FILING YOUR 2008 TAX RETURNS
Please note that filing income tax forms is the responsibility of each international student and scholar. The International House staff cannot offer personal assistance beyond information below. We encourage you to seek advice from the Internal Revenue Service, the North Carolina Department of Reveue, or a qualified tax professional.
Filing Federal Tax Return
To file your federal tax return, the first step you should do is to determine your residency status, which can be different from your immigration status.
Determine your residency status for tax purposes
To determine your residency status, you should use two tests: (1) the “green card” test, and (2) the “substantial presence” test, a formula which counts the number of days you were present in the U.S. during the tax year (2008) and the two prior years (2007 and 2006).
If in 2008 you received permanent resident status, or more commonly known as “green card” from the U.S. Citizenship and Immigration Service, you are a resident for tax purposes. You will be taxed like a U.S. citizen.
F or J Student
If you are in the U.S. in an F or J student status, you are exempt from the “substantial presence” test for five calendar years. In other words, if you first entered the U.S. in 2004 (even for one day) or after, you are considered a nonresident for tax purpose. If you entered the U.S. before 2004, you are likely to be considered a resident for tax purposes.
J Scholar or Researcher
If you are in the U.S. in a J scholar status, you are exempt from the “substantial presence” test for two calendar years. In other words, if you first entered the U.S. in 2007 (even for one day) or after, you are considered a nonresident for tax purposes. If you entered the U.S. before 2007 or if you have been in the U.S. previously in another status, you are likely to be considered a resident for tax purposes.
H, TN, or O Status
If you are in the U.S. in an H, TN, or O status, you need to apply the “substantial presence” test. You should count:
(1) the number of days you were present in the U.S. in 2008;
(2) 1/3 of the days you were present in the U.S. in 2007; and
(3) 1/6 of the days you were present in the U.S. 2006
If the total is less than 183 days, you are considered a nonresident alien for tax purposes. If the total is more than 183 days, you are a resident for tax purposes.
The following information is for non-residents for tax purposes. If you have determined that you are a resident for tax purposes, you will not be able to use the resources provided by International House. You can utilize Internal Revenue Service’s free on-line filing services (if your adjusted gross income is $56,000 or less), request assistance at other Triangle area community tax centers (for qualified low income individuals), purchase commercial tax preparation software, download the appropriate IRS instruction booklet for the form you are filing, or consult a paid professional tax preparer.
Taxable versus nontaxable income
The United States does not tax foreign-source income (i.e., scholarship you received from your home government) received by nonresident aliens. Other examples of non-taxable income for nonresident aliens are:
• Interest from a U.S. bank or credit union;
• A scholarship or fellowship that pays your tuition or fees required for your enrollment (a scholarship or fellowship that pays for your room and board or travel are taxable)
Determine which forms you should file
All nonresidents for tax purposes who were present in the U.S. in 2008 are required to file a tax return, whether or not you had income.
If you did not earn any income or had only non-taxable income from a U.S. source (e.g., a Duke scholarship, interest from a bank account), you need to send the completed Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition, available at http: //www.irs.gov/ by Monday, June 15th to: Department of Treasury, International Revenue Service Center, Austin, TX 73301-0215.
If you earned income from a U.S. source (i.e., working on campus) in 2008, you need to send the completed Form 8843 with Form 1040 NR-EZ or Form 8843 with Form 1040 NR by Wednesday, April 15th. We highly recommend that you use the CINTAX software, which can be purchased at the International House for $5 (exact change or check). However, you can also use download the appropriate IRS instruction booklet for the form you are filing, or consult a paid professional tax preparer who is familiar with nonresident tax return.
Using CINTAX
You can use CINTAX, a web based program, to prepare your federal return. Each person who uses CINTAX must have a valid Access Code. You must create a new User Account each tax year. You may not access CINTAX now using login information from previous years. Be sure to check the instruction sheet, which is available at I-House, for more detailed directions.
You need to file Form D-400 only if you have North Carolina income greater than $5,500 if you are single, or $2,500 if you are married but filing taxes separately from your spouse. However, you should always file if you are eligible for a refund.
To file a North Carolina tax return, be sure to have your 1040NR-EZ or 1040-NR, your W-2 and/or 1042-S before you start. You will be moving back and forth between these federal forms and the state Tax Form D-400 as you do your calculations. Also double-check that you have entered the correct filing status and number of exemptions on Form 1040NR-EZ or Form 1040NR as you will put the same information on your state return.
You can download the line-by-line instructions below. Please note that the instructions are for students and scholars in F or J status. If you are in another status, please refer to the North Carolina Department of Revenue web site.
North Carolina Department of Revenue Tax Forms and Instructions
North Carolina Department of Revenue Individual Income Tax Information
North Carolina Department of Revenue Office
4701 Atlantic Avenue, Suite 118
Raleigh, NC 27604
Phone: 1-877-252-3052
U.S. Income Tax Return for International Postdocs (H and O visa holders ONLY)
Presented by Margaret Hung, H & R Block
12-2 pm, Thursday, February 26
Bryan Research Center Auditorium
Federal Tax Information for International Graduate Students
Presented by John Lenik, Senior Tax Specialist, IRS
1-3 pm, Tuesday, March 3
0014 Westbrook, Duke Divinity School
Margaret Hung
H&R Block
800 Eastowne Drive Suite 102
Chapel Hill
E-mail: mh34102@msn.com
Phone: 919-403-3756 Ext. 24
E-mail for more information or to schedule an appointment.
Dee Blankfard
Tax Preparation for J and F Visa Holders ONLY
Durham
E-mail: dblankfard@yahoo.com
Phone: 919-416-9548
Former International House employee. Will prepare NC state return for $50 (MUST bring completed federal return); prepare federal with any state returns for $200
If in 2008 you received permanent resident status, or more commonly known as “green card” from the U.S. Citizenship and Immigration Service, you are a resident for tax purposes. You will be taxed like a U.S. citizen.
F or J Student
If you are in the U.S. in an F or J student status, you are exempt from the “substantial presence” test for five calendar years. In other words, if you first entered the U.S. in 2004 (even for one day) or after, you are considered a nonresident for tax purpose. If you entered the U.S. before 2004, you are likely to be considered a resident for tax purposes.
J Scholar or Researcher
If you are in the U.S. in a J scholar status, you are exempt from the “substantial presence” test for two calendar years. In other words, if you first entered the U.S. in 2007 (even for one day) or after, you are considered a nonresident for tax purposes. If you entered the U.S. before 2007 or if you have been in the U.S. previously in another status, you are likely to be considered a resident for tax purposes.
H, TN, or O Status
If you are in the U.S. in an H, TN, or O status, you need to apply the “substantial presence” test. You should count:
(1) the number of days you were present in the U.S. in 2008;
(2) 1/3 of the days you were present in the U.S. in 2007; and
(3) 1/6 of the days you were present in the U.S. 2006
If the total is less than 183 days, you are considered a nonresident alien for tax purposes. If the total is more than 183 days, you are a resident for tax purposes.
The following information is for non-residents for tax purposes. If you have determined that you are a resident for tax purposes, you will not be able to use the resources provided by International House. You can utilize Internal Revenue Service’s free on-line filing services (if your adjusted gross income is $56,000 or less), request assistance at other Triangle area community tax centers (for qualified low income individuals), purchase commercial tax preparation software, download the appropriate IRS instruction booklet for the form you are filing, or consult a paid professional tax preparer.
Taxable versus nontaxable income
The United States does not tax foreign-source income (i.e., scholarship you received from your home government) received by nonresident aliens. Other examples of non-taxable income for nonresident aliens are:
• Interest from a U.S. bank or credit union;
• A scholarship or fellowship that pays your tuition or fees required for your enrollment (a scholarship or fellowship that pays for your room and board or travel are taxable)
Determine which forms you should file
All nonresidents for tax purposes who were present in the U.S. in 2008 are required to file a tax return, whether or not you had income.
If you did not earn any income or had only non-taxable income from a U.S. source (e.g., a Duke scholarship, interest from a bank account), you need to send the completed Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition, available at http: //www.irs.gov/ by Monday, June 15th to: Department of Treasury, International Revenue Service Center, Austin, TX 73301-0215.
If you earned income from a U.S. source (i.e., working on campus) in 2008, you need to send the completed Form 8843 with Form 1040 NR-EZ or Form 8843 with Form 1040 NR by Wednesday, April 15th. We highly recommend that you use the CINTAX software, which can be purchased at the International House for $5 (exact change or check). However, you can also use download the appropriate IRS instruction booklet for the form you are filing, or consult a paid professional tax preparer who is familiar with nonresident tax return.
Using CINTAX
You can use CINTAX, a web based program, to prepare your federal return. Each person who uses CINTAX must have a valid Access Code. You must create a new User Account each tax year. You may not access CINTAX now using login information from previous years. Be sure to check the instruction sheet, which is available at I-House, for more detailed directions.
Filing State Tax Return
You need to file Form D-400 only if you have North Carolina income greater than $5,500 if you are single, or $2,500 if you are married but filing taxes separately from your spouse. However, you should always file if you are eligible for a refund.
To file a North Carolina tax return, be sure to have your 1040NR-EZ or 1040-NR, your W-2 and/or 1042-S before you start. You will be moving back and forth between these federal forms and the state Tax Form D-400 as you do your calculations. Also double-check that you have entered the correct filing status and number of exemptions on Form 1040NR-EZ or Form 1040NR as you will put the same information on your state return.
You can download the line-by-line instructions below. Please note that the instructions are for students and scholars in F or J status. If you are in another status, please refer to the North Carolina Department of Revenue web site.
More Resources
North Carolina Department of Revenue Tax Forms and Instructions
North Carolina Department of Revenue Individual Income Tax Information
North Carolina Department of Revenue Office
4701 Atlantic Avenue, Suite 118
Raleigh, NC 27604
Phone: 1-877-252-3052
On-campus Workshops
U.S. Income Tax Return for International Postdocs (H and O visa holders ONLY)
Presented by Margaret Hung, H & R Block
12-2 pm, Thursday, February 26
Bryan Research Center Auditorium
Federal Tax Information for International Graduate Students
Presented by John Lenik, Senior Tax Specialist, IRS
1-3 pm, Tuesday, March 3
0014 Westbrook, Duke Divinity School
Tax Professionals
Margaret Hung
H&R Block
800 Eastowne Drive Suite 102
Chapel Hill
E-mail: mh34102@msn.com
Phone: 919-403-3756 Ext. 24
E-mail for more information or to schedule an appointment.
Dee Blankfard
Tax Preparation for J and F Visa Holders ONLY
Durham
E-mail: dblankfard@yahoo.com
Phone: 919-416-9548
Former International House employee. Will prepare NC state return for $50 (MUST bring completed federal return); prepare federal with any state returns for $200