Frequently Asked Tax Questions 2015sda

8/19/2019 Frequently Asked Tax Questions 2015sda

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Frequently Asked Tax Questions2015 Tax Filing Season

Q. How do I determine if I am a resident alien for tax purposes? A. F-1, J-1, M or Q students are considered non-residents for tax purposes for their first

five years in the United States on a student visa. For J-1 scholars this period is two

years. !ote that partial years count as full years for this calculation." After this period

the su#stantial presence test $ust #e applied to deter$ine residency for tax purposes.

%he Su#stantial &resence %est S&%" is used to deter$ine if an individual who has #een

in the U.S. for all or part of $ore than ' calendar years as a student or $ore than (

calendar years as a scholar is a resident alien for U.S. tax purposes. %o pass the S&%

and thus #e considered a resident alien for tax purposes, an alien $ust at least)

1. #e physically present in the United States for *1 days in the tax year, and

(. #e physically present in the United States for 1+* days durin the *-year period

consistin of the tax year and the ( i$$ediately prior years. %he 1+* days are

calculated as follows)

• all days of presence in the current tax year plus

• 1* of days of presence in the year i$$ediately #efore the current year plus

• 1 of all days of presence in the year #efore that.

/f this total is 1+* or reater, you are a resident for tax purposes and can file the sa$e

tax for$s as a U.S. citi0en. e$e$#er that F and J students can use the Su#stantial

&resence %est only after ' years in the U.S. J scholars can use the S&% only after (

years in the U.S.

Q. When is my tax return due?

A. Federal U.S. overn$ent" tax returns are due #y April 1+, (21. State of /owa tax

returns are due #y May (, (21.

Q. I am on scholarship. What is my tax obligation?

A. /f your scholarship is fro$ sources inside the United States, the portion of your

scholarship used for roo$ and #oard as well as for other non-educational expenses is

taxed at a flat rate of 134 or *24 if you have no U.S. Social Security !u$#er or /%/!".


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/ndividuals fro$ countries with which the U.S. has neotiated tax treaties $ay #e a#le to

reduce the a$ount of tax on their scholarships. %he portion of your U.S. scholarship

ranted and used to pay tuition and re5uired fees is exe$pt fro$ U.S. tax. 6ou will

receive For$ 123(-S fro$ your sponsor to report the taxa#le portion of your

scholarship.

/f you are a nonresident for tax purposes and your scholarship is provided #y an entity

outside the United States you will not pay taxes to the U.S. on any part of your

scholarship. 7hec8 with your sponsor to deter$ine if you have any U.S. tax o#liations

on your scholarship.

Q. What is a tax treaty and how do I determine if I am eligible?

A. %he U.S. has neotiated tax treaties with $any countries of the world. /f you are a

resident of a country that has a tax treaty with the U.S., you $ay #e elii#le to reduce or eli$inate U.S. tax on your inco$e. /f you are elii#le for a tax treaty #enefit, you $ust

file For$ +(** with your e$ployer every year. More tax treaty infor$ation can #e found

here and here) http)www.irs.ovpu#irs-pdfp921.pdf

Q. My employer has deducted taxes from my paychecks. Do I still need to file a

tax return?

A. 6es. All nonresidents $ust file a tax return each year they are in the United States.

%he law re5uires U.S. e$ployers to withhold a standard percentae of tax fro$ eache$ployee and to pay that tax to the U.S. overn$ent. /ndividuals $ust file a tax return

at the end of each year to deter$ine whether they owe additional taxes or to re5uest a

refund fro$ the U.S. overn$ent if their e$ployer deducted too $uch tax durin the

year.

Q. What is orm W!"?

A. For$ :-( shows how $uch you earned fro$ wor8in durin the year. /t also shows

how $uch tax your e$ployer has withheld fro$ your paychec8s and paid to theovern$ent on your #ehalf durin that sa$e year. 6ou $ust receive For$ :-( fro$

each U.S. e$ployer for who$ you wor8ed durin the year. 6ou need the infor$ation

fro$ all your For$s :-( to co$plete your annual tax return and $ust attach a copy of

each :-( to your tax return. /f you did not wor8 in the United States durin the year or if

all of your inco$e was exe$pt under a tax treaty for which you sined up at the

#einnin of the year, you will not receive For$ :-(.

http://www.controller.iastate.edu/payroll/nonresalien.htmlhttp://www.irs.gov/pub/irs-pdf/p901.pdfhttp://www.irs.gov/pub/irs-pdf/p901.pdfhttp://www.controller.iastate.edu/payroll/nonresalien.html


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Q. What is orm #$%"!&?

A. For$ 123(-S su$$ari0es taxa#le scholarships and fellowships as well as inco$e

exe$pt fro$ tax under a treaty #enefit. Schools and sponsors $ail For$ 123(-S in

early Fe#ruary. 6ou need the infor$ation fro$ all your For$s 123(-S to co$plete yourannual tax return and $ust attach a copy of each 123(-S to your tax return.

Q. When will I recei'e my W!" or #$%"!&?

A. ;$ployers distri#ute For$s :-( to each e$ployee on or #efore Jan *1st. Schools

and sponsors $ail the For$ 123(-S in early Fe#ruary. /f you are e$ployed #y /owa

State University your For$ :-( for (21' is now availa#le online throuh the ;$ployee

ta# in Access&lus. /f you wor8ed off-ca$pus durin the year and have not received

For$s" :-( #y Fe#ruary 1st

, contact your e$ployers" to re5uest a copy.

Q. I recei'ed orm #$%"!& but no orm W!". What should I do?

A. For$ 123(-S is used #y /owa State University and U.S. sponsors to report taxa#le

scholarships and inco$e exe$pt fro$ tax under a tax treaty. 6ou need the infor$ation

fro$ your For$ 123(-S to co$plete your annual tax return and $ust attach a copy of

the 123(-S to your tax return for$. /f you did not wor8 in the United States durin the

year or if you wor8ed #ut all of your inco$e was exe$pt under a tax treaty, you will not

receive For$ :-(. /f you wor8ed in the U.S. and not all of your inco$e for the year isreported on the For$ 123(-S you received, contact your e$ployers" to re5uest a copy

of your :-( for$ if you have not received it #y Fe#ruary 1 st. /f you wor8ed off-ca$pus

on 7&%,


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resident tax returns. See =How do I determine if I am a resident alien for tax

purposes> at the #einnin of this FAQ."

Q. What is orm #$(*!+?

A. For$ 129+-% is a report of pay$ents received, a$ounts #illed or refunds $ade for

tuition and related expenses durin the tax year. !onresident alien students do not

need For$ 129+-% and it does not need to #e included with a nonresident tax return.

%hose who 5ualify as residents for U.S tax purposes $ay use the infor$ation on this

for$ to deter$ine their elii#ility for certain education tax credits. See =How do I

determine if I am a resident alien for tax purposes > at the #einnin of this FAQ."

Q. What is orm #$((?

A. For$ 1299 is a report of inco$e received durin the tax year fro$ sources other thanwaes. For$ 1299-/!% is a report of interest inco$e earned on deposits with U.S.

#an8s. !onresident aliens are exe$pt fro$ tax on this type of interest inco$e #ut

residents $ust include a$ounts reflected on For$ 1299-/!% on their tax returns as

taxa#le inco$e. For$s 1299- and 1299-?/B report proceeds fro$ the sale of stoc8s

and #onds, dividend inco$e and capital ains. oth nonresidents and residents $ust

pay taxes on inco$e reported on For$s 1299- and 1299-?/B. For$ 1299-C is a

report of any State tax refund received for the previous year. %his a$ount $ay #e

taxa#le to #oth nonresidents and residents to the extent that it was ta8en as an ite$i0ed

deduction in the previous tax year. 6ou will need all 1299 for$s issued to you durin

the year in order to properly prepare your tax return.

Q. I did not work in the ,nited &tates this year and had no scholarship from ,.&.

sources. What should I do?

A. /f you are a nonresident who was present in the U.S. in F or J. All nonresident F

and J international students and scholars $ust file For$ ++3*, even if they had no

inco$e for the year. ?ependents in F-( and J-( status $ust also file For$ ++3*.

Q. I arri'ed in the ,.&. this December- and I didnt work. Do I still ha'e to file orm**%/?

A. 6es. /f you were in the U.S. in F or J status for even 1 day durin the tax year, you

$ust file For$ ++3* for that year.

https://www.irs.gov/pub/irs-pdf/f1098t.pdfhttps://www.irs.gov/pub/irs-pdf/f1098t.pdfhttps://www.irs.gov/pub/irs-pdf/f1098t.pdfhttps://www.irs.gov/pub/irs-pdf/f1098t.pdf


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Q. I did not earn 'ery much money. Do I still ha'e to file a tax return? A. /f you earned less than D3,222 in (21' you are not re5uired to file a full tax return#ut everyone in F or J status $ust still file For$ ++3*". Eowever, if your e$ployerdeducted any taxes fro$ your paychec8 durin the year you $ust file For$ 1232!-;or For$ 1232! to re5uest a refund of these taxes fro$ the U.S. overn$ent. 6ou

$ust also file For$ ++3* reardless of how $uch you earned.

Q. Which tax form do I use? A. Cenerally, international students and scholars use for$ 1232!-; or 1232! fortheir Federal U.S. overn$ent" taxes. G!G $eans =nonresident> for tax purposes./ndividuals who are residents for tax purposes use the sa$e 1232 for$s as U.S.citi0ens. All nonresident F and J international students and scholars $ust file For$++3*, even if they had no inco$e for the year.

Q. May I file my tax forms electronically?

A. !o. !onresident tax returns $ust #e printed, sined, and $ailed to the overn$ent.

Q. Where do I mail my tax return? A. /f you are due a refund or owe no additional tax, For$s 1232!-;, 1232!, and++3* are $ailed to)

?epart$ent of the %reasury /nternal evenue Service

Austin, %exas H**21-2(1'

/f you owe additional tax, For$s 1232!-;, 1232!, and ++3* are $ailed to)

/nternal evenue Service &.


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A. A nonresident alien who does not $eet the Su#stantial &resence %est and does not

have a =reen card> $ay choose to #e treated as a resident for tax purposes if the

nonresident is $arried to a U.S. citi0en, leal per$anent resident, or so$eone who has

passed the Su#stantial &resence %est. %his choice can #e $ade if)

1. at the end of the year, one spouse is a nonresident alien and the other is a U.S.citi0en or resident, and

(. #oth spouses aree to file a @oint return and to treat the non-resident alien as a

resident alien for the entire tax year.

%o $a8e the election, the $arried couple $ust attach a state$ent to the @oint tax return

that is filed for the year. %he state$ent should contain the followin infor$ation)

1. A declaration that one spouse was a nonresident alien and the other spouse was

a U.S. citi0en or resident on the last day of the tax year, and that they choose to #etreated as U.S. residents for the entire tax year, and

(. ;ach spouseIs na$e, address, and taxpayer identification nu$#er.

e$e$#er that tax residents $ust pay tax to the United States on their total worldwide

inco$e. !onresidents pay tax to the U.S. only on inco$e earned in the U.S.

Q. What is a dual!status alien? A. A dual-status alien is a person who is #oth a resident alien and a nonresident alien

for tax purposes durin the sa$e tax year. %his usually occurs in the year a person

arrives in the United States or leaves the United States. /t $ay also occur if a personIs

residency status chanes durin the year. %ax returns for dual-status aliens are

enerally $ore co$plicated. &lease spea8 with a tax advisor for assistance.

Q. My young children li'e with me and one was born in the ,.&. 2an I claim the

2hild 2are +ax 2redit?

A. Usually not.


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filed your return. Eowever, the ter$s of your visa re5uire that you stay in co$pliance

with all laws of the United States, includin inco$e tax filin. /f you want to apply for

per$anent residence in the U.S. at a later date you $ay #e as8ed to prove that you

have co$plied with all tax laws. /f you are a nonresident with inco$e protected #y a

treaty or have inco$e fro$ outside the U.S. and fail to file a return, #oth your treaty-

protected and forein-source inco$e #eco$e su#@ect to U.S. tax.

/f you owe additional tax for the year, you $ust file a tax return and pay those taxes on

ti$e to avoid late fees. %he /S chares su#stantial interest and penalties on past due

taxes. Failure to follow tax rules can also have far-reachin leal conse5uences.

Q. My friend filed orm #$%$ and recei'ed a larger refund. 2an I do that- too?

A. !ot leally. /f you are a nonresident alien you $ust file 1232!-; or 1232!.

Failure to file the correct for$ is tax fraud and can place your i$$iration status in @eopardy. %he additional $oney you $iht receive is not worth the leal and financial

trou#le.

Q. I am a nonresident alien and my employer withheld I23 taxes from my

paycheck. 2an I get a refund?

A. F-1 and J-1 nonresident aliens are exe$pt fro$ F/7A Social Security and Medicare"

taxes on waes earned fro$ leal e$ploy$ent in the United States. /f your e$ployer

withheld F/7A taxes in error, you can re5uest a refund. %he law re5uires that you first

as8 your e$ployer for a refund of the F/7A taxes. /f your e$ployer cannot help you, fileFor$s +3* and +*1 with the /S to re5uest a refund fro$ the overn$ent. Attach the

followin to For$ +3*)

1. A copy of the For$ :-( showin F/7A taxes withheld

(. A copy of your /-93

*. A copy of your $ost recent entry visa

3. 7o$pleted For$ +*1

'. A copy of For$ 1232!-; or 1232! filed for the year in which the F/7A was

withheld

. A copy of your /-(2 or ?S-(219

H. A copy of your ;$ploy$ent Authori0ation ?ocu$ent if applica#le"


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+. /f your visa status has chaned in the past year attach any US7/S Approval

!otices

Mail your clai$ to) ?epart$ent of the %reasury/nternal evenue Service 7enter

Documents

Frequently Asked Tax Questions 2015sda