Frequently Asked Tax Questions

2015 Tax Filing Season

Q. How do I determine if I am a resident alien for tax purposes?

A. F-1, J-1, M or Q students are considered non-residents for tax purposes for their first
five years in the United States on a student visa. For J-1 scholars this period is two
years. (Note that partial years count as full years for this calculation.) After this period
the substantial presence test must be applied to determine residency for tax purposes.
The Substantial Presence Test (SPT) is used to determine if an individual who has been
in the U.S. for all or part of more than 5 calendar years as a student or more than 2
calendar years as a scholar is a resident alien for U.S. tax purposes. To pass the SPT
and thus be considered a resident alien for tax purposes, an alien must at least:
1. be physically present in the United States for 31 days in the tax year, and
2. be physically present in the United States for 183 days during the 3-year period
consisting of the tax year and the 2 immediately prior years. The 183 days are
calculated as follows:

all days of presence in the current tax year plus

1/3 of days of presence in the year immediately before the current year plus
1/6 of all days of presence in the year before that.

If this total is 183 or greater, you are a resident for tax purposes and can file the same
tax forms as a U.S. citizen. Remember that F and J students can use the Substantial
Presence Test only after 5 years in the U.S. J scholars can use the SPT only after 2
years in the U.S.

Q. When is my tax return due?

A. Federal (U.S. government) tax returns are due by April 18, 2016.
returns are due by May 2, 2016.

State of Iowa tax

Q. I am on scholarship. What is my tax obligation?

A. If your scholarship is from sources inside the United States, the portion of your
scholarship used for room and board as well as for other non-educational expenses is
taxed at a flat rate of 14% (or 30% if you have no U.S. Social Security Number or ITIN).

Individuals from countries with which the U.S. has negotiated tax treaties may be able to
reduce the amount of tax on their scholarships. The portion of your U.S. scholarship
granted and used to pay tuition and required fees is exempt from U.S. tax. You will
receive Form 1042-S from your sponsor to report the taxable portion of your
scholarship.
If you are a nonresident for tax purposes and your scholarship is provided by an entity
outside the United States you will not pay taxes to the U.S. on any part of your
scholarship. Check with your sponsor to determine if you have any U.S. tax obligations
on your scholarship.

Q. What is a tax treaty and how do I determine if I am eligible?

A. The U.S. has negotiated tax treaties with many countries of the world. If you are a
resident of a country that has a tax treaty with the U.S., you may be eligible to reduce or
eliminate U.S. tax on your income. If you are eligible for a tax treaty benefit, you must
file Form 8233 with your employer every year. More tax treaty information can be found
here and here: http://www.irs.gov/pub/irs-pdf/p901.pdf

Q. My employer has deducted taxes from my paychecks. Do I still need to file a

tax return?
A. Yes. All nonresidents must file a tax return each year they are in the United States.
The law requires U.S. employers to withhold a standard percentage of tax from each
employee and to pay that tax to the U.S. government. Individuals must file a tax return
at the end of each year to determine whether they owe additional taxes or to request a
refund from the U.S. government if their employer deducted too much tax during the
year.

Q. What is Form W-2?

A. Form W-2 shows how much you earned from working during the year. It also shows
how much tax your employer has withheld from your paychecks and paid to the
government on your behalf during that same year. You must receive Form W-2 from
each U.S. employer for whom you worked during the year. You need the information
from all your Forms W-2 to complete your annual tax return and must attach a copy of
each W-2 to your tax return. If you did not work in the United States during the year or if
all of your income was exempt under a tax treaty for which you signed up at the
beginning of the year, you will not receive Form W-2.

Q. What is Form 1042-S?

A. Form 1042-S summarizes taxable scholarships and fellowships as well as income
exempt from tax under a treaty benefit. Schools and sponsors mail Form 1042-S in
early February. You need the information from all your Forms 1042-S to complete your
annual tax return and must attach a copy of each 1042-S to your tax return.

Q. When will I receive my W-2 or 1042-S?

A. Employers distribute Forms W-2 to each employee on or before Jan 31 st. Schools
and sponsors mail the Form 1042-S in early February. If you are employed by Iowa
State University your Form W-2 for 2015 is now available online through the Employee
tab in AccessPlus. If you worked off-campus during the year and have not received
Form(s) W-2 by February 1st, contact your employer(s) to request a copy.

Q. I received Form 1042-S but no Form W-2. What should I do?

A. Form 1042-S is used by Iowa State University and U.S. sponsors to report taxable
scholarships and income exempt from tax under a tax treaty. You need the information
from your Form 1042-S to complete your annual tax return and must attach a copy of
the 1042-S to your tax return form. If you did not work in the United States during the
year or if you worked but all of your income was exempt under a tax treaty, you will not
receive Form W-2. If you worked in the U.S. and not all of your income for the year is
reported on the Form 1042-S you received, contact your employer(s) to request a copy
of your W-2 form if you have not received it by February 1 st. If you worked off-campus
on CPT, OPT, or academic training for part of the year, your former employer may have
produced a W-2 form for you, but may not know your current mailing address.

Q. What is Form 1095?

A. Form 1095 is a report of health insurance coverage that you had or were offered
during the previous year as required by the Affordable Care Act (Obama Care). This
new health care form provides information that residents for tax purposes may need
when filing their tax return. If you are a nonresident, this form is for your information
only and the information from it does not need to be included on your nonresident tax
return. Do not attach this form to your tax return. Those who qualify as residents for
U.S. tax purposes are subject to the provisions of the Affordable Care Act which require
them to have health insurance for themselves and each member of their tax family.
Residents for tax purposes will use the information on Form 1095 to prepare their

resident tax returns. (See How do I determine if I am a resident alien for tax
purposes at the beginning of this FAQ.)

Q. What is Form 1098-T?

A. Form 1098-T is a report of payments received, amounts billed or refunds made for
tuition and related expenses during the tax year. Nonresident alien students do not
need Form 1098-T and it does not need to be included with a nonresident tax return.
Those who qualify as residents for U.S tax purposes may use the information on this
form to determine their eligibility for certain education tax credits. (See How do I
determine if I am a resident alien for tax purposes at the beginning of this FAQ.)

Q. What is Form 1099?

A. Form 1099 is a report of income received during the tax year from sources other than
wages. Form 1099-INT is a report of interest income earned on deposits with U.S.
banks. Nonresident aliens are exempt from tax on this type of interest income but
residents must include amounts reflected on Form 1099-INT on their tax returns as
taxable income. Forms 1099-B and 1099-DIV report proceeds from the sale of stocks
and bonds, dividend income and capital gains. Both nonresidents and residents must
pay taxes on income reported on Forms 1099-B and 1099-DIV. Form 1099-G is a
report of any State tax refund received for the previous year. This amount may be
taxable to both nonresidents and residents to the extent that it was taken as an itemized
deduction in the previous tax year. You will need all 1099 forms issued to you during
the year in order to properly prepare your tax return.

Q. I did not work in the United States this year and had no scholarship from U.S.
sources. What should I do?
A. If you are a nonresident who was present in the U.S. in F or J. All nonresident F
and J international students and scholars must file Form 8843, even if they had no
income for the year. Dependents in F-2 and J-2 status must also file Form 8843.

Q. I arrived in the U.S. this December, and I didn't work. Do I still have to file Form
8843?
A. Yes. If you were in the U.S. in F or J status for even 1 day during the tax year, you
must file Form 8843 for that year.

Q. I did not earn very much money. Do I still have to file a tax return?
A. If you earned less than $4,000 in 2015 you are not required to file a full tax return
(but everyone in F or J status must still file Form 8843). However, if your employer
deducted any taxes from your paycheck during the year you must file Form 1040NR-EZ
or Form 1040NR to request a refund of these taxes from the U.S. government. You
must also file Form 8843 regardless of how much you earned.
Q. Which tax form do I use?
A. Generally, international students and scholars use form 1040NR-EZ or 1040NR for
their Federal (U.S. government) taxes. "NR" means nonresident for tax purposes.
Individuals who are residents for tax purposes use the same 1040 forms as U.S.
citizens. All nonresident F and J international students and scholars must file Form
8843, even if they had no income for the year.
Q. May I file my tax forms electronically?
A. No. Nonresident tax returns must be printed, signed, and mailed to the government.

Q. Where do I mail my tax return?

A. If you are due a refund or owe no additional tax, Forms 1040NR-EZ, 1040NR, and
8843 are mailed to:
Department of the Treasury
Internal Revenue Service
Austin, Texas 73301-0215
If you owe additional tax, Forms 1040NR-EZ, 1040NR, and 8843 are mailed to:
Internal Revenue Service
P.O. Box 1303
Charlotte, North Carolina 28201-1303
State tax forms should be mailed to the address indicated on the tax form instructions
for the State(s) in which you worked during the year.
Q. I owe additional tax for the year. How can I pay?
A. You may prepare and mail a paper check with your tax return. You may also pay
online or by phone. For more information please see www.irs.gov/e-pay
Q. What if I am married to a U.S. citizen, legal permanent resident or someone
who has met the Substantial Presence Test?

A. A nonresident alien who does not meet the Substantial Presence Test and does not
have a green card may choose to be treated as a resident for tax purposes if the
nonresident is married to a U.S. citizen, legal permanent resident, or someone who has
passed the Substantial Presence Test. This choice can be made if:
1.

at the end of the year, one spouse is a nonresident alien and the other is a U.S.
citizen or resident, and

2.

both spouses agree to file a joint return and to treat the non-resident alien as a
resident alien for the entire tax year.

To make the election, the married couple must attach a statement to the joint tax return
that is filed for the year. The statement should contain the following information:
1.

2.

A declaration that one spouse was a nonresident alien and the other spouse was
a U.S. citizen or resident on the last day of the tax year, and that they choose to be
treated as U.S. residents for the entire tax year, and
Each spouse's name, address, and taxpayer identification number.

Remember that tax residents must pay tax to the United States on their total worldwide
income. Nonresidents pay tax to the U.S. only on income earned in the U.S.

Q. What is a dual-status alien?

A. A dual-status alien is a person who is both a resident alien and a nonresident alien
for tax purposes during the same tax year. This usually occurs in the year a person
arrives in the United States or leaves the United States. It may also occur if a person's
residency status changes during the year. Tax returns for dual-status aliens are
generally more complicated. Please speak with a tax advisor for assistance.
Q. My young children live with me and one was born in the U.S. Can I claim the
Child Care Tax Credit?
A. Usually not. Only those students and scholars in nonresident tax status from one of
the countries that can claim dependents (Mexico, Canada, South Korea, and Indian
students) under tax treaties are eligible for the Child Care Tax Credit.

Q. What happens if I do not file a tax return?

A. If you do not owe any additional tax, the Internal Revenue Service (IRS) will not
financially penalize you except to keep any refund you would have received had you

filed your return. However, the terms of your visa require that you stay in compliance
with all laws of the United States, including income tax filing. If you want to apply for
permanent residence in the U.S. at a later date you may be asked to prove that you
have complied with all tax laws. If you are a nonresident with income protected by a
treaty or have income from outside the U.S. and fail to file a return, both your treatyprotected and foreign-source income become subject to U.S. tax.
If you owe additional tax for the year, you must file a tax return and pay those taxes on
time to avoid late fees. The IRS charges substantial interest and penalties on past due
taxes. Failure to follow tax rules can also have far-reaching legal consequences.

Q. My friend filed Form 1040 and received a larger refund. Can I do that, too?
A. Not legally. If you are a nonresident alien you must file 1040NR-EZ or 1040NR.
Failure to file the correct form is tax fraud and can place your immigration status in
jeopardy. The additional money you might receive is not worth the legal and financial
trouble.

Q. I am a nonresident alien and my employer withheld FICA taxes from my

paycheck. Can I get a refund?
A. F-1 and J-1 nonresident aliens are exempt from FICA (Social Security and Medicare)
taxes on wages earned from legal employment in the United States. If your employer
withheld FICA taxes in error, you can request a refund. The law requires that you first
ask your employer for a refund of the FICA taxes. If your employer cannot help you, file
Forms 843 and 8316 with the IRS to request a refund from the government. Attach the
following to Form 843:
1.

A copy of the Form W-2 showing FICA taxes withheld

2.

A copy of your I-94

3.

A copy of your most recent entry visa

4.

Completed Form 8316

5.

A copy of Form 1040NR-EZ or 1040NR filed for the year in which the FICA was
withheld

6.

A copy of your I-20 or DS-2019

7.

A copy of your Employment Authorization Document (if applicable)

8.

If your visa status has changed in the past year attach any USCIS Approval
Notices

Mail your claim to: Department of the Treasury

Internal Revenue Service Center
Ogden, Utah 84201-0038
More information about Form 843 and Form 8316 can be found on the IRS Website
here: http://www.irs.gov/ or contact a tax advisor for assistance.
Note that wages earned by those in J-2 status are not exempt from FICA taxes.

Q. How do I prepare my State taxes?

A. Tax forms and regulations vary from State to State. In Iowa you will use Form
IA1040 to file your state tax return. Guidance on Iowa tax return preparation is
available elsewhere on this Website.
Q. I worked in another state for part of the year, what do I need to do?
A. In addition to your Federal tax return you must complete a tax return for each U.S.
State in which you worked during the year. (Exceptions are Alaska, Florida, Nevada,
South Dakota, Texas, Washington, and Wyoming which have no State income tax.) If
you worked in both Iowa and another State during the year, you must complete Form
IA1040 and attach an IA Form 126 or IA Form 130 depending on your situation. You'll
need to file similar part-year resident forms for the other State(s) where you worked
during the year. Multiple State tax returns can become complicated because you must
report total income earned during the year to both States then calculate a prorated
amount of tax applicable to the earnings from each State. If you need assistance
please contact a tax advisor.
Q. My American friend told me something different than what is written here.
Which is correct?
A. Do not go to your American friends for tax advice. Chances are they do not
understand that the rules for nonresidents are different from the rules that apply to
them. Although their advice is well intended, it is often misguided. Please contact a tax
advisor for assistance.