Frequently Asked Questions
(Filing as "nonresident alien for tax purposes")

If you are visiting the United States from another country on an F, J, M or Q visa, and you are classified as a nonresident for U.S. tax purposes, you are required to file a tax return each year you are here if you have any income subject to U.S. income tax. Additionally, if you are an exempt individual, you are required to file Form 8843 regardless of your income.

2. What happens if I fail to file my taxes?

If you owe taxes and don’t file, the IRS can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties can often amount to more than the original tax debt.. There can also be immigration consequences for failing to file taxes. Applicants for permanent residency “green cards” are frequently asked to show proof of tax filing for previous years in the U.S.

3. I’m an F-1 or J-1 student and I had no U.S. earned income or scholarships for 2005. Do I need to file?

Yes. You must file IRS Form 8843. Dependent spouses in F-2 and J-2 status must also file Form 8843. (see page 6 of Pub 519) .

4. I only arrived in the U.S. in December 2005 and I didn’t work. Do I still have to file Form 8843?

Yes. If you were in the U.S. even one day in 2005, you must file Form 8843.

5. I had bank interest on my checking or savings accounts, is that earned income and must I file other tax forms?

No. Interest on nonbusiness bank accounts is not taxable to nonresident aliens. Your bank generally reports this interest on Form 1099 and you should retain this form for your records. Do not mail it with your tax return.. If you file taxes as a "resident alien", bank interest is taxable income. (see page 10 of Pub 519)

6. I only worked for a very short time in 2005 and I didn’t earn very much. Do I still have to file?

Yes. If you have any U.S. source income, including scholarship/fellowship grants, you will need to file Form 1040NR-EZ or Form 1040NR and Form 8843. (see page 2 of F1040NR-EZ or F1040NR Instruction Booklet)

7. I’m married and have a child who was born in the U.S. Can I claim personal exemptions for my wife and child?

No. Only students and scholars from the following countries can claim exemptions for their dependents; Mexico, Canada, Korea, Japan. and India. (see page 22 of Pub 519). The exemption amount for 2005 is $3,200.

A resident alien may claim his own personal exemption and, if he files a joint return, may claim a similar exemption for his spouse and dependency exemptions for children. The filing of a joint return is NOT permissible if either you or your spouse was a nonresident alien at any time during the tax year. However, a U.S. citizen or resident and his or her nonresident alien spouse can elect to file a joint return if they agree to be taxed on their worldwide income and supply all necessary books and records and other information pertinent to the determination of tax liability. Further, a one-time election to file a joint return is available in the year in which a nonresident alien spouse becomes a resident.

8. I tried to get a Social Security number for my spouse or dependent child and was refused. What do I do?

For dependents not eligible for a Social Security number, you must apply for an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service. Complete Form W-7 and submit the required supporting documents. ITIN numbers are for tax filing purposes only. (see page 20 of Pub 519). See the ITIN page for more information.

9. I am from one of the countries that can claim an exemption for my spouse and/or child. Can I claim them if they don’t have a social security number or an ITIN?

No. In order to claim personal exemptions for dependents they must have a valid social security number or an ITIN (Individual Taxpayer Identification Number).

To apply for an ITIN for your dependents, fill out Form W-7 and take the required documentation to Hartford IRS office. It takes approximately 6 weeks to receive the ITIN. See the ITIN page for more information.

10. My young children live with me. Can I claim the Child Care Tax Credit?

No. Only nonresident aliens from Mexico, Canada, Korea, Japan or India can claim dependents, and possibly qualify to take the Child Tax or Dependent Care Credit. (see page 24 of Pub 519)

11. I am a non-resident for tax purposes. Can I claim the HOPE or Tuition Tax Credit or the Earned Income Credit?

No. Nonresident aliens cannot claim the Hope or Lifetime Learning Education credits, or the Earned Income Credit. (see page 25 of Pub 519)

12. I have a student ID starting with the numbers 998 or 888 that looks just like a social security number. Can I use this number as my tax payer identification number?

No. You must have a valid social security number or an ITIN (Individual Taxpayer Identification Number). (see page 20 of Pub)

13. I just received my W-2 for the wages I earned in 2005. Can I file my taxes now?

Make sure you have received all of your tax documents. If you received U.S. scholarship or fellowship income, you may also receive Form 1042S from payroll. You will need to have both forms before you can file your tax return

14. My country has a tax treaty with the U.S. and I earned below $5000, which is the amount of wages exempt by my treaty. Do I still need to file?

Yes. You must file Form 1040NR-EZ or Form 1040NR to claim tax treaty benefits. . If you earned more than the amount exempted by your treaty, you may still have taxable income. You can receive either form W-2 or 1042-S reporting income from U.S. sources. (see Pub 901). UConn generally does not issue Form 1042-S.

15. I had a teaching assistantship or graduate research assistantship at UCONN. Is this the same as a scholarship or fellowship?

NO!!!!!!!!! Teaching assistantships and graduate research assistantships are payments for services and are not considered scholarship or fellowship income. This income is not excludable under the scholarship/fellowship income rules. (see pages 2 &3 of Pub 520)

16. I had a TA or GRA position. Can I deduct or exclude the cost of my tuition, books and/or fees?

No. Only degree seeking students with bona fide scholarship or fellowship (no work was required as a condition of receiving the award) may exclude the amount paid for tuition, books and fees. (see Pub 520) . If you do have a scholarship, you report the net scholarship after reducing by tuition, books and/or fees. You cannot reduce the scholarship by room and board.

17. Can I deduct the cost of a computer as a valid educational expense?

No. Generally equipment, such as computers, or educational supplies that are not required course items, are not deductible expenses.

18. I am from India. Can I claim the standard deduction?

Yes. The U.S./India tax treaty allows ONLY STUDENTS to claim the standard deduction on nonresident alien forms. Visiting Scholars and Researchers from India cannot claim the deduction. For 2005 the standard deduction for filing single or married filing separate is $ 5,000. If you are married and claiming your spouse, who must have no U.S. earned income, you can only claim $ 5,000 for the standard deduction. (see page 22 of Pub 519). Only residents can claim file a joint return and claim the standard deduction of $10,000. In general, nonresident aliens cannot claim a standard deduction of any amount.

19. Can students and scholars claim itemized deductions?

Yes, but they are limited. You can claim itemized deductions for state & local taxes, charitable contributions to U.S. charities, casualty and theft losses, certain unreimbursed job expenses and tax preparation fees. (see page 14 of F1040NR Instructions)

20. Should I keep copies of my tax return and other tax forms?

Yes. Always keep copies of your tax return, W-2, 1042-S, 1099 bank interest statements and any other pertinent forms as proof that you have filed. The IRS can audit individual returns for up to 3 years following the filing deadline and your tax records are essential in proving your case.

21. What is the deadline for filing my tax return?

You need to file all forms by April 15th. (see F1040NR or F1040NR-EZ Instructions)

22. If I owe tax, to whom do I make the check payable?

If you owe taxes, make checks payable to United States Treasury. Make sure that your social security number or ITIN is on the check, and that in the memo section you write, "For 2005 Income taxes".

23. Where do I mail my tax return?

Forms 1040NR-EZ, 1040NR and Forms 8843 should be mailed to: International Revenue Service Center Philadelphia, PA 19255.

24. I’m unable to file by April 15th. What do I do?

File Form 4868, "Application for Automatic Extension of Time To File U.S. Individual Income Tax Return" by April 15th.. This will extend the filing date to August 15th. An extension does not extend the time to pay. All tax is due by April 15th and must be paid with the extension.

25. I need tax forms or additional help or information. Where can I get the necessary forms or assistance?

Walk-in service is free at IRS Customer Service Centers. An office is located at 135 High St. Hartford, CT. They are open Monday through Friday, 8am- 4:30pm. Questions about refund checks call 1-800-829-4477 General questions call 1-800-829-1040 (toll free) or IRS International at 787-759-5100 (toll number) To download tax forms and publications, go to the IRS web site at http://www.irs.gov/forms_pubs/index.html.

26. I am leaving the country before I can file my taxes. What should I do?

Make sure the Payroll Office has your foreign address, so that your Form W-2 and/or Form 1042-S can be mailed to you. Download the appropriate tax forms and instructions (http://www.irs.gov/forms_pubs/index.html) and file your U.S. taxes from abroad. Save copies of all forms submitted for your records.

27. My employer withheld Social Security and Medicare taxes from my salary. Can I get this refunded?

Yes. Nonresident F1 and J1 visa holders are not subject to Social Security or Medicare taxes for work within the restrictions of their visa. Refund of these taxes may be requested from your employer. If your employer is unable to refund these taxes, you may file IRS Form 843 for a refund from the IRS (see Publication 519 pages 39 & 40)

28. My address in Storrs has changed since I began working at UCONN, or I am on Curricular Practical Training and now living in another city, how do I notify Payroll of my address change so that I will receive my W-2 and/or1042-S?

To notify Payroll of your change of address, either send a fax to 860-486-4296 or e-mail them at www.payroll.uconn.edu with your name, social security number and new address

29. I worked or attended university in another state and paid state taxes. How do I report this on my federal tax return and am I required to file a state tax return?

You may claim an itemized deduction on Form 1040NR-EZ (line 11) or Form 1040NR (line 35) for any state taxes withheld. You may also be required to file a state income tax return in addition to the federal income tax return. Check with the tax department of the state you worked in.

30. How much money should I earn in order to complete form 1040NR or 1040NR-EZ?

It doesn’t matter that your employer withheld adequate tax from your paychecks, or that you have a small amount of income and owe no tax. You are still supposed to file.

31. My wife does not work. Does she have to complete the tax form?

No, if she does not have any income subject to U.S. tax, she does not have to file the tax return.

32. What is an ITIN, where do I get one? What is the purpose of ITIN?

An ITIN, or individual Taxpayer Identification Number, is a tax processing number that became available on July 1, 1996, for certain nonresident and resident aliens, their spouse, and dependents. The ITIN is only available to individuals who cannot get a Social Security Number (SSN). The form to acquire an ITIN is W-7. See the ITIN page for more information.

33. How do I know if my country has a tax treaty? Where do I find it?

Go to Publication 901, US Tax Treaties published by the IRS. You can also find out the information form UConn Library Database (you must be on a UConn computer or have a proxy account) CCH Internet Tax Research Network (go to Federal Tax page in CCH and click on Tax Treaties Reporter, then look for your country's treaty with U.S. For example, see the treaty with PR China.

34. I am leaving the United States in August and I worked from April to July. How will I get my tax forms? Do I still have to pay taxes? What happened if I don't pay?

In order to get a sailing permit, most nonresidents are required to file Form 1040C, which is a tentative return based on what they know when they leave the U.S. However, F, J, H and Q visa holders are exempt from having to file Form 1040C. That means they must file a return when they get back home. If they have a refund coming, the IRS, of course, doesn't care if they file, but the INS might give them trouble if they want to get back into the country. In many countries, the IRS has people at the U.S. embassies to help expatriates and nonresident aliens file their taxes.

You can also look up http://www.thetaxguy.com for more information.

35. I did not have enough money taken out of my taxes, what can I do? What happens if I do not pay my taxes?

If the 1040 NR/NR-EZ shows tax due, you must pay the additional tax when you file your tax return. IRS receives copies of all W-2s and 1099s. These forms are matched against the tax returns that are filed. If IRS determines that income was not reported, it will send you a notice reflecting this failure to report income.

36. What is the tax withholding rate for and F-1, J-1 and H-1 visa holders?

If you are receiving Qualified Scholarship or Fellowship, the withholding rate is 14%. If you receive a W-2 and the amount you received is treated as wages, then your withholding information is in IRS publication 15, Circular E, item 16:
How To Use the Income Tax Withholding and Advance Earned Income Credit (EIC) Payment Tables

37. Should social security taxes be taken out of my pay? I am an F-1 visa holder? a J-1 visa holder? a J-2 spouse with employment authorization by INS? How much should be taken out of my pay?

Nonresident aliens on F-1, J-1, M-1 or Q-1 visas are not subject to social security and Medicare taxes (FICA) if services are performed to carry out the purpose for which they are admitted to the United States [IRC §3121(b)(19)].

Resident aliens, as well as nonresident aliens on F-2, J-2, M-2, Q-2 or any other types of visas, are not exempt from FICA as nonresident aliens. However, IRC section 3121(b)(10) provides an exemption from FICA for services performed in the employ of a school, college, or university, if the service is performed by a student who is enrolled and regularly attending classes at that school, college or university. Therefore, international students who do not qualify for the exemption for nonresident aliens might be exempt under this provision. On the other hand (just to add a bit more to the confusion), the law allows states to provide Social Security coverage for services performed by students for the public school the student is attending under agreements established with the Social Security Administration. If a state has exercised its option to provide for coverage of student services, section 3121(b)(10) of the Code provides that those services will not qualify for the student FICA exception. If you wish to read the official announcement from the IRS on who might qualify for this student exemption, here is the revenue procedure: Rev. Proc. 98-16.

If FICA has been withheld from your wages by mistake (look in box 4 of your W-2), you should first ask the employer who withheld the tax for a refund. If the employer does not grant a refund, a refund can be claimed from the IRS on Form 843. Follow the instructions for claiming a refund on page 39 of Publication 519. Both Form 843 and Publication 519 can be printed from the U.S. Treasury's Forms and Publications site. Note that you must attach a copy of Form W-2, your visa, INS Form I-94, INS Form I-538 (if you have one), and a statement saying "tax was withheld by mistake and my employer denied me a refund." This form is sent in its own envelope (separate from your tax return) to Internal Revenue Service Center, Philadelphia, PA 19255.

38. Why should social security taxes be taken out of my pay when in fact I am returning to my home country? Is it possible to be social security exempt? What does one do to get this benefit?

Students and Exchange Visitors Generally, services performed by you as a nonresident alien temporarily in the United States as a nonimmigrant under subparagraph (F), (J), (M), or (Q) of section 101(a)(15) of the Immigration and Nationality Act are not covered under the social security program if the services are performed to carry out the purpose for which you were admitted to the United States. This means that there will be no withholding of social security or Medicare taxes from the pay you receive for these services. These types of services are very limited, and generally include only on-campus work, practical training, and economic hardship employment. However, you are covered under the social security program for these services if you are considered a resident alien, even though your nonimmigrant classification (F, J, M, or Q) remains the same. Social security and Medicare taxes will be withheld from your pay. See Publication 519, US Tax Guide for Aliens for more details.

Frequently Asked Questions (Filing as "nonresident alien for tax purposes")

Frequently Asked Questions
(Filing as "nonresident alien for tax purposes")