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FREQUENTLY ASKED QUESTIONS ABOUT TAXESThis information is for Bryant International Students on F-1 status only. FREQUENTLY ASKED QUESTIONS: 1. What happens if I fail to file my taxes? If you owe taxes and don’t file, the IRS can assess penalty and interest, and seize U.S. bank assets for repayment. Fines and penalties can often amount to more than the original tax debt. There can also be immigration consequences for failing to file taxes. Applicants for permanent residency “green cards” are frequently asked to show proof of tax filing for previous years in the U.S. 2. I had bank interest on my checking and savings accounts, is that earned income and must include as a taxable income? No. Simple bank interest and interest on CD’s are not considered earned income for non-resident aliens for tax purpose, and therefore are not reportable. Your bank generally reports this interest on Form 1099 and you should retain this form for your records, but not mail it with your tax filing. If you file taxes as a “resident alien for tax purpose”, bank interest is taxable income. 3. I only worked for a very short time in 2009 and I didn’t earn very much. Do I still have to file? Yes. If you had any U.S. source earned income or taxable scholarship you will need to file IRS Form 1040NR-EZ or Form 1040NR and Form 8843 using CINTAX. 4. I receive Scholarship from Bryant University, is it taxable? Only the portion paid for tuition, required fees, books, supplies are excludable from income. Amount paid for room and board such as athletic scholarship is considered income and is reported on a form 1042-S. You must report this amount as an income on your tax form. 5. I have a Graduate Assistant position. Is this considered to be wages? Yes. The amount you received for Graduate Assistantship is considered wages and reported on a form 1042-S. You must report this amount as wages on your tax form. “You cannot exclude from income the portion of any scholarship, fellowship, or tuition reduction that represents payment for teaching, research, or other services. This is true even if all candidates for a degree are required to perform the services as a condition for receiving the degree.” (IRS Publication 519, U. S. Tax Guide for Aliens” Scholarship and Fellowship Grants, page 16) 6. I just received my W-2 for the wages I earned in 2009. Can I file my taxes now? Not necessarily. If you are from a country which has a tax treaty with the U.S., or you received an U.S. based scholarship or fellowship, you may also receive Form 1042-S from payroll. This form is generally mailed in mid-March and you will need to have both forms before you can file. 7. I am from India. Can I claim the standard deduction? Yes. Due to a tax treaty provision, ONLY residents of India may claim the standard deduction on the non-resident forms. For 2009 the standard deduction for filing single is $5,700.00 single. 8. Should I keep copies of my tax return and other tax forms? Yes. Always keep copies of your tax return, W-2, 1042-S, 1099 bank interest statements and any other pertinent forms as proof that you have filed. The IRS can audit individual returns for up to 3 years following the filing deadline and your tax records are essential in proving your case. 9. What is the deadline for filing my tax return? You MUST PRINT 1040NR and form 8843 using CINTAX , sign forms and mail them by April 15, 2010 (postmarked.) You cannot electronically file 1040NR. 10. If I owe tax, to whom do I make the check payable? If you owe taxes, make checks payable to United States Treasury. Make sure that your social security number is on the check and that in the memo section you write, “For 2009 income taxes.” 11. I’m unable to file by the deadline, what do I do? File Form 4868, “Extension of Time to File”, which extends the deadline to file till August 15, 2010. If you owe any taxes though, you must still mail your estimated tax payment by April 15, 2010 or you will be assessed penalty and interest as of April 15, 2010, on any payment owed. 12. Where do I mail my tax return? Mail all Form 1040NR and 8843 to: Internal Revenue Service Austin, TX 73301 |
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