Frequently Asked Questions About Taxes


Last updated: January 31, 2007

Q: I never worked in the US do I need to file a tax form?
A: Yes, If you are a F-1, J-1, F-2 or J-2 you need to file Form 8843 and the filing date is June 16, 2007.

Q: I arrived late in December 2006. Do I need to file a tax form?
A: Yes, if you were in the US for any part of 2006 even if it was just a few days and your visa type is F-1, J-1, F-2 or J-2 you need to file Form 8843 and the filing date is June 16, 2007.

Q: I'm an F-1 or J-1 student and I had no US income during 2006, or my only income was bank interest. Do I need to file any tax forms?
A: Yes, you need to file 8843. If you received US income from sources such as dividend income, salary or wages, scholarships or fellowships, prizes or awards you need to file Form 1040NREZ or 1040NR. But remember you need to complete Form 8843 also.

Q: What about an F-2 or J-2?
A: All F-2 & J-2 dependents must file form 8843 even if they had no US income in 2006, or if the only income they had was from bank interest. If there is any other US income they will also need to file Form 1040NREZ or 1040NR.

Q: Both 1040NREZ & 1040NR ask for social security numbers or taxpayer identification numbers. Is this the same as the number I was issued by Rensselaer when I was admitted? It has the same number of digits.
A: NO! All F-1 and J-1 who have been authorized to work in the United States should have a Social Security number (SSN), issued by the Social Security Administration. Students in F-1 and J-1 status who do not yet have a social security number (and their dependents in F-2 or J-2 status who may not be eligible for a SSN) need an identification number to file their income tax form. Such individuals must obtain an Individual Tax Identification Number (ITIN). They can apply for an ITIN by completing form W-7 and bringing it in person, along with their passport and other identifying documents, to the local office of the Internal Revenue Service (IRS). Form W-7 can be download from the IRS web page. Form W-7 is designed for individuals who are not eligible to apply for Social Security Numbers.

Q: If my country has a tax treaty with the U.S. does that mean I don't have to file any tax forms?
A: NO! In order to claim tax treaty benefits, you must file federal income tax forms 8843 and either 1040NREX or 1040NR.

Q: I've received a Form 1042-S. How do I reflect this on my tax return?
A: It depends upon the TYPE of income being reported on the 1042-S. Look at the income code in column (a) of the form. An income code of 15 is for a scholarship or fellowship grant, and would be reported on line 5 of form 1040NREZ or line 8 of form 1040NR. An income code of 19 refers to a tax treaty amount withheld from wages, and would be reported on line 6 of form 1040NREZ or line 22 of form 1040NR. You would not include this amount as part of your wages on line 3 of form 1040NREZ or line 8 of form 1040NR.

Q: I am eligible to claim a tax treaty deduction, since my country has a tax treaty with the U.S. but I never received a form 1042-S. Instead, all of my earnings are reported on my form W-2. How do I complete form 1040NREZ to claim my tax treaty deduction?
A: Lets assume, for the sake of this example, that you are permitted to claim $2000 as your tax treaty amount to be deducted from wages. Subtract you tax treaty amount from your salary and wages as reported on your form W-2. Write the difference on line 3 of form 1040NREZ. If your tax treaty amount is more than your salary as reported on your W-2, put zero on line 3. Then indicate the tax treaty amount on line 6 (You can verify your country's tax treaty information by consulting IRS Publication 901, U.S. Tax Treaties. But sure you are consulting the section which summarizes tax treaty benefits for students. Forty-five countries have tax treaties with the U.S.) be sure to answer question j page 2 completely.

Q: How do I complete Form 8843?
A: All F-1 and J-1 students filing form 1040NREZ or form 1040NR must attach Form 8843 to it. F-1 and J-1 students and F-2 and J-2 dependents with no U.S. income, or for whom the only U.S. income is bank interest complete Form 8843 only. To complete Form 8843, print your name and social security number (or individual taxpayer identification number) across the top of the form. Complete Parts I and Part III (Leave Part II blank). I

Q: Do I also have to file a New York State income tax form?
A: If you have earned no income in the U.S., you do not have to file a New York State form. If you earned more than $7500 in income during 2004 and are single (or more than $6500 is you are married), then you must file form IT 203 and Form IT 203-ATT. You may also want to file a New York State form even if your income was less than the amounts listed above, if any New York State tax was withheld during 2004, and you would like to obtain a refund of that tax. The way to tell if New York State tax was withheld is to look at your form W-2, Wage and Tax Statement, and see if there is any amount in box 18.

Q: What part of New York State Form IT-203-ATT do I need to complete?
A: On the top of the form, print your name, social security number, and occupation (students). Then complete schedule B to reflect your address or addresses in New York State for 2006. On one of the empty lines in schedule B, write the works "Non-Resident Alien for Tax Purpose."

Q: My employer withheld Social Security and Medicare taxes from my salary. Can I get this refunded?
A: Yes. Nonresident F-1 and J-1 visa holders are not subject to Social or Medicare taxes for work within the restrictions of their visa category. Refund of these taxes may be requested from your employer. If your employer is unable to refund these taxes, you may file IRS Form 8843 for a refund. See pages 42-43 in IRS Publication 519 for further information.

Q: I am a non-resident for income tax purposes. Can I claim the Tuition Tax Credit or the Earned Income Credit?
A: No. Nonresident aliens cannot claim the Hope or Lifetime Learning Education credits, or the Earned Income Credit. See page 26 of IRS Publication 519 for further information.

The ISSS Office and Payroll staff are neither qualified nor permitted to give individual tax advice. Students with complicated tax situations may wish to consult with a tax preparation service, professional tax accountant, or tax attorney who is knowledgeable about nonresident tax law.