2014 Tax Filing Resources for International Scholars
NOTE: The information regarding federal taxes in this email is primarily for J-1 scholars who are NONRESIDENTS FOR TAX PURPOSES. Visitors in H-1B, TN, or O-1 status and J-1 scholars who are RESIDENTS FOR TAX PURPOSES should specifically reference the sections B, D, E, G, and H below.
The following topics are covered herein:
A) Federal tax: who must file?
B) Forms you receive to help file tax returns (if applicable)
C) Federal tax obligation
D) State tax information
E) Local (Pittsburgh) tax information
F) Resources:
• GLACIER Tax Prep (tax preparation software)
• CMU information session
G) Other important Information
• Tax treaties
• W-2 forms from employers and 1042-S forms from CMU
• Social security and FICA withholding
• Where to file
• Visa Number for Federal Form 8843
• Hiring a Tax Preparer/Accountant
H) Help for international persons who are "residents for tax purposes"
A) Federal tax: who must file?
All foreign scholars and their dependents who are nonresidents for tax purposes are required to file at least one form every year they are in the US regardless of whether or not they earned any money. This does NOT NECESSARILY mean you have to pay taxes. However, you DO need to complete and submit the forms. Most federal NONRESIDENT tax forms and instructions for 2014 can be downloaded from government websites. See Sections C, D, and E for information about specific forms.
For federal tax form preparation, use the software mentioned below – GLACIER Tax Prep – in Section F of this communication.
B) Forms you receive to help file tax returns
In January or February 2015, you did or will receive important tax forms in the mail from your employer, your bank, etc.; use these forms when you complete your tax forms. Common forms are:
• W-2 from your employer (if any) which summarizes your earnings in 2014 and taxes which were withheld from your pay.
o If you were employed by CMU in 2014 and did not receive your W-2, you may access a copy from ADP or contact the CMUWorks Service Center
Located in the University Technology Development Center (UTDC) at 4516 Henry Street
Phone: 412-268-4600
E-mail: cmu-works@andrew.cmu.edu
• 1099-INT form from your bank outlines earned interest (if any).
• 1099-DIV outlines dividend interest on investments (if any).
• 1042-S shows stipends or earnings that were excluded under a tax treaty benefit.
C) Federal taxes: resident or nonresident for tax purposes?
1. To know which federal tax forms to use, you must first determine whether you are a resident or nonresident for tax purposes. The information below can guide you, but you should also read the 1040NR instruction booklet or IRS Publication 519 for details. (The tax definitions of "resident" and "nonresident" are not the same as the immigration definition of these terms.)
• If 2014 was the 3rd calendar year out of the last 6 years you were in the US as a scholar (i.e. you arrived on 12/31/2012 or before), then you are probably a "resident for tax purposes." In this case, you will need to complete a 1040 or 1040EZ RESIDENT tax form. (The information in this email will not help you, in this case.) NOTE: even one day spent in the US “counts” as a year for determining nonresident tax status.
• If you have been physically present in the US for less than 2 years in the last 6 years as a scholar (i.e. you arrived on 1/1/2013 or after), then you are probably a "nonresident for tax purposes." In this case, you must file the 8843 form at the least (even if you have no earned income) and also form 1040NR-EZ or 1040NR (if you have US income). NOTE: even one day spent in the US “counts” as a year for determining nonresident tax status.
2. IF YOU ARE A "NONRESIDENT FOR TAX PURPOSES,” COMPLETE FORMS:
• 8843 (all tax nonresidents complete this form). Note: Scholars who did not earn any US source income or whose only income was bank interest need only file form 8843. J-2 dependents MUST ALSO file the 8843 form.
• 1040NR-EZ or 1040NR (for nonresident scholars with US-source income). Scholars with US-source income (including stipends, fellowships or salary) must receive W-2 and/or 1042-S forms from Carnegie Mellon before completing tax forms.
3. Federal tax forms can be found on the IRS web site: www.irs.gov
Forms and publications commonly used by nonresidents for tax purposes include:
• Form 8843
• Form 1040NR-EZ - US Income Tax Return for Nonresidents with No Dependents
• Instructions for form 1040NR-EZ
• Form 1040NR - US Nonresident Alien Income Tax Return
• Instructions for Form 1040NR
• Publication 901 - US Tax Treaties
• Publication 519 - US Tax Guide for Aliens
D) State Tax Information
To assist with state tax filing, Carnegie Mellon University has arranged the online tax preparation software tool Sprintax to guide you through the state tax filing process and avoid late filing and/or late payment penalties and fines.
Sprintax is an easy-to-use, step-by-step tool that helps international students prepare taxes online. Just follow the simple instructions, answer a few questions, and Sprintax will do the rest.
NOTE: This is not a free service. You will be responsible for any filing fees associated with using the Sprintaxsoftware for state tax filing.
Using Sprintax is not required. If you prefer to file state taxes on your own, there is only one Pennsylvania State tax form (PA-40). Read the instructions to determine if you need to file. Those with $34 or more of US income need to file this form. If state tax was withheld from your pay, you file these forms. If you have earned income, you will probably need to file state and city tax forms. PA State tax forms may be downloaded from: www.revenue.state.pa.us
• Click on “Forms and Publications”, then “Forms for Individuals”, then “Personal Income Tax”
• PA-40 (2014) and PA-40 Instructions (2014)
• You may be able to file PA tax forms online. Information about online filing can be found on the PA Department of Revenue’s website.
For PA state tax information, you may call (888) 728-2937 to order a form or listen to automated responses to common questions, or visit: www.revenue.state.pa.us
For more information, read PA publications, such as:
REV-611 "Determining Residency for PA Personal Income Tax Purposes"
If you worked in another state in 2014, you will probably have to file a tax return for that state also. Check for forms and information from that state’s revenue department: www.taxadmin.org/fta/link/
E) Local (Pittsburgh) Tax Information
Generally, those with no US income do not need to file this form. However, if you lived or worked in Pittsburgh (or elsewhere in Pennsylvania) and have earned income in 2014, you must complete and submit the local tax form, 2014 Taxpayer Annual Local Earned Income Tax (EIT) Return.
From the city website, http://pittsburghpa.gov/finance/tax-forms choose “2014 Tax Forms” and use the form for Allegheny County Central (70). Include a copy of your visa documents with the return and mail to the address at the top of the form. The PSD for nonresidents is 880000 and the nonresident tax rate is 1%.
Questions about the city/local form should be directed to Jordan Tax Services or the City Department of Finance.
If you worked in another city in 2014, you may have to file a tax return for that city as well.
F) Where to get help for Tax Nonresidents: CMU and other resources
Tax filing in the US is complicated. You should obtain the correct tax forms (see Sections C, D, and E), read them, and use tax support services offered by OIE. OIE staff can not provide you with specific advice about your tax situation.
1. Use GLACIER Tax Prep to prepare your federal tax forms
For federal tax forms, use this web-based tax preparation service. This is the easiest way to do these forms. (Remember, “nonresident” as defined by the IRS is different than the immigration definition of “nonresident.”) To use this service, visit the web site below and use a CMU-specific password.
To learn the password, read the OIE email sent to all students and scholars in late February, or email your request to OIE at oie@andrew.cmu.edu.
This service is for current CMU students and scholars only and the password and access information absolutely may not be shared with others. There are a limited number of uses available. Tech support questions may be answered by clicking “help” in the software program.
Expect to spend at least 30 minutes, and have your information ready when you begin to use the software:
• current and prior US visit dates
• entry and exit dates
• DS-2019 forms
• I-94 record (white card stapled into your passport or printed from www.cpb.gov/i94)
• Passport
• All pay documents (1042-S, W-2, 1099, etc.)
2. For State taxes, consider using the online tax preparation software tool Sprintax to guide you through the state tax filing process and avoid late filing and/or late payment penalties and fines.
Sprintax is an easy-to-use, step-by-step tool that helps international students prepare taxes online. Just follow the simple instructions, answer a few questions, and Sprintax will do the rest.
NOTE: This is not a free service. You will be responsible for any filing fees associated with using the Sprintax software for state tax filing.
3. Federal Tax Information Session for Nonresidents for Tax Purposes:
- Carnegie Mellon, University Center, McConomy Auditorium
- Tuesday, March 17th, 5:00 – 6:00 PM
4. Contact the IRS Taxpayer assistance number with specific questions at (215) 516-2000 or (800) 829-1040, www.irs.gov or http://www.irs.gov/businesses/small/international/article/0,,id=96431,00.html. If you call, let the representative know that you are a "nonresident for tax purposes.”
5. Visit the University Texas at Austin website http://www.utexas.edu/international/taxes/
This website has extensive, updated, detailed information for international students and scholars who are nonresidents for tax purposes.
G) Other important Information
1. Tax Treaties. There are tax treaties between the US and some foreign countries. This may mean that you can earn a certain amount of money without having to pay tax if your country has a treaty with the US. For more information about these treaties, read IRS Publication 901 (www.irs.gov) or contact the CMUWorks Service Center. When you look at Publication 901, be SURE to go to the relevant section for Professors, Teachers and Researchers. You need to complete an 8233 form at the CMUWorks Service Center in order to benefit from these treaties in advance (i.e., keep the money from being withheld from your pay), and you must complete a new form each year in order to continue to benefit.
2. W-2 forms from employer(s) and 1042-S from CMU. If you earned money in the US each employer must send you a W-2 form (or a 1042-S for treaty-exempted income.) When you complete your tax returns/forms, you must attach the correct section of these original documents to your tax forms (for both federal and state tax returns). Maintain a copy for your records. DO NOT SEND IN YOUR TAX RETURNS WITHOUT ATTACHING THESE ORIGINAL DOCUMENTS!!
If you worked for Carnegie Mellon University in 2014 and did not receive your W-2, you should contact the CMUWorks Service Center for instructions on how to obtain your tax documents.
CMUWorks Service Center:
Located in the University Technology Development Center (UTDC) at 4516 Henry Street
Phone: 412-268-4600
E-mail: cmu-works@andrew.cmu.edu
3. Keep a copy of your tax return for future reference. The government can, and sometimes does, audit returns and contact taxpayers a year or more after the return was original filed.
4. Social Security and FICA Withholding. If you are a foreign scholar in J-1 status and you are a nonresident for tax purposes, you are exempt from social security taxes (including Medicare tax.) If your employer has withheld social security taxes from you (check on your pay stub and the W-2 form), you should ask the employer to refund the taxes to you. If the employer refuses, you can apply for a refund from the Internal Revenue Service (IRS.) This process, which is separate from the annual tax filing requirement, can take up to 6 months through the IRS.
5. Where to File? You will mail your federal, state and local tax returns to different US addresses. All tax forms (completed returns, W-2s and 1042-S forms) are to be mailed together to the addresses listed in the instruction booklets. The correct address for each filing is listed under the section entitled "Where to File" in the instruction booklets.
6. Visa Number Requested on Form 8843. The US visa number requested in #1 of Form 8843 is found in your passport on the page with the US entry visa stamp from the US Consulate abroad.
7. Hiring a Tax Preparer/Accountant. If you want to hire a tax accountant, you can contact one of the commercial tax accounting firms in the phone book or on line. If you are a nonresident for tax purposes, be sure to confirm that that person is knowledgeable about “nonresidents for tax purposes”. Most tax preparers do not have this expertise.
H) Help for international persons who are "residents for tax purposes"
1. Use FreeFile on the IRS website or purchase commercial tax preparation software (TurboTax, H&R Block, TaxCut).
2. Call the IRS Taxpayer assistance number with specific questions at (215) 516-2000 or (800) 829-1040 or visit their website at www.irs.gov.
3. VITA volunteers. Help is also available from RESIDENT tax volunteers
BY APPOINTMENT ONLY at local libraries; contact your local library for dates and times.
4. Hire a Tax Preparer/Accountant. If you want to hire a tax accountant, you can contact one of the commercial tax accounting firms listed in the phone book, or look on line.