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International Students and U.S. Income Tax
Introduction
International students must file United States federal (and usually Missouri State) income tax documents each year. The date to submit these documents is 15th of April following the year of the taxable income. In other words, the deadline to file your tax forms for income made during 2007 is 15th April 2008. The taxation arm of our federal government is the Internal Revenue Service, commonly called the "IRS."
The first thing you need to determine is, are you a non-resident alien, or a "resident alien" for tax purposes. This has nothing to do with whether you have applied to be a lawful permanent resident of the United States or any other immigration questions. It has to do with how long you have been inside the United States, and whether the purpose of your visit has been to be a student or scholar. Generally speaking, anyone who has been in the U.S. on a student visa for five years or less, or exchange visitor visa for two years or less, is considered a non-resident alien for tax purposes. If you have been here longer than those limits, you will need to use what is called the "Substantial Presence Test" (a series of questions to ask yourself) to determine your taxation category as a non-resident or a "resident" alien. You can find our more information about what the criteria/questions are at the website resources below.
Students with No U.S. Income
Students who had NO U.S.-source income (no work, investment income, or scholarships/assistantships, grants or fellowships, no wages, tips or other compensations from sources within the U.S.) must complete and file a form 8843. This is the only U.S. income tax form you will need to file if you had no income. Therefore, you simply fill in the form, sign it, and mail it to the address provided on the form.
Other students may be subject to other requirements and should seek competent tax assistance from a service that is well-versed in international student taxation issues, or access the website services listed below.
Students Who Did Work or Have Other Income In the U.S.
Students who worked for a U.S.-based employer, including the University will receive a form W-2 during the month of January for work done (income made) during the previous calendar year. The form will show the total of wages, tips and other compensations, as well as any money withheld from your pay in advance. Employers must provide this form W-2 by no later than the 30th of January of the tax-filing year. Keep this form in a safe place. It is absolutely essential for filing taxes.
Students who received money from a scholarship or graduate assistantship will receive a form 1042S by mid March. This form usually shows the amount (if any) subject to tax.
Social Security and Medicare Withholding from International Student Pay
Most students should not have money withheld from their pay for Social Security or Medicare if the work is done as on-campus employment, practical training (curricular or optional), or off-campus employment for economic hardship (IRS Publication 519, U.S. Tax Guide for Aliens).
Income Entitled to Treaty Benefits
If your country has a tax treaty with the United States, you may be eligible for a benefit (usually the subtraction of a certain amount of any U.S. income from your taxable income). You will need to file a form W-8BEN or Form 8233 with the employer to have the appropriate amount excluded for your withholding tax. Check to see if your country has such a treaty by accessing IRS Publication 901 and review the chart/table of tax treaties.
Other Withholding Tax Issues
The government asks employers to withhold a certain amount of income tax from your pay. This is sent to the government, usually on a quarterly basis, by the employer. This is called withholding tax, and it represents an estimate of the amount of money you would owe the government at the end of the year when you file your income tax documents. The amount withheld from your paycheck depends upon the answers you give on form W-4 when you were hired. The Internal Revenue Service (IRS, Publication 519, Tax Guide for Aliens) recommends that international students and scholars request an additional amount to be withheld from their pay as follows:
- Check only "Single" marital status on line 3 [of form W-4] (regardless of your actual status.
- Claim only one allowance on line 5, unless you are a resident of Canada, Mexico, South Korea, or a U.S. national.
- Request that your employer withhold an additional amount of $7.60 per week on line 6. If your wages are paid based on a 2-week pay period, the additional amount will be $15.30.
- Do NOT claim "Exempt" withholding status on line 7." (from IRS Publication 519, U.S. Tax Guide for Aliens).
Missouri Income Taxes
If you are a nonresident alien who is required to file a federal Form 1040NR or Form 1040NR-EZ (with Missouri source income of $600 or more), you must file Form MO-1040A (Short Form) or MO-1040 (Long Form). Attach a complete copy of your federal return and all supporting documentation. If you are a nonresident alien and do not have a social security number, enter your tax identification number (TIN) in the space provided.
The two Missouri state forms mentioned above, Form MO-1040A (Short Form) or MO-1040 (Long Form), can be found on the Missouri Department of Revenue website: http://dor.mo.gov/tax/personal/individual/nonresalien.htm
Other Tax Resources Website Sources of Information
The United States Internal Revenue Service (taxation branch of our government) has information at the following website: http://www.irs.gov/businesses/small/international/article/0,,id=96477,00.html
You can also go to one of the following websites, where, for a fee, they will prepare your tax forms for you: