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Tax Assistance Workshops
The International Services Office at Mississippi State University has been
approved as an international VITA (Volunteer Income Tax Assistance) site.
The ISO offers tax assistance workshops in the spring semester to assist
international students and scholars in F and J status in filing federal
and state income tax returns. Please check the home page of the ISO for
a schedule of workshops.
Common Tax Questions Am I a Resident Alien or Nonresident Alien for Federal Tax Purposes? Do I Have to File Federal Tax Form 8843? Do I Have to File a Federal Tax Return? (Form1040NR or Form 1040NR-EZ) Do I have to File a Mississippi State Tax Return? Which Federal Tax Form Do I File? (Form 1040NR or Form 1040NR-EZ?) Tips On Preparing the Federal Tax Form 1040NR-EZ Tips On Preparing the Federal Tax Form 1040NR IRS Tax Information
You may obtain publications on tax regulations and tax forms from these sources:
Internet
The IRS web site is www.irs.gov . This web site offers IRS Publications and Forms all listed in order of their number. These publications and forms may be downloaded and printed, along with their instructions. BUT you must be sure to read the instructions to make sure that you are completing the correct forms. Telephone You can call the IRS Tax Help Line for Individuals, 1-800-829-1040, to get answers to your federal tax questions IRS Local Office (In-person Tax Help) IRS Taxpayer Assistance Centers are a one-stop resource for face-to-face tax help and solutions to tax problems. At an IRS Taxpayer Assistance Center, knowledgeable assistors will:
Mississippi State Taxes
All F and J students who are required to file a federal income tax return must file a Mississippi state tax return. The state of Mississippi does not recognize tax treaties and does not provide special forms for non-immigrants. F and J students should complete Mississippi state tax forms the same as U.S. Citizens. Internet Mississippi State Tax Commission Web Site http://www.mstc.state.ms.us/index.html Telephone
Local Office (In-person Tax Help)
Disclaimer
By posting this information and providing tax assistance workshops, the International Services Office is providing a service to the Mississippi State University international student and scholar community. The International Services Office is not responsible for information or services provided by the agencies, business, or individuals listed above. The International Services Office assumes no responsibility, nor do we endorse any specific agency, business, or individual listed above. Moreover, the International Services Office may not intervene on behalf of either party should a dispute arise. Answers to Common Tax Questions
Am I a Resident Alien or Nonresident Alien for Federal Tax Purposes?
Why Determine your Residency?
Am I a nonresident alien for U.S. Income Tax Purposes?
…are you a Student?
Have you been in the country for any part of more than five years plus 183 days?
…are you a Scholar or Researcher?
Have you been in the U.S. for any part of two of the preceding six calendar years plus 183 days?
Return to Common Tax Questions List Do I Have to File Federal Tax Form 8843?
All F-1, F-2, J-1, and J-2 non-immigrants who are classified as nonresident aliens for tax purposes must file Form 8843 even if no income was earned. Students complete parts one and three. Scholars complete parts one and two. All F-1, F-2, J-1, and J-2 non-immigrants who are classified as resident aliens for tax purposes do not need to file form 8843. Return to Common Tax Questions List Do I Have to File a Federal Tax Return? (Form 1040NR or From 1040NR-EZ)
Non-resident Aliens who are temporarily in the U.S. under F or J visa must file a return only if they had income that is subject to withholding, even if no tax was withheld. Source of Income: U.S. or Foreign?
The U.S. does not tax a nonresident alien’s foreign-sources income. For salaries, wages, and other compensation for personal services, the source of income is where the service is performed. For scholarships and fellowships (including assistantships), the source of income is the residence of the grantor. U.S. Income: Effectively Connected?
If income does have a U.S. source, it is taxed differently depending on if it is effectively connected with a U.S. trade or business or not. A nonresident alien who is a student or a scholar is considered to be engaged in a U.S. trade or business when studying, teaching, conducting research, working on campus, or working with a U.S. company while on CPT or OPT. Most investment income is treated as not effectively connected with a U.S. trade or business. NOTE: Bank interest is excluded from nonresident alien income and need not be reported. Income that is effectively connected with a U.S. trade or business must be reported on either Form 1040NR-EZ or Form 1040NR. Income that is not effectively connected must be reported on Form 1040NR; no deductions can be taken against it; and it is taxed at a flat rate of 30%. Return to Common Tax Questions List Do I have to File a Mississippi State Tax Return?
All F and J students who are required to file a federal income tax return must file a Mississippi state tax return. The state of Mississippi does not recognize tax treaties and does not provide special forms for non-immigrants. F and J students should complete Mississippi state tax forms the same as U.S. Citizens. Return to Common Tax Questions List Which Federal Tax Form Do I File? 1040NR or 1040NR-EZ?
You can use Form 1040NR-EZ only if ALL of the following statements are true. If any one of the following statements is not true, then you must file form 1040NR.
International students and scholars can claim a personal exemption, but they cannot normally take exemptions for a spouse or dependents. Students and scholars who are eligible to claim family members must file form 1040NR.
Spouses and Exemptions
Dependency Test (must meet all five)
Return to Common Tax Questions List Tips On Preparing the Federal Tax Form 1040NR-EZ
Information Section Names must match name on social security card or ITIN letter exactly. Lines 1 and 2: Filing Status
Unmarried nonresidents must use the “single” filing status. Married nonresidents must use the “married” filing status. Line 3: Wages, salaries, tips, etc.
How to calculate wages:
Tax Treaties
Many countries have tax treaties with the U.S. that allow their residents to earn some money while temporarily in the U.S. without being subject to income tax on those earnings in both countries. IRS Publication 901 has an overview of tax treaties. Tax Treaty Residence
Your tax treaty residence is the country in which you resided immediately prior to entering the U.S. Income Codes
Each type of income that an alien can earn is identified by a numeric code on Form 1042-S. The code is helpful in determining the application of the treaty benefit. The following are the three major types of income:
Three Unusual Treaty Provisions
Line 4: Taxable Refunds of State and Local Taxes
If a student or scholar took an itemized deduction on the prior year federal tax return for state or local taxes and got a refund of any of the tax, the refund must be reported. (The student or scholar should receive the Form 1099-G.) Non-resident aliens, except from India, should deduct the full amount of state and local taxes in the year in which they were paid (see itemized deduction). Therefore, if they receive a refund of part of those taxes they must be included as taxable income in the following year. Students from India are allowed a standard deduction and, therefore, do not deduct state and local taxes from income and do not report refunds in the following year. Line 5: Scholarships and Fellowships and Grants
A scholarship or fellowship received (or waived) for tuition, fees, books, and/or supplies is not taxable if it was spent for the purpose intended and there was no requirement to perform services. Scholarships or fellowships received (or waived) for room and board may not be taxable depending on your treaty benefit. NOTE: Wages received from assistantships are not considered as scholarships or fellowships. Nonresident aliens must report all scholarships and fellowships they receive for room and board and living expenses that are not exempted by treaty. Scholarships that cover only tuition, books, and fees are not reported. Scholarships from outside the U.S. are not reported. Line 6: Total Wages and Scholarships Exempt By Treaty
Line 8: Student Loan Interest Deduction
All of the following conditions must be met for interest to be qualified student loan interest:
Line 9: Scholarships and Fellowship Grants Excluded
Line 11: Itemized Deductions
Nonresident aliens from India may take the standard deduction. All other nonresident aliens must itemize deductions. The only allowable itemized deduction allowed on Form 1040NR-EZ is state and local income tax. (NOTE: Students from India can take the standard deduction on either form.) Line 13: Personal Exemptions
All nonresident aliens who complete Form 1040NR-EZ are entitled to claim a personal exemption for themselves (unless they are being claimed as a dependent on another U.S. tax return). International students and scholars can claim a personal exemption, but they cannot normally take exemptions for a spouse or dependents. Students and scholars who are eligible to claim family members must file form 1040NR. Spouses and Spousal Exemption
Most nonresident aliens cannot claim an exemption for a spouse. Canada and Mexico: Students and Scholars may claim a personal exemption for a spouse if the spouse had no income and is not a dependent on another tax return. Japan and South Korea: Students and Scholars may claim a personal exemption for a spouse if the spouse lives with the taxpayer. India: Students only may claim a personal exemption for a spouse if the spouse had no income and is not a dependent on another tax return. Dependents and Exemptions
Most nonresident aliens cannot take a deduction for their dependents.
Dependency Test (must meet all five)
Taxpayer Identification Numbers
Any family member who can be claimed must have a Taxpayer Identification Number (TIN) or a Social Security Number (SSN). A Form W-7 must be filed with the IRS for each person who will be claimed as a spouse or dependent. Six to eight weeks after the form is filed, the IRS will issue an Individual Taxpayer Identification Number (ITIN) for that dependent. The deduction for the spouse or dependent cannot be claimed until the ITIN is received. Return to Common Tax Questions List Tips On Preparing the Federal Tax Form 1040NR
Information Section
Names must match name on social security card or ITIN letter exactly. Lines 1-6: Filing Status
Line 7c: Dependents
Line 8: Wages, salaries, tips, etc.
How to calculate wages:
Tax Treaties
Many countries have tax treaties with the U.S. that allow their residents to earn some money while temporarily in the U.S. without being subject to income tax on those earnings in both countries. IRS Publication 901 has an overview of tax treaties. Tax Treaty Residence
Your tax treaty residence is the country in which you resided immediately prior to entering the U.S. Income Codes
Each type of income that an alien can earn is identified by a numeric code on Form 1042-S. The code is helpful in determining the application of the treaty benefit. The following are the three major types of income:
Three Unusual Treaty Provisions
Line 11: Taxable Refunds of State and Local Taxes
If a student or scholar took an itemized deduction on the prior year federal tax return for state or local taxes and got a refund of any of the tax, the refund must be reported. (The student or scholar should receive the Form 1099-G.) Non-resident aliens, except from India, should deduct the full amount of state and local taxes in the year in which they were paid (see itemized deduction). Therefore, if they receive a refund of part of those taxes they must be included as taxable income in the following year. Students from India are allowed a standard deduction and, therefore, do not deduct state and local taxes from income and do not report refunds in the following year. Line 12: Scholarships and Fellowships and Grants
A scholarship or fellowship received (or waived) for tuition, fees, books, and/or supplies is not taxable if it was spent for the purpose intended and there was no requirement to perform services. Scholarships or fellowships received (or waived) for room and board may not be taxable depending on your treaty benefit. NOTE: Wages received from assistantships are not considered as scholarships or fellowships. Nonresident aliens must report all scholarships and fellowships they receive for room and board and living expenses that are not exempted by treaty. Scholarships that cover only tuition, books, and fees are not reported. Scholarships from outside the U.S. are not reported. Line 22: Total Wages and Scholarships Exempt By Treaty
Line 26: Student Loan Interest Deduction
All of the following conditions must be met for interest to be qualified student loan interest:
Line 31: Scholarships and Fellowship Grants Excluded
Line 35: Itemized Deductions
Nonresident aliens from India may take the standard deduction. All other nonresident aliens must itemize deductions. Below is a summary of the types of expenses which can be itemized.
Line 37: Personal Exemptions
International students and scholars can claim a personal exemption, but they cannot normally take exemptions for a spouse or dependents. Students and scholars who are eligible to claim family members must file form 1040NR. Spouses and Spousal Exemption
Most nonresident aliens cannot claim an exemption for a spouse.
Dependents and Exemptions Most nonresident aliens cannot take a deduction for their dependents. Dependency Test (must meet all five)
Taxpayer Identification Numbers
Any family member who can be claimed must have a Taxpayer Identification Number (TIN) or a Social Security Number (SSN). A Form W-7 must be filed with the IRS for each person who will be claimed as a spouse or dependent. Six to eight weeks after the form is filed, the IRS will issue an Individual Taxpayer Identification Number (ITIN) for that dependent. The deduction for the spouse or dependent cannot be claimed until the ITIN is received. Return to Common Tax Questions List | |
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01/14/2005 ||
http://www.iso.msstate.edu/tax/ Technical problems, contact the Help Desk. |
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