2014 Tax Filing Resources for International Students
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 forms/obligations; Resident or nonresident?
D) State tax information
E) Local (Pittsburgh) tax information
• 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 students and their dependents (in F-1/F-2 or J-1/J-2 status) who are nonresidents for tax purposes are required to file at least one form every year they are present in the US regardless of whether or not they earned any money. If you earned money or have US-source income, you must file additional forms. This does NOT NECESSARILY mean you have to pay taxes. However, you DO need to complete and submit the forms. NONRESIDENT tax forms and instructions for 2014 may be downloaded from the federal, state and local 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 E of this communication.
B) Forms you receive to help file tax returns
In January or February 2015, employers and financial institutions did or will send out important tax forms in the mail. You will 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
• 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 forms/obligations: 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 also read the 1040NR instruction booklet and IRS Publication 519. (The tax definitions of "resident" and "nonresident" are not the same as the immigration definitions of these terms.)
- If you have been present in the US for fewer than 5 calendar years (i.e., you entered the US on or after 1/1/2010) you are probably a "NONRESIDENT FOR TAX PURPOSES” in which case you MUST FILE AT LEAST THE 8843 FORM to document your stay in the US, plus additional forms if you have US source income (see below).
- If 2014 was the 6th calendar year (or 7th, 8th…) that you were present in the US (i.e., you are a student and you entered the US on or before 12/31/2009), you are probably a "resident for tax purposes" and will need to complete a 1040 or 1040EZ RESIDENT tax form if you have US source income.
- If you are a RESIDENT for tax purposes, you may be eligible for using the Hope or Lifetime Learning Credit. To request your 1098–T Tuition Statement for calendar year 2014 to determine your educational Hope or Lifetime Learning Credit, log into SIO, hover over the "Finances" tab, click on "IRS Tuition Statement (1098-T), click "Edit" on the right hand side of the page in the "1098-T Paperless Option" section. The 1098-T will be available as a pdf on the same page in 24 hours. If you no longer have access to SIO or have any questions, please e–mail 1098–firstname.lastname@example.org. (The remainder of the information in this message will not help you, in this case, as it is focused on nonresident tax issues.) Students who are nonresidents for tax purposes are NOT eligible for these credits and should not request a 1098-T.
2. IF YOU ARE A "NONRESIDENT FOR TAX PURPOSES,” COMPLETE FORMS:
• 8843 (Every nonresident for tax purposes fills this form, including dependents.)
o Students who DID NOT earn any US source income or those whose “income” was bank interest on a checking or savings account only need to file form 8843. All F-2 and J-2 dependents MUST ALSO file this form.
• 1040NR-EZ or 1040NR (for nonresident students with US income). Nonresidents CANNOT use the regular 1040 or 1040EZ form that residents use. NOTE: nonresidents cannot electronically file federal tax returns. If you are trying to file your federal tax form electronically, it’s the wrong form.
• Students with US source income (stipends, fellowships, salary, investments) MUST have W-2 or 1042-S forms from Carnegie Mellon, or a 1099-DIV or 1099-INT from the investment company before you can complete the tax forms.
3. The following federal tax forms can be viewed and downloaded from www.irs.gov
• 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.
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.
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/ and consider using Sprintax to assist you both all your state returns.
E) Local (Pittsburgh) Tax Information
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.
Generally, those with no US income do not need to file this form. If city (local) tax was withheld from your pay, you will file this form. If you have earned income (other than a stipend), you will probably need to file both local (city) and state tax forms.
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 above), read them, and use tax support services suggested by OIE. Staff members of OIE are not able to provide you with any specific advice about your individual tax situation.
1. Use GLACIER Tax Prep to prepare your federal tax forms
For federal tax forms, use GLACIER Tax Prep. Carnegie Mellon University is providing this web-based tax preparation service to you for free. 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. Do not share the password as access is limited to current CMU students and scholars and the number of licenses is limited.
To learn the password, read the OIE email sent to all students and scholars in February, or email OIE at email@example.com.
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
• I-20 forms (for F-1 students) or DS-2019 forms (for J-1 students)
• I-94 record (white card stapled into your passport or printed from www.cbp.gov/i94)
• 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.
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. If you prefer to fill out the forms yourself and file without paying a fee, see section D for state filing contact information & resources.
3. OIE’s General Tax Information Session
Tuesday, March 17th, 5:00 to 6:00 PM
University Center, McConomy Auditorium
This session will provide general information about nonresident tax issues and the forms international students/scholars must submit to comply with US tax laws.
4. Contact the IRS Taxpayer assistance number with specific questions at (215) 516-2000 or (800) 829-1040. Let the representative know that you are a "nonresident for tax purposes.” Or visit their website at www.irs.govor http://www.irs.gov/businesses/small/international/article/0,,id=96431,00.html.
5. Visit the University of 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). If you are working for Carnegie Mellon, you can also contact the CMUWorks Service Center to complete a Foreign National Information form to help determine treaty eligibility. When you look at Publication 901, be SURE to go to the relevant section for “Students and Apprentices.” 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 in the case of scholarships or treaty-exempted income a 1042-S.) 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
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 student in F-1 or 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 can not, 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. OIE has a handout on this topic.
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 one or more 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 listed in the phone book, or look on line. If you are a nonresident for tax purposes, make sure the person is familiar with nonresident tax issues.
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, TaxCut).
2. Call the IRS Taxpayer assistance number with specific questions
1-800-829-1040 or 215-516-2000 or visit their website at www.irs.gov.
3. Seek out 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.