Income Taxes

During the tax year, January 1 to December 31, individuals who work in the U.S. have taxes withheld from their earnings. By April 15th of the following year, one has to file an "income tax return" with the federal tax authorities and possibly also with the tax authorities in the state(s) in which one was employed. A tax return reports your income and either requests a refund if more tax was withheld than is required or may require you to pay additional taxes that are owed. The Internal Revenue Service is the United States government agency responsible for the collection of federal income taxes/P>

All nonimmigrants in F or J status (both the principal and all dependents) who are considered "nonresidents for tax purposes" are required to file an individual income tax form–even if they have no U.S.-source income of any kind–if they were in the U.S. during the tax year. You are considered a nonresident for tax purposes for a period of five "tax years"; for filing a 2007 tax return, this means that you arrived in the U.S. in 2003 or later.

If you do not have U.S.-source income - As a nonresident for tax purposes with no U.S.-source income, you (and any dependents) must file federal Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition) only. Interest earned on bank accounts is NOT considered income for this purpose. Students complete Part I (General Information) and Part III (Students).

If you have U.S.-source income - As a nonresident for tax purposes with U.S.-source income, you must file federal Form 1040NR or 1040NR-EZ (U.S. Nonresident Alien Income Tax Return) and Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition). Depending on the amount of income, you may also need to file a state return. The corresponding New York State forms for nonresidents are the IT-203, the IT-203B and the IT-2.

Dependents - Spouses of F-1 and J-1 students in F-2 and J-2 status must file Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition) in all cases whether the student has U.S. income or not. Dependents complete Part I only./p>

Scholarships and fellowships awarded are subject to taxation and 14% federal withholding on the amount in excess of tuition, and fees. All teaching and research assistantships are taxable and subject to withholding based on your rate of pay.

Withholding is the term used to describe a portion of your check amount that an employer is required to pay directly to federal, state, and city taxation authorities in anticipation of your annual income tax obligations. The check you receive, therefore, is for less than you earned during the pay period. The amounts withheld are credited toward your tax bill so that most taxpayers will have to pay relatively little additional money at annual tax filing time and many will qualify for a refund of money over-withheld.

Tax treaties Currently the U.S. has tax treaties or agreements with roughly 55 countries and territories under which their citizens may be exempt from all or part of U.S. income tax. To see if your country is among these and how a treaty may affect your tax status, see IRS publication #901 U.S. Tax Treaties (see below) at www.irs.gov or pick up a copy at the ISSO. However, note that when you use the web-based nonresident tax preparation system CINTAX (descibed elsewhere), it will determine tax treaty eligibility and applicability, according to your nationality and source of income.

IRS Froms and Publications The following are some of the forms or instructions which may be relevant to you, all accessible from www.irs.gov. Note that forms will be created and completed when you use CINTAX.

• Instructions for Form 1040NR
• Instructions for Form 1040NR-EZ
• #519 United States Tax Guide for Aliens
• #901 United States Tax Treaties

Important Date

FICA

A separate tax issue is Social Security tax, also known as FICA. A 1984 tax law determined that F-1 and J-1 students are responsible for FICA taxes in some situations, dependent on the length of time that a student has been in the U.S. However, students enrolled in and employed by an academic institution are exempt from Social Security taxes for that employment. In general, students in F-1 or J-1 immigration status are exempt for FICA taxes on other types of authorized employment during the first five years in the U.S., during which time they are classified as "nonresident aliens" for tax purposes. [26 CFR 3121(b)(19)].
If FICA has been withheld in error, the employer must provide a refund. The employer applies for reimbursement by filing a claim on form 941C with IRS. If you are unable to obtain a refund in this way, you can file a claim on Form 843 and Form 8316. Send your claim to: Internal Revenue Service Center, Austin, TX 73301-0215.

Social Security Numbers

Social Security numbers (SSN) are issued only to individuals who are authorized to be employed in the United States, and only after submitting an application to a Social Security Administration (SSA) office. The temporary ID number which the University assigned you is for temporary internal use only and cannot be used as a SSN. If you need to apply for a SSN, go to the ISSO or the IAO first with your passport, I-20 or DS-2019 and I-94 card to obtain a letter certifying your eligibility and instructions for applying for a Social Security number at the SSA office.

Individual Taxpayer Identification Number (ITIN)