TAX INFORMATION SESSION FOR INTERNATIONAL STUDENTS AND SCHOLARS

Transcription

1 TAX INFORMATION SESSION FOR INTERNATIONAL STUDENTS AND SCHOLARS Presented by: Lisa Kosiewicz Doran International Student Specialist Office of International Programs Sarah Hintz, CPA Tax and Compliance Manager Finance & Administration February 23, 2016

2 Today s Agenda: 1. Tax Filing Requirements 2. Determining Your U.S. Tax Filing Status 3. Commonly Encountered U.S. Tax Forms 4. Tax Resources at Colorado College 5. Time for Questions

3 TAX FILING REQUIREMENTS

4 Who Needs to File a Tax Form? If you were in the U.S. in F, J, M or Q status in 2015, you are required by the U.S. Internal Revenue Service (IRS) to file, i.e. prepare and submit, certain U.S. tax forms, even if you did not earn any money in the U.S. during The form(s) you are required to file depend on your U.S. tax filing status.

5 DETERMINING YOUR U.S. TAX FILING STATUS

6 U.S. Tax Filing Status Resident Alien vs. Nonresident Alien Tax Status Your U.S. tax filing status may be different from your U.S. immigration status. For example, it is possible that a person, who is a non-u.s. resident for immigration purposes, be classified as a resident alien for U.S. tax purposes. The GLACIER Tax Prep (GTP) software available through the GLACIER Nonresident Alien Tax Compliance system will help you determine your tax filing status for each tax filing year Please contact Sarah Hintz with any questions regarding your tax filing status.

7 Nonresident Alien Tax Filing Requirements If you are a nonresident alien and you received no U.S.- source income in 2015 you need only complete IRS information Form 8843 and submit it to the IRS during the 2015 tax filing period (January 2016 April 2016) You must send your Form 8843 to the IRS (even if you leave the U.S. before that date). Completing and submitting a Form 8843 is required of ALL F-1, J-1, M-1 and Q visa holders and their dependents (F-2, J-2, M-2 or Q visa holders). You can prepare the Form 8843 through GLACIER Tax Prep

8 Nonresident Alien Tax Filing Requirements If you are a nonresident alien and you received U.S.-source income in 2015, the tax form(s) you may need to file include: IRS Form 1040NR-EZ/IRS Form 1040NR CO Form 104 and/or other state income tax form Note: income from ALL U.S. sources is reported on a single IRS Form 1040NR-EZ/IRS Form 1040NR

9 Resident Alien Tax Filing Requirements If you are a resident alien and you received U.S.-source income in 2015 the tax form(s) you may need to file include: IRS Form 1040EZ/IRS Form 1040A/IRS Form 1040 CO Form 104 and/or other state income tax form Note: income from ALL U.S. sources is reported on a single IRS Form 1040EZ/IRS Form 104oA/IRS Form 1040

10 Your Taxpayer Identification Number Federal and state tax forms will ask you to report your U.S. taxpayer identification number If you have a U.S. Social Security Number (SSN), you must use that number as your U.S. taxpayer identification number If you are not working in the U.S. and, therefore, are not eligible for a Social Security Number, but have other U.S. source income (e.g. scholarship income), you will have to apply to the Internal Revenue Service (IRS) for an Individual Taxpayer Identification Number (ITIN)

11 Applying for an ITIN Use IRS Form W-7, Application for IRS Individual Taxpayer Identification Number (note: the Form W-7 can be prepared using the GLACIER Tax Prep software) Form W-7 supporting documentation includes evidence of your identity and your foreign status, e.g. a photocopy your passport with a photocopy of your U.S. visa Sarah Hintz, the Tax & Compliance Manager, is a Form W-7 Certifying Acceptance Agent, and will need to sign your Form W-7 before you mail it to the IRS Your completed Form W-7 must be attached to the front of the original, valid tax return(s) for which the ITIN is needed If are assigned an ITIN and later get an SSN, please see Sarah as this needs to be reported to IRS

12 When to File Your U.S. Tax Forms You should submit your federal and state tax forms by Monday, April 18, 2016 (even if you leave the U.S. before that date). Your federal form must be mailed/postmarked by April 18, 2016; for your Colorado forms, see the Colorado filing instructions.

13 Failure to File 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 H-1B work visas and permanent residency ( green cards ) are frequently asked to show proof of tax filing for previous years in the U.S. If you are eligible for a refund and don t file, then you won t get back any of the money that was withheld from your U.S. income.

14 Where to Get Tax Forms Nonresident Aliens GLACIER Tax Prep software system Colorado Filing Instructions from Sarah Hintz Volunteer Income Tax Assistance (VITA) program sites* Resident Aliens Free File Software ( VITA program sites* *Make sure you inform the VITA volunteer of your U.S. tax filing status so that they can assist you appropriately

15 A Note of Caution Many online tax preparation software programs, e.g. Turbo Tax, cannot prepare nonresident alien tax forms If you choose to go to an outside tax preparation agency, e.g. H&R Block, which will charge you a fee for preparing your tax forms, be sure to inform them of your U.S. tax filing status so that they can advise you appropriately (beware: many do not have expertise in nonresident alien tax issues)

16 COMMONLY ENCOUNTERED U.S. TAX FORMS

17 Tax Forms You May Receive IRS Form W-2: Wage and Tax Statement Reports any income earned during the year IRS Form 1042-S: Foreign Person s U.S. Source Income Subject to Withholding Will receive if claimed tax treaty benefits and/or had any taxable scholarships or awards; you may receive multiple 1042-S forms from Colorado College if you received different types of income IRS Form 1099 (DIV, INT, MISC) Reports dividend, interest, or miscellaneous income

18 Tax Forms You May Receive (continued) IRS Form 1098-T: Tuition Statement Used by resident aliens for claiming certain types of educational tax benefits IRS Form 1095-B: Health Coverage Provides evidence that you had qualifying health insurance coverage under the Affordable Care Act (ACA); for tax filing use only by resident aliens (nonresident aliens keep for your tax records)

19 Tax Forms You Mail to the Federal and State Government Nonresident Aliens with no U.S. income IRS Form 8843: Statement for Exempt Individuals and Individuals with a Medical Condition Nonresident Aliens with U.S. Income IRS Form 8843 IRS Form 1040NR-EZ/IRS Form 1040NR: Income Tax Return Form for Nonresident Aliens Nonresident Aliens with Colorado Income CO Form 104: Colorado Individual Income Tax Form Nonresident Aliens with Income from other U.S. States Other state s Individual Income Tax Form

20 Tax Forms You Mail to the Federal and State Government (continued) Resident Aliens with no U.S. Income No tax form requirements Resident Aliens with U.S. Income IRS Form 1040EZ/IRS Form 1040A/IRS Form 1040: U.S. Individual Income Tax Return Resident Aliens with Colorado Income CO Form 104: Colorado Individual Income Tax Form Resident Aliens with Income from other U.S. States Other state s Individual Income Tax Form

21 TAX RESOURCES AT COLORADO COLLEGE

22 GLACIER Tax Prep (GTP) GLACIER Tax Prep: Online Tax Return Preparation System A web-based federal tax return preparation system designed exclusively for international students, scholars, teachers, researchers, trainees and their dependents who had nonresident status in the U.S. in the calendar year 2015

23 What Does GTP Do? The GLACIER Tax Prep program: helps you finish your federal tax return in about 20 minutes guides you step-by-step in completing your tax return determines the correct tax forms you need to fill out allows you to complete your tax return from abroad if necessary addresses fellowships and tax treaties instructs you in printing and mailing tax forms to the IRS offers free technical support via helps you apply for an Individual Taxpayer Identification Number (ITIN) if necessary

24 How Do I Access GTP? GLACIER Tax Prep is free! You must complete the set-up process for your individual GLACIER account first Once your individual GLACIER account is set-up, log into your GLACIER account and select the menu option Complete my U.S. tax return using GLACIER Tax Prep.

25 Accessing GTP via GLACIER

26 When Using GLACIER Tax Prep Please make sure you have all of your Forms W-2, 1042-S and/or 1099 BEFORE you log into GTP via GLACIER. GLACIER Tax Prep will assist you in completing the W-7 form to apply for an Individual Taxpayer Identification Number (ITIN) if you are not eligible for a Social Security Number (SSN). Please see Sarah Hintz before mailing your W-7 form to the IRS.

27 What should I do if I did not receive a W-2 Form from CC? If you were employed by CC in 2015 and you did not receive IRS Form W-2 in the mail by the end of January 2016, then you should: 1) Check your Self-Service Banner (SSB) account Employee tab. If it is not there: 2) Send an to Sarah.Hintz@ColoradoCollege.edu with: Your name Your CC ID number The tax year for which you want the W-2 reprinted Your current mailing address (or indicate that you want to pick up your reprinted W-2 form in person at Sarah s office in Spencer Center 204)

28 Spring Tax Workshops Mark you calendars now and plan to attend one of the upcoming tax workshops sponsored by the Office of International Programs and the Finance and Administration office! During the workshop you ll be able to use GLACIER Tax Prep to prepare your U.S. federal income tax form(s): Thursday, February 25 th 3:00 5:00 PM Thursday, March 3 rd 3:00 5:00 PM Tuesday, March 22 nd 3:00 5:00 PM All Tax Workshops will be held in Keck Computer Lab (Armstrong Hall 303) Pre-registration for these workshops is required---see the tax information sent out by the OIP office for registration details.

29 Other Tax Resources For more information about U.S. tax issues for international students, refer to one of the following online resources: IRS Tax Information for Foreign Students and Scholars Taxpayers/Foreign-Students-and-Scholars IRS Publication U.S. Tax Guide for Aliens IRS Publication 901 U.S. Tax Treaties University of Texas at Austin International Office Helpful Information

30 2014 Tax Refund Status The IRS has still not issued the 2014 refunds and Colorado College has received no further information as to when the refunds will be issued. A number of students received notices from the IRS stating that their 2014 tax returns have been adjusted and that they now have a balance due. If you receive a similar notice, contact Sarah Hintz and she will prepare a letter to send back to the IRS.

31 QUESTIONS?