Graduate Student Tax Information US Citizens and Permanent Residents

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1 Graduate Student Tax Information US Citizens and Permanent Residents Presented by Bill Guy, Assistant Director, Financial and Grant Services Sponsored by Graduate Student Affairs

2 What we will discuss today: What type of income did I have? Do I have a filing requirement for 2013? What tax forms might I receive? What tax forms do I file? How do I get assistance? 2

3 What type of income did I have? Stipend, scholarship and fellowship Wage and salary Self-employment income Investment income Non-taxable/non-reportable items Tuition costs that are covered by the division Student loans (though interest paid on student loans can be used as a tax credit) 3

4 Do I have a filing requirement for 2013? For most people under 65: If your filing status is Single $10,000 Married filing jointly $20,000 Married filing separately $3,900 Head of Household $12,200 Qualifying widow(er) with dependent child $16,100 THEN file a return if your gross income was at least If your parents claim you as a dependent child for tax purposes, you still may need to file taxes depending on the amount of gross income. 4

5 Bottom Line If you received funding through scholarship stipend or fellowship from UChicago or an external source, all or part may be taxable, even if you did not receive a tax form Possible exclusions Tuition and required fees not including insurance Required fees, books, supplies, and equipment 5

6 Federal and State Requirements Per requirements from the IRS and State of Illinois: If you will owe more than $1,000 in federal taxes and $500 for Illinois state taxes you should make estimated quarterly payments Not doing so may result in federal and/or state tax penalties 6

7 How to make quarterly payments Refer to worksheets that estimate 2014 payments; available after January 1 Federal: 1040-ES State: IL-1040-ES Forms include due dates and explanation of how to estimate quarterly amounts owed You may need to file in more states where you earned income. 7

8 What tax forms might I receive? W2 Wage and Tax Statement 1099 MISC Miscellaneous Income 1098T Tuition Statement* * Not needed for students who receive funding from the university including tuition coverage from teaching; only needed for students who pay tuition T is available at Note: foreign students may receive a 1042S Foreign Person s U.S. Source Income Subject to Withholding 8

9 Which 1040 is right for me? 1040-EZ 1040A 1040 Remember to include your stipend, scholarship, and funding in the appropriate line for your form. Even if you paid quarterly estimates you must file these forms which reconcile previous payments. 9

10 How do I get assistance? IRS Free File/Tax Assistance Software IRS Local Office Illinois State Revenue Office VITA Volunteers Tax Preparers Certified public accountants Enrolled agents National tax-prep chains If you choose to use a professional tax preparer, make sure they: Have filed student tax returns in the past Have passed state or federal certifying exams Give you an estimated price for services up front, including all fees Will stand by their work and provide audit assistance or advice if necessary Avoid preparers who base their fee on a percentage of your refund 10

11 Planning Ahead for Future Tax Preparation Record-keeping Keep a file with all scholarship payments Make note of types of payments (e.g. stipends, fellowships, wages) so you know what forms to expect at year end Keep receipts with possible educational deductions Make estimated tax payments (using the 1040-ES form) if required 11

12 Additional Resources Grad.uchicago.edu Today s presentation and handout as well as information for foreign students will be posted on: dents-tax-us-income-filing-federal-and-state-incometaxesu. International students The Office of International Affairs will sponsor two tax filing workshops for international students on February 26 and March 3. Both will be held in Harper Center, Room 104 at 12 noon. 12