IMPORTANT: All F-1 students and their dependents must file"IRS For 1040NR" tax return, whether or not there was any income earned during the tax year.
A tax year is from January 1 to December 31. In January, at the end of the tax year, all employers are required to create a W-2 form, which is a summary of how much money each employee has earned and how much tax was withheld from each paycheck during the previous tax year. W-2 forms are mailed to all employees after the preceding tax year but before February 1. It is then the responsibility of each employee to fill out the correct income tax return forms and send them to the IRS (Internal Revenue Service) by April 15 to report what income was earned and how much tax should be paid.
Below is information that students should know about the tax obligations of non-United States citizens:
International Students are not automatically exempt from paying income tax.
All students paid on assistantships must pay taxes.
Most scholarships and fellowships are taxable.
Some countries have tax treaties with the US, but this does not mean taxes do not have to be paid. Each treaty is different, and most say that a portion of the income will not be taxed. This benefit of the tax treaty is counted on the tax return form, never on the W-4 form where you are specifically asked if you are exempt from paying taxes.
Each employee is given an IRS W-4 form to complete before a paycheck can be received. It lets the IRS know how much tax to withhold each month. Never say that you are exempt on this form unless all three statements concerning exemptions on it are true. It is a legal document, and you will be held responsible for proving it is true.
International students are almost always considered to be nonresident aliens for income tax purposes. The proper tax return form for international students to use is a Form 1040NREZ as well as Form 8833.
Save all receipts, check stubs and papers showing payment for books, tuition, and school supplies; your plane ticket, meal and hotel expenses to move to the United States; any thefts or losses, and any gifts to a US charity. Make copies of everything you send to the IRS and make a copy for your own records. You should save all copies of tax returns and receipts for at least seven years.
Failing to correctly file tax forms could result in severe penalties including fines, interest on unpaid taxes, and denial of permanent residency or working visas.
SOCIAL SECURITY TAX
Payment to Social Security is mandatory in the United States. F-1 students working on or off campus with permission from INS do not pay Social Security tax.
For more information contact the INS at 214-381-1423.
US Immigration and Naturalization Service requires you to maintain a current residence address, current telephone number, and current Post Office Box number (if applicable) with the Brookhaven College Multicultural Center.