All of the following information is graciously provided to us by International Student and Scholar Services, Binghamton University (SUNY).

Introduction to U.S. Tax Regulations

All students in F and J status are required to file tax returns, even if you have earned no income in the United States. You may also download forms from the IRS Website.

The deadline for filing tax forms is usually April 15 for those individuals with U.S. source income.

Students who filed tax returns last year may receive income tax forms for the new tax year in the mail in January. If you were employed in the U.S. at anytime during this year, you are required to file an income tax form, whether you are a U.S. citizen, permanent resident, or non-immigrant.

If you did not earn any U.S. income during the previous year other than bank or credit union interest, then you need only file form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition. The purpose of the 8843 is to verify that the non-resident qualifies to exempt days of presence, and thus shields the non-resident from being taxed as a resident. Being taxed as a U.S. resident allows the IRS to tax your world-wide income. Your bank, credit union or other financial institution will mail you a yearly statement of interest as well.

The deadline for filing your income tax returns is April 15 if you received wages or other income subject to tax withholding. Otherwise, if you had no income and are filing only form 8843, the deadline is June 15.

Consequences of Not Filing Tax Returns

Consequences of Not Filing Tax Forms

(For Tax Year 2001)
The following information is for international students in F-1 or J-1 status who have been in the U.S. in F-1 or J-1 status for 5 years or less years (1997 or later) and are therefore eligible to file as non-residents for tax purposes. We hope you find this information helpful.

The material contained in this message comes from Internal Revenue Service publications, discussions with IRS staff, and other income tax publications and materials.
Staff are sometimes asked what can happen if an F-1 or J-1 student fails to file tax forms yearly. There can be immigration consequences for failing to file tax forms. For example, applicants who change from F-1 to H-1B (the professional worker visa) can be asked by the Immigration Service to submit copies of previous years' income tax forms as part of their H-1B application. Applicants for permanent residency ("green cards") can be asked to show copies of tax forms filed for previous years. A person who appears at a U.S. consulate abroad for consular processing of a permanent residency visa application may be asked to produce U.S. income tax forms from their previous years in the U.S. Information on obtaining federal tax forms and publications is available by phone (1-800-829-3676), fax (1-703-368-9694) or on the World Wide Web.

Individual Taxpayer ID Number (ITIN)
Tax Payer Identification Numbers (ITIN)

(For Tax Year 2002)
All F-1 and J-1 visa holders, and their dependents are required to file tax forms each year, whether or not they earned any income!
When completing the tax forms, you are required to indicate your U.S. social security number. However, many individuals in F-2 status and other non-immigrant statuses are not eligible for social security numbers. So the Internal Revenue Service has created the Individual Taxpayer Identification Number (ITIN) for individuals who need such a number for tax or banking purposes but cannot apply for a social security number.

To apply for an ITIN, come to the Cross Cultural and Commuter Programs and Services, located in The Thomas Student Center. You should bring your passport and I-94 card with you to apply.

It takes several weeks to receive an ITIN. Since the deadline for filing tax forms for 2002 is April 15, 2003, individuals who do not have a social security number and are not eligible to obtain one, and who will need an ITIN, should apply for one as soon as possible.

Do I file form 1040NR or form 1040NR-EZ?
SHOULD I FILE FORM 1040NR OR FORM 1040NR-EZ?

(For Tax Year 2002)

Many students ask if they should they complete federal income tax form 1040NR or 1040NR-EZ, if they have earned income in the U.S. What follows should assist students with that decision.  You can use form 1040NR-EZ if all of the following conditions are met:
· You do not claim any dependents
· You cannot be claimed as a dependent on someone else's return.
· If you are married, you do not claim an exemption for your spouse.
· Your taxable income is less than $50,000.
· You do not claim any itemized deductions other than for state and local income taxes.
· Your only U.S. income was from wages, salaries, tips, refunds of state and local income taxes, and scholarship or fellowship grants. (If you had taxable interest or dividend income, you cannot use this form. Note that bank or credit union interest is not taxable for non-residents and is not counted as income)
· You are not claiming any adjustments to income other than scholarship and fellowship grants excluded.
· You are not claiming any tax credits.
· You do not owe any "other taxes" (other than Social Security and Medicare tax on tip income not reported to employer or household employment taxes).

If you do not qualify to file Form 1040NR-EZ, you must file 1040NR.

Information provided by International Student and Scholar Services - Binghamton University (SUNY)

Form 8843
(For Tax Year 2001)
As many students know, ALL F-1 and J-1s, and their dependents, must file form 8843 even if they earned no income in the U.S.
If you had no income, complete the top of the form, and Parts I and III, sign on the back, and mail it to the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255.
J-1 Scholars and Visiting Faculty should complete Parts I and II.
If you earned income in the U.S., then the 8843 should be attached to your form 1040NR-EZ or 1040NR. Otherwise, it should be sent by itself.
Many people ask about questions 9 & 10 on Part III, which ask you to give the name, address and telephone number of your academic institution and the name, address and telephone number of the director of your academic program. Actually, it is not as complicated as it looks. If you were a student at UT Health Science Center during 2001, here is what you would write for question 9:

Social Security and Medicare Withholding
Social Security (FICA) and Medicare Withholding
(For Tax Year 2002)
This fact sheet is about incorrectly withheld Social Security (FICA) and Medicare Tax from earnings (wages), and how to get the money refunded to you.

Different kinds of taxes are withheld by employers. The W-2 form (Wage and Tax Statement) sent to you by your employer each January has boxes for reporting withholding of Federal Income Tax (box 2), Social Security Tax (box 4), Medicare Tax (box 6), State Income Tax (box 18) and local income tax (box 21). This tax tip focuses on box 4 and box 6.

F-1 and J-1 students who have been in the U.S. in this status for 5 calendar years or less (1997 or later), and J-1 scholars in the U.S. in this status for 2 calendar years or less (2000 or later) who have been employed ON CAMPUS are exempt from Social Security and Medicare Tax (boxes 4 and 6). F-1 and J-1 students who worked off campus with the appropriate work authorization (economic hardship employment or practical training) are also exempt from these two taxes. However, F-1 and J-1 students in the U.S. in this status for more than five years, J-2 dependents, J-1 scholars and faculty in the U.S. for more than two years, those in other non-immigrant statuses, and those who worked without authorization ARE subject to Social Security (FICA) and Medicare Tax.

If you are an F-1 or J-1 student who thinks that Social Security and/or Medicare Taxes were withheld from your pay incorrectly, because you were in the U.S. in this status for less than five or two years, respectively, and had appropriate work authorization, then U.S. federal regulation requires that you contact the employer who issued you the W-2 and inform them of the error, AND ask that they refund you the money. If the employer cannot or will not issue the refund, there is a special procedure you can use to obtain a refund of Social Security and Medicare Tax. This procedure is entirely separate from filing your income tax forms.

You need to file two special IRS forms, Form 843 and Form 8316. You will be required to show on the forms that you attempted to contact your employer first. You will also be required to attach copies of your work authorization, a copy of your I-94 card, and a copy of your W-2 form. It all gets mailed to the Internal Revenue Service Center, Philadelphia, PA 19255. You should keep copies of everything you send and allow from eight to ten weeks for processing

Frequently Asked Tax Questions
(For Tax Year 2001)
1. I'm an F-1 or J-1 student and I had no U.S. income during 2001, or my only U.S. income was bank or credit union 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 or J-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.

2. What about my F-2 and J-2 dependents?
All F-2 and J-2 dependents, whether or not they are students, must file Form 8843 even if they had no U.S. income of any kind for 2001, 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 1040NR.

3. I'm a new student for the Spring 2002 semester but arrived in the U.S. in late December 2002. Do I need to file a tax form?

Yes! If you are in F-1 or J-1 status, or a F-2 or J-2 dependent, and were in the U.S. for any part of 2002, even if it was just a few days, you will need to file a tax form. If you had no U.S. income in 2002, you will only need to file Form 8843.

4. 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.

5. What is the deadline for filing tax forms?
If you are an employee and received wages subject to U.S. income tax withholding, you must file your tax forms by April 15, 2002. Otherwise you must file your tax forms by June 15, 2002. Individuals filing only Form 8843 must file by June 15, 2002.

6. My bank (or credit union) has mailed me a form, called a Form 1099-INT, indicating the amount of interest I earned on my savings account/money market account/certificate of deposit. Do I need to include this amount on my income tax forms?

It depends. Non-residents filing form 1040NR-EZ do not include U.S. bank or credit union interest as income. But non-residents filing Form 1040NR would include this interest on Item L (page 5).

7. Both form 1040NR-EZ and 1040NR ask for social security numbers or taxpayer identification numbers. Is this the same as the number I was issued by the university when I was admitted? It has the same number of digits.

NO! All F-1 and J-1 who have been authorized to work in the United States should have a Social Security number (SSN), issued by the Social Security Administration. Students in F-1 and J-1 status who do not yet have a social security number (and their dependents in F-2 or J-2 status who may not be eligible for a SSN) need an identification number to file their income tax form. Such individuals must obtain an Individual Tax Payer Identification Number (ITIN). They can apply for an ITIN by completing form W-7 and bringing it in person, along with their passport and other identifying documents, to the Office Cross Cultural and Commuter Programs and Services. Form W-7 is designed for individuals who are not eligible to apply for Social Security Numbers. The IRS has recently announced that F and J visa holders who have no U.S.-source income, and thus file only the Form 8843, need neither an SSN nor an ITIN to file Form 8843. However, the IRS strongly recommends that you use either an SSN or ITIN on the form, as it may be important if in the future you apply for an immigration benefit.

9. During the 2001 calendar year, I worked at locations other than UT (for example, employment at a previous U.S. college or university, or authorized off-campus employment). Should I be receiving a Wage and Tax Statement (form W-2) from that employer?

Yes! Each employer for whom you worked in 2001 is required to issue you a wage and tax statement prior to the end of January. However, students often change their addresses, so your former employer may not have your current address. You should contact your previous work places and inform them of your current address so that the W-2 form can be sent to you in a timely manner. Remember, by law, all employers MUST report your earnings to the U.S. Internal Revenue Service. So, failure to receive a form W-2 from an employer does not eliminate the requirement that you report all taxable income earned from that employer.

10. I am a student from India, and I've heard that my country's tax treaty allows me to claim the standard deduction, but I can find no additional information about this benefit.

Information on this benefit can be found in IRS Publication 519, p.22. Students from India have the choice of itemizing their deductions or taking the standard deduction amount. Since the standard deduction for 2001 is $4550 if you are single, most will take this amount. On form 1040NR-EZ, enter $4550 on line 11 if you are single. If you are married, and your spouse also files a return, enter $3800 on line 11. Click here for more information on the U.S.-India Tax Treaty.

11. 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-EZ or 1040NR.

12. I've received a form 1042-S. How do I reflect this on my tax return?

It all depends upon the TYPE of income being reported on the 1042-S. Look at the income code in column (a) of the form. An income code of 15 is for a scholarship or fellowship grant, and would be reported on line 5 of form 1040NR-EZ or line 12 of form 1040NR. An income code of 19 refers to a tax treaty amount withheld from wages, and would be reported on line 6 of form 1040NR-EZ or line 22 of form 1040NR. You would not include this amount as part of your wages on line 3 of form 1040NR-EZ or line 8 of form 1040NR.

13. I am eligible to claim a tax treaty deduction, since my country has a tax treaty with the U.S. but I never received a form 1042-S. Instead, all of my earnings are reported on my form W-2. How do I complete form 1040NR-EZ to claim my tax treaty deduction?

Let's assume, for the sake of this example, that you are permitted to claim $2000 as your tax treaty amount to be deducted from wages. Subtract your tax treaty amount from your salary and wages as reported on your form W-2. Write the difference on line 3 of form 1040NR-EZ. If your tax treaty amount is more than your salary as reported on your W-2, write "0" on line 3. Then indicate the tax treaty amount on line 6. (You can verify your country's tax treaty information by consulting IRS Publication 901, U.S. Tax Treaties. Be sure you are consulting the section which summarizes tax treaty benefits for students. Fifty-two countries have tax treaties with the U.S.) Be sure to answer question j, page 2 completely.

Students from India should click here for information on the tax treaty provisions which apply to them.

14. How do I complete Form 8843?

All F-1 and J-1 students filing form 1040NR-EZ or form 1040NR must attach Form 8843 to it. F-1 and J-1 students and F-2 and J-2 dependents with no U.S. income, or for whom the only U.S. income is bank or credit union interest complete Form 8843 only. To complete Form 8843, print your name and social security number (or individual taxpayer identification number) across the top of the form. Complete Parts I and Part III (Leave Part II blank).

15. Where do I mail these forms?

Before mailing anything, MAKE COPIES FOR YOUR RECORDS!

Mail forms 8843, 1040NR-EZ and 1040NR and the appropriate attachments to:
Internal Revenue Service Center
Philadelphia, PA 19255

Links to forms and information

Tax Forms

Internal Revenue Service (IRS website)
You may download any tax forms you need from this website.

Paper forms are in the bookcase by the reception desk: forms 1040NR, 1040NR-EZ, and 8843, plus instructions. We also have some copies of Publication 901, Tax Treaties, available.

You may go to the Memphis IRS office, 22 N. Front Street, downtown.

Tax Information and Tax Treaties

Windstar Techologies, Inc:  http://www.windstar-tech.com
This site features articles and reference information on a number of topics of interest to international students, including:
--U.S. taxation of foreign students and scholars: A road map to an individual's tax return
--U.S. Taxation of Foreign Students and Scholars
--Tax Treaty Benefits for Foreign Student and Scholars: How Tax Treaties Work
--The complete text of each country's tax treaty with the U.S.