Yes. You need to file Form 8843. This is the only form you will need to complete, which is a change from previous rules, which used to require that students with no income file both file 8843 and 1040NR or 1040NR EZ. F-1 or J-1 students with U.S. income from other sources, such as dividend income, salary or wages, scholarships or fellowships, prizes or awards will need to file form 1040NR or 1040NR EZ.

What about my F-2 and J-2 dependents? top>>

All F-2 and J-2 dependents, whether or not they are students, must file Form 8843 even if they had no U.S. income of any kind for 2003, or if the only income they had was from bank interest. If there was any other U.S. income, they will also need to file a 1040NR EZ or 1040NR.

I'm a new student for the Spring 2004 semester but arrived in the U.S. in late December 2003. Do I need to file a tax form? top>>

Yes! If you are in F-1 or J-1 status, or a F-2 or J-2 dependent, and were in the U.S. for any part of 2003, even if it was just a few days, you will need to file a tax form. If you had no U.S. income in 2003, you will only need to file Form 8843.

If I have U.S. income other than bank interest, which form should I use, 1040NR EZ or 1040NR? top>>

Most students will find that they can use the 1040NR EZ, which is much simpler to complete than the 1040NR. Whichever form you use, you must also complete Form 8843. However, there are some rules and limits for using the 1040NR EZ. You may use the 1040NR EZ if:

• Your only U.S. income was from wages, salaries, tips, taxable refunds of state and local income taxes, and scholarship or fellowship grants. (If you had dividend income from stocks or bonds, or taxable interest from mutual funds, you must use 1040NR.)
• You do not claim any dependents (only citizens of Canada, Mexico, India, Korea and Japan can claim spouses and/or children as dependents, and they can only do so by filing form 1040NR).
• You cannot be claimed as a dependent on another person's U.S. tax return.
• You were born after January 1, 1933 and were not blind at the end of 2003.
• Your taxable income was less than $50,000.
• The only itemized deductions you claim are for state and local taxes (if you wish to claim charitable or other deductions, you must use 1040NR).

My bank (or credit union) mailed me a form in January, called a Form 1099-INT, indicating the amount of interest I earned on my savings account/money market account/certificate of deposit. Do I need to include this amount on my income tax forms? top>>

It depends. Non-residents filing form 1040NR EZ do not include U.S. bank or credit union interest as income. But nonresidents filing Form 1040NR include this interest on Item L (page 5).

Both form 1040NR EZ and 1040NR ask for social security numbers or taxpayer identification numbers. Is this the same as the number I was issued by the university when I was admitted? It has the same number of digits. top>>

NO! All people on F-1 and J-1 who have been authorized to work in the United States should have a Social Security number (SSN) , issued by the U.S. Social Security Administration. Students in F-1 and J-1 status (and their dependents in F-2 or J-2 status) who may not be eligible for a SSN, but need an identification number to file their income tax form must obtain an Individual Tax Identification Number (ITIN). An alien can apply for an ITIN by completing Form W-7 and bringing it in person, along with their passport and other identifying documents, to the local office of the Internal Revenue Service (IRS). Form W-7 is available on the web sites listed above. Form W-7 is designed for individuals who are not eligible to apply for Social Security Numbers. The IRS has recently announced that F and J visa holders who have no U.S.-source income, and thus file only the Form 8843, need neither an SSN nor an ITIN to file Form 8843.

I am a student from India, and I've heard that my country's tax treaty allows me to claim the standard deduction, but I can find no additional information about this benefit. top>>

Information on this benefit can be found in IRS Publication 519, p.22. Students from India have the choice of itemizing their deductions or taking the standard deduction amount. Since the standard deduction for 1997 is $4150 if you are single, most will take this amount. On form 1040NR EZ, enter $4150 on line 10 if you are single. If you are married, and your spouse also files a return, enter $3450 on line 10. On page 2 of the 1040NR EZ, question J, type and amount of income exempt from tax, write: Standard deduction allowed under U.S.-India Tax Treaty article 21(2). If you are married and your spouse has no U.S. source income, file form 1040NR, not form 1040NR EZ. Enter the standard deduction on line 3 of schedule A of form 1040NR. In the space to the left of line 3, write: Standard deduction allowed under U.S.-India Tax Treaty article 21(2). Also enter the amount on line 34 of form 1040NR. By claiming the standard deduction, you cannot claim any itemized deductions, such as state and local taxes.

If my country has a tax treaty with the U.S., does that mean I don't have to file any tax forms? top>>

No! All F-1 and J-1 status holders must file a tax form (see question #1), and in order to claim tax treaty benefits, you must file federal income tax forms 8843 and either 1040NR EZ or 1040NR.

I've received a form 1042-S. How do I reflect this on my tax return? top>>

It all depends upon the TYPE of income being reported on the 1042-S. Look at the income code in column (a) of the form. An income code of 15 is for a scholarship or fellowship grant, and would be reported on line 5 of form 1040NR-EZ or line 8 of form 1040NR. An income code of 19 refers to a tax treaty amount withheld from wages, and would be reported on line 6 of form 1040NR-EZ or line 22 of form 1040NR. Do not include this amount as part of your wages on line 3 of form 1040NR EZ or line 8 of form 1040NR.

I am eligible to claim a tax treaty deduction, since my country has a tax treaty with the U.S. but I never received a form 1042-S. Instead, all of my earnings are reported on my form W-2. How do I complete form 1040NR EZ to claim my tax treaty deduction? top>>

Let's assume, for the sake of this example, that you are permitted to claim $2000 as your tax treaty amount to be deducted from wages. Subtract your tax treaty amount from your salary and wages as reported on your form W-2. Write that difference on line 3 of form 1040NR-EZ. If your tax treaty amount is more than your salary as reported on your W-2, put zero on line 3. Then indicate the tax treaty amount on line 6. (You can verify your country's tax treaty information by consulting IRS Publication 901, U.S. Tax Treaties. Be sure you are consulting the section that summarizes tax treaty benefits for students. Forty-five countries have tax treaties with the U.S.) Be sure to answer question j on Page 2 completely. Students from India should follow the instructions provided in the answer to question #8.

How do I complete Form 8843? top>>

All F-1 and J-1 students/scholars filing form 1040NR EZ or form 1040NR must attach Form 8843 to it. F-1 and J-1 students/scholars and F-2 and J-2 dependents with no U.S. income, or for whom the only U.S. income is bank interest complete Form 8843 only. To complete Form 8843, print your name and social security number (or individual taxpayer identification number) across the top of the form. Complete Parts I and Part III (Leave Part II blank).

Under my visa as a temporary non-resident alien, I'm not subject to social security and Medicare withholding. My employer withheld the taxes from my pay. What should I do to get a refund of my social security and Medicare? top>>

If social security tax was withheld in error from pay received, which was not subject to the tax, contact the employer who withheld the tax for reimbursement. If you are unable to get a refund from the employer, file a claim for refund with the Internal Revenue Service on Form 843, Claim for Refund and Request for Abatement.

Attach the following to your claim:

• a copy of the Form W-2, Wage and Tax Statement, to prove the amount of social security tax withheld
• a copy of INS Form I-94, Arrival/Departure Record
• a copy of INS Form I-538, Application of Non-immigrant Student (F1) for Extension to Stay, School Transfer or Permission to Accept or Continue Employment
• a statement signed by the student stating that he/she has asked the employer for reimbursement of social security tax withheld in error but has been unable to get a refund

File the claim for refund (with attachments) with the IRS office where the employer's returns were filed. If you do not know where the employer's returns were filed, file the claim with the Internal Revenue Service Center, Philadelphia, PA 19255.

For more information, see Publication 519, U.S. Tax Guide for Aliens.

I live in a foreign country. How do I get a SSN for my nonresident alien dependent? top>>

Form SS-5-FS may be obtained from the Social Security Administration.

My spouse is a nonresident alien. How can I get a non-working SSN for her? top>>

Since 1997, each foreign person who does not have and cannot obtain a Social Security Number must use an IRS Individual Taxpayer Identification Number (ITIN) on any U.S. tax return or refund claim filed. This would include:

• filing a U.S. tax return to report U.S.-source income
• filing a U.S. tax return only to claim a refund of tax withheld
• being the spouse of a U.S. citizen or resident who elects to file a joint tax return
• being claimed as a spouse for an exemption on a U.S. tax return
• being claimed as a dependent on another person's U.S. tax return

Use IRS Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), to apply for an ITIN by mail or in person at most IRS offices. Complete Form W-7 at least 5 to 6 weeks before you need an ITIN. Sign and date the form and be sure to provide all information requested.

Provide original or certified copies of identity documents (examples of acceptable documents include an original passport, national identity card, etc.) Original Documents will be returned.

Note: If you have an INS document showing you are allowed to work in the U.S., you are eligible for an SSN and should not file Form W-7.

Mail the completed Form W-7 and all information requested to the following address:

Internal Revenue Service
Philadelphia Service Center
W-7 Unit
P.O. Box 447
Bensalem, PA 19020 USA

You can apply for ITIN at most Internal Revenue Service offices. You will find a list of IRS offices abroad which accept Form W-7 at the end of Publication 1915.

If you have not heard from the IRS regarding your ITIN application within 14 days after you filed Form W-7, you may call 215-516-ITIN (215-516-4846) to find out the status of your application. This is not a toll-free number. Be sure to have a copy of your Form W-7 application available when you call. Please allow 14 days from the date you filed Form W-7 before calling the IRS about the status of your application.

For additional information about ITINs, see Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number.

How much money can I bring in to the U.S.? top>>

There is no limit on the total amount of monetary instruments which may be brought in to or taken out of the United States, nor is it illegal to do so. However, if you transport or cause to be transported (including by mail or other means) more than $10,000 in monetary instruments on any occasion in to or out of the United States, or if you receive more than that amount, you must file Form 4790, Report of International Transportation of Currency or Monetary Instruments with U.S. Customs (Currency & Foreign Transactions Reporting Act, 31 U.S.C. 1101, et seq.). Failure to comply can result in civil, criminal and/or forfeiture penalties. Monetary instruments include U.S. or foreign coin in current circulation, currency, travelers checks in any form, money orders, and negotiable instruments or investment securities in bearer form.

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