If you earn US Income as a F1 Student, you will need to file tax returns. Read on to get the details.<\/p>\n\n\n\n
Disclaimer- This information is meant as an overview for educational purposes only for international students and scholars and is not a substitute for tax or legal advice obtained from the Internal Revenue Service (IRS) or a qualified tax accountant\/ professional. Please seek resources at www.irs.gov, www.in.gov (or other state\u2019s websites for other state questions) or professional tax guidance for direction for your specific situation.<\/em><\/p>\n\n\n Overview of the American Tax System<\/strong><\/p>\n\t\t\t Most people with earned income in the United States pay taxes on each pay-check they receive, F-1 students included. International students have to file a tax return if they earn money. Taxable income can include everything from salaries to specific scholarships, gifts and awards. Those taxes go to the federal government\u2019s Internal Revenue Service (IRS), as well as the department of revenue for the state where you earned your money.\u00a0<\/p>\n\n\n\n Here is a short summary of how the US tax system works:<\/p>\n\n\n\n How Do I Know if I Made US Income?<\/strong> Do international students pay taxes if they are working or interning?<\/strong><\/p>\n\t\t\t Income can come in many forms, including:<\/p>\n\n\n\n A citizen of another country only has to pay US taxes on income from sources within the United States.\u00a0To determine where you made your income and if you are subject to US taxes, it\u2019s important to consider the same factors determining the source of income that the US government uses<\/a> to ensure compliance. For the most part, however, the important things to remember deal with location:\u00a0<\/p>\n\n\n\n Students who hold employment or internships through Curricular Practical Training (CPT) or Optional Practical Training (OPT) most likely also fill out a W-4, especially if they are also getting paid. A W-4 is the tax form new employees fill out when they are first hired at a company, non-profit organization, government agency, or other institution in the United States. This form signifies that you have started earning US income. If you did not fill out one of these forms, be sure to check with your employer to see why. <\/p>\n\n\n\n All U.S.-sourced income or treaty exemption payments must be reported on the annual federal and state tax returns. You must report all<\/u><\/strong> income exempt from tax under a treaty (regardless of amount). If you omit income on your return, you will have to amend the return, a complicated process, and you may owe tax back.<\/strong><\/p>\n\n\n\n Any income received while living or working in Indiana is filed on an Indiana tax return.\u00a0 Any other income received while living or working in any other state is filed with that other state.\u00a0<\/p>\n\n<\/div>\n\t\t<\/div>\n\n Does it Cost Anything to File My Tax Return? Who can help me?<\/strong><\/p>\n\t\t\t If you prepare and file your taxes yourself, it is free.<\/p>\n\n\n\n You will probably need to file BOTH a federal tax return and a state tax return. If you are a non-resident alien, Purdue has two separate systems for these returns- For federal taxes, it is Glacier Tax Prep<\/strong> and for Indiana state taxes, it is a Purdue State Tax Prep <\/strong>Module.<\/p>\n\n\n\n You should start off by watching these student videos from Purdue on how to file a tax return<\/a>.<\/p>\n\n\n\n If you don\u2019t feel comfortable filing your return yourself, several services at Purdue will help you complete it. See detailed information and FAQs from Purdue’s Payroll and Tax Services here<\/a><\/strong>.\u00a0<\/p>\n\n\n\n The Purdue VITA (Volunteer Income Tax Assistance) program has some very helpful information regarding tax returns, which can be found here<\/a>.\u00a0<\/strong><\/p>\n\n\n\n If you want to use the free United Way of Greater Lafayette VITA’s assistance in filing, you need to schedule a drop-off tax return preparation service with them at https:\/\/uwlafayette.org\/1040nrtaxhelp\/<\/a>. (Limited Availability)<\/p>\n\n\n\n Alternatively. pay a tax professional to prepare and assemble your return, usually around $200 – $250, depending on the complexity of your tax returns (federal and states).<\/p>\n\n<\/div>\n\t\t<\/div>\n\n What Do I Need Before I Prepare My Tax Return?<\/strong><\/p>\n\t\t\t You will need an Individual Taxable Identification Number (ITIN)<\/strong> or a Social Security number<\/strong>. Non-residents receive a specific Social Security number and card that comes with the following restriction: \u201cVALID FOR WORK ONLY WITH DHS AUTHORIZATION.\u201d<\/p>\n\n\n\n W-2 form: <\/strong>Your employer or whomever you collect an income from, will mail you a W-2 form, which documents your earned income from the perspective of the person or entity paying you. Note: depending on the type of employment, you may receive a 1099<\/a> for contract work or a 1042-S<\/a> for income that falls under tax treaty benefits.\u00a0IF you worked for Purdue and you presented your valid SSN before 5 Jan, and were an active employee, you may retrieve your Purdue-issued W-2 at https:\/\/my.adp.com<\/a>. If you had a job at another employer, you need to request the W-2 from that employer.<\/p>\n\n\n\n Before you file your taxes, you will also need to fill out a 1040-NR<\/strong>, If you received income from Purdue, business, or individual.\u00a0This form details to the IRS exactly how much you owe and how much you should be refunded or credited. This is detailed out in sections later on in this post.<\/p>\n\n\n\n Here is a list of other forms you may need if they are applicable to you:<\/p>\n\n\n\n Using Glacier Tax Prep (tax filing software)<\/strong><\/p>\n\t\t\t If you were paid by Purdue University, you\u00a0will receive\u00a0an informational message from Purdue University’s Payroll & Tax Services regarding accessing GLACIER TAX PREP through your GLACIER account. GLACIER TAX PREP assists non-resident aliens with completing their necessary Internal Revenue forms.\u00a0<\/p>\n\n\n\n Glacier is used for the following: Log into your GLACIER account at www.online-tax.net<\/strong><\/a>.\u00a0You will receive an email when it is available in your Glacier account IF you were a nonresident alien in the prior calendar year. <\/strong>The 1040NR return and Form 8843 will populate at the end of your GTP entries.\u00a0If you don’t remember your log in credentials, please click the “Forgot Login?” button.<\/p>\n\n\n\n If you were not <\/strong>paid by Purdue University and don\u2019t already have a GLACIER account, but you need to file a tax return and\/or complete the form 8843, Purdue’s non-resident students at the West Lafayette campus will have access to the tax software program, GLACIER TAX PREP. This program can provide step-by-step assistance with federal income tax form preparation for non-resident aliens.\u00a0<\/p>\n\n\n\n Click here for instructions to access Glacier Tax Prep<\/a><\/strong><\/p>\n\n\n\n If you have any difficulties using the GLACIER TAX PREP program, please use\u00a0the HELP Link from within <\/em>GTP.<\/em> There will also be LIVE GTP Tax Information sessions and many\u00a0GTP Q&A Zoom sessions\u00a0 – keep an eye out for these to be announced and join.\u00a0<\/p>\n\n\n\n If you have problems logging into the myISS portal or don’t see a link to Glacier Tax Prep in myISS, please contact ISS.\u00a0 Students should submit the ASC (Ask Student Counselor) e-form in the myISS portal<\/a><\/strong>.\u00a0 Scholars may email iss@purdue.edu<\/a>.\u00a0 telling them exactly what the problem is in detail.<\/p>\n\n<\/div>\n\t\t<\/div>\n\n When do I prepare my 1040NR?<\/strong><\/p>\n\t\t\t The U.S. tax system is a calendar year reporting \u2013 income received from January 1 through December 31. Tax returns are due every April 15 <\/strong>for the previous calendar year.<\/p>\n\n\n\n Do not rush to file your annual tax return; file the correct tax return the first time. It’s recommended you wait until February 15th to start preparing your tax return to make sure you have all necessary forms to actually prepare your returns. Forms W-2 and 1099 are required to be mailed by January 31. However, Form 1042-S provided by Purdue University will not be available until approximately February 15 (if applicable).<\/p>\n\n\n\n You will obtain all forms for your past year\u2019s income, then file your tax returns. \u00a0Even if you are not in the United States, you must still prepare and mail 2023 U.S. and state tax returns.<\/p>\n\n\n\n You can still file a tax return beyond the April 15th deadline and you should do so as soon as possible. Please be aware that you may be subject to\u00a0additional fees for late filing or\u00a0be charged interest on late payments for any taxes owed that are past due.<\/p>\n\n<\/div>\n\t\t<\/div>\n\n How do I prepare and then file my 1040NR?<\/strong><\/p>\n\t\t\t Non-resident Aliens DO NOT file a tax return on TurboTax or any electronically filed software that does not screen for citizenship or tax residence; these programs do not support the non-resident return.\u00a0<\/strong><\/p>\n\n\n\n The steps to preparing a return are:<\/p>\n\n\n\n The detailed instructions from Purdue VITA for the three steps above <\/a>are available here.<\/p>\n\n\n\n Send your tax returns to the address printed on the GTP or state form instructions. \u00a0DO NOT send your tax returns to Purdue, as they cannot forward your returns to the IRS or state on your behalf (or return them to you).<\/strong><\/p>\n\n\n\n Regardless of which means you choose, the non-resident return must be printed, signed and dated, then assembled to be mailed<\/strong>, according to the printed instructions, with W-2, 1042-S, etc., copies attached to the signed forms. You can’t submit the return electronically for a non-resident. <\/p>\n\n\n\n Once you mail your tax return, you will not get a confirmation of receipt for the return. After 120-160 days, you may check the status of your return at irs.gov<\/a>, \u201cWhere\u2019s My refund?\u201d\u00a0 NOTE:\u00a0 Any refund may take six months or more to process. <\/p>\n\n\n\n If you moved after filing your tax returns, complete and mail a Change of Address Form 8822 to the IRS. The form with instructions is found at irs.gov<\/a>. Some tax returns result in a tax refund, but some may have a tax balance due. \u00a0A refund indicates overpaid federal (or state) income tax withholding for your year\u2019s taxable income.<\/p>\n\n<\/div>\n\t\t<\/div>\n\n What if the address on my W-2, 1042-S or other form, etc. is not my current address?<\/strong><\/p>\n\t\t\t The address on the 1042-S, W-2 or any other form is not a critical field to correct as that was the address on file, current at that time.\u00a0 Purdue will not issue a corrected form, so you do not need to request a corrected form.\u00a0 <\/strong>Please list your CURRENT address on your US and state tax returns that you are preparing. This is the address the IRS and state look at for your \u201cofficial address\u201d for your return, NOT any address on a form.<\/strong><\/p>\n\n<\/div>\n\t\t<\/div>\n\n Can I Claim a Tax Treaty Benefit?<\/strong><\/p>\n\t\t\t Can international students get tax refunded to them in the United States? Yes, and one reason may be a tax treaty rule between your home country and the US. There are very specific rules governing tax treaties between the US and other countries<\/a>. Make sure you understand the laws governing your situation if you plan to file for reduced or refunded taxes based on a treaty.\u00a0<\/p>\n\n\n\n Here is a list of high-level requirements for pursuing tax treaty benefits. Remember, your country of origin must share tax treaty status with the US for you to qualify, even if you meet the following requirements:<\/p>\n\n\n\n The following countries share tax treaties with the United States:\u00a0<\/p>\n\n\n\n\n
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\u2022 Determines the tax residency of every international payee,
\u2022 Treaty eligibility (and forms 8233, W-9, and W8-BEN)
\u2022 1042-S form distribution (not all international persons will have a 1042-S form)
\u2022 Federal W-4 form creation and\/or completion for employees.<\/p>\n\n\n\n\n
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