Who Needs to File a Return?

If you are visiting the United States from another country on an F, J, M or Q visa, and you are classified as a nonresident for U.S. tax purposes, you are required to file a tax return each year you are here if you have any income subject to U.S. income tax. Additionally, if you are an exempt individual, you are required to file Form 8843 regardless of your income. Here is a description of the forms you are required to file:

• Form 1040NR, U.S. Nonresident Alien Income Tax Return, or, if you qualify, Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, and
  
• Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition.
  

See Filing Your Own Return, below, for information on where to get these forms.

In prior years you were required to file an income tax return regardless of your income. The IRS changed this policy for 1997 and later years to require a return only if you have income subject to U.S. tax. However, a formal interpretation has not been issued by the IRS specifying exactly what they mean by this. For example,

It doesn't matter that your employer withheld adequate tax from your paychecks, or that you have a small amount of income and owe no tax - you are still supposed to file. If you are a student and have been in the United States for five calendar years or less, or a teacher or trainee and have been in the United States for two calendar years or less, you are probably a nonresident for tax purposes. See Are You a Resident Alien or Nonresident Alien? to be sure.

Form 8843 is required if you are an "exempt individual." This does not mean you are exempt from paying U.S. taxes, but that you are exempt from the substantial presence test for determining residency status. See Are You a Resident Alien or Nonresident Alien? Once again, you must file Form 8843 even if you are not required to file an income tax return.

What Happens If You Don't File?

Studies have shown that most nonresidents either do not file a return, or file incorrectly. However, it has also been shown that there is massive overpayment of U.S. taxes by nonresidents who do not file, rather than underpayment (J.W. Antenucci, "Widespread Noncompliance and Overpayment of Taxes by Foreign Scholars," Tax Notes, May 13, 1996). Just because your employer has withheld tax from your wages does not mean that you have paid the proper amount - you could have a sizeable refund due!

When and Where to File

If you received wages subject to U.S. tax withholding in 2000, the due date for your tax return is April 16, 2001. If you did not receive taxable wages in 2000, the due date for your tax return is June 15, 2001. Your Form 1040NR or Form 1040NR-EZ (including Form 8843) must be sent to the Internal Revenue Service Center, Philadelphia, PA 19255. See page 33 of Publication 519 for more information.

Where to Find Free Help

How to Choose a Paid Preparer

If your tax situation is complex, seek the aid of a professional tax preparer. Unfortunately, there are relatively few preparers who have experience in preparing returns for international scholars. Be sure to ask prospective preparers if they are familiar with Form 1040NR and the rules applicable to F, J, M and Q visa holders. Do not engage a preparer who is not. The professional designations of "Certified Public Accountant" or "Enrolled Agent" are indications of a preparer's competency, but are not guarantees. Most tax preparers charge on a per hour basis rather than a fixed fee. If a preparer will not state an exact fee in advance, you should at least be told the maximum amount that you might have to pay. Even if you are planning to hire a preparer, it's best to learn as much as you can on your own. Take some time to look through these pages; you might find that you can do the job yourself. We happen to offer affordable tax return preparation services for international students, professors, teachers and researchers at Income Tax Services for International Students & Scholars.

Filing Your Own Return

The first thing you must do is to determine whether you are a resident, a nonresident, or a dual status alien for tax purposes. These titles do not relate to your immigration status. Even though you are a citizen of another country, you might still be considered a U.S. resident for U.S. tax purposes. This is an important first step because it determines whether you must file, what form you file, and whether you are eligible for treaty benefits. The first few pages of Treasury Publication 519 (see below) explain how to determine your residency status. You can find additional help at Are You a Resident Alien or Nonresident Alien?

If you determine that you are a nonresident or dual status alien, all the information most F, J, M and Q visa holders need in order to complete their nonresident return is contained in two U.S. Treasury booklets and the instructions to Form 1040NR or 1040NR-EZ. We will try to explain, condense and simplify this information. The booklets are Publication 519 (U.S. Tax Guide for Aliens) and Publication 901 (U.S. Tax Treaties). If you are a resident of Canada, you will also find Publication 597 (Information on the United States-Canada Income Tax Treaty) helpful. All of this material can be obtained from the U.S. Treasury's Forms and Publications site. You can view and print out tax forms and publication using the PDF file format. You will need the Adobe Acrobat reader for this, which can be downloaded for free from the Treasury site. If you do not want to spend the time to download this material (the publications take a while) simply call 1-800-TAX-FORM (1-800-829-3676) and ask for them to be mailed to you. It should take a week to ten days to get them. Here is a complete list of all the forms and publications you should need.

• Form 1040NR and Instructions or Form 1040NR-EZ and Instructions
  
• Form 8843
  
• Form 843 (for improperly withheld social security tax)
  
• Publication 519
  
• Publication 901
  
• Publication 597 (if you are from Canada)
  

Reading the first page of the Instructions to Form 1040NR-EZ will tell you if you can use this shorter form. If you cannot, use Form 1040NR.

Proceed next to Your Filing Status and Personal and Dependency Exemptions. Then check Income and Deductions and Credits of Nonresidents to learn how specific items are reported on your return.