>
Date: Wed, 11 Mar 1998 10:03:38 -0800
X-Mailer: Microsoft Outlook Express 4.72.2106.4
Status: RO
Swiss-List'ers,
I finally got the complete information about taxes for postdocs and visiting
scholars at Stanford. This should answer most of your questions. For the
remaining ones, send email on the list :-)
Laurent
------------------------------
>>FILING YOUR INCOME TAX RETURN FOR 1997
>>
>>In previous years, all F and J visa holders had to file federal income tax
>>returns even if the holder had no taxable income. NOW non-resident F and
J
>>visa holders who have NO U.S. income do NOT have to file.** Income
includes
>>salaries from jobs; scholarships, stipends, or grants from Stanford
>>University or other US organization; and interest earned from a U.S. bank
>>account or dividends from a U.S. company. 'Filing a tax return' means
>>completing Internal Revenue Service (IRS) forms which record annual income
>>and any taxes paid. In California, you must also file a state income tax
>>return, along with the federal (IRS) forms. The 1997 tax year runs from
>>January 1 through December 31, 1997. **NOTE: All F and J visa holders must
>>still file an IRS form 8843 even if exempt from filing a tax return. Form
>>8843 keeps track of your status as a non-resident.
>>
>>You must file a 1997 income tax return, reporting any U.S. income earned
in
>>1997, by April 15, 1998. Students who have received only scholarship
>>stipends must file before June 15, 1998. However, if you are in the latter
>>category and you owe any taxes you must file by April 15, 1998.
>>
>>Before completing a tax return, you must determine if you are a resident
>>alien or a non-resident alien for tax purposes (resident aliens are taxed
>>on world-wide income while non-residents are taxed only on income
>>"effectively connected" with their stayin the U.S.) The IRS determines
>>resident or non-resident status based on whether one has been formally
>>granted legal resident status, or on the amount of time spent in the U.S.
>>Generally, F-1 and J-1 scholars file as non-residents the first five years
>>they are in the U.S. Normally, J-1 scholars file as non-residents their
>>first two years. After that, how both F-1 and J-1 visa holders file is
>>based on the number of days they have spent in the U.S. (the substantial
>>presence test.)
>>
>>Under the substantial presence test F or J visa *students* that have been
>>in the U.S. for less than 5 calendar years or have been present in the U.S
>>for less than 31 days in 1997 or for whom the following add up to less
than
>>183 days: (the number of days you were present here in 1997 + 1/3 the
>>number of days you were present in 1996 + the number of days you were
>>present in 1995), are non-residents and should file the 1040NR or
1040NR-EZ.
>>
>>For teacher and trainee F or J visa holders the test considers you a
>>non-resident exempt from standard filing if you have not been exempt for
>>any part of 2 of the preceeding 6 years or you have been exempt as a
>>teacher for 3 or fewer years and a foreign employer paid all of your
>>compensation during all of those years. In addition, you must pass the
'183
>>days' test in the preceeding paragraph to qualify as a non-resident
teacher
>>or trainee.
>>
>>Any of this criteria may be overridden by a tax treaty for a given
country.
>>To determine which rules apply to you, you should obtain IRS publication
>>#519 entitled U.S. Tax Guide for Aliens which explains fully the
>>differences between resident and non-resident aliens (see below for
>>information on IRS publications). IRS publication #901 U.S. Tax Treaties
>>may also be useful.
>>
>>Non-resident aliens file federal tax returns on Form 1040NR, the
>>Non-resident Alien Income Tax Return and California tax returns on Form
540
>>or 540NR depending on the length of time they have resided in California.
>>
>>HOW TO OBTAIN TAX FORMS
>>The International Center has 1040NR, 1040NR-EZ, and 8843 forms and
>>instruction books. In addition, many public libraries have a supply of
both
>>federal and state forms from January through April. The International
>>Center does NOT have state forms but they are available at most U.S. post
>>offices. If you cannot locate the forms you need at any of these
locations,
>>you may call the offices listed below:
>>
>>To order Form 1040NR, 1040NR-EZ or Form 1040 (federal income tax forms)
call:
>>1-800-829-3676 (1-800-TAX-FORM)
>>
>>To order Form 540NR or Form 540 (state income tax forms) call:
>>1-800-338-0505
>>
>>WHAT ELSE DO I NEED TO COMPLETE MY TAX RETURNS?
>>Once you have determined if you are a resident or a non-resident for tax
>>purposes and have obtained the appropriate federal and state tax forms,
you
>>must receive wage and and statement(s) (W-2, 1042S, or 1099MISC) from your
>>employer(s) or sponsor(s). If you do not receive these forms in the mail,
>>you should contact your employer/sponsor. These statements will list your
>>income and any tax paid during 1997. (Bank interest is non-taxable for
>>non-resident aliens). F and J visa holders must also remember to complete
a
>>statement (available at the International Center) to attach to form
1040NR.
>>The following table indicates the documents you will need:
>>
>>Wage earners paid twice a month by Stanford: W-2
>>Non-resident scholarship/fellowship recipients: 1042S
>>Wage earners paid twice a month on treaty: 1042s
>>Independent contractors: 1099
>>
>>Some people will receive a refund from the federal or state government,
>>while others will have to pay taxes. You will know if you are due a refund
>>or must pay taxes after you have completed the forms.
>>
>>TAX TREATIES
>>The U.S. has signed tax treaties with some countries which may exempt
>>certain individuals from paying income tax. Although a tax treaty may
>>exempt you from paying income tax, you are still required to file an
income
>>tax return. For details, you should obtain publication #901. Since every
>>treaty is different, it is important that you find out the specifics of
the
>>treaty with your country. For example, a treaty that exempts a scholarship
>>from tax may not exempt income from received from employment. The
following
>>tax is a list of countries with which the U.S. has signed tax treaties:
>>Australia, Austria, Barbados, Belgium, Canada, China (PRC), Cyprus,
>>Denmark, Egypt, Finland, France, Germany, Greece, Hungary, Iceland, India,
>>Indonesia, Ireland, Italy, Jamaica, Japan, Korea, Luxembourg, Malta,
>>Morocco, Netherlands, New Zealand, Norway, Pakistan, Philipppines, Poland,
>>Romania, Spain, Sweden, Switzerland, Trinidad & Tobago, Tunisia, United
>>Kingdom, former USSR (for CIS states only)
>>
>>WHERE MAY I GET HELP WITH MY TAXES?
>>Tax Seminars
>>The International Center is sponsoring four information sessions on income
>>taxes for non-resident foreign students and scholars. These sessions will
>>focus on the 1040EZ form only and will be held on the following dates:
>
>>Friday, March 20 at 3:00 pm in the I-Center Assembly room
>>Thursday, March 26 at 3:00 pm in the I-Center Assembly room
>>Thursday, April 2 at 3:00 pm in the I-Center Assembly room
>>Thursday, April 9 at 3:00 pm in the Tresidder Oak Rooom
>>
>>Internal Revenue Service
>>The IRS has several free publications which explain various aspects of
>>non-resident taxes and which are available from the IRS (call
>>1-800-829-3676). If you still have questions, you may call the IRS at
>>1-800-829-1040.
>>
>>Website
>>There is a highly recommended website for international students on filing
>>federal tax returns, which includes answers to frequently asked questions:
>>http://www.nafsa.org/retrieve/3.08/308.2.txt
>>
>>Publications
>>#519: Tax Guide for Aliens
>>#520: Scholarships and Fellowships
>>#597: Information on the U.S.-Canada Income Tax Treaty
>>#901: U.S. Tax Treaties
>>
>>WHERE DO I SEND MY COMPLETED FORMS?
>>Mail completed 1040NRs or 1040NR-EZs (federal forms) to:
>>Internal Revenue Service Center
>>Philadelphia, PA 19255
>>
>>To check on the status of your expected IRS (federal) tax refund, call the
>>Tele-Tax line at 1-800-829-4477. According to the IRS, it will take 3
weeks
>>before your return will be listed in their system. When you call you must
>>provide the first social security number listed on the return, your filing
>>status (married, single, head of household), and the whole dollar amount
of
>>the expected refund. The IRS allows you to call only once a week. Other
>>calls will get the response that there is no change of status.
>>
>>Mail completed 540NRs (state forms) to:
>>P.O. Box 942867
>>Sacramento, CA 94267-0000
>>
>>To check on the status of your California income tax refund, call
>>1-800-338-0505. You will need to have your social security number and a
>>copy of your tax form with you when you call.
>>
>>Be sure to keep a photocopy of your completed tax return and any
>>documentation you submit with it.
>>
>>BECAUSE OF LEGAL RESTRICTIONS ON OUR CAPACITY TO ADVISE YOU ABOUT YOUR TAX
>>LIABILITIES, THE INTERNATIONAL CENTER STAFF IS NOT ABLE TO ANSWER
>>INDIVIDUAL QUESTIONS REGARDING YOUR TAX SITUATION.
>>
>
>
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Received on Wed Mar 11 1998 - 10:04:04 PST
