Taxes

Overview

Please contact the Office of International Education and inform us of which tax workshop you are interested in attending.  You ask that you reserve your slot ahead of time.  You may e-mail us at iss@ipfw.edu or call us at 260 481 6034.  Please bring your passport (with I-94 card inside) and I-20 with you to the tax workshop, as well as W-2’s or any other tax documentation you may have received.

Taxes DUE: ALL STUDENTS must file taxes if they were in the U.S. in 2012, whether or not they worked.

Taxes must be postmarked by April 15^th. If you bring your completed tax forms to WU 145 by April 12^th, we will mail them for you. If you have not completed your Federal taxes yet, go to myIPFW to the Student Life Tax, and Glacier Tax Prep will be on the right side. Click on the title to complete the forms. If you have been in the U.S. over 5 years, you are not eligible to use this software. If you have W-2s, attach these to forms.

If you have worked in 2012 and your income was greater than $1000, you need to file the Indiana Tax Return as well.

Please check your MyIPFW email account for a message with more information.

• International students are required by law to file taxes. Non-resident students who are temporarily present in the US under an F-1 or J-1 visa, must file a return if they have income that is subject to withholding, even if no tax is withheld.  However, a form 8843 must be filed regardless if income was earned or not.
• In some cases an individual will receive a refund and in some cases an individual will have to pay more taxes to the U.S. government.
• Be sure to review the Frequently Asked Questions page before filing your tax forms.
• GLACIER is a tax software program that is free for IPFW international students.It will help you to determine if you are a resident or non-resident.Based on your answers to questions in GLACIER, the program will fill out the federal tax forms for you.
• You can then print them out, sign and follow the instructions given. Unfortunately, GLACIER cannot assist in your state tax forms.
• For Indiana state tax, Nonresident students and dependents present in the United States on an F, J, Q, or M visa must file Form IT-40 PNR if they had any type of Indiana source income in 2009. 
• You need to finish your Federal Tax Returns before starting to file State Tax Returns.
• If you have no Indiana source income over the past year or you only had interest from a US bank account, a US savings and loan account or a US credit union account in the past year, you will not need to file any Indiana state tax forms.
• To file an electronic return go to Indiana’s free electronic filing system http://ifile.in.gov and follow the instructions as prompted. To file a paper form, go to http://www.in.gov/dor/4167.htm . 
• Instructions and required forms can be found in the second table.

FAQS

• Why do I have to file tax forms?
• What if I did not work?
• My country has a tax treaty with the U.S. Do I still need to file?
• If I had work permission, doesn't my employer deduct taxes from my paycheck? If so, why do I need to file tax forms?
• How do I determine if I am a resident or non-resident tax alien?
• What is the Substantial Presence Test (SPT)? Does it apply to me?
• Once I complete my 1040NR or 1040NREZ and form 8843, is there anything else I need to do?
• What is the difference between how a nonresident and a resident are taxed?
• I heard that F-1 and J-1 students are “exempt individuals.” Does this mean we do not have to pay taxes?
• What if I am a non-resident tax alien and did not work or otherwise receive income? 
• What if I am a non-resident tax alien and I did work? What forms do I use?

Why do I have to file tax forms?
The U.S. government has made it a requirement for all foreign nationals in F-1, F-2, J-1 and J-2 immigration status to file tax forms. Tax filing is a system of reporting information to the government.

What if I did not work?

Even if an individual in F or J status did not work in the U.S. they are still required to file tax forms with the U.S. government. Failure to comply with the law can cause you difficulties in the future with the U.S. government agencies.

My country has a tax treaty with the U.S. Do I still need to file?
Yes. Although your country may have a tax treaty, you must still file. Again, filing does not necessarily mean you have to pay taxes. Also, tax treaties do not necessarily exempt you from all taxes; instead they may only lessen your taxes.

If I had work permission, doesn't my employer deduct taxes from my paycheck? If so, why do I need to file tax forms?
Although an individual in F-1, J-1 or J-2 status may have employment authorization, worked and had taxes deducted from their paycheck, they are still required to file tax forms. Tax filing does not necessarily mean a person has to pay taxes. The tax system in the U.S. is designed to make sure that individuals are properly reporting their income and that the right amount of taxes are paid. In many cases, F-1 and J-1 students receive a refund. In some cases, tax filing may show that the person actually has to pay taxes to the government because the correct amount of taxes was not deducted.

How do I determine if I am a resident or non-resident tax alien?
To make this determination, review the Substantial Presence Test (SPT). Another way is to use CINTAX.

What is the Substantial Presence Test (SPT)? Does it apply to me?
The Substantial Presence Test (SPT) is a formula the Internal Revenue Service (IRS) uses to determine when a nonimmigrant becomes a resident for tax purposes. J-1 researchers and scholars are subject to the substantial presence test after two years, and F-1 and J-1 students after five years.

Once I complete my 1040NR or 1040NREZ and form 8843, is there anything else I need to do?
You should staple copy B of your W-2 form(s) and/or copy C of your 1042-S form(s) to the front of page one. You should also include a check if you owe any taxes, made out to the Internal Revenue Service. Finally, be sure to make photocopies of your return and all supporting documents for your personal file. Follow the instruction CINTAX provides or within the IRS Publications for the 1040NREZ or 1040NR.

In addition, you must also file state tax forms depending on what state you reside in (e.g. New York , or New Jersey). For New York state, you need to file form IT-203. For New Jersey, you need to file NJ 1040. Check the respective state's tax Web sites for information. CINTAX does not complete state tax forms. You can also acquire the service of a qualified nonresident tax professional.

What is the difference between how a nonresident and a resident are taxed?
A nonresident is taxed on income from U.S. sources only. A resident, on the other hand, is taxed on worldwide income. Nonresidents may also be exempt from certain types of taxes, whereas residents not.

I heard that F-1 and J-1 students are “exempt individuals.” Does this mean we do not have to pay taxes?
No. The term "exempt individual" is used to differentiate individuals who must use the Substantial Presence Test to figure out their tax filing status from those who don't. It does not mean a person is exempt from filing the appropriate tax forms and making the required payment.

What if I am a non-resident tax alien and did not work or otherwise receive income? 
You would file only form 8843 .

What if I am a non-resident tax alien and I did work? What forms do I use?
In general, most students in this situation will file form 8843 and form 1040-NR or 1040-NREZ.

How to file federal taxes

Are you a resident or non-resident alien for tax purposes?

1. Are you a permanent resident? Do you have a green card?
   If you can answer yes to any of those questions, you are considered a resident alien for tax purposes.

2. Have you been in the U.S. for 5 years or more on F-1 or other status?
    If so, you are considered a resident alien for tax purposes.

3. Do you meet the “substantial presence test”? This means:

     a. Have you been physically present in the USA for 31 days in the past year? AND

     b. Have you been physically present in the USA for 183 days (as calculated below) during the past 3-year period:

        i. Count all days you were present in the USA during the past year, and

        ii. Count 1/3 of the days you were present in the USA two years ago, and

        iii. Count 1/6 of the days you were present in the USA three years ago.

    c. Take that number, and subtract the number of days during which you were in the USA on valid,

        lawful F-1 or other status. It is very possible that you come up with “0.”

    d. If you come up with less than “31 and 183” (as described above), then you do not meet the “substantial

        presence” test. If you do not meet the “substantial presence” test, then you are not considered a

        non-resident for tax purposes.

I am a non-resident alien for tax purposes. What forms must I complete?

The information listed below applies ONLY to those students who are considered

“non-resident aliens” for tax purposes.

Form 1040 NR-EZ (or Form 1040 NR)  Form 8843

You can find those forms at: www.irs.gov/pub/irs-pdf

Form 1040 NR-EZ (or Form 1040 NR if applicable) in the scroll down menu.

Form 1040 NR-EZ Instructions (or Form 1040 NR Instructions) in the scroll menu.

Form 8843: “Statement for Exempt Individuals and Individuals with a Medical Condition.”

Download and print the forms. You may wish to save the instructions on your computer instead of printing them (the instructions file is rather large!) 

If you had any “income” during the last tax year, you must complete either Form 1040 NR-EZ or Form 1040 NR. You can use the easy form (1040 NR-EZ) if each of the following nine statements are true for you:

•     I am not claiming dependents
•     I am not claimed as a dependent on someone else’s tax forms.
•     My only sources of income were wages, salaries, tips, taxable refunds, scholarships, grants and/or assistantships.
•     My taxable income during the last year is under $100,000.
•     The only adjustment to income is the student loan interest deduction or scholarship exclusion.
•     I am not claiming tax credits.
•     I am not claiming an exemption for my spouse.
•     The only itemized deduction is state and local income tax.
•     The only taxes I owe are income tax.

Students who are present in the USA last year, but who had no “income” from US sources during last year, and who will not be filing tax return forms, must still complete Form 8843.

How to file Indiana State taxes

Indiana State Taxes:  Form IT-40PNR

You can find the form and its instructions at: http://www.in.gov/dor/4657.htm - You will find the IT-40PNR listed under the heading: Indiana Part-Year Residents and Full-Year Nonresidents - 2012 Nonresident Tax Booklet with Forms and Schedules (first item listed) - 2012 IT-40 PNR Form (second item listed) Download and print Form IT-40PNR.

You may wish to save Form IT-40PNR Instructions on your computer if necessary (the file is rather large!).

You must file Indiana State taxes if you meet the conditions listed below:

    1. You lived in Indiana and received income, or
    2. You lived outside Indiana and had any income from Indiana.

Tip: You must file state tax return forms with the state in which you earned the “income.” For example, if you earned wages during C.P.T. at Disney in Florida, you need to file your tax returns in the state of Florida. Please note that each state’s tax laws are different.

Most international tax filing is easy and simple, and can be done using the Glacier software. However, if you have a more complicated tax return, or you have specific tax questions, please seek the professional services of a tax accountant. The staff in the Office of International Education are NOT trained tax professionals, and cannot provide tax advice. We provide limited tax assistance upon request, and assume no responsibility, explicit or implied, regarding the accuracy of the advice given.

For more information about the tax filing process, you may visit the following websites:

Internal Revenue Service (IRS)

Indiana University tax resources

Professional Tax Advice

If you need to use professional tax services, please make sure to note that you need to file non-resident tax forms (unless you qualify to file as a resident).

AARP

H&R Block

Jackson Hewitt