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Non-resident taxation seminar 2012 at UTSA
- 1. NON-RESIDENT TAXATION UTSA Workshop February 28, 2013 Presented by: Payroll Department & Office of International Programs
- 2. Payroll Christine Bodily International Programs Cherilyn Patteson
- 3. RESIDENCY STATUS FOR FEDERAL TAX PURPOSES Do not confuse tax residency status with immigration residency or with requirement for earning a degree!
- 4. RESIDENT OR NONRESIDENT •Substantial Presence Test •Green Card Test •Residency Through Marriage
- 5. SUBSTANTIAL PRESENCE TEST •Must be exempt from counting days • at least 31 days in current year •At least 183 days during the three year period ending with the current year
- 6. TYPES OF INCOME •Wages-W2/1042s for treaty benefits •Scholarship -1042S •Possible 1099 misc income •Only report US Sourced income •No need to report simple bank interest •Use 8833 form if RA
- 7. COMPLETING THE FORMS •Form 1040nrez •Form 1040nr •8843 •Attachment to 1042S form •W7 form www.irs.gov
- 8. W7 FORM • For students/scholars from India, Korea & Canada •Taxable scholarship recipients •Contact OIP for required certification letter
- 9. HOW NONRESIDENT IS DIFFERENT • Most credits not available (educational tax credits) •Pay on US income only •Interest is usually not reportable •Married nonresidents cannot file jointly •One Personal Exemption 3800.00 •Standard deduction not allowed (except India)
- 10. REFUND OF SOCIAL SECURITY TAKEN OUT IN ERROR •Form 843 •Form 8316 •Copy of I94 •Copy of I20 page 1 & 3 •If OPT, then EAD card needed •W2
- 11. GLACIER TAX PREP •The foreign national individual receives an Access Code and instructions from the Glacier Support Center on how to access Glacier; and •The foreign national individual simply logs into Glacier from any web-enabled computer - anywhere in the world, at any time of day or night to begin completing his or her U.S. tax return!
- 12. ADDRESS FOR ALL NON-RESIDENT TAX FORMS: Internal Revenue Service Center Austin, TX 73301-0215 If filing from overseas, the same address applies -- add U.S.A .
- 13. INTERNET ADDRESS FOR HANDOUTS http://international.utsa.edu/taxes/ta x-workshop-handouts
Editor's Notes
- Substantial Presence Test, or SPT test….see hand out F1 students less than 5 years. 2007 or earlier F1 or F2 Resident aliens for 2012 J1 professors Less than 2 of the preceding 6 years 2010 & 2011 J1 RA’s for 2012 All must file 8843 form
- Substantial Presence Test, or SPT test….must be past the 5 year timeframe. 2007 or earlier F1 or F2 Resident aliens for 2012 J1 professors Less than 2 of the preceding 6 years 2010 & 2011 J1 RA’s for 2012 All must file 8843 form
- Wages-working payable through the payroll W2 for all wages 1042S for wages reported on a treaty Scholarship-should not be working qualified portion not reportable, non-qualified which is greater than tuition & fees reportable and taxable at 14%. Unless exempt by treaty both reported on 1042S forms. Should not receive 1099 unless received in error, need to report
- 8843 form for all persons including spouses or dependents whether you claim them or not. Attachment to 1042S form is in case you have a scholarship that was reported and you need to reduce it further by what you paid in qualified tuition& fees including books.
- W7 procedures are new this year….use to be only notarized copies of passport, now must get certified letter from SEVP (Student and exchange visitor Program) our OIP can certify your documents and attach a signed letter stating that they have verified the original documents must accompany the W7 Glacier will help you with this procedure
- W7 procedures are new this year….use to be only notarized copies of passport, now must get certified letter from SEVP (Student and exchange visitor Program) our OIP can certify your documents and attach a signed letter stating that they have verified the original documents must accompany the W7 Glacier will help you with this procedure
- Usually occurs from CPT/OPT or working at bookstore or Aramark. Must try to get refund back from employer first, if not, then a request for refund can be done through the IRS.
- Contact Chris Bodily by email