TAX INFORMATION SESSION FOR INTERNATIONAL STUDENTS AND SCHOLARS Presented by: Lisa Kosiewicz Doran Sarah Hintz, CPA International Student Specialist Tax and Compliance Manager Office of International Programs Finance & Administration February 23, 2016

Today’s Agenda:

1. Tax Filing Requirements

2. Determining Your U.S. Tax Filing Status

3. Commonly Encountered U.S. Tax Forms

4. Tax Resources at Colorado College

5. Time for Questions

TAX FILING REQUIREMENTS

Who Needs to File a Tax Form?

If you were in the U.S. in F, J, M or Q status in 2015, you are required by the U.S. Internal Revenue Service (IRS) to file, i.e. prepare and submit, certain U.S. tax forms, even if you did not earn any money in the U.S. during 2015. The form(s) you are required to file depend on your U.S. tax filing status.

DETERMINING YOUR U.S. TAX FILING STATUS

U.S. Tax Filing Status

• “Resident Alien” vs. “Nonresident Alien” Tax Status

• Your U.S. tax filing status may be different from your U.S. immigration status. For example, it is possible that a person, who is a non-U.S. resident for immigration purposes, be classified as a resident alien for U.S. tax purposes.

• The GLACIER Tax Prep (GTP) software available through the GLACIER Nonresident Alien Tax Compliance system will help you determine your tax filing status for each tax filing year

• Please contact Sarah Hintz with any questions regarding your tax filing status.

Nonresident Alien Tax Filing Requirements

• If you are a nonresident alien and you received no U.S.-source income in 2015 you need only complete IRS information Form 8843 and submit it to the IRS during the 2015 tax filing period (January 2016 – April 2016)

• You must send your Form 8843 to the IRS (even if you leave

the U.S. before that date). Completing and submitting a Form 8843 is required of ALL F-1, J-1, M-1 and Q visa holders and their dependents (F-2, J-2, M-2 or Q visa holders).

• You can prepare the Form 8843 through GLACIER Tax Prep

Nonresident Alien Tax Filing Requirements

• If you are a nonresident alien and you received U.S.-source income in 2015, the tax form(s) you may need to file include: • IRS Form 1040NR-EZ/IRS Form 1040NR • CO Form 104 and/or other state income tax form

• Note: income from ALL U.S. sources is reported on a single IRS Form 1040NR-EZ/IRS Form 1040NR

Resident Alien Tax Filing Requirements

• If you are a resident alien and you received U.S.-source income in 2015 the tax form(s) you may need to file include: • IRS Form 1040EZ/IRS Form 1040A/IRS Form 1040 • CO Form 104 and/or other state income tax form

• Note: income from ALL U.S. sources is reported on a single IRS Form 1040EZ/IRS Form 104oA/IRS Form 1040

Your Taxpayer Identification Number

• Federal and state tax forms will ask you to report your U.S. taxpayer identification number

• If you have a U.S. Social Security Number (SSN), you must use

that number as your U.S. taxpayer identification number

• If you are not working in the U.S. and, therefore, are not eligible for a Social Security Number, but have other U.S. source income (e.g. scholarship income), you will have to apply to the Internal Revenue Service (IRS) for an Individual Taxpayer Identification Number (ITIN)

Applying for an ITIN

• Use IRS Form W-7, Application for IRS Individual Taxpayer Identification Number (note: the Form W-7 can be prepared using the GLACIER Tax Prep software)

• Form W-7 supporting documentation includes evidence of your identity and your foreign status, e.g. a photocopy your passport with a photocopy of your U.S. visa

• Sarah Hintz, the Tax & Compliance Manager, is a Form W-7 Certifying Acceptance Agent, and will need to sign your Form W-7 before you mail it to the IRS

• Your completed Form W-7 must be attached to the front of the original, valid tax return(s) for which the ITIN is needed

• If are assigned an ITIN and later get an SSN, please see Sarah as this needs to be reported to IRS

When to File Your U.S. Tax Forms

• You should submit your federal and state tax forms by Monday, April 18, 2016 (even if you leave the U.S. before that date).

• Your federal form must be mailed/postmarked by April 18, 2016; for

your Colorado forms, see the Colorado filing instructions.

Failure to File

• 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 H-1B work visas and permanent residency (“green cards”) are frequently asked to show proof of tax filing for previous years in the U.S.

• If you are eligible for a refund and don’t file, then you won’t get

back any of the money that was withheld from your U.S. income.

Where to Get Tax Forms

Nonresident Aliens • GLACIER Tax Prep software system • Colorado Filing Instructions from Sarah Hintz • Volunteer Income Tax Assistance (VITA) program sites*

Resident Aliens • Free File Software

(https://apps.irs.gov/app/freeFile/jsp/index.jsp?ck) • VITA program sites*

*Make sure you inform the VITA volunteer of your U.S. tax filing status so that they can assist you appropriately

A Note of Caution

• Many online tax preparation software programs, e.g. Turbo Tax, cannot prepare nonresident alien tax forms

• If you choose to go to an outside tax preparation agency, e.g. H&R Block, which will charge you a fee for preparing your tax forms, be sure to inform them of your U.S. tax filing status so that they can advise you appropriately (beware: many do not have expertise in nonresident alien tax issues)

COMMONLY ENCOUNTERED U.S. TAX FORMS

Tax Forms You May Receive

• IRS Form W-2: Wage and Tax Statement • Reports any income earned during the year

• IRS Form 1042-S: Foreign Person’s U.S. Source Income

Subject to Withholding • Will receive if claimed tax treaty benefits and/or had any

taxable scholarships or awards; you may receive multiple 1042-S forms from Colorado College if you received different types of income

• IRS Form 1099 (DIV, INT, MISC) • Reports dividend, interest, or miscellaneous income

Tax Forms You May Receive (continued)

• IRS Form 1098-T: Tuition Statement • Used by resident aliens for claiming certain types of

educational tax benefits

• IRS Form 1095-B: Health Coverage • Provides evidence that you had qualifying health insurance

coverage under the Affordable Care Act (ACA); for tax filing use only by resident aliens (nonresident aliens keep for your tax records)

Tax Forms You Mail to the Federal and State Government

Nonresident Aliens with no U.S. income • IRS Form 8843: Statement for Exempt Individuals and Individuals

with a Medical Condition

Nonresident Aliens with U.S. Income • IRS Form 8843 • IRS Form 1040NR-EZ/IRS Form 1040NR: Income Tax Return

Form for Nonresident Aliens

Nonresident Aliens with Colorado Income • CO Form 104: Colorado Individual Income Tax Form

Nonresident Aliens with Income from other U.S. States • Other state’s Individual Income Tax Form

Tax Forms You Mail to the Federal and State Government (continued)

Resident Aliens with no U.S. Income • No tax form requirements

Resident Aliens with U.S. Income • IRS Form 1040EZ/IRS Form 1040A/IRS Form 1040: U.S.

Individual Income Tax Return

Resident Aliens with Colorado Income • CO Form 104: Colorado Individual Income Tax Form

Resident Aliens with Income from other U.S. States • Other state’s Individual Income Tax Form

TAX RESOURCES AT COLORADO COLLEGE

GLACIER Tax Prep (GTP)

• GLACIER Tax Prep: Online Tax Return Preparation System • A web-based federal tax return preparation system designed

exclusively for international students, scholars, teachers, researchers, trainees and their dependents who had nonresident status in the U.S. in the calendar year 2015

What Does GTP Do?

The GLACIER Tax Prep program: • helps you finish your federal tax return in about 20 minutes • guides you step-by-step in completing your tax return • determines the correct tax forms you need to fill out • allows you to complete your tax return from abroad if

necessary • addresses fellowships and tax treaties • instructs you in printing and mailing tax forms to the IRS • offers free technical support via email • helps you apply for an Individual Taxpayer Identification

Number (ITIN) if necessary

How Do I Access GTP?

• GLACIER Tax Prep is free!

• You must complete the set-up process for your individual GLACIER account first

• Once your individual GLACIER account is set-up, log into your GLACIER account and select the menu option “Complete my U.S. tax return using GLACIER Tax Prep”.

Accessing GTP via GLACIER

When Using GLACIER Tax Prep

• Please make sure you have all of your Forms W-2, 1042-S and/or 1099 BEFORE you log into GTP via GLACIER.

• GLACIER Tax Prep will assist you in completing the W-7 form to apply for an Individual Taxpayer Identification Number (ITIN) if you are not eligible for a Social Security Number (SSN). Please see Sarah Hintz before mailing your W-7 form to the IRS.

What should I do if I did not receive a W-2 Form from CC?

If you were employed by CC in 2015 and you did not receive IRS Form W-2 in the mail by the end of January 2016, then you should: 1) Check your Self-Service Banner (SSB) account Employee tab.

If it is not there: 2) Send an email to Sarah.Hintz@ColoradoCollege.edu with:

• Your name • Your CC ID number • The tax year for which you want the W-2 reprinted • Your current mailing address (or indicate that you want to

pick up your reprinted W-2 form in person at Sarah’s office in Spencer Center 204)

Spring Tax Workshops

Mark you calendars now and plan to attend one of the upcoming tax workshops sponsored by the Office of International Programs and the Finance and Administration office! During the workshop you’ll be able to use GLACIER Tax Prep to prepare your U.S. federal income tax form(s): All Tax Workshops will be held in Keck Computer Lab (Armstrong Hall 303) Pre-registration for these workshops is required---see the tax information email sent out by the OIP office for registration details.

Thursday, February 25th 3:00 – 5:00 PM

Thursday, March 3rd 3:00 – 5:00 PM

Tuesday, March 22nd 3:00 – 5:00 PM

Other Tax Resources

For more information about U.S. tax issues for international students, refer to one of the following online resources: • IRS Tax Information for Foreign Students and Scholars

http://www.irs.gov/Individuals/International-Taxpayers/Foreign-Students-and-Scholars

• IRS Publication 519 - U.S. Tax Guide for Aliens http://www.irs.gov/pub/irs-pdf/p519.pdf

• IRS Publication 901 – U.S. Tax Treaties http://www.irs.gov/pub/irs-pdf/p901.pdf

• University of Texas at Austin International Office – Helpful Information http://world.utexas.edu/isss/tax/info

2014 Tax Refund Status

• The IRS has still not issued the 2014 refunds and Colorado College has received no further information as to when the refunds will be issued.

• A number of students received notices from the IRS stating that their 2014 tax returns have been adjusted and that they now have a balance due. If you receive a similar notice, contact Sarah Hintz and she will prepare a letter to send back to the IRS.

QUESTIONS?