Q:  Which international students and scholars on our campus need to file a tax return?

A:   All students and scholars in F, J, M, and Q status must file an annual tax return. Visitors on other types of visas may choose to file returns, especially to claim a refund of taxes withheld from payments they received while in the United States.

Q:  What if I didn't earn any money;  Do I still need to file?

A:   Yes.  F and J visa holders who did not have US based income during 2008 must complete form 8843, but do not need to file other tax return forms.

Q:   I understand the IRS has developed a shorter return form (Form 1040NR-EZ).  Can all nonresident aliens (NRAs) use this form?

A:   Most international students and scholars will be able to use this much easier form.  The IRS designed Form 1040NR-EZ for both single and married nonresident aliens who earn less than $50,000 and do not have any of the following deductions:  state income taxes, charitable contributions, casualty or theft loss or job expenses.

Individuals with income in excess of $50,000, with any of the above mentioned deductions,  or with income other than wages, interest, and scholarships must use form 1040NR.

Q:   In addition to the tax return forms and instructions, what other information will filers need to complete their tax returns?

A:   Employers must provide Form W-2 to their employees by the end of January 2009.  Students with scholarships or fellowships that qualify as gross income will also receive Form 1042-S by mid-March 2009. Those with taxable investment income will receive Form 1099. 

Everyone who files either Form 1040NR or 1040NR-EZ must also submit Form 8843 to verify their status as a nonresident alien.  It's also a good idea to have handy a copy of last year's tax return for reference.

Q:   I had bank interest on my checking or savings account, is that earned income and must I file other tax forms?

A:  No. Interest on non-business bank accounts is not taxable to non-resident aliens.

Q:   Are there references to help with more complicated situations?

A:   Publication 519, A U.S. Tax Guide for Aliens, will probably answer most questions.  Publication 901, A U.S. Tax Treaties, summarizes tax treaty benefits available to students, scholars, and visitors from around the world.  These publications can be viewed on-line at the Internal Revenue Services  home page.   The Office of International Exchange also has a reference copy of each publication.

Q:   Students and scholars whose  wages or scholarships are exempt under the terms of a tax treaty don't need to file, right?

A:   Wrong.  All F, J, M, and Q visa holders must file an annual return, even if none of their income is taxable.  In fact, failure to file could negate the tax treaty benefit and students and scholars could owe tax on the entire amount of their US-source income.

Q: I received information about the HOPE, the Tuition Tax Credit and the Earned Income Credit from the University. Am I eligible for these deductions?

A: No. Nonresident aliens cannot claim the HOPE or Lifetime Learning Education Credits, or the Earned Income Credit.

Q: I have a student ID starting with the numbers 800, 810 or 900 that looks just like a social security number. Can I use this as my tax payer identification number?

A:   No. You must have a valid Social Security Number or Taxpayer Identification Number (ITIN).

Q.  What if an international student or scholar does not have and can't get a social security number?

A:   They need to complete IRS form W-7 and apply for an Individual Taxpayer Identification Number (ITIN) as soon a possible. You must have either a Social Security or Taxpayer Identification Number in order to complete your taxes.  If you're not sure which one you need or how to get one, ask Domenica or Kimberly at the USM. Office of International Programs.

If you are claiming a deduction for either a spouse and/or a child, they will also need their own SSN or ITIN.  Except for someone born in December 2008, everyone whose name appears on Form 1040NR or 1040NR-EZ must have either an SSN or ITIN.

Q: My child lives with me. Can I claim them as a dependent?

A: Not Necessarily. Only nonresidents from Mexico, Canada, Korea, Japan or India can claim dependents.

Q: My spouse does not work.  Does she/he have to complete a tax form?

A: No.  If your spouse does not have any income subject to U.S. tax, she/he does not need to file a tax return.

Q:   What about students or scholars who were on campus in 2008 but are now back home. What should they be doing?

This document was adapted by Domenica Cipollone from the following sources:

$       Information developed by Deborah Vance, coordinator of sponsored students in the Office of International Students and Scholars at Iowa State University and author of U.S. Federal Income Tax Guide for International Students and Scholars, now in its ninth edition.

$     The University of Connecticut's Non Resident Alien Taxation web page, which is very thorough, can be found at  http://www.sba.uconn.edu/accounting/international/