2008 Federal Tax Return Form 1040

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2008 Federal Tax Return Form 1040 Powered By Docstoc
					Tax Responsibilities for
International Students

  Office of International Affairs;
  International Student Services
 The School of the Art Institute of
       Chicago, March, 2009

 Who should file a tax return?
• SAIC students in F-1 or J-1 visa status who
  were in the U.S. in 2008.
• Whether you worked or not, you are required
  to file a tax return.
• Spouses and children on F-2 or J-2 visas who
  were in the U.S. in 2008.
• If you were not physically present in the
  United States during 2008, you have no tax
  filing requirement this year!

     Why file a tax return?
• To maintain your F-1 / J-1 immigration
• To comply with U.S. Internal Revenue
  Service (IRS) laws.
• To get a refund! $$
• To support public libraries, parks,
  education, research, and anything else
  that the U.S. government funds.
How do you file a tax return?
1. First, determine which forms you must
    complete for your personal situation.
2. Complete all forms yourself or with the
    help of online or professional assistance.
3. Mail forms and any required payment to
    the correct address.
TIP! A list of resources and links is located at
    the end of this presentation.

• Completing a tax return is YOUR responsibility.
• This presentation is designed to help you get
  started and point you toward helpful forms,
  documents and resources that you should
  utilize when completing your tax return.
• International Affairs staff are not qualified as
  tax experts and legally cannot advise you on
  your personal tax return.

 The first step is to determine
if you are a RESIDENT or NON-
  RESIDENT for Tax Purposes.
•The IRS determines your U.S.
residency status for tax purposes, not
immigration purposes.
•Your residency for tax purposes will
determine which tax forms you will
complete.                                6
You are a NON-RESIDENT for Tax
          Purposes if…
• You arrived in the U.S. in F or J status
  for the first time between
     01/01/2005 – 12/31/2008.

 If you determine that you are a
      NON-RESIDENT for Tax
• You will complete the following forms:
   –   IRS Form 8843 (all students)
   –   IRS Form 1040NR – EZ or 1040NR*
   –   IL Form 1040*
   –   IL Schedule NR*
*These forms are ONLY for those students who have worked and
  earned income.

   You are a RESIDENT for Tax
          Purposes if…
• You are a U.S. citizen.
• You are a U.S. Permanent Resident or
  ―Green Card‖ holder.
• You arrived in the U.S. as student
  anytime before 12/31/2004.
> You may be a ―resident‖ for tax
  purposes > You must take the
  Substantial Presence Test.
Substantial Presence

    If you arrived in the U.S. before
  12/31/2004, take out your passport.

• Count the number of days that you
  were physically present in the U.S.
  during 2008, 2007 and 2006.
• It may help to look at the arrival and
  departure dates stamped in your

Substantial Presence Test cont…
• Use the number of days that you were present each year to
  complete the following math:
   – 2008 days present ____ x 1    = _____
   – 2007 days present ____ x .333 = _____
   – 2006 days present ____ x .166 = _____
   – Add the totals together       = _____*

   *If the final total is LESS that 183, you are a NON-RESIDENT
   *If the final total is MORE that 183, you are a RESIDENT FOR

 If you determine that you are a
    RESIDENT for Tax Purposes
• You will use the following forms to
  complete your tax return:
  – IRS Form 1040 or 1040EZ
  – Illinois Form 1040
• Residents for Tax Purposes should not
  continue with this presentation. The
  remainder of the presentation is for
  Non-Residents for Tax Purposes ONLY.
• Residents for Tax Purposes may skip to
  Slide 44 for suggested tax preparation
  assistance and resources.
Federal Forms

           OK, let’s start with
             IRS Form 8843
• This form establishes that you are a non-resident for
  immigration purposes.
• Download the form and instructions at www.irs.gov
• Should be completed by:
   – ALL F-1 and J-1 students who were present in the U.S.
     during 2008 (and their F-2 or J-2 dependents) regardless of
     whether or not they worked or earned income.

TIP! If you worked and earned money in 2008, you
  may want to complete Form 8843 using the online
  programs to be discussed later such as CINTAX or
  International Student Taxes.

      IRS Form 8843 cont…
• To complete Form 8843 you will need:
  – Your address in your home country.
  – Your address in Chicago.
  – Your Social Security Number (if you have
  – Your passport.
  – Your I-94 card.

 8843 page 1
                                            Enter your Social Security
                                            # or ITIN
     Enter your first name
     then your last (family)                Enter your address here
     name                                   in Chicago

     Enter your address in                  Enter F1, J1, B2, E2 etc. and
     your HOME COUNTRY                      the date you entered the US
                                            for the first time on that visa.

                                            If you changed status to F1/J1
                                            while IN the US, enter your new
4a. For each year, enter the                visa status and the date of
number of days you were                     change.
physically present in the U.S. (for
all visa types). Do not count any           Enter country of citizenship
days you were outside the U.S.
You may want to refer to the
stamps in your passport.                    3a. Enter the country that
                                            issued your passport.
                                            3b. Enter your passport
4b. Enter number of days you                number
were in the U.S. for 2008.
Answer should match number
listed for 2008 in 4a.

                                            Enter information as shown,
                                            unless you attended a
                                            different school during 2008.
                                            If you attended two schools,
11. Enter your Visa type for each           list both schools’ information
year present in the U.S. For most
students, this will be F-1.

                                            Check no

                                            Check yes or no
               If you checked yes on line
               13, explain steps you
               have taken to apply for                    17
               Permanent Residency
8843 page 2

              Sign and date here only if you are filing Form 8843 by itself

 Students who did not work in
  the U.S. in 2008 are done!
• If you did not work in 2008, print and sign your completed Form
8843 and send to:
                    Department of the Treasury
                  Internal Revenue Service Center
                       Austin, TX 73301-0215

    If you are sending Form 8843 only, it is due on or before
                         June 15, 2009!

 TIP! Don’t forget to make a copy of your form
                before sending!
For students who worked and
   earned money in 2008:
• In total, your tax return will include 4 forms.
• The good news: you’ve already done one!
• Remaining forms: One Federal government
  tax form and two Illinois state tax forms.
     Federal:    IRS Form1040NR or 1040NR - EZ
     State:      IL Form 1040 and Schedule NR

• Due date for all 4 forms: April 15, 2009

  When completing the federal
forms, you may need to refer to
   the following documents
•Form 1042-S
•Form W-2
•These forms will be explained on the
follow slides.

              Form 1042-S
• Form 1042-S is an official report of taxable
  scholarships, awards or grants.
• SAIC Merit Scholarships ARE NOT taxable and
  you will not receive a 1042-S for this type of
• Receipt of a 1042-S means that the award,
  scholarship or grant you received WAS
  taxable and must be reported on your
  federal tax return.
               Form W-2

• The W-2 is an official report of your
  earnings from a particular employer.
• You will need a W-2 from each employer
  you had in 2008 when filling out your tax
• If you did not receive a W-2 from one or any
  employers, contact them for a ―re-print‖
Did you work for SAIC or AIC in
• W-2’s for SAIC and AIC employees
  were sent out on January 29, 2009.
• If you worked for SAIC and/or AIC
  and did not receive your W-2,
  contact Mike Maurello at the AIC
  Payroll Office to request a reprint:
  mmaurello@saic.edu 312.499.4052

   Once you have gathered the
necessary documents, you are ready
    to complete the next form
• IRS Form 1040NR or 1040NR-EZ
  – ―EZ‖ indicates a simplified version of the regular
    form for unmarried individuals with less
    complicated tax returns.
  – Use this form to calculate and claim your refund
    from the federal government (or calculate and
    pay what you owe).
  – This form can be particularly complicated and
    you may want to use special online or
    professional assistance.*
  *Most U.S. citizens pay to have their taxes
    completed online or by a professional.
Options for completing IRS Form
  1040NR or 1040NR-EZ that
       require payment
• Online tax preparation software
  specific for international students.
  – International Student Taxes:
  – CINTAX: https://www.arcticintl.com/cintax.asp#demo
• Professional tax preparation by a
  trained individual with experience in
  ―non-resident returns‖.
Options for completing the 1040NR
 or 1040NR-EZ that do not require
• Complete the form on your own.
  – You can download the form and
    instructions from www.irs.gov or see the
    end of this presentation for links.
• Again, remember that International
  Affairs legally cannot assist you in
  completing this form.
    Where do I send the federal
      forms when I’m done?
•   Print your completed IRS Forms 8843, 1040NR, or 1040NR-EZ
    and mail to:
                 Department of the Treasury
               Internal Revenue Service Center
                    Austin, TX 73301-0125

    Forms are due on or before April 15th, 2009!

TIP! Don’t forget to sign and make copies of your
     forms before sending!

State Forms

      Illinois State Tax forms
• The final two forms!
• IL-1040: to be completed by anyone who
  worked and earned money in Illinois.
• Schedule NR: to be completed by
  nonresident aliens.
• These forms cannot be completed online at
  CINTAX or International Student Taxes.
• Download the forms and instructions at
  http://www.revenue.state.il.us or use the links
  at the end of this presentation.

TIPS for completing IL- 1040 and
          Schedule NR

• You will need information from the
  federal forms (8843 & 1040NR-EZ), so
  do those first.
• You will start with IL-1040, switch to
  IL-Schedule NR, and then back to IL-
  1040. Follow the presentation slides.

IL-1040 page 1
                                            Enter your SPOUSE’S
          Enter YOUR                        social security
          social security                   number (if needed)

               Enter YOUR name
                                            Enter your SPOUSE’S
                                            name (if needed)

    Enter your Chicago
    mailing address.
                                       LINE 1: Enter your ―federal
                                       adjusted gross income‖. This
                                       is located on line 10 of the IRS
       Enter the same filing
                                       Form 1040NR – EZ.
       status you listed on
       your federal return.

                                   LINE 4: Add lines 1 through 3.

                                  LINE 9: Enter the amount from
          Skip LINE 5 – LINE 8.   line 4.

                                  LINE 12a: If you listed
                                  ―1‖ enter $2,000 here.
 LINE 10a: Most students
 will enter ―1‖, but you           LINE 10: Add lines a –
 should refer to the               d, most students will
 instructions first.               have a total of

                                   LINE 11: Do not enter anything.
    LINE 12: Check
    ―Nonresident‖ and then
    write the amount from line
    46 of IL-Schedule NR. This
    amount can’t be zero.
                                  LINE 14: Enter the amount
                                  from LINE 52 of your IL-
                                  Schedule NR. This amount
                                  can’t be zero.       32
Schedule NR
page 1                           Enter your Social Security

  Enter your name as you wrote
  it on IL-1040.

 LINE 1: If you do not have a
 spouse, check ―NO‖ and           Skip 2a and 2b
 skip to Step 3.

                                    If you were living in any of
                                    these states during 2008,
                                    refer to the Schedule NR
                                    instructions on how to
                                    complete line 3 and 4.

                                       LINE 5 column B: Enter the
                                       amount of Illinois earnings
                                       from box 1 of your W-2
 LINE 5 column A: Enter the
 amount from LINE 3 of your
 IRS From 1040 NR or 1040NR-

                                    Skip LINE 6 – LINE 19.

                                            LINE 20: Enter the
                                            amount from LINE 7
                                            column B.

                                     LINE 21: Write the
Schedule NR                          amount from LINE 20.

page 2
                                  Skip LINES 22 – LINE 36.

                                  LINE 37: Enter your
                                  ―adjusted gross income‖ as
                                  indicated on line 10 of IRS
                                  Form 1040NR-EZ.

                                  LINE 38: Enter the amount
                                  from LINE 21.

                                       LINE 41: Enter the
                                       amount from LINE 38.

 LINE 45: Most students will
 enter ―0‖ since they will not
 have any of the subtractions
 listed in line 42, 43 and 44.

                                  LINE 46: Enter the
                                  amount from LINE 41.

                                   LINES 47 - 52: Follow the
                                   calculation instructions
                                   and refer to IL-1040 as
 When you get your total for       needed. You may need a
 line 52, return to page one of    calculator!
 IL-1040 and write that amount
 in line 13.

                                                     LINE 16: Enter the amount from
IL-1040 page 2                                       IL-1040 page one LINE 15.

                                      Skip LINES 17 – LINE 19.

                                                   LINE 21: Enter the amount
                                                   from line 16.
    LINE 22: Enter the amount
    listed in box 17 of your W-2

                                                        LINE 24: Add lines 22 – 25
                                                        and enter the total. Most
                                                        students will have an
                                                        amount equal to line 22.
     LINE 27 and LINE 28:
     Compare the amounts
     listed on lines 21 and 26
     and follow the
     instructions. If you have
     an ―overpayment‖ in
     line 27, you might                     LINE 29-31: Refer to the IL-1040
     receive a refund!                      Instructions to complete this

    LINE 32: If you have a
    ―overpayment‖ in line 27, enter              LINE 34: If you want your refund
    this amount in line 32 and 33.               faster, complete this section for direct
                                                 deposit. Read the IL-1040 instructions
                                                 for help.
 LINE 36: If you have an
 ―underpayment‖ in line 28, enter
 that amount here. This is the tax
 you owe. See the IL-1040
 instructions for help on how to

            Don’t forget to date
            and sign the form!
 Where do I send the state forms
        when I’m done?
• Print your completed IL-1040 and IL-Schedule NR and send to:

       (If you have NOT enclosed a payment and expect a refund)

                    Illinois Department of Revenue
                              P.O. Box 1040
                        Galesburg, IL 61402-1040

                   (If you have enclosed a payment)

                    Illinois Department of Revenue
                       Springfield, IL 62726-0001

             Forms are due on or before April 15th, 2009!

TIP! Don’t forget to sign and make copies of your forms before sending!
           You’re done!
• Again, don’t forget to sign and date
  your forms before sending.
• Make copies of all forms for your
  personal records.
• See the following resources and links
  for more information.

Resources and Links

         Resources and Links
Federal Government
• Main website for the IRS: http://www.irs.gov/
   – IRS Form 8843: http://www.irs.gov/pub/irs-pdf/f8843.pdf
      • IRS Form 8843 instructions:
   – IRS Form 1040NR-EZ: http://www.irs.gov/pub/irs-
      • IRS Form 1040NR-EZ instructions:
   – IRS Form 1040NR: http://www.irs.gov/pub/irs-
      • IRS Form 1040NR instructions: http://www.irs.gov/pub/irs-

   Resources and Links cont..
Federal Government
• Publications
   – IRS Publication 519 (Tax guide for aliens):
   – IRS Publication 901 (US Tax treaties guide):
   – IRS Publication 678FS (Advising Guide for
     Foreign Students & Scholars):

   Resources and Links cont…
State Government
• Main website for the Illinois Dept. of Revenue:
   – IL FORM 1040
     - http://www.revenue.state.il.us/taxforms/Incm2008/Indiv
       • IL Form 1040 instructions
         - http://www.revenue.state.il.us/taxforms/Incm2008/Individ
   – IL Schedule NR
     - http://www.revenue.state.il.us/taxforms/Incm2008/Indi
       • IL Schedule NR instructions
         - http://www.revenue.state.il.us/taxforms/Incm2008/Individ

   Resources and Links cont…
Online Resources*
• Online tax filing programs for federal forms.
   – International Student Taxes
       • $9.99 to file IRS Form 8843 & $19.99 to file IRS Form 1040NR-
       • http://www.istaxes.com/
       • $39.99 for individual access
       • https://www.arcticintl.com/cintax.asp#demo

• University of Texas
   – Great university website with detailed explanations, FAQ’s and
   – http://www.utexas.edu/international/taxes/index.html

   Resources and Links cont…
Professional tax assistance*
• Mary Fahey, CPA
   – 9933 Lawler Ave, Ste 525, Skokie, IL 60077
   – Phone: 847-673-2330
• Tod Edwards
   – 1317 W. Taylor, Chicago, IL 60607
   – Phone: 312-942—0850
   – Email: iiitax@sbcglobal.net
• IRS Chicago Office
   – http://www.irs.gov/localcontacts/article/0,,id=98273,00.html
   – Check the link for address and specific services provided.

   *Individuals and/or online resources listed are for reference only
      and does not indicate an endorsement by the International
      Affairs office.

     Resources and Links cont…
Resources for RESIDENTS for Tax Purposes
• Online Resources
   – IRS Free File
       • This website will help you locate the forms or find an online
         company to assist you with your return.
       • http://www.irs.gov/efile/article/0,,id=118986,00.html?portlet=6
• Volunteer Tax Assistance
   – Center for Economic Progress
       • Visit a number of sites around Chicago for free volunteer assistance
         on your tax return.
       • See the website for eligibility requirements and locations.
       • http://www.economicprogress.org/zipcode/index.php
• Professional Tax Assistance
   – Certified Personal Accountants (CPA)
       • Hire a CPA to complete more complicated returns.
       • Two are listed on the previous slide and more can be found by
         doing an online search.

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