Immigration Services Year End Tax Presentation December, 2013 PLEASE PRESS *6 ON YOUR PHONE TO MUTE
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Today s Presenter - Barbara Lefebvre, Visa Onboarding and NRA Tax Coordinator Barbara.lefebvre@umassmed.edu
Agenda (Remember to press *6 to mute your phone) What is in tax packet and why you need to take action. Explanation of NRA vs. RA with accompanying tax form. Information update (e.g. FNIF) Tax Treaties Deadline!
What is in packet? The tax packet includes forms critical for establishing correct payroll withholdings for calendar year 2014, based on your tax status as NRA, RA, and treaty holder. Some forms, including tax documents, may be printed TWO sided!
Why take action by deadline Those who do not return completed tax forms by Dec 20, 2013 will not: - benefit from treaty or - benefit from change in tax status by first payroll of January 2014.
Who should be attending this webinar? c All Non-Resident Aliens (NRA) Any Non-Resident Aliens (NRA) who will change to Resident Aliens (RA) in calendar year 2014 Resident Aliens (RA) who are receiving tax treaty benefits
NRA (Remember to press *6 to mute your phone) A non-resident alien (NRA) is any person who is not a U.S. citizen; a lawful permanent resident (green card holder), or able to pass the Substantial Presence Test
NRA (Remember to press *6 to mute your phone) Substantial Presence Test (SPT) You must have been present less than 183 days during the previous three-year period to be qualified as a nonresident alien for tax purposes. Once you pass the 183 days, you become a resident alien for tax purposes. Your individual SPT Report and Analysis Summary are included in tax packet.
NRA (Remember to press *6 to mute your phone) SPT exempt individuals: Students temporarily present in the U.S. in F or J status may be exempt individuals for up to five (5) calendar years and Non-student J-1 visa holders are exempt for up to two (2) years.
Substantial Presence Test/ Analysis Summary (Remember to press *6 to mute your phone)
Substantial Presence Test/ Analysis (Remember to press *6 to mute your phone)
If you are an NRA (Remember to press *6 to mute your phone) You will have forms: W-8Ben W-4 SIGN forms, make copies, and send back to Immigration Services by interoffice mail.
W-8Ben (Remember to press *6 to mute your phone)
W-4 Form (Remember to press *6 to mute your phone)
RA (Remember to press *6 to mute your phone) Resident Alien (RA) An individual who has met or passed the substantial presence test by virtue of the number of days physically present in the U.S. or An individual who has been granted lawful permanent residence in the U.S. A resident alien is taxed on his/her worldwide income in the same manner as a U.S. citizen.
People changing from NRA to RA (Remember to press *6 to mute your phone) Tax status will change when you become a Resident Alien If you will be in the U.S. beyond the 183 rd day of 2014, your new withholding status will begin on Jan. 1, 2014, if you return SIGNED forms by deadline. If your visa end date is scheduled for before the 183 rd day of 2014, you will remain an NRA until your status is extended.
NRA Changing to RA (Remember to press *6 to mute your phone) In packet you will have: New W-4 with nothing printed You must choose your withholding status W-9 You will have to sign
Screen shot of blank W-4 (Remember to press *6 to mute your phone)
Screenshot of the worksheet top of W-4 (Remember to press *6 to mute your phone)
Screenshot of W-9 (Remember to press *6 to mute your phone)
Treaties (Remember to press *6 to mute your phone) If eligible for a treaty you will have forms: 8233 if you are an Non-Resident Alien (NRA) W-9 if you are an Resident Alien (RA) Treaty Attestation To continue your treaty benefit for 2014: SIGN those forms, make copies for your record, and return the originals plus one (1) copy to Immigration Services
Treaties: Form 8233 (top and bottom of first page) (Remember to press *6 to mute your phone)
Treaties: 8233 Signature Page (Remember to press *6 to mute your phone)
Statement of Understanding of Treaty Benefits
Treaties: W-9 for Resident Alien (Remember to press *6 to mute your phone)
Treaties (Remember to press *6 to mute your phone) Both NRA s and RA s MUST SIGN statement regarding tax treaty benefits. For NRA, Statement is last page of form 8233 For RA, Statement is at bottom of W-9
Information Check (Remember to press *6 to mute your phone) Information to verify on tax forms: Spelling of your name Address Social Security Number Enter 2013 travel dates and send a copy of your I-94 card send a copy new passport ID identification page, if issued in 2013.
Information Check (Remember to press *6 to mute your phone) A blank copy of the Foreign National Information Form [FNIF] is included in tax packet. (Page 2 may be on back of Page 1.) Complete the FNIF in order to correct personal data, update information, document travel outside US, etc.
Information Check (Remember to press *6 to mute your phone)
Closing Information Return original and one (1) copy of signed forms and accompanying docs to HR/Immigration Services, 333 South St. by interoffice mail Send SIGNED forms. Your pay will be affected if your forms not received by December 20, 2013. Include the Substantial Presence Test and Tax Treaty analysis printouts even though a signature was not required. Include completed FNIF. Include copies of new I-94 card (if travel in 2013) and/or new passport (if updated in 2013).