Frequently Asked Questions
- Who is considered a resident alien for tax purposes?
- What is Cintax and when will I get my password to access it?
- There are a lot of companies that advertise they prepare tax returns at a low rate. Can I go to one of those?
- Do I have to file the 8843 form?
- Do non-resident student and scholars pay Social Security and Medicare taxes?
- Who needs a Social Security Number?
- Who needs an ITIN? Where and how do I get an ITIN for my dependents?
- Who has to file a tax return?
- What tax status do I use to file my federal return?
- What is the difference between the 1040NR and the 1040NREZ?
- I have a Graduate Assistantship. Is this considered employment?
- Do I have to pay the Social Security tax?
- Do I have to pay state and local taxes? If so, as a resident or nonresident?
- My friend told me I can file the form 1040EZ. Is that right?
- Who can use the form 1040NR-EZ?
- Where do I send my return?
- Who can claim a standard deduction?
- Who can claim a personal exemption?
- Who can claim a tax treaty?
- My country has a tax treaty with the U.S. Does this mean I'm not required to pay taxes?
- How do I find out if I get any benefits from my treaty?
- After looking at publication 901, it appears I am eligible for benefits. What should I do next?
- What should I do with the 1098T forms from the University of Iowa?
- What is the 1042S form?
- Am I entitled to the Hope Credit?
- Should I keep a copy of my return?
- If I am going home in May will I need to file a return in 2009?
- Is bank interest paid to a nonresident alien taxable?
- What about my dependents?
- I am an F-1 student. For the past three years, I have filed the 1040EZ form. Now I know that is wrong. How should I go about fixing this situation?
- I have a lot of friends who work and don't file tax returns. Why should I?
Who is considered a resident alien for tax purposes?
A resident alien for tax purposes is different from a resident alien for immigration purposes. You are considered a resident alien for tax purposes if you meet either the green card test of the substantial presence test for the current year.
F1, J1, M and Q students are exempt from the substantial presence test for 5 years. Any part of a year that the student is in the US counts as a full year. After the exemption time period expire then the individual is considered a resident if they meet the substantial presence test.
J and Q teachers and trainees are exempt from the substantial presence test if they have been in the US for no more than 2 of the last 6 years. Any part of a year counts as a full year.
What is Cintax and when will I get my password to access it?
Cintax is the software the University of Iowa purchases to assist you with filing your Federal tax return. Access to CINTAX is limited to current students and scholars and those who were present at UI during the 2007 tax year. Current students can access the software via their HawkID by clicking here. If you are a visiting scholar or a student who is not currently enrolled and cannot access CINTAX with your HawkID, send a message to oiss@uiowa.edu to request an access code. Please provide your name and birthdate so we can verify your UI status.
Click here for information about upcoming tax workshops which will be held in March and April.
There are a lot of companies that advertise they prepare tax returns at a low rate. Can I go to one of those?
It is important to understand that if you qualify to file as a nonresident for tax purposes, you are part of a small group of tax filers in the United States. Many accountants have no working experience in this area of the law. The OISS urges you to discuss with the tax preparer his or her qualifications before contracting for services.
Do I have to file the 8843 form?
Even a student or scholar who had no income must file the 8843. An 8843 must be filled out for every family member in F or J status. This form does not require a social security number or ITIN.
Do non-resident student and scholars pay Social Security and Medicare taxes?
No they should not have had those taxes withheld. If they did then the nonresident can file a 843, Claim for Refund and Request for Abatement. Please ask for help with this.
As long as F-1, J-1, M-1, or Q-1 remains nonresidents for federal income tax purpose, they are exempted from Social Security and Medicare taxes. Form 843 can be used to claim the withheld Social Security and Medicare taxes.
However, spouses and dependents in F-2, J-2, M-2 status are NOT exempt from Social Security and Medicare taxes on any wages they earn.
Who needs a Social Security Number?
Anyone who has earned money needs a social security number to file a tax return.
Who needs an ITIN? Where and how do I get an ITIN for my dependents?
An ITIN is an Individual Tax Identification Number. This number is different from a Social Security number which is used by the individual who earned the income and is filing a tax return. The ITIN is used to identify the dependents of the person filing a tax return. There are only a few cases where students and scholars can claim dependents on their tax return.
This would include individuals from Canada, Mexico, South Korea and India if they meet the specified requirements. If you are claiming your dependents on your tax return you should bring your completed tax return forms to the OISS along with the passports/I-94s and I-20/DS2019s for yourself, spouses and children.
Our receptionist will make copies of needed documents, notarize them and put them into an envelope that she will seal and stamp so that the IRS knows this has not been opened and changed.
Who has to file a tax return?
Some non-resident aliens who earn wages less than $3,300 do not have to file a tax return. However, nonresident aliens in F and J status must file a return if they have income that is subject to withholding even if no tax was withheld.
F and J status holders who are eligible for a refund should file a return. F and J status holders must file the 8843 form regardless of whether they had income. The 8843 must be filed for each family member in F and J status.
NOTE: Those nonresident who might want to apply for permanent residency at a later date should file a return every year to satisfy complying with the tax compliance laws.
What tax status do I use to file my federal return?
All unmarried nonresidents must file using the ‘single’ filing status.
Married nonresidents must use one of the married filing statuses except MFJ.
Nonresidents can not use head of household.
What is the difference between the 1040NR and the 1040NREZ?
The 1040NR is a more comprehensive tax form, totaling five pages, which can be used by any nonresident. The 1040NREZ is a simplified version of the same form, which can be completed by nonresidents who meet certain requirements.
Many U of I students qualify to file the 1040NREZ. Note: Married students from India whose spouse had no U.S. source income should file the 1040NR. See the 1040NR instructions for more information.
I have a Graduate Assistantship. Is this considered employment?
Yes. Normally, a G.A. is employment income. Some, not all, G.A.s include a tuition scholarship. Under the U.S. tax laws, a tuition scholarship/fellowship component is not taxable income. However, the amount received as payment for services would be taxable.
Do I have to pay the Social Security tax?
Social Security (FICA) tax withholding depends on whether you are a resident or nonresident for tax purposes. If you are a nonresident F-1 or J-1 student or nonresident J-1 scholar, you do not have to pay FICA.
Do I have to pay state and local taxes? If so, as a resident or nonresident?
Generally, you can assume that you will have to file state and local returns if you earned any income in the U.S. Unfortunately, the state and local tax agencies use the words "resident" and "nonresident" with different meaning than the federal government. Resident refers literally to where you reside. The OISS does carry forms for State of Iowa returns, but not for other state returns. For more information about State of Iowa returns, visit http://www.state.ia.us/government/drf/.
My friend told me I can file the form 1040EZ. Is that right?
As a foreign student, it is highly unlikely that you would file the 1040EZ. The reason is that the 1040, 1040A and 1040EZ are for individuals who are considered residents for tax purposes. Generally, F-1 and J-1 students are considered nonresidents for tax purposes, which means they file Form 1040NR or in many cases, Form 1040NREZ.
Who can use the form 1040NR-EZ?
If all 9 of the following statements are true then the F or J holder can use the 1040NR-EZ form:
- The only income from US sources include wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or fellowship grants
- No dependents are claimed
- The taxpayer is no claimed as a dependent on another tax return
- Taxable income is under $100,000
- The only adjustment to income is the student loan interest or scholarship exclusion
- No tax credits are claimed
- No exemptions is claimed for the spouse
- The only itemized deduction is state and local income tax
- The only taxes owed are income taxes.
Where do I send my return?
Internal Revenue Services
Austin, TX 73301-0125 USA
Who can claim a standard deduction?
Only nonresidents from India can claim a standard deduction.
Who can claim a personal exemption?
All students and scholars can claim the personal exemption of $3,300 for themselves.
Who can claim a tax treaty?
Individuals who resided in a country with a tax treaty immediately before coming to the US can claim that countries tax treaty. (This may be different from their country of citizenship). The tax treaties are different for each country and they apply to a variety of income forms.
My country has a tax treaty with the U.S. Does this mean I'm not required to pay taxes?
No. You are required to report your income on the appropriate forms. Treaties are very specific as to what situations they cover. Treaty benefits do not apply to all individuals from a given country.
How do I find out if I get any benefits from my treaty?
You should first consult IRS Publication 901, which is a summary of tax treaties. Be sure to look at the section that pertains to students or your appropriate working classification. The treaty article may protect a portion of your income from tax or it may exempt all of it. Refer to the treaty for the specifics.
After looking at publication 901, it appears I am eligible for benefits. What should I do next?
Your next step would be to get an actual copy of the treaty. You can review a copy of the treaty information from Publication 901 at the OISS or the public library. If you are eligible for benefits, you must contact Pat Meskimen in the Payroll office by sending an email to patricia-meskimen@uiowa.edu to fill out the necessary paperwork.
What should I do with the 1098T forms from the University of Iowa?
You should keep it but as an international student you can not use it for your tax return.
What is the 1042S form?
This is the form that you receive at the end of the year which states the amount of pay earned but was not subject to withholding taxes because of a treaty. You would have had to submit a new 8233 form each year (in December) to set this up with the Payroll office in advance of receiving income. If a student earns more than the tax treaty then the additional amount is taxed and reported on the W-2 form.
Am I entitled to the Hope Credit?
No, as a nonresident you are not entitled to the Hope Credit.
Should I keep a copy of my return?
Yes.
If I am going home in May will I need to file a return in 2009?
Yes, you will need to file it from your home county.
Is bank interest paid to a nonresident alien taxable?
No, bank interest paid to a nonresident is not taxable but banks sometimes mistakenly report this income on a form 1099-INT because they have not been told the student or scholar is a nonresident alien.
What about my dependents?
Under the current IRS requirement, all nonresident F and Js, including dependents, must file form 8843, even if they have no U.S. source income.
I am an F-1 student. For the past three years, I have filed the 1040EZ form. Now I know that is wrong. How should I go about fixing this situation?
It is possible to file amended returns to correct mistakes from the past. It is best to work with an experienced tax professional in nonresident taxation in this situation.
I have a lot of friends who work and don't file tax returns. Why should I?
There is a legal obligation to do so. Further, failure to comply with the law can cause you difficulties with the Department of Homeland Security (which oversees immigration benefits and enforcement) as well as the IRS in the future.