Tax Information
» Frequently Asked Tax Questions
Tax Information 2007 - Returns Due April 15!
I
nternational Students are required by law to file an income tax form with the Internal Revenue Service (INS) if they were a nonresident alien student on an “F-1” visa and have income (such as wages or scholarship grants) that is subject to tax. Also, if you worked on campus at all during 2007, you are required by law to file a tax return.
In addition, the Internal Revenue Service require students on an F-1 visa to file an information statement (Form 8843) if they have been in the United States less than five and a half years, or two and a half of the last six years.
In January, 2007 you should have received a W-2 statement from your employer that records how much tax was withheld from your paychecks during the 2007 calendar year. Please keep this form, as you will need it to complete your tax form(s).
To download the Federal Tax Form 8843 go to:
» http://www.irs.gov/pub/irs-pdf/f8843.pdf
To download the Federal Tax Form 1040NREZ go to:
» http://www.irs.gov/pub/irs-pdf/f1040nre.pdf
To download the Federal Tax Form 1040NR go to:
» http://www.irs.gov/pub/irs-pdf/f1040nr.pdf
To download the California State 540 NR go to:
» http://www.ftb.ca.gov/forms/06_forms/06_540nrshort.pdf
Please note that you must file for both federal and California tax forms.
For assistance in filing your tax forms check online at http://www.istaxes.com. ISTaxes is an online tax software which assists international students in filing the 2007 nonresident tax return on Form 1040NR-EZ, the mandatory Form 8843, or applying for a refund for Social Security and Medicare tax on Form 843 and Form 8316.
You can also use other online software sites such as hrblock.com or TurboTax.com. For local companies to assist you in filing your tax forms please check the yellow pages of your telephone directory under “tax return preparation”.
Frequently Asked Tax Questions
- I’m an F-1 student and I had no U.S. income during 2007, or my only U.S. income was bank interest. Do I need to file any tax forms?
Yes. You need to file Form 8843. This is the only form you will need to complete. F-1 students with U.S. income from other sources, such as dividend income, salary or wages, scholarships or fellowships, prizes or awards will need to file form 1040NR or 1040NR EZ.
- What happens if I fail to file my taxes?
If you owe taxes and don’t file, the IRS can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties can often amount to more the original tax debt.
- If I have U.S. income other than bank interest, which form should I use, 1040NR EZ or 1040NR?
Most students will find that they can use the 1040NR EZ, which is much simpler to complete than the 1040NR. Whichever form you use, you must also complete Form 8843. However, there are some rules and limits for the 1040NR EZ. You may use the 1040NR EZ if:
- Your only U.S. income was from wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or fellowship grants. (If you had dividend income from stocks or bonds, or taxable interest from mutual funds, you must use 1040NR)
- You do not claim any dependents (only citizens of Canada, Mexico, India and Korea can claim spouses and/or children as dependents, and they can only do so by filing form 1040NR).
- You cannot be claimed as a dependent on another person’s U.S. tax return.
- Your taxable income was less than $100,000.
- The only itemized deductions you claim is for state and local taxes (if you wish to claim charitable or other deductions, you must use 1040NR).
- I’m a new student for the winter quarter 2007 but arrived in the U.S. in late December 2007. Do I need to file a tax form?
Yes! If you are in F-1 status, or an F-2 dependent, and were in the U.S. for any part of 2007, even if it was just a few days, you will need to file a tax form. If you had no U.S. income in 2007, you will only need to file Form 8843.
- What about my F-2 dependents?
All F-2 dependents, whether or not they are students, must file Form 8843 even if they had no U.S. income of any kind for 2007, or if the only income they had was from bank interest. If there was any other U.S. income, they will also need to file a 1040NR EZ or 1040 NR.
- Can students claim itemized deductions?
Yes, but they are limited. You can claim itemized deductions for state and local taxes, charitable contributions to churches or charities, casualty and theft losses, certain un-reimbursed job expenses and tax preparation fees.
- Should I keep copies of my tax return and other tax forms?
Yes. Always keep copies of your tax return, W-2, 1042 -2, 1099 bank interest statements and any other pertinent forms as proof that you have filed. The IRS can audit individual returns for up to 3 years following the filing deadline and your tax records are essential in proving your case.
- I’m married and have a child who was born in the U.S. Can I claim personal exemptions for my wife and child?
Generally, no. Only students from certain countries can claim exemptions for their dependents (Mexico, Canada, Korea, and India.) Specified requirements are outlined in this website.
- I just received my W-2 for the wages I earned in 2007. Can I file my taxes now?
Not necessarily. If you are from a country which has a tax treaty with the U.S. or you received a U.S. based scholarship or fellowship, you may also receive Form 1042-S from Payroll. This form is generally mailed about 1 month later than Form W-2 and you will need to have both forms before you can file.
- If my country has a tax treaty with the U.S., does that mean I don’t have to file any tax forms?
No! In order to claim tax treaty benefits, you must file federal income tax forms 8843 and either 1040NR or 1040NR EZ.
- If I owe tax, to whom do I make the check payable?
If you owe taxes, make check payable to United States Treasury. Make sure that your social security number is on the check and that in the memo section you write, “For 2007 income taxes”.
- Do I also have to file a California State income tax form?
If you have earned no income in the U.S., you do no have to file a California State form. If you earned more than $13,713 in income during 2007 and are single, then you must file form 540 or form 540 NR. You may also want to file a California State form even if your income was less than the amount listed above, if any California State tax was withheld during 2007, and you would like to obtain a refund of that tax. The way to tell if California State tax was withheld is to look at your form W-2, Wage and Tax Statement, and see if there is any amount in box 17.
- I need tax forms and additional help or information. Where can I get the necessary forms or assistance?
- Where do I mail these forms?
Before mailing anything, MAKE COPIES OF YOUR RECORDS! Also, be sure to send your documents through the U.S. Post Office using certified mail, return receipt requested!
Mail forms 8843, 1040NR and 1040NR EZ and the appropriate attachments to:
Internal Revenue Service Center
Austin, Texas 73301-0215
Mail (certified mail, return receipt requested) your California State income tax return to:
If You Owe Money |
If You Expect A Refund |
Franchise Tax Board
P. O. Box 942867
Sacramento, CA 94267-0001 |
Franchise Tax Board
P. O. Box 942840
Sacramento, CA 94240-0002 |
- What is the deadline for filing tax returns?
If you are an employee and received wages subject to U.S. income tax withholding, you must file your tax forms by April 15, 2007. Otherwise, you must file your tax forms by June 15, 2007.
- I am leaving the country before I can file my taxes. What should I do?
Make sure the Payroll Office has your foreign address so that your Form W-2 and/or Form 1042-S can be mailed to you. Download the appropriate forms and instructions (http://www.irs.ustreas.gov/formspubs/index.html) and file your U.S. taxes from abroad. Save copies of all forms submitted for your records.
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