International students and scholars who have U.S. source income during any calendar year must file a federal tax statement called an income tax return. Some international students and scholars may need to file a state income tax return if they earned income in a state outside of New Hampshire.
When you file your annual tax return by April of each year, you will calculate the exact amount of tax due. Some years you may get a refund and in others you may owe additional taxes.
Even if Dartmouth withholds federal income tax from your pay, you still need to file a tax return. The U.S. tax system requires that taxes be withheld from your pay as you earn it. You file a federal tax return after the end of the calendar year to reconcile the taxes withheld with your actual tax liability. The process of completing the tax return determines your tax liability.
If you had no U.S. earned income or scholarship during the year, you may still need to file Form 8843 in order to confirm your Non-resident Alien status for tax purposes.
The tax year is from January 1 to December 31. You file your tax return by mid-April of the following year.
If you owe taxes and don't file a return, the IRS can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties often can be more than the original debt.
The IRS will not impose penalties if no tax is due. However, the terms of your visa require you to comply with all laws of the United States, including the requirement to file an income tax return.
You might be required to show proof that you filed if you wish to change your visa status, obtain permanent residency, or regain entry into the United States once you have left. Don't risk your visa status by failing to comply with this requirement.
Before you begin your tax return preparation, you will need to determine your tax residency status as Non-Resident Alien or Resident Alien for tax purposes. You may also be a Dual Status Alien if you were both a resident alien and a nonresident alien during the same tax year. Different rules apply for the part of the year you are a resident alien and the part of the year you are a nonresident alien.
Non-resident alien, resident alien, and dual status alien are tax terms, not immigration terms. If you do not know your tax residency status, you can check the information on the IRS website and IRS Publication 519, the U.S. Tax Guide for Aliens. The Sprintax Tax Prep software can also help you determine your status.
Your tax residency status for federal income tax purposes will depend on your immigration status and U.S. presence over a three-calendar-year period. In general, a nonimmigrant is considered a Resident Alien if he or she has been physically present in the U.S. for 183 days or more, based on a formula unless an exception applies. Most students and scholars will meet one of the exceptions for at least part of their stay.
Resident aliens are taxed in the same manner as U.S. citizens. They are taxed on their worldwide income and required to report ownership of certain foreign financial assets; they are allowed the same deductions and credits as U.S. citizens; and they may file a joint tax return if they are married.
Non-resident aliens are subject to different rules. They are taxed only on income that they receive from sources within the U.S.; they have limited deductions and credits; and they cannot file a joint tax return with their spouse. They are required to file a different U.S. income tax return, either Form 1040NR or Form 1040NR-EZ.
Generally, F-1 students are exempt from counting days of U.S. presence for a period of five years over their lifetime, and J-1 scholars are exempt from counting days of US presence for every 2 out of 6 years. See IRS Publication 519 for more information.
All non-resident students and scholars must file Form 8843 to substantiate their non-residence, even if they have no income.
All F-2 and J-2 dependents must also file Form 8843 even if they had no U.S. source income during the tax year. If they have U.S. income, they would be required to file either the Form 1040NR or Form 1040NR-EZ, in addition to the Form 8843.
Most students and scholars will find that they can use the form 1040NR-EZ, which is shorter and easier to complete than the 1040NR. However, there are some rules and limits for use of the 1040NR-EZ. You may use the 1040NR-EZ if: