Foreign National Tax Resource

Transcription

1 TAX & ACCOUNTING 2009 Thomson Reuters/ONESOURCE. All Rights Reserved.

2 Proprietary Materials No use of these Proprietary materials is permitted without the express written consent of or license from , Thomson Reuters/ONESOURCE. Altering, copying, distributing, or reproducing any of these proprietary materials in any manner is expressly prohibited. Software License Agreement The right to use the software product described in this workbook is specifically conditioned upon your execution of and compliance with the Tax License Agreement with , Thomson Reuters/ONESOURCE. All contents copyright , Thomson Reuters/ONESOURCE. Thomson Reuters

3 Contents What's New for the Release Forms 1040NR and 1040NR-EZ Federal Schedules and Worksheets Massachusetts Return... 2 Thomson Reuters Page i

4 What's New for the Release The 2015 federal filing deadlines are April 18, 2016 or June 15, 2016, depending on the situation. The deadline for Massachusetts state tax returns is April 19, Date variations are due to the Patriots Day and Emancipation Day holidays. See the Instructions page and the Tax Deadlines for Tax Year 2015 What s New article on the Tax Resources and Q&As landing page for details after this release is posted. Reminder! Taxpayers (or a taxpayer's household member) who purchased health insurance through a healthcare marketplace should not use Foreign National Tax Resource because it does not perform the necessary calculations or prepare the appropriate forms Forms 1040NR and 1040NR-EZ Forms 1040NR (U.S. Nonresident Alien Income Tax Return) and 1040NR-EZ (U.S. Income Tax Return for Certain Nonresident Aliens with No Dependents) are now available for 2015 processing. Note the following: The 2015 personal exemption amount increased to $4,000. The 2015 standard deduction amount for eligible tax residents of India increased to $6,300 ($12,600 for qualifying widowers). The Who Can and Cannot Use lists changed. Administrators and users should review the lists. The income code drop-down menus were updated with the tax year S updated codes. The codes typically used by higher education and research payees are significantly different for 2015 than they were for Users must be careful to select the correct income code based on the description. The 2014 tax return environment retains the income codes applicable for tax year Treaty analysis processing was enabled for payees whose treaty benefit period is based on elapsed years. Beginning with this release, the Treaty Analysis Result page instructs users whose treaty benefit period ended in 2015 to allocate their income between that earned or received prior to and after their benefit end date. A new screen was added for this allocation. Teachers and researchers from China whose treaty benefit end date was in 2015 cannot use the software if any of their compensation was earned or received after their benefit end date. Note: Individuals from China in this situation can use Foreign National Tax Resource to prepare Form 8843, if applicable. Tax year 2015 Forms 1040NR and 1040NR-EZ include a new question for treaty claimants. The question asks if the taxpayer is claiming treaty benefits pursuant to a Competent Authority determination. The default response is No for all tax returns generated by the Foreign National Tax Resource. The default cannot be changed. The user should not use Foreign National Tax Resource if the response should be Yes. An interview question was added to accommodate an existing field on the tax return form. The question asks if the user received $250,000 or more in total compensation for services during the year from all sources. The user is informed that they cannot use Foreign National Tax Resource to complete their return if the user selects Yes, or selects No but compensation reported in Foreign National Tax Resource equals or exceeds the stated amount. Tax year 2014 return preparation remains available. Tax Year 2013 is unavailable. Thomson Reuters Page 1

5 Treatment of other income (income code 54) remains unchanged from prior years. Formerly, the income code for other income was 51 for tax year 2014 and 50 for prior tax years. How to view and print forms for Tax Year 2015 differs from how to do so for Tax Year 2014 forms. Year-specific instructions are provided within the application and on the FNTR landing page Federal Schedules and Worksheets The following federal schedules and worksheets are now available for tax year 2015 processing: Form 2106-EZ, Unreimbursed Employee Business Expenses Form 6251, Alternative Minimum Tax Individuals Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition Form W-7, Application for IRS Individual Taxpayer Identification Number Schedule 8812 (Form 1040A or 1040), Child Tax Credit Schedule C-EZ (Form 1040), Net Profit From Business (Sole Proprietorship) Schedule SE (Form 1040), Self-Employment Tax Student Loan Interest Deduction Worksheet Standard Deduction Worksheet Child Tax Credit Worksheet 2015 Massachusetts Return The 2015 Massachusetts state return is not yet available. Availability will be announced on the content website and via FNTR administrator and system messaging. If you require assistance, please windstar.fntr@thomsonreuters.com Thomson Reuters Page 2