Basic Tax Information for F and J Immigration Status

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1 1 Basic Tax Information for F and J Immigration Status International Student Services Who Should Be Here Today If you were not in the USA during 2009, you do not need to file taxes until next year. You may stay for this session if you like, but please feel free to leave now. 2 Who Should Be Here Today If you were NOT in F or J (or M or Q) immigration status during 2009, this tax data is not relevant to you. You may stay for this session if you like, but please feel free to leave now. Legal Disclaimer Please remember that employees of The New School are prohibited from offering tax advice. All information contained in print or during any tax information sessions should not be construed as tax advice and should not be acted upon as such. The New School is not responsible for any outcome from the use of the information provided, and advises students to take sole responsibility in filing taxes and seeking professional advice as needed. 3 4 Federal Resident or Non-Resident CINTAX will calculate this for you! You are a Resident for US tax purposes if: You have been in the US in F or J (or M or Q) status for any part of 6 years since 2004 AND You were in the US for at least 31 days in 2009 and have 183 days in the US in total from: All days in the US in /3 of days in the US in /6 of days in the US in 2007 If you are a Resident for US tax purposes, you must file tax forms for US Residents. State taxes may have different residency guidelines These will be discussed later. 5 Taxes: An Overview To tax is to impose a financial charge or other levy upon an individual or legal entity by a state. Funds provided by taxation may be used to carry out many functions, including expenditures on public education, the enforcement of law, and infrastructure such as roads and waste management. ~ Wikipedia 6

2 7 Kinds of Taxes and Why to File Sales, Property, Social Security/Medicaid, Income City, State and Federal Earned Income If you had earned income, taxes were probably withheld from your paycheck as indicated on your W-2 Forms. Filing a tax return allows you to reconcile the amount taken out with what was actually owed. You may get money back, or you may owe money; but you will not make a profit, or get more back than was withheld. Kinds of Taxable Income Other Income Check with any non-new School funding sources before filing taxes Filing taxes allows you to report any other income, such as Last Year s Tax Refunds are Taxable Income This Year taxable scholarships and fellowships. 8 Payment for Services performed in the US Wages Form W-2 Form 1099-MISC Interest Accrued from US Bank Accounts Form 1099-INT Issued by January 31 st each year Scholarships, Fellowships, Grants, Stipends, Tuition Reduction, etc. from a US Source Institutional Scholarships (i.e., from The New School for study at The New School) are not taxable income. Form 1042-S Issued by March 15 th each year Tax Treaties May exempt non-residents from US income tax Certain countries Limited amounts Specific income sources For more info use CINTAX or see : IRS Publication 901 US Tax Treaties IRS Publication 519 US Tax Guide for Aliens Also can reduce tax withholding: From your paycheck file Form 8233 with your employer From scholarship or fellowship grants see Form W-8BEN See for more information Treaties apply to New York taxes, but may not apply to New Social Security and Medicare Tax Jersey or other state taxes Student income is exempt from Social Security or Medicare Tax (called FICA) if employment is at the college or university where you are a full-time student. CINTAX will display information on obtaining a FICA tax refund if this is appropriate based on the data you enter. No screen will display if your FICA tax was, in fact, due. To get a refund of FICA taxes wrongly withheld: Contact The New School payroll office payrollhelp@newschool.edu cite IRC Section 3121(b)(10) File IRS Form 843 (for info, read IRS Form 8316) see W-2 Form Summary of Earned Income Perforated multiple originals You must mail one original W-2 with each tax return 11 Documents Needed to File Taxes Passport, Visa, I-94 card Exit and Entry Dates for past US visits Form I-20 or DS-2019 Social Security (SSN) or Individual Tax Identification Number (ITIN) Current US Address AND Permanent Foreign Address Educational Institution or Sponsoring Organization Form(s) W-2, 1099-MISC, 1099-INT, etc. Scholarship or Fellowship grant letters / Form 1042-S (non-new School/Institutional Funds only) 12 Copy of last year s tax form (if you have one)

3 13 Individual Taxpayer Identification Number (ITIN) CINTAX will generate an ITIN application for you if necessary Attach and submit this Form-W7 with your tax return If you choose not to use CINTAX, please apply for an ITIN promptly; processing can take 6 weeks or more. No ITIN is necessary if you only are filing Form 8843 Federal Tax Forms Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition Form 1040NR or 1040NR-EZ Nonresident Alien Income Tax Return All Federal Forms must be mailed to: Internal Revenue Service Center Austin, TX Form 8843 All international students in F or J immigration status during 2009 are required to file Form 8843 Report presence in the US in non-immigrant and nonresident status Does NOT require an ITIN or Social Security number, but if you have one, use it Enter: Name; Part I; Part II or III; and signature. Send with tax return if also filing taxes: Due April 15, 2010 if you file taxes Due June if you do not file taxes 15 Form 1040NR If you: Are a Non-Resident for tax purposes Were present in the US during 2009 Earned or received income in the US You must file: Federal Tax Forms Form 8843 Form 1040NR or 1040NR-EZ Internal Revenue Service Center Austin, TX CINTAX Tax Software Access Code: A737UK9M Due April 15, 2009 firm deadline! 16 New York State Taxation You must file a NY Tax Return if: You had income greater than $7,500 in 2009 You want a refund of NY State taxes withheld in excess of your tax 17 New York Taxes Residency If you were a full-time student pursuing a baccalaureate degree for at least two semesters, or the equivalent, in 2009: You are a non-resident for NY tax purposes in 2009 Note: Your dormitory or other dwelling is not considered a domicile by NY Otherwise, you are a resident for NY tax purposes in 2009 if: You maintained a permanent place of abode in NY for more than 11 months AND you were in NY for 184 days or more in 2009 A permanent place of abode is your home in the US 18

4 19 New York Tax Forms Residents use NY tax Form IT-150 or IT-201 Non-Residents use NY tax Form IT-203 Forms and instructions available on-line: For help contact NY taxation office: Specify if non-resident taxes Filing New York Non-Resident Taxes Mail forms to: State Processing Center State Processing Center-Refund (if for refund) PO Box Albany, NY Resident taxes go to a different address Due April 15, 2009 firm deadline! 20 New Jersey State Taxation You must file a NJ Tax Return if: You had income greater than $10,000 in 2009 You want a refund of NJ State taxes withheld in excess of your tax New Jersey Taxes Residency You are a non-resident for NJ tax purposes if: You spent less than 183 days in NJ during 2009 You spent more than 183 days in NJ during 2009 but you did not have a permanent home in NJ. A home is not permanent if it is maintained only during a temporary or limited period for the accomplishment of a particular purpose Vacation home? Dormitory? (unclear definition) New Jersey Tax Forms Residents use NJ tax Form NJ-1040 Non-Residents use NJ tax Form NJ-1040NR Forms and instructions available on-line: For help contact NJ taxation office: Specify if non-resident taxes 23 Filing New Jersey Non-Resident Taxes Mail Non-Resident forms to: State of New Jersey Division of Taxation Revenue Processing Center PO Box 244 Trenton, NJ Resident taxes go to a different address Due April 15, 2009 firm deadline! 24

5 25 Record Keeping Please keep a copy of everything you mail for your own records. Helpful Links and Resources Federal Taxes, General: (800) (toll free) 290 Broadway NY, NY (212) Federal Taxes, International: (215) (toll call) New York State & City Taxes: (800) New Jersey State Taxes: (609) Call during business hours earlier is better Always specify: Non-Resident Taxes! 26 Tax Preparation Services For-Pay Service Free Service (VITA Program) Be sure your tax preparer has experience in non-resident student taxes. Questions If you have questions about the data in this presentation, please contact ISS Drop-In Hours: Monday & Wednesday, 2:00-4:45 p.m. iss@newschool.edu Call: Legal Disclaimer Please remember that employees of The New School are prohibited from offering tax advice. All information contained in print or during any tax information sessions should not be construed as tax advice and should not be acted upon as such. The New School is not responsible for any outcome from the use of the information provided, and advises students to take sole responsibility in filing taxes and seeking professional advice as needed. Getting Started CINTAX Software CINTAX Software demo ISS Access Code: A737UK9M Director of the Academic Program: Name: Monique Ngozi Nri Telephone: Address: The New School 79 Fifth Avenue, 5th Floor New York, NY