All posts in Sprintax

  • How the rule changes for NCAA compensation affect the taxation of nonresident student athletes in the US

    NCAA NIL policy and nonresident alien athletes

    Thursday 1 July 2021 will forever be remembered for the dawn of a new era in US college sports.

    Students who participate in National Collegiate Athletic Association (NCAA) competitions are now – for the very first time – entitled to make money from a wide variety of business ventures, without losing their eligibility to compete.

    Perhaps the most interesting developments surround what is known as ‘NIL’ rights (name, image and likeness).

    A combination of state laws and NCAA NIL policy changes has now removed restrictions preventing athletes from selling their NIL rights.

    While these changes do not mean that college football players can suddenly begin to receive big salaries, they do open the door for athletes to claim a bigger piece of the billions of dollars generated by US college sports each year.

    However, making money from NIL will not necessarily be straightforward for every student athlete.

    There are thousands of nonresident athletes on scholarships at universities around the US.

    For many of these international students, it will be advisable to steer clear of NIL income – at least for now – lest they violate the terms of their visa.

    In this guide, we will take a closer look at the NCAA rule changes and examine how they affect nonresident athletes in the US.
    Continue reading “How the rule changes for NCAA compensation affect the taxation of nonresident student athletes in the US” »

  • How to File Prior-Year Tax Returns as a Nonresident Alien

    How Do I File Back Tax Returns

    People do not file their taxes for a variety of reasons. Perhaps you forgot or were unaware that you had to file. Perhaps you had a hefty tax bill that you could not cover.

    Whatever the reason, if you did not file your tax return by the deadline, you should do it as soon as possible. Otherwise, you risk being hit by fines, and you can jeopardize your future visa applications.

    As a nonresident, you probably know that you have the obligation to file a tax return if you were in the US for just one day, and even if you did not earn any income in order to stay compliant with your visa tax commitment.

    This guide will outline everything you need to know as a nonresident if you did not file your prior-year tax return(s). So, keep reading!

    Continue reading “How to File Prior-Year Tax Returns as a Nonresident Alien” »

  • Here’s the ultimate guide to nonresident taxes in the US

    US nonresident alien tax guide

    Whether you are dreaming of a trip to the US, or you are about to embark on one, the prospect of jetting off to The Land of Opportunity is bound to be exciting.

    While you get to grips with the culture in the US, one area that often confuses nonresidents is tax.

    That’s why Sprintax is here!

    We specialize in making tax as straightforward as possible to newcomers in the US.

    So, without further ado, here’s our ultimate guide to nonresident tax in the US. Continue reading “Here’s the ultimate guide to nonresident taxes in the US” »

  • Introducing your one stop shop for determining tax treaty entitlements!

    SprintaxTDS launch new tax treaty engine

    SprintaxTDS launch new Tax Treaty Engine

    Every year, the proper documentation and withholding of tax from nonresidents becomes a bigger issue for organizations around in the US.

    Exactly how a nonresident should be taxed depends on a number of unique circumstances including where they’re from, the type of income they are earning and the amount of time they have spent in the US.

    Staying on top of these requirements has become a significant challenge for payroll office staff in a plethora of different industries.

    The correct determination and application of tax treaty benefits to employee paychecks is particularly challenging.

    After all, the US has signed tax treaty agreements with 66 different countries. Continue reading “Introducing your one stop shop for determining tax treaty entitlements!” »

  • H2B workers and taxes – all you need to know

    H2B visa cap increased for 2021

    What is the H-2B visa?

    The H2B program allows employers in the US, who meet regulatory requirements, to bring nonresidents to the US to fill temporary (non-agricultural) jobs – for example, hotel staff, janitors, amusement park workers, landscapers, etc.

    US Government announces increase in H2B visa cap for 2021

    The US government has announced that the H2B visa cap has been extended by 22,000 visas to a total of 88,000 per year. Continue reading “H2B workers and taxes – all you need to know” »

  • Hiring a J1 worker? Here’s everything you need to know about tax!

    J-1 employees tax requirements

    The J1 visa program was stopped in its tracks in March 2020, following the outbreak of COVID-19.

    Thankfully, in large part due to vaccination rollout, demand for J1 visas is starting to climb again in 2021.

    If you intend to hire J1 employees at your organization, it is important to ensure that their tax compliance is managed correctly from the start.

    With that in mind, this article will cover everything you need to know to ensure J1 workers are taxed correctly, as soon as they start work.

    Continue reading “Hiring a J1 worker? Here’s everything you need to know about tax!” »

  • Nonresident aliens: Your guide to navigating the COVID-19 CARES Act Stimulus Payments

    Can I claim the CARES payment as a nonresident?

    Updated: 19 April 2021

    Note: In March 2021, the US government began distributing a third round of stimulus checks – worth $1,400. If you received this check, and you are not entitled to it, you will find the advice in this article useful!

    You can also read more about the second pandemic stimulus payment (worth $600) here.

    This article was originally published on 17 April 2020

    What you need to know about the CARES Act

    In response to the COVID-19 pandemic, the US government introduced the CARES (Coronavirus Aid, Relief and Economic Security) Act in April 2020.
    Continue reading “Nonresident aliens: Your guide to navigating the COVID-19 CARES Act Stimulus Payments” »

  • Tudo o que você precisa saber sobre os impostos de Au Pair nos EUA

    Sonha com uma longa viagem internacional?

    Muitas famílias nos Estados Unidos optam por contratar uma au pair para seus filhos. Todos os anos, aproximadamente 20.000 au pairs entre 18 e 26 anos de idade vão aos EUA vindas de outros países.

    Um dos muitos desafios que uma au pair terá que enfrentar no período de adaptação é o de se familiarizar com o sistema tributário americano.

    Com isso em mente, elaboramos este guia prático com tudo o que uma au pair precisa saber sobre os impostos americanos. Continue reading “Tudo o que você precisa saber sobre os impostos de Au Pair nos EUA” »

  • Todo lo que necesitas saber sobre los impuestos de las “Au Pairs” en Estados Unidos

    ¿Sueñas con hacer un viaje internacional prolongado?

    Muchas familias en Estados Unidos optan por contratar una Au Pair para sus hijos y cada año, aproximadamente 20.000 Au Pairs de entre 18 y 26 años vienen del extranjero.

    Al adaptarse a su nueva vida en Estados Unidos, uno de los muchos retos que se encontrará una Au Pair es el de adaptarse al sistema fiscal estadounidense.

    Por eso, hemos elaborado esta guía práctica con todo lo que una Au Pair debe saber sobre los impuestos en Estados Unidos. Continue reading “Todo lo que necesitas saber sobre los impuestos de las “Au Pairs” en Estados Unidos” »

  • Novidade: Sprintax agora está ATIVO para o E-Filing Federal de Não-residentes!

    Nunca foi tão fácil para não-residentes nos EUA apresentar a declaração de impostos federais.

    Estamos animados em anunciar que a Sprintax – a única solução online para declarações de impostos federais e estaduais de não-residentes nos EUA – está agora disponível para o Federal E-Filing.

    Isso significa que, ao preencher o questionário fácil da Sprintax, você pode apresentar sua declaração de impostos federais diretamente na IRS online. Continue reading “Novidade: Sprintax agora está ATIVO para o E-Filing Federal de Não-residentes!” »

  • Breaking: Sprintax is Now LIVE For Nonresident Federal E-Filing!

    It has never been easier to file your nonresident US federal tax return.

    We are thrilled to announce that Sprintax – the only online solution for nonresident federal and state tax returns – is now live for Federal E-Filing.

    This means that, by completing the easy Sprintax questionnaire, you can file your federal return directly with the IRS online.

    What is E-Filing?

    Sprintax is now approved by the IRS to submit Federal tax returns electronically (E-Filing).

    In short, this means you no longer need to download, print and mail a physical copy of your tax return to the US tax office. Instead, you can now file your federal tax return without ever having to leave the comfort of your own home.

    It’s also important to note that, by E-Filing your tax return, you will receive your US tax refund much faster than you would if you filed a paper tax return.

    E-File your tax return with Sprintax

    How does E-filing with Sprintax work?

    When you complete the Sprintax questionnaire and proceed through the order breakdown and payment stage, you will be ready to submit your 2020 US tax return.

    If you wish to E-File your taxes, you must firstly confirm that you have not previously E-Filed your 2020 tax return before.

    You can then click the ‘Proceed with E-File’ button to move to the next step.

    E-File Authentication

    To E-File your tax return you must first electronically sign your tax return using the information requested on the screen.

    Before you can sign your return, we must verify your identity. To do so, we will ask you to provide information from your previous federal tax return.

    If you filed a federal tax return last year, you can either provide your prior year adjusted gross income or your self-selected 5-digit pin.

    You can find your adjusted gross income on line 35 of your 2019 1040NR or on line 10 of your 1040NR-EZ. Please ensure the information you provide here is correct.

    If you did not file a tax return for tax year 2019, please enter ‘0’ as your prior year adjusted gross income.

    If you filed an amended tax return for tax year 2019, please enter the adjusted gross income listed on the return you filed originally.

    Electronically signing your tax return

    You will be required to select any 5-digit number (other than 00000) to electronically sign your tax return. Ensure you keep a record of this pin in a safe place.

    You will need to acknowledge that this pin is your signature and that and that you are now authorising transmission of your return.

    Final steps

    Next, you must read the disclaimer and consent statements and confirm your agreement and that you have reviewed the information that you have entered and examined your tax return.

    You will also need to confirm that the social security numbers of each person on the return are correct.

    You must then sign the above consent disclosure by entering your date of birth.

    Finally, simply click ‘E-File My Return’ to electronically send your tax return to the IRS.

    Can I E-File my state taxes with Sprintax?

    No. You can only E-File your federal tax return with Sprintax.

    However, if you are required to file a state tax return, Sprintax will help you to prepare the documents you need.

    When you complete our questionnaire, our software will provide you with your completed state tax return.

    To file your tax return, simply download, print and sign your documents and mail them to the tax office.

    Can everyone E-File their federal taxes?

    No.

    You will not be able to file online if:

    1. Any names or SSN do not coincide with the information provided at the About You step of the Sprintax questionnaire
    2. Any of your payment documents do not have an EIN
    3. Any of your W2 forms do not have a control number
    4. Any of your 1042-S forms do not have a unique code identifier
    5. You allocated some of your income as ‘earned outside the USA’
    6. You have capital gains income
    7. You have form 1099-NEC
    8. You have form 1099-MISC with box 4 higher than box 0
    9. You have included one of the following documents – Final payslip, 1099-DIV, 1099-INT or 1099-B
    10. You have self-employment income
    11. If you are not eligible to E-File your taxes, don’t worry. You can still download your completed forms from Sprintax and mail them to the IRS.

    You will also be unable to E-File a tax return using an ITIN which was issued in the same tax year you are filing the tax return.

    For example, if you apply for and receive an ITIN in 2020, you may not E-File any tax return using that ITIN (including prior-year returns) until 2021.

    If you are not eligible to E-File your taxes, don’t worry. You can still download your completed forms from Sprintax and mail them to the IRS.

    Do I have to E-File my tax return?

    No. If you would prefer not to file your taxes online, you can file by mail instead. Simply download your tax return, print it, sign it, and mail it to the IRS.

    What else is new with Sprintax?

    With our new OCR feature, you will save a lot of time when filing your tax return this year.

    In short, you will no longer be required to manually enter details from your income documents into the Sprintax questionnaire.

    Instead, you can simply upload your income documents and our software will populate the required information into your tax return.

    When is the tax filing deadline?

    It is important to file your tax return before the 17 May (the 2021 tax deadline has been extended from 15 April due to COVID-19).

    If you owe the IRS money and you don’t file your tax return by the deadline, you may incur late filing fines and penalties from the IRS. You may also jeopardize your future US visa applications.

    What’s more, 70% of Sprintax users receive a tax refund. By not filing, you risk missing out on your tax refund.

    The average federal refund is $1,126. Do you really want to leave that kind of money in the US? Of course not!

    E-File your 1040NR US tax return with Sprintax.

    Who must file tax documents in the US?

    Every nonresident in the US has a tax filing requirement.

    If you earned income in the US, you will be required to file a federal tax return. You may also have a state tax filing requirement.

    Nonresident aliens who are in the US on a J or F visa must file a Form 8843 “Statement of Exempt Individuals and Individuals with a Medical Condition” even if they received no income in the US.

    No matter what nonresident tax document you need to file, Sprintax can help you. Get started with your US nonresident tax return here.

    Why choose Sprintax?

    Sprintax will cater to all of your nonresident tax filing requirements.

    • We help more than 215,000 nonresidents (from over 200 nationalities) with their taxes every year
    • We are now live for Federal Tax Return E-Filing
    • Automatic generation of completed tax documents including federal, state and FICA tax returns, form 8843, tax return amendments and more
    • Your maximum US tax refund guaranteed – our average federal refund is $1,126
    • 24/7 Live Chat tax support

    How to get started

    To file your US federal tax return online with Sprintax, simply create your account or login here.

    Next, we will ask you a couple of easy questions about your time in the US and the income you earned.

    Our software will then automatically apply any treaty benefits or tax relief you are entitled to – minimizing your tax bill!

    You will then have the opportunity to either E-File or download your completed documents.

    It’s that easy! E-File your US taxes today!

  • Your frequently asked nonresident tax questions answered

    US Nonresident Tax questions answered

    Here are the answers to some of the most frequently asked questions about U.S. taxes. Continue reading “Your frequently asked nonresident tax questions answered” »

  • I have received a 1095 form. Should I include this on my tax return?

    Do you need a form 1095 to file your taxes?

    Which details from your 1095 and 1098 forms should you include on your tax return?

    In March 2010, when President Obama signed the Affordable Care Act (ACA) into law, three new forms were introduced into the US tax system – 1095 A, B, and C.

    The primary focus of these forms is to account for the healthcare coverage you purchased during the tax year.

    However, if you are a nonresident in the US, you may be wondering why you received a 1095 form (especially when you consider that purchasing healthcare coverage through the Health Insurance Marketplace is not mandatory for nonresidents) and whether or not you can claim any benefits on your tax return.

    The answer to this question very much depends on your personal circumstances and the type of form you received.

    In this guide, we will cover everything you need to know about 1095 forms and how to file a compliant tax return. Continue reading “I have received a 1095 form. Should I include this on my tax return?” »

  • How to apply for your ITIN from outside the US

    When sitting down to file taxes, one of the first items every taxpayer requires is your TIN (Taxpayer Identification Number).

    This will either be your Social Security Number (SSN) or your ITIN if you are not eligible for a SSN.

    If you have a social security number you won’t need an ITIN.

    If you just need to file Form 8843 (had no taxable US income) then you likely will not need an ITIN either.

    However, some nonresidents that have earned taxable US income but are not eligible for a SSN will likely need to apply for what is known as an Individual Taxpayer Identification Number (ITIN). Continue reading “How to apply for your ITIN from outside the US” »

  • Did you leave the US due to Covid-19? You could be due a tax refund!

    Covid-19 called a halt to countless peoples plans in 2020!

    Many nonresidents had to leave their adventures in foreign lands and travel home.

    If you were one of the people who had to leave the US due to the pandemic…we feel your pain!

    However, you should know that you still have tax filing obligations in the US!

    Lucky for you, you could be due a big tax refund! Continue reading “Did you leave the US due to Covid-19? You could be due a tax refund!” »