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The section of the instructions you are referring to tells the reader who is not required to file a Form 1040-NR. If you do not have the types of income, or any "effectively connected income" you are not required to file a tax return.
In the United States, the F Visas are a type of non-immigrant student visa that allows foreigners to pursue education (academic studies and/or language training programs) in the United States. F-1 students must maintain a full course of study. Except for on-campus employment of 20 hours a week or less, F-1 students are generally not permitted to work in the U.S. without prior authorization
Since you are not allowed to work, you do not have any of the income that would subject you to the filing requirements of Form 1040-NR.
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Again, thanks! Have a great weekend!
You are correct. As I said, you are allowed to work up to 20 hours per week on campus. The income is not taxable. The only reason you would file is if they withheld any US income tax on it (look at Box 2 of the Form W-2). If there is no withholding, there is no tax liability and no filing requirement.
Let me know if you have any more questions. And good luck with your studies!
Thanks again! Have a great weekend!
The instructions are made to cover as large an audience as possible, and to address as many situations as possible with as little effort as they can. In your case, the facts that allow you to not file are your F-1 visa.
There are other situations where one might be required for tax. For example, if someone were here on an H-1 visa (which allows them to work), and they were here for 2 months, they normally would be taxable on their income. However, if the treaty said they would not be taxable for the first six months of work in the US, they would still be required to file a Form 1040-NR to report the income, then they would have to claim the benefits under the tax treaty stating that they were exempt. So, even though the work is exempt, in this case a return would still be required. In your case, the F-1 states that you are not taxable.
Just for my own information, what is your treaty country? And how much income did you earn? Was there any withholding on it?
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No, you were not breaking the law. Your F-1 visa status protects you. Even if it dis not, your income level does. A nonresident alien (which you are with your F-1 visa) is allowed a personal exemption. This exemption has been over $3,000 for many years. So, even if you did not have your visa, your low level of income, since it is less than the personal exemption, would allow you not to file.
Congratulations on your green card! You realize that now, as a resident alien, you are subject to taxation on your world-wide income. You are treated for tax purposes the same as any American citizen.
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You did not mention that you had any scholarships or fellowships. You said that you worked at the college and made under $2,200 per year. This situation DOES NOT require you to file a Form 1040NR.
If you receive a scholarship or fellowship grant, all or part of the amounts you receive may be tax-free.
Qualified scholarship and fellowship grants are treated as tax-free amounts if the following conditions are met:
You must include in gross income amounts used for incidental expenses, such as room and board, travel, and optional equipment, and generally amounts received as payments for teaching, research, or other services required as a condition for receiving the scholarship or fellowship grant. Also you must include in income any part of the scholarship or fellowship that represents payments for services.
So, if the scholarships and grants you received were used for tuition, books, fees, etc., you do not have to include them as income. The only taxable portion is that which was used for incidental expenses, as in the paragraph above.
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Again, thanks! Have a great weekend!
If the tuition was paid for by scholarships, the treaty does not have any effect, as scholarships are already tax exempt. The only time the treaty would apply was if you received stipends, or other TAXABLE income that the treaty made tax-free.
So, if you received scholarships, don't worry about it! You would know if you got a taxable scholarship - you would have received a Form W-2 showing Federal wages, with no Social Security or Medicare wages, for the amount of the taxable scholarships, which I am sure would be more than the $2,200 you received!
I hope this answers your questions! Let me know if you have more!
If the amount that the university or college reported on the Form W-2 was less than the personal exemption, so under roughly $3500, you still DO NOT have to file, as you have earned less than the personal exemption. The university should be making the determination if the amount is taxable or not. If it is taxable, they have to report it on the Form W-2. IF not, they do not report it. So, if your Form W-2 amount is small, either the amount that you received, or the amount that they determined as taxable, is the small amount on the Form W-2.
You stated that the highest you ever received was $2,200. As this is under the personal exemption. Therefore you do not have to file.
I hope this answers your question! If you have more, please let me know. I probably won't be answering until tomorrow, as I am about to go to bed.
The Form 8833 is a form on which you claim treaty benefits. However, before the form is filed, there has to be a filing requirement. Since your income was below the exemption amount, you don't have to worry about that Form - you do not have to file in the first place!
And yes, I believe that there was no withholding on your income because the university knew how much you would be making, and that the amount would not generate any tax liability, so no withholding requirement.
I hope this helps! If you have more questions, please let me know.
I have done a bit of checking, and the IRS actually exempts the value of room and board for RAs. You received your $2,000 or so of income for being an RA. Since an RA has to live in the dorm, it is a nontaxable working condition fringe benefit. The meals are to allow you to eat on campus while living there in your RA position.
Additionally, requiring you to teach a class does not affect the taxability of your tuition. It is actually in furtherance of your education, so it is not taxable.
So, in answer to your question, your room and board is not taxable. I already told you that amounts received to pay for education/tuition costs are not taxable. So you have nothing to worry about! You have no tax liability, and no tax filing requirement.
I hope this answers your questions!
Yes, under the Tax Code, your room and board are what they call a "working condition fringe benefit" and as such, are tax free to you. Tuition that is waived is qualified scholarship, and is also tax free.
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Enjoy your Sunday!
The $5,250 is an amount that employers can give employees as tax free for further education. Also, any amount for tuition for classes that are related to the employee's job are not counted towards this limitation.
There are other exceptions that apply as well. The first one is, as I said, awarding you a qualified scholarship. Any qualified scholarships are tax free, regardless of the amount, as long as they cover qualified tuition and fees.
Additionally, there are other exceptions - the "no additional cost" fringe benefit allows employers to provide a benefit as long as there is no additional cost. This is one reason that airline employees fly for free, tax free. The airline spends the same amount to fly the plane whether there is an empty seat in it, or if an airline employee sits in that seat. For you, the school still offers the class, still pays the instructor, so there is no additional cost to have you in the class.
So as I stated all along, there is nothing to worry about for your tuition, fees, or room and board.
I hope this helps! If you have more questions, please ask. I am heading out for a while to take my son to football. His team is in the playoffs (8th grade). But I will be back later.
With all your reading in Taxation, you must be working towards your Masters in Taxation!
The passage you are referring to is from WVU's FAQ for International Students/Employees - Income Tax questions. This FAQ, like the IRS instructions, are written as simply as possible to cover as many situations as possible. Your situation, in which you 1) received a tax-free scholarship, and 2) you worked as an RA for your room & board, and 3) you earned less than the personal exemption, which allowed you to NOT have to file a tax return, is complex enough that no general FAQ would address all those situations. You did not receive a taxable scholarship, which is what code 15 refers to. Additionally, your room and board are NOT a scholarship. They are a working condition fringe benefit for your RA job, and are therefore not taxable and not reportable. This is different from the FAQ, which addresses aliens who receive a "room and board scholarship". You did not receive a scholarship, you had a job.
I am not sure why they withheld $32. But it probably is not worth following up on, it would cost more than $32 to get a CPA involved to look at it!
My son lost his game, so they are done for the season. They finished tied for 3rd in the league, but lost the tie-breaker by a point, so ended up #4 overall out of 18 teams. This was the playoffs, and they lost to the #1 team.
I hope this answers your question! If you have more, please let me know.
The Form 1098-T has nothing to do with the Form 1042-S. They are unrelated. The 1042-S is income, the 1098-T is for educational tax credits. You could be a US citizen, and have your employer pay for your education (Which would be taxable and put in your Form W-2) and still get a Form 1098-T and be able to take a tax credit for the education expense.
As I said, your RA position is what enables you to get the room and board for free. This is under the Internal Revenue Code, and NOT through any tax treaty. This is the same for you as it is for a US citizen. So stop worrying! It is a nontaxable fringe benefit under Internal Revenue Code §119.
IRC §119(a) - Meals and lodging furnished to employee, his spouse, and his dependents, pursuant to employment
There shall be excluded from gross income of an employee the value of any meals or lodging furnished to him, his spouse, or any of his dependents by or on behalf of his employer for the convenience of the employer, but only if-
(1) in the case of meals, the meals are furnished on the business premises of the employer, or
(2) in the case of lodging, the employee is required to accept such lodging on the business premises of his employer as a condition of his employment.
In English, this code section basically states that if your employer provides you with free housing, you can exclude the housing value from your gross income if your employer satisfies certain requirements. The lodging must always be on the employer's premises, acceptance of the on-site housing is a condition of your employment and there must be a business reason for providing the lodging, which means the housing is solely for the convenience of your employer and not yours. In your case, you are living in the dorms (your employer's premises), you have to live there as a condition of employment (how can you be an RA and not live on the floor?) and the housing is for the employer's benefit (having you as an RA helps your employer maintain the dorm safety/living environment). Yoru meals are in the cafeteria (your employer's).
So the value of your room and board are NOT income to you, regardless of you are a resident alien or a nonresident alien or a US citizen.
So stop worrying! You are fine!
The Form 1042-S is the form that, had the income been taxable, it would have been reported on.
You are correct! The school would have sent you one if it was required.
No, none of this would be reported on a Form 1099. Non employee compensation is reported on a Form 1099, and you were an employee.
Stop second guessing the tax department at the University. They sent you the forms that you needed. You are not required to file, and you have no income that they did not report. They would have sent you a Form 1042-S if you did. They are experienced and do it for a living, so rest peacefully knowing that they did there job and you have no income to report.
This is part of the Form 1042-S. The Form 1042-S reports the tax to the individual people. The Form 1042 is just the transmittal to the IRS, showing when taxes were withheld (if at all) and the amounts, as well as the total amount of income paid and the number of Form 1042-S that were filed. This is simply the form that the payer sends to the IRS. This is NOT a form that any individual would receive. It is only for the IRS.I hope this answers your question!Roger
Hi! Sorry for taking so long to get back to you. I have been without Internet for the past couple days at home, and we had some issues with my wife. I don't know if I told you, she has stage 4 kidney cancer, so it makes scheduling things like time online here difficult at times. Then, Comcast disconnected my internet while hooking up a neighbor, and it took DAYS to get a technician out to the house. Gotta love Comcast and their lack of technical service!
You are looking at the exceptions that allow people not to have to file a Form 1040-NR. There are actually two exceptions for filing Form 1040NR, and you meet the first one - it says that if your only source of income was from the performance of services, and your wages were under $3,800 (yours were) and you have no need to file a return to get a refund for any taxes withheld (you had no taxes withheld) then you don't have to file. You do not meet the exception under #2, which says that if you were a student on an F-1 visa and you have no income (wages, dividends, interest, capital gains, self-employment income, etc) you do not have to file. You do have wages. However, they are under $3,800, so that brings you back to the first exception.
You have stated the rule in your own question - "If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an "F,""J,""M," or "Q" visa, you are considered engaged in a trade or business in the United States. You must file Form 1040NR (or Form 1040NR-EZ) only if you have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc." I added the emphasis on the important words. You do not have income subject to tax, as Exception #1 applies - your income subject to tax is under $3,800.
I hope this allows you to rest easier! I also hope you had a great weekend! I hope you have a great week coming up!
No problem! It has been a pleasure working with you. And the prayers are appreciated! We take one day at a time. Today is not too bad, she slept most of the day, and is at chemo now. My son is asleep, the Packers won, life is not too chaotic at the moment!
A CP-2000 notice would only be generated if the school reported something on a tax form (usually a W-2 or a 1099) that you did not report on your tax return. In your case, there was no reporting to the IRS, so there will be nothing for the CP-2000 to match. Furthermore, here is an exempt that I found from a private letter ruling. This is the IRS' position on room and board being taxable to Resident Assistants."Per Internal Revenue Code Section 119, reduced or free room and board for employees may be considered excludable from income in situations where the benefit is provided as a convenience to the employer and when it is provided on the employer’s premises. In addition, acceptance of the employer provided lodging must be required as a condition of employment."So again, I would not worry about what Swarthmore College says. They are not the Internal Revenue Code. They are, frankly, incorrect. I am going to send them a letter stating so.
I just called Swarthmore. If you read that quote, it says they receive a check for $2800 and $4700 is credited to their account and is non-taxable. The $4700 is the cost of the room and board. They treat it as non-taxable. In ADDITION to the room and board, they are paid $2800 in cash. The CASH is what is taxable, just as the university you went to reported some cash that you did receive. So things ARE consistent across the universities. You need to look at what the law says. The law says that for a RA, room and board are NOT taxable. So stop worrying!Thanks for asking about my wife. She is still fighting. We are supposed to go to the oncologist later this afternoon to see what the next step. I have been saying prayers all day!Good luck! Have a great week!Roger