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INTERNATIONAL STUDENTS & U.S. TAXATION

All international students in F and J status (and dependents) must file a tax document with the U.S. Internal Revenue Service (IRS)---regardless of whether you were paid wages or not---if you were present in the U.S. between January 1, 2009 and December 31, 2009, and remain "exempt" after applying the rules of "substantial presence test."

Why must I file tax documents?

If you would like a general overview of the U.S. taxation process, please see the following guide published by NAFSA: Association of International Educators: NAFSA Tax Brochure.

Who Can Help Me or Answer My Questions?

Although the ISO can help you find the right forms and informational resources, staff members are not trained tax advisors. Please hit the links below to find the best resources for filing the Erie city and Pennsylvania state monetary (wages received) tax returns. When filing the federal tax returns (8843, non-monetary, or the 1040NR/1040NR-EZ, monetary), you may use CINTAX software system or work directly with the Internal Revenue Service. The federal tax link below will take you into the IRS Web site. The following site provides contact information for the Internal Revenue Service about filing your federal forms: http://www.irs.gov/help/article/0,,id=96730,00.html.

What should I file?

1. All international students (and their dependents) must file Form 8843.
• If you did not earn any income in the U.S. during 2009, and remain exempt after applying the rules of the stubstantial presence test, then this is the only document you must file for yourself and each of your family members. If you are not filing an income tax return (see below), the deadline for submission of the Form 8843 is June 15, 2010.
• The following link provides an example for filling out the 8843 on your own: Example 8843. Remember to enter the number of days appropriate in Part I, 4a. As an exempt individual, you can claim all days in 2009 as part of the days excluded. You must answer questions in Part III, as well, but the other parts may remain blank. Be sure to print out the form and sign it, then send the completed form to: Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215.
• You may request a CINTAX code to use the software for preparing the 8843 by visiting the ISO with your current student ID. CINTAX Instructions for the 8843.
2. All students who earned income during 2009 should also file the following income tax returns, in addition to Form 8843, by April 15, 2010:
• Erie Local Tax (Form F1)
• Pennsylvania Tax (Form PA-40) (choose the 5th form down once you hit the form link: 2009 Pennsylvania Income Tax Return (PA-40)
• U.S. Federal Tax (Form 1040NR or 1040NREZ, unless you establish that you are not a non-resident alien for tax purposes after applying the rules of the substanital presence test)
• CINTAX (preparation software for federal tax returns): We will publish information about this software as soon as it becomes available. All current F-1 students will have access by individual code to this software on a first-come, first-served basis. Once the ISO has given current students an opportunity to obtain a code, the ISO will distribute the remaining codes to those in their first 12-months of OPT on a firt-come, first-served basis.
• CINTAX Instructions for the 8843 AND Monetary Return.

What documents do I need to file an income tax return?

To file an income tax return after earning income in the U.S., you must obtain a W-2 form from your employer.

Gannon University's Human Resources office mails this form to its employees every January at the address provided by the employee when applying for the SSN and/or when completing the I-9 form at the start of employment.  If you worked for Gannon University and have not received a W-2 form, please go to the HR office and update your address.  You can also call HR at 814-871-7145.

In addition, you must choose the appropriate federal, state, and city tax return forms. For the federal form, F and J students who have been in the country for less than 5 tax years and who do not meet the criteria established under the substantial presence test, should file the form 8843 and the monetary return form 1040NR or the 1040NR-EZ. Consult the IRS Web site for additional information, or you may request access to CINTAX software for assistance.

You cannot file your tax return until you have a W-2 form.

Am I a "Non-Resident Alien" or "Resident Alien" for Tax Purposes?
What does "NR" stand for on my federal tax return?

Most international students studying at Gannon University will be considered "Non-Resident Aliens for Tax Purposes."  This means that they should file federal tax forms which indicate "NR" for non-resident (e.g. 1040NR  or 1040NREZ).  

Determing whether you are a Non-Resident Alien or Resident Alien for Tax Purposes: The “Substantial Presence Test.”
To meet this test, you must have been physically present in the United States on at least 31 days during the current year, and 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count all of the days you were present in the current year, and one–third of the days you were present in the first year before the current year, and one–sixth of the days you were present in the second year before the current year. Do not count any day you were present in the United States as an "exempt" individual or commuting from Canada or Mexico to work in the United States on more than 75% of the workdays during your working period. An "exempt" individual may be anyone in the following categories: 

-A foreign government–related individual,
-A teacher or trainee with a J or Q visa who substantially complies with the requirements of the visa,
-A student with an F, J, M, or Q visa who substantially complies with the requirements of the visa;
or
-A professional athlete temporarily present to compete in a charitable sports event.

The term “exempt” as used…..means that the alien is exempt from counting their days of presence for the substantial presence test. F-1 and J-1 Students (and their dependents who derive their immigration status from the student) are generally exempt from counting their days of presence for 5 years.

Aliens often believe that the exempt status means that they are not required to pay taxes in the U.S. The exempt status does not mean that the student is exempt from filing or paying federal income taxes.

Keep in mind that the term "Non-Resident Alien" is only in consideration of your status with regard to U.S. taxation, and not immigration or any other purpose.

What is a 1098-T Form?

The 1098-T is issued as a statement to those who have paid school tuition and fees. Only U.S. Citizens, Lawful Permanent Residents, and Resident Aliens for Tax Purposes may claim a benefit from using the information on the 1098-T.

Do I pay "FICA" (Social Security taxes)?

In most cases, the University will NOT withhold FICA taxes from an international student's wages since you likely meet all the requirements set by the Internal Revenue Service (IRS) as primary visa-holders in F or J status (F-1 or J-1) and as Non-Resident Aliens for Tax Purposes. (There may, however, be exceptions.)

May I file a "joint" tax return with my spouse?

Non-resident Aliens for Tax Purposes must file "Married-Filing Separately." Only international students who are from particular countries (India, for example), with certain tax treaty benefits, or eligible as Resident Aliens for Tax Purposes may claim certain exemptions for spouses or be eligible to file a joint return.

How can I get the forms and statements I need to file a Canadian tax return?

If you are a Canadian citizen and need a statement regarding your tuition and fees in order to file a Canadian tax return, please see the Gannon Cashier in Courthouse Commons.

Why do I get a refund?

There are specific federal income tax withholding laws which guide the University and other employers in determining how much money to withhold from your paycheck.  Gannon University is required to withhold income taxes at the same rates applicable to all U.S. employees. The IRS treats income earned by Non-Resident Aliens differently from income earned by U.S. citizens, however. Non-Resident Aliens may not claim the same exemptions from taxation that U.S. citizens are allowed, and Non-Resident Aliens are not allowed to claim the "standard deduction" when filing the annual income tax return, unless authorized through a tax treaty. (Indian students can claim the standard deduction. Consult the IRS for information about whether you---as the citizen of a particular country---qualify for tax treaty benefits.)

What if I always get a big refund? 

The taxes withheld from your paycheck are determine in part by your completeion of a W-4 form when you started working.  Although international students must fill out a standard Form W-4, please disregard the instructions included with the form.  Rather international students must complete the form according to the following guidelines below.

Filling out the Form W-4 (Required for ALL Employees)

Item 1 - Name and Address: Enter name, as it appears on your passport, and local U.S. address (this should be your apartment/house address, not 109 University Square...)

Item 2 - Social Security Number: Enter U.S. Social Security number. Please leave blank if the individual does not have a U.S. Social Security number.

Item 3 - Marital Status: You must check "single" for marital status, regardless of actual marital status.

Item 4 - Name Change:

Check the box only if you already have a Social Security card and your name has changed since receiving the Social Security card.

Item 5 - Number of Allowances: You claim only one withholding allowance. Enter "1" on Line 5, regardless of actual withholding allowances.

Item 6 - Additional Amount: Write "NRA" on the dotted line. Do not enter any amount on Line 6 unless you wish to have an amount withheld in addition to the tax calculated as graduated withholding.

Item 7 - Exemption: Nonresident aliens are NOT permitted to claim "exempt" on Line 7.

Signature: Sign your name (first name followed by the last) and date the form with that day's date, according to the following format: month/day/year.