Is it necessary to file tax returns ?

Is it necessary to file tax returns for foreign students or employees?

Every person in the United States, regardless of immigration status is responsible each year for filing a tax return. When a person is employed a part of the income will be withheld (deducted) for paying taxes and paid directly to the government. In annual tax return, one must reconcile the account with the government to verify that he or she paid the right amount over the course of the year. If the employer paid too much, a refund may be claimed. F, J, M, & Q visa holders are exempt from FICA. So if an employer charges FICA tax erroneously, they can claim this as refund.

Foreign students must file a tax return even if they did not have income from a U.S. source. Sources of U.S. income for students may include on-campus employment, scholarships, fellowships, graduate assistantships, practical or academic training, and any compensation received for labor. Foreign students do not have to pay taxes on interest paid to them by U.S. banks.

What can happen if a non-resident fails to file tax forms yearly?

Unfortunately, there can be immigration consequences for failing to file tax forms. For example, applicants to change from F-1 to H-1B (work visa) can be asked by the Immigration Service to submit copies of previous years' income tax forms as part of their H-1B application. Applicants for permanent residency (green cards) can be asked to show copies of tax forms filed for previous years.

Filing status for foreigners

F-1 or J-1 students who entered the US before January 1, 1999, or J-1 scholars who entered the US before January 1, 2002, or a H1B or TN visa holder who was in the US at least 183 days in 2003, or U.S citizens or green card holders are considered as residents for tax purposes. All others are considered non-residents.

Forms and deadlines:

Residents are required to file Form 1040 or 1040A or 1040-EZ. Due date for filing is April 15, 2004.

Non-residents who earned U.S. income at anytime during 2003 are required to file Forms 1040 NR or 1040NR-EZ and 8843 (only for students). Due date for filing is April 15, 2004.

Non-resident students who did not earn any U.S. income during 2003 other than bank interest, need only to file form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition. Due date for filing is June 15, 2004.

Siva

siva_nellori@hotmail.com

are you asking a question or answering one ?

Hi,

I have to file tax return for income made for just 24 days. The W2 that I have states the Taxable Marital Status as single. I have brought my wife along with me also.I have to file just to get refund of the tax witheld for 24 days.

My question is can I file as single? My wife does not have a ITIN so I cannot file as Married Separate or Jointly.

What happens if I file Single. Is it illegal?

Hi,

You can file as ‘married filing jointly’ and claim exemption for your wife as dependent, if;

She stayed with you in USA in the year 2003
And
You stayed in USA for more than 183 days in 2003

In such case you need to get ITIN for her and also revised W2 (if your employer agrees).

If the above situation is not applicable to you, then you MUST file single. There is nothing illegal.

If you continue employment in USA and your wife also stays here, then inform your employer to issue W2 in future as married. And you can also apply for her ITIN.

Siva
siva_nellori@hotmail.com

Hi,

You can file as ‘married filing jointly’ and claim exemption for your wife as dependent, if;

She stayed with you in USA in the year 2003
And
You stayed in USA for more than 183 days in 2003

In such case you need to get ITIN for her and also revised W2 (if your employer agrees).

If the above situation is not applicable to you, then you MUST file single. There is nothing illegal.

If you continue employment in USA and your wife also stays here, then inform your employer to issue W2 in future as married. And you can also apply for her ITIN.

Siva
siva_nellori@hotmail.com