Are you on F1, J1, OPT, STEM, or recently changed status to H1B and have questions about filing non-resident taxes for 2022?
Wondering if you can use TurboTax to file your non-resident taxes?
Every year millions of non-residents file taxes and go through the tedious task of finding the proper form to file.
We at HappySchools understand that tax filing can be overwhelming, so we organized a webinar session with Enda Kelleher from SprinTax to walk us through the process of tax filing. This video replay will be helpful for especially Non-residents of the U.S. as it will give a brief understanding of their tax obligations.
Note – Use the code to get $5 Off for Federal filing – 21HSB250F5
How to File Taxes via Sprintax + FAQ’s
Please refer to the video in-links to check the topics.
What you can do with Sprintax?
- E-File Non-Resident Tax form for certain categories – 1040NR
- Forgot to file taxes for previous years? Sprintax a file if to you
- Made mistake? Sprintax can generate amended tax form 1040x
- Want to calculate your Tax withholding as new employee, Sprntax can do that for you
The first thing to remember while the tax in the US as a Non-resident citizen is, the financial year starts from 1st January to 31st December and this year the final date to file your taxes is April 18th, 2022.
While filing your taxes, please remember that your residency status differs when filing taxes. For most of the international students and scholars who are on F1 or J Visa, the students will be exempt for 5 years from paying taxes whereas if you are a J – Scholar, they will be exempt for 2 years out 6 years period.
To determine the residency use the substantial presence test.
Sprintax will be able to determine your residency status for tax purposes when you input the date you entered the USA and related details.
For H1B visa holders, they are not considered as a resident as their status changes from F1 on the year if it’s less than 183 days on H1B, they’re considered as US residents in the next cycle.
The IRS does not have an income slab while filing for taxes, every individual has to file taxes regardless of what income they made in a year.
The primary document while filing the taxes is form 8834, the form is used by foreign nationals to document the number of days spent outside of the U.S. when you do not have any income. All F-1/J-1 foreign nationals (and their F-2/J-2 dependents) who are non-residents need to file this form for tax purposes when you are in the USA, but you do not have an income.
Being a non-resident alone doesn’t exempt anyone from paying taxes. The IRS certain criteria for income when it comes to paying taxes:
- Scholarship covering costs other than tuition and tuition related expenses
- Room and board
- Investment Income/ Crypto
- Gambling winnings
- Focus group-gift card
- Rental Income (Over 14 nights)
- Selling art/ design works
- All reportable
- Scholarship for tuition related expenses
- Scholarship received from outside the U.S.
- Money transferred from parents/relatives overseas
- Income earned in their home country (Investment income rent, job before moving to the U.S. etc.)
- Interest on regular savings
For the employers of non-resident citizens, they need to provide either a W2 form or a 1042-S form. W2 outlines the salary and compensation structure for the entire year. Employer will issue W2 by January 31st every year for the previous year’s income.
A 1099 series form comprises, interests, investments, dividends that may come from your bank or potential government distribution, partnership distribution independent contractor services etc.,
One of the key things to remember while filing taxes is couples cannot file the taxes together even if they are married and both are non-residents, they need to file taxes individually as non-residents. In case of the partner is a U.S. resident, then in that case they can file the taxes together and use U.S. resident deduction and allowances.
Another tax that a non-resident (F-1 & J-1) can be exempt from is FICA but if you are a H1B visa holder then you have to pay FICA tax.
Sprintax can also help you get a FICA Tax refund.
While filing taxes, a person needs to make sure to pay the state taxes as well. There are about 44 states in the U.S. and all the states have different regulations for resident and non-resident citizens.
An Individual Taxpayer Identification Number is a nine-digit number that is issued by IRS to individuals who are required for federal tax purposes to have a U.S. taxpayer identification number but who don’t have or aren’t eligible to get a Social Security Number.
Another form that is very important for foreign national students is 1098-T this form is for only a resident student. With the help of this form, the students can claim U.S. education tax credit. Please remember this form is not applicable form non-resident students.
Additional Notes from the Video:
- All the non-residents need to file for cryptocurrency as well as they are treated as the sale of property and subject to a capital gains tax.
- Please remember not filing taxes could affect your immigration plans. Sprintax could also help you file taxes for the past 5 years (if you forgot to file).
- Please choose your tax filing options carefully as there are chances that you might get scammed by a few of the third-party agencies.
- With SpringTax, Tax filing has become easier as they have E-Filing option to file your taxes depending on your income, residence status and state in which you are residing.
- Sprintax also gives forms that will help you fill and generate your forms with ease.
Disclaimer: We will get a small referral fee at no additional cost to you if you file your taxes using the Happy Schools discount code or referral link.