxes were taken

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 an exemption for 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)(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”

8843 Student Sample

Number of days you were in student status

University of New Mexico, MSC06 3850, Albuquerque, NM 87131

Linda Melville, Global Education Office, MSC06 38501 University of New Mexico, Albuquerque, NM 87131-0001

8843 Student Sample

8843 Student Sample

Diversity Visa Lottery does NOT count

Sign here if no tax return

No Income?No Income?

If you had no US income in 2013 and you If you had no US income in 2013 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, 2014June 15, 2014

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 educational expenses?Can I deduct educational expenses? Students can deduct educational expenses Students can deduct educational expenses

only if they already worked in the field that only if they already worked in the field that they're studying now (before beginning they're studying now (before beginning studies) and if the current studies will not studies) and if the current studies will not prepare them for a new field e.g., if you have prepare them for a new field e.g., if you have a BS in Architecture, have worked as an a BS in Architecture, have worked as an architect, and are studying for the MS in architect, and are studying for the MS in Architecture, you may be able to deduct your Architecture, you may be able to deduct your educational expenses from your incomeeducational expenses from your income

NO NEED IF YOU WILL GET ALL YOUR NO NEED IF YOU WILL GET ALL YOUR MONEY BACK!MONEY BACK!

Can I deduct educational expenses?Can I deduct educational expenses?

If you think you may be able to deduct your If you think you may be able to deduct your educational expenses, please see IRS educational expenses, please see IRS Publication 970 (beginning on P. 59), Publication 970 (beginning on P. 59), ““Tax Tax Benefits for Education;" if you decide that Benefits for Education;" if you decide that you can deduct educational expenses you you can deduct educational expenses you may need a copy of IRS Form 2106, may need a copy of IRS Form 2106, "Employee Business Expenses," in addition "Employee Business Expenses," in addition to your other tax formsto your other tax forms

NO NEED IF YOU WILL GET ALL YOUR NO NEED IF YOU WILL GET ALL YOUR MONEY BACK!MONEY BACK!

Can I deduct travel or living expenses?Can I deduct travel or living expenses? Students can only deduct travel or living Students can only deduct travel or living

expenses if they are a federal tax nonresident expenses if they are a federal tax nonresident and the entire educational program/stay in the and the entire educational program/stay in the U.S. lasts less than one year (365 days); U.S. lasts less than one year (365 days);

In this case, you may be able to treat your stay in In this case, you may be able to treat your stay in the U.S. as a "business trip" and deduct your the U.S. as a "business trip" and deduct your airfare, rent, local transportation expenses and airfare, rent, local transportation expenses and part of a daily allowance for food from your part of a daily allowance for food from your income. If you will be in the U.S. for a total of less income. If you will be in the U.S. for a total of less than one year and your expenses are more than than one year and your expenses are more than 2% of your income, get Form 2106 from the IRS 2% of your income, get Form 2106 from the IRS website, complete it and list your expenses on website, complete it and list your expenses on page 3, line 9 of form 1040NR.page 3, line 9 of form 1040NR.

Income types we WILL coverIncome types we WILL cover:: Non-service scholarship or fellowship Non-service scholarship or fellowship

grants from U.S. sources grants from U.S. sources Amounts granted to cover tuition and fees are Amounts granted to cover tuition and fees are

not taxable; these amounts do not have to be not taxable; these amounts do not have to be reported on your tax return)reported on your tax return)

The University or other granting institution The University or other granting institution should report any portions which are not tuition should report any portions which are not tuition or educational expenses to you on IRS Form or educational expenses to you on IRS Form 1042-S (e.g., Athletic scholarships at UNM)1042-S (e.g., Athletic scholarships at UNM)

Income types we WILL coverIncome types we WILL cover:: Wages from any U.S. job, including a Wages from any U.S. job, including a

teaching assistantship or a research teaching assistantship or a research assistantshipassistantship ALL income that your employer(s) reported to ALL income that your employer(s) reported to

you on Form W-2 )you on Form W-2 ) Any amount reported on Form W-2 cannot be Any amount reported on Form W-2 cannot be

considered non-service scholarship or considered non-service scholarship or fellowship income but might be treaty exempt fellowship income but might be treaty exempt incomeincome

Bank interestBank interest

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 may save you money on your U.S. which may 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 20138233 in 2013

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 activity in the U.S. (e.g., depend on your activity in the U.S. (e.g., student or scholar) and type of incomestudent or scholar) and type of income

Student Treaty InformationStudent Treaty Information For students, these benefits often last for For students, these benefits often last for

5 years (the same amount of time you 5 years (the same amount of time you are a tax non-resident – China is an are a tax non-resident – China is an exception)exception)

Type of Income Important: one chart for Type of Income Important: one chart for wages and one for non-service wages and one for non-service scholarshipscholarship

Student Treaty InformationStudent 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

Student Tax Treaty SummaryStudent Tax Treaty SummaryFor WAGESFor WAGES

Country Maximum Presence Amount Article # Special Restrictions

* see below Bangladesh 2 yrs. $ 8,000 21 (2) In effect after 01/01/07, b Barbados - - - **see special note below Belgium No limit $ 9,000 19 (1)(b) b, g, h ***see special note below Bulgaria No limit $ 9,000 19 (1)(b) b, g, h ***see special note below Canada 5 yrs. $10,000 XV a China No limit $ 5,000 20 (c) b, c Cyprus 5 yrs. $ 2,000 21 (1) b, i Czech Republic 5 yrs. $ 5,000 21 (1) b, c, d Egypt 5 yrs. $ 3,000 23 (1) b, c, i Estonia 5 yrs. $ 5,000 20 (1) b France 5 yrs. $ 5,000 21 (1) b, g, h Germany 4 yrs. $ 9,000 20 (4) b, c, e **see special note below Hungary - - - **see special note below


Iceland 5 yrs. $ 9,000 19 (1) b, c, h

India 5 yrs. Standard Deduction

21 (2) For 2011 this is $5,800

Indonesia 5 yrs. $ 2,000 19 (1) b Israel 5 yrs. $ 3,000 24 (1) b, c, h Jamaica - - - **see special note below Korea 5 yrs. $ 2,000 21 (1) b, f, g, h Latvia 5 yrs. $ 5,000 20 (1) b Lithuania 5 yrs. $ 5,000 20 (1) b Malta No limit $ 9,000 20 (2)

Morocco 5 yrs. $ 2,000 18 b Netherlands No limit $ 2,000 22 (1) b, c Norway 5 yrs. $ 2,000 16 (1) b, c

Pakistan No limit $ 5,000 XIII (1)

Philippines 5 yrs. $ 3,000 22 (1) b, f, h


Poland 5 yrs. $ 2,000 18 (1) b, f, h Portugal 5 yrs. $ 5,000 23 (1) b Romania 5 yrs. $ 2,000 20 (1) b, f, h Slovak Republic 5 yrs. $ 5,000 21 (1) b, c, f Slovenia 5 yrs. $ 5,000 20 (1) b, c, h Spain 5 yrs. $ 5,000 22 (1) b Thailand 5 yrs. $ 3,000 22 (1) b, c, f, h Trinidad & Tobago 5 yrs. $ 2,000 19 (1) b, h Tunisia 5 yrs. $ 4,000 20 b

Venezuela 5 yrs. $ 5,000 21 (1) b


* Special Restrictions

a student is taxed retroactively on full amount if income is over $10,000 b if within the time limit, the student may claim tax treaty even if s(he) qualifies as "resident alien" for

tax purposes but not applicable for permanent resident or immigrant status. Students from PR China however, may claim the treaty as long as they are primarily enrolled to be a student, even if they become US permanent residents or have immigrant status.

c if treaty benefits are used as a student, they may not be used immediately following as a teacher/researcher

d treaty benefits may be used only once in a lifetime e tax is retroactive if the student remains past 4 years f if individual re-establishes home country residency s(he) can claim both student & teacher treaty

benefits g student can claim back-to-back treaty exemptions as a student then as a scholar h limited to 5 calendar years from date of arrival in the U.S. i students continuing on for graduate level studies may continue to claim treaty benefits for the

additional time needed to complete degree requirements

** Special note: Students from Barbados, Hungary & Jamaica can elect to be treated as a "resident alien" for tax purposes. This benefit is not available to scholars/researchers from these countries.

Student Tax Treaty Summary For NON-Student Tax Treaty Summary For NON-SERVICE SCHOLARSHIPSERVICE SCHOLARSHIP

Country Maximum Presence Amount Article # Special restrictions

* see below Armenia 5 years $10,000 VI (1) a Azerbaijan 5 years $10,000 VI (1) a Bangladesh No limit No limit 21 (2) In effect after 01/01/07 Belarus 5 years $10,000 VI (1) a

Belgium 5 years No limit 21 (1)

P.R. China No limit No limit 20 (b) b

Cyprus 5 years No limit 21 (1)

Czech Republic 5 years No limit 21 (1)

Egypt 5 years No limit 23 (1)

Estonia 5 years No limit 20 (1)

France 5 years No limit 21 (1)

Georgia 5 years No limit VI (1) a

Germany No limit No limit 20 (3)

Student Tax Treaty SummaryStudent Tax Treaty SummaryFor NON-SERVICE SCHOLARSHIPFor NON-SERVICE SCHOLARSHIP

Iceland 5 years No limit 22 (1)

Indonesia 5 years No limit 19 (1)

Israel 5 years No limit 24 (1)

Kazakstan 5 years No limit 19

Republic of Korea 5 years No limit 21 (1)

Kyrgyzstan 5 years $10,000 VI (1) a

Latvia 5 years No limit 20 (1)

Lithuania 5 years No limit 20 (1)

Moldova 5 years $10,000 VI (1) a

Morocco 5 years No limit 18

Netherlands 3 years No limit 22 (2)

Norway 5 years No limit 16 (1)


Philippines 5 years No limit 22 (1)

Poland 5 years No limit 18 (1)

Portugal 5 years No limit 23 (1)

Romania 5 years No limit 20 (1)

Russia 5 years No limit 18

Slovak Republic 5 years No limit 21 (1)

Slovenia 5 years No limit 20 (1) c

Spain 5 years No limit 22 (1)

Tajikistan 5 years $10,000 VI (1) a


Thailand 5 years No limit 22 (1)

Trinidad & Tobago 5 years No limit 19 (1)

Tunisia 5 years No limit 20

Turkmenistan 5 years $10,000 VI (1) a

Ukraine 5 years No limit 20

Uzbekistan 5 years $10,000 VI (1) a Venezuela 5 years No limit 21(1) c


* Special Restrictions a also exempt are scholarship/grant amounts of up to $10,000 received from U.S. soruces to

provide ordinary living expenses. b does not include Hong Kong c students continuing on for graduate level studies may continue to claim treaty benefits for the

additional time needed to complete the degree requirements

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 cover form 1040NREZ; if you need We will cover form 1040NREZ; if you need to do 1040NR come to the VITA siteto do 1040NR come to the VITA site

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: is all your income included hereis all your income included here??

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

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

Contact payroll: [email protected] payroll: [email protected]

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

The remainder is your taxable wagesThe remainder is your taxable wages

1040NREZ Student Sample

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




Put this amount on line 6 on front of form


Sample for student with treaty

$5,000

Treaty IncomeTreaty Income Make sure you add all your income Make sure you add all your income

together from all forms (W-2 and 1042S)together from all forms (W-2 and 1042S) Then subtract your treaty income from the Then subtract your treaty income from the

totaltotal The amount covered by the treaty goes on The amount covered by the treaty goes on

line 6line 6 The remainder goes on line 3 unless you The remainder goes on line 3 unless you

have a non-service scholarship (e.g. have a non-service scholarship (e.g. althletes) which goes on line 5althletes) which goes on line 5

Put Treaty income on line 6

Put all income NOT covered by treaty on line 3

Non-service scholarship income goes on 5 (should be on 1042S)

Put any scholarship income used to buy books or other educational materials on 8 (you can only put this if you have a scholarship on line 5)

Total State Tax amount taken goes here – From W2 box 17 and 1042S box 23 unless you are a student from India (then put $6,100)

EVERYONE: Put $3,900 here

This is your taxable income, look at tax table in instructions beginning on page 23, find the amount and look to the right for your tax. Write the tax in 15

Tax from table

Enter amount of federal tax taken from box 2 of W-2

Enter amount of federal tax taken from box 7 on the 1042S, if any

Enter total here

Amount OwedAmount Owed

If line 21 is more than line 17, you If line 21 is more than line 17, you overpaid: Subtract line 17 from line 21 and overpaid: Subtract line 17 from line 21 and write the remainder on line 22.write the remainder on line 22.

If line 17 is more than line 21 you owe If line 17 is more than line 21 you owe money: Subtract line 21 from line 17 and money: Subtract line 21 from line 17 and write the remainder on line 25. This is write the remainder on line 25. This is what you have to pay by check to IRS.what you have to pay by check to IRS.

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 Together:Mail Together: 88438843 1040NREZ1040NREZ Copy of W2Copy of W2 Copy of 1042sCopy of 1042s Copy of any other earnings formsCopy of any other earnings forms

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 hours:Come to the volunteer hours: For students with dependents from Canada, For students with dependents from Canada,

Mexico, India or South Korea who cannot get all Mexico, India or South Korea who cannot get all their money back from completing form their money back from completing form 1040NREZ1040NREZ

For students with income other than wageFor students with income other than wage For students with income more than $100,000For students with income more than $100,000 For students who have other deductions For students 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: www.tax.newmexico.gov/Individuals/Pages/Perswww.tax.newmexico.gov/Individuals/Pages/Personal-Income-Tax-Formsonal-Income-Tax-Forms

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

Not supposed to e-file as the on-line Not supposed to e-file as the on-line program may not allow you to put less than program may not allow you to put less than standard deduction (and internationals standard deduction (and internationals usually donusually don’’t get this much unless you area t get this much unless you area a student from India)a student from India)

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 some of your income is resident and that some of 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 not hurt to include the relevant text from the treaty (available at www.irs.gov)the 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!

Fridays, March 14Fridays, March 14thth – April 11 – April 11thth

2:00 – 4:30 pm2:00 – 4:30 pm

Language Learning CenterLanguage Learning Center

Ortega Hall, 1Ortega Hall, 1stst Floor Floor

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

OR:OR:

https://trr.windstar.com/Access Code: 85N8BLEN6LEG

Documents

Federal Tax Information Session For International Students