Taxes

If you work in the U.S. you will need to fill out a W-4 Form so your employer knows what income should be withheld from your wages as taxes. The taxes are then paid directly to the U.S. Treasury (and/or the appropriate state agency) on your behalf. Similarly if you received a grant, scholarship or stipend, some of this may be classified as income and have tax implications. At the end of the tax year you need to prove that you have paid the correct amount by filing your tax return. Remember, even if you didn't have a job, you must still file at least one tax document each year.

Tax forms are filed in the spring (the deadline is typically April 15th each year) for income received from January 1 to December 31 of the previous year.

Generally you will only be taxed on your income based on U.S. sources. This includes on-campus employment, scholarships, fellowships, graduate assistantships, practical or academic training, and compensation for labor. Many students come from countries that have tax treaties with the U.S. This means that you may be able to earn a certain amount in the U.S. without paying federal tax.

In your tax return, you must declare all sources of U.S. income such as:

• Income from employment in the U.S.
• Scholarships, fellowships or grants
• Any other sources of income

Some or all of the forms listed below may be issued to you. It is important to note that you may not receive the same forms received by your friends. Every person's tax situation is different. Please do not use Sprintax until you have received all of your tax forms.

You do not have to complete anything on these forms, but will enter information from them into Sprintax to complete your tax return. Copies of the forms are submitted to the IRS as part of your tax return.

• W-2 (Wage and Tax Statement)
  Issued by your employer(s)
  Must be issued to you by January 31.
  Summarizes the total amount of wages earned during the year and the amount of money withheld for any taxes (federal, state, and local).
   
• 1042-S (Foreign Person's U.S. Source Income Subject to Withholding)
  Issued by RIT.
  If a 1042-S Form has been issued to you, you will receive an email from support@online-tax.net with instructions on how to retrieve it from http://www.online-tax.net
  Must be issued by March 15.
  Documents taxable scholarship income, or employment income that is exempt from tax withholding because of a tax treaty.
   
• 1099-INE, 1099-DIV (Interest Income)
  Issued by your bank.
  Shows income from interest or dividends.
  Bank interest is not taxable for nonresident aliens, so you do not need to consider these forms when preparing your tax return.
   
• 1099-MISC (Miscellaneous Income)
  Issued by an employer
  Used to show "independent contractor" income. Sometimes students who work in off-campus jobs for CPT, OPT, or Academic Training are given this form to document job income instead of the W-2. If the income shown on the 1099-MISC is very large, you may owe taxes when you file your return because taxes are not withheld from "independent contractor" income.
   
• 1098-T (Tuition Statement)
  Issued by RIT.
  Shows educational expenses for each tax year.
  Nonresidents for tax purposes CANNOT use this form when filing a tax return.
  If you are issued this form, ISS recommends keeping it for your records.

ISS has teamed up with Sprintax to provide you with easy-to-use tax preparation software designed for nonresident students and scholars in the U.S. Sprintax will guide you through the tax filing process through a series of questions about your situation. It will complete and generate the forms you need to print, sign, and mail to the IRS (Internal Revenue Service). You cannot file your tax return forms electronically.

In late February you will receive an email from our office with Sprintax Tax Preparation Software in the subject line. The email will include an access code you may use to file your federal tax forms for free.

Step by Step Guide

• Gather the documents you may need for Sprintax
  Passport
  I-20 or DS-2019
  Social Security or Individual Taxpayer Identification Number
  U.S. entry and exit dates for current and past visits to the United States (in addition to passport stamps you can review your travel history here)
  If you received wages, the W-2 form(s) you received from your employer(s)
  If you received a scholarship or fellowship grant and/or claimed tax treaty benefits, the 1042-S form you received. If you received such payments from RIT, your 1042-S form will be available to you through the GLACIER system.
• Create a Sprintax account
• Complete the questionnaire
• Use the access code you received from International Student Services when requested at the payment stage
• Sprintax will prepare your tax forms and determine if you are owed a refund or owe more in taxes
• Download and print the tax forms
• Sign the forms
• Make a copy of the forms or save to your computer
• Mail the forms to the relevant address as per the instructions
  
   

You also have access to the Sprintax YouTube account where there are a number of educational videos on nonresident taxes to provide further clarity on using Sprintax and nonresident taxes. There is also a Sprintax Blog which includes tax related topics which may be of interest to you.

In general, students in F or J status are considered nonresident aliens for tax purposes for the first five calendar years of their stay in the U.S. Non-student J-1 visa holders are considered nonresident aliens for tax purposes for the first two calendar years of their stay. Please note that this is a general guideline only. Sprintax will accurately determine if you are a resident or nonresident for tax purposes.

If Sprintax determines that you are a resident for tax purposes, there are many resources you may use to file your taxes:

• The IRS provides a good overview in Publication 17, Your Federal Income Tax
• Free File on the IRS website
• turbotax
• H & R Block
• taxback.com

Residents for tax purposes may also find help through the free C.A.S.H. Income Tax Assistance Program. This program offers free income tax preparation by IRS certified volunteers. Hours and location information are available on the C.A.S.H. website.