All posts tagged Federal tax return

  • Sprintax Tax Workshop: Non-resident taxes explained (video playlist)

    Preparing your non-resident tax returns can seem like a daunting task! Sprintax has helped many international students and scholars through the process and is always striving to make their experience as stress-free as possible.

    Check out our Tax Workshop playlist – we explain the most important things you need to know about US taxes and using Sprintax:

    The tax deadline is April 18th, so don’t delay and create an account!

    If you still have questions, Sprintax offers 24 hour support to students via our Live Chat facility here.

    Have a question? Ask our virtual assistant Stacy here.

     

  • I am an international student, why don’t I get a full refund of taxes paid?

    Many international students on F-1, J-1, M-1 and Q engage in practical training and earn income through one of the USCIS (United States Citizenship and Immigration Services) approved programs or participate in on-campus and off-campus employment during or post-study.

    Do I need to pay tax?

    It is sometimes thought that foreign students who receive any type of income and funds from their OPT or from on-campus or off-campus activity, are not liable to US taxes however this is untrue. For many international students, the US tax system may seem complex and as a result they are not aware of their filing and taxation obligations.

    According to US tax law and regulations (Publication 519), “non-resident aliens usually are subject to US income tax only on US source income”, respectively, foreign students under F1, M1, J1 and Q visas are liable to pay both federal and state income taxes on their US sourced income, which may include wages, tips, scholarship and fellowship grants, dividends, and so on.

    Non-resident aliens file Form 1040NR-EZ or 1040-NR “US Non-Resident Alien Income Tax Return” to assess and file federal income and taxes. Most non-resident aliens do not qualify for the standard deduction.

    Tax Time post-it and Red Alarm Clock. 3D Rendering

    Do I need to file a tax return?

    If your gross earned income from sources within the US does not exceed the personal exemption allowance ($4,100 in 2016), a federal income tax return is not due and any federal tax withheld will be refunded in full.

    Scholarships and Fellowship Grants are also taxable income when paid to non-resident aliens. IRS Notice 87-31 exempts scholarships and fellowships from tax in the US when paid to US citizens and residents, yet the US scholarship and fellowship grants paid directly to a foreign student are generally taxable and subject to reporting.

     

    Can I deduct expenses?

    The general rule is that you cannot deduct personal or living expenses, unless specifically allowed by the US tax code. Some foreign students are eligible for a direct write-off of that part of the scholarship or grant that was used to cover qualified educational expenses. The deduction applies to all non-resident aliens who are candidates for a degree or at least half-time students.

    The qualified educational expenses also include all out-of-pocket expenses paid for tuition, academic fees, books, supplies and equipment required by a college or university.

     

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    What is a tax treaty?

    Another way for international students to decrease federal income tax is to avail of a tax treaty which will allow them to fully or partially exempt their US sourced income from federal and/or some state income taxes.

    The US tax treaty network covers more than 65 countries and almost all treaties have specific provisions that apply to students, trainees and apprentices.

    In conclusion, foreign students are liable to pay US income taxes on the income they earn in US, including wages, tips, scholarship and fellowship grants, dividends, and must use non-resident tax return forms 1040NR-EZ or 1040-NR to calculate the amount of federal income tax they must pay.

     

    Am I due a tax refund?

    If the amount of tax deducted from your payments during the tax year 2016 is more than the tax shown on your 1040NR-EZ or 1040-NR, then you will be due a refund, otherwise you will be required to pay your US tax liabilities.

    It is important to note that each individual state has its own tax system and tax regulations imposing different residency and filing requirements under which foreign students may have to a file state tax return and pay state income tax even when no federal return is due.

     Claiming-a-tax-refund-–-explained-step-by-step

    Preparing your tax return online

    Sprintax.com offers you non-resident tax form preparation online through a simple step-by-step process. The software analyzes personal, income and tax information and produces non­-resident tax forms such as 1040NR, 1040NR-EZ, more than 10 state tax returns, including CA, NY, MI, IL, PA, MA, NC, NJ, VA, GA and many others, including the 8843 form and W-7 ITIN application where applicable.

    Through the user-friendly, step-by-step application, the software collects data that considers your allowed expenses, tax treaty benefits, deductions and exemptions helping you to prepare a compliant tax return and reduce your income tax liability as much as is legally possible.

    Sprintax offers 24 hour support to students via our Live Chat facility to answer any questions you may have here.

    Have a question? Ask our virtual assistant Stacy here.

     

  • 2016 Tax Season A Fantastic Success!

    With the 2017 tax filing season open, it’s time to take a look back at the 2016 season and what we achieved.

    Successful season for Sprintax

    The 2016 tax season saw a huge increase in the number of students and scholars using Sprintax to prepare their Federal and State tax returns.

    With a similar increase in contracted colleges and universities for 2017, we are expecting this to be another record year.

    In 2016 the average Federal refund was over $900, and while everyone’s circumstances are different, the vast majority of those who prepared a Federal return received a refund – so it does pay to file your taxes!

    Communication with clients and partners

    At Sprintax we strive to provide our clients the highest quality service and their feedback is vital to achieve this. In 2016, we launched our Customer Satisfaction Survey for the 2nd year and were delighted with the positive results.

    In 2016, the Sprintax team attended the NAFSA conference in Denver, as well as the regional NAFSA conferences, where we had the pleasure of meeting many of our colleagues and partners.

    Our goals for the future

    We’re committed to making tax preparation as stress-free as possible. Our team are on hand to answer any questions you may have when preparing your returns. Simply ask a question here.

    The filing deadline is Tuesday April 18, but the sooner you file the sooner you get your refund, so don’t delay!

    Click here to sign up!

  • The 2016 Tax Year is Live!

    We’re excited to announce that the 2017 tax filing season is open and Sprintax is up and running!

    International students and scholars, and non-resident professionals – you can now use Sprintax to prepare your non-resident tax returns for the 2016 tax year. Sprintax can help you prepare your Federal, State, and FICA tax returns to ensure you stay fully compliant.

    Official start of 2017 filing season

    The 2017 filing season starts on January 23 2017. Sprintax gives you the opportunity to prepare your tax return before that date and have your 2016 tax return ready to mail on or after January 23, at the start of the 2017 Filing season.

    April 18 Filing Deadline 

    The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17.

    However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017.

    What does the April 18 deadline mean to me?

    Non-residents can apply for their tax refunds even after the April 18 deadline, but your return has to be filed no more than 3 years after the original deadline in order for the IRS to issue you a refund.

    You should not worry about penalties and fines if you have no tax liability as the IRS may not penalize you if you do not file a return on time.

    The deadline for filing your Form 8843 is the same as the deadline for filing your tax return (April 18).

    If you owe additional tax for the year, you must file your tax return and pay those taxes by April 18 to avoid late filing and payment interest and penalties.

    How Sprintax works

    To get started, simply create an account here. Sprintax will give you a step-by-step guide to the whole process – all you need to do is answer a few simple questions.

    Once you’re done, Sprintax will generate your tax return/s and you can simply send it to the tax office – it’s as easy as that!

    Once complete, we’ll store your details for any future tax returns. You can also prepare tax returns for previous years using the same account.

    Sprintax offers 24 hour support to students via our Live Chat facility to answer any questions you may have here.

    Don’t miss out on your tax refund and stay compliant by using Sprintax!

    Have a question? Ask our virtual assistant Stacy here.

  • 2015 is Best Sprintax Season to Date

    The 2015 US tax season is long over and it is time to take stock of the season and look at the big picture – through our eyes and through the eyes of our customers and partners.

    The Season in Numbers

    We are delighted to announce that the 2015 tax season was our best season to date. We guided twice the number of international students and scholars through the complicated tax filing process compared to last year.

    36,348 non-residents trusted Sprintax with their Federal tax returns and 30,450 filed their state tax returns using our software.

    Being the only non-resident tax prep tool covering both Federal and State tax returns, we helped our customers claim $30, 5000,000 in Federal tax refunds and more than $8,000,000 in State tax refunds.

    Our Goals

    We achieved the goals we set last year; to deliver excellent customer experience by reaching the highest standards and create an outstanding customer journey.

    With our help, thousands of international students and scholars from 193 countries filed their US taxes hassle-free with our step-by-step software and 24/7 Live Tax Help.

    Our team was fully dedicated to improving the Sprintax software and making it user-friendly. We prepared an extensive FAQ section which proved to be incredibly useful to our customers and a new video demo where you can find out how Sprintax works.

    Our Partnerships

    Over 475 US schools have partnered with us to help their students and scholars with their tax affairs.

    We’re excited to say that in the 2015 tax season we not only strengthened the relationships with our partners but also established many new partnerships with hundreds of US schools and institutions from all across the US.

    We truly believe that those partnerships will thrive in the future and are looking forward to many new ones.

    A Big Thank you

    To all members of the Sprintax team for their dedication and hard work. We owe our huge success to all of those who put their hearts into Sprintax.

    The excellent results we achieved in the 2015 season only motivate us to work even harder and implement new innovations to improve our services.

    A new strategy is on the horizon so stay tuned for big Sprintax news in the 2016 tax season.

  • The 2015 Tax Year is Live!

    U.S. tax return

    International students and scholars-you can now use Sprintax for your 2015 U.S. tax returns!

    We’re delighted to announce that the 2015 tax filing season is now open and you can use Sprintax to file your non-resident tax returns. Sprintax is for international students and scholars in the U.S. and will help you prepare your Federal, State, and FICA tax returns to ensure you stay fully compliant with the IRS and obligations of your visa.

    When you use Sprintax, we’ll check for income tax deductions, tax treaty benefits, personal allowances, and tax credits to make sure you get the highest refund possible.

    How Sprintax works

    To begin, you simply create an account here and answer a few simple questions. Sprintax will give you a step-by-step guide to the whole process. Once you’re done, Sprintax will generate your tax return/s and all you need to do is send it to the tax office!

    Once complete, we’ll store your details for any future tax returns. You can also prepare tax returns for previous years using the same account.

    Here’s a short video demo:

    Get started!

    You can get started now by creating an account here. Don’t miss out on your tax refund and stay compliant by using Sprintax-the sooner you file your tax return the better.

    Have a question? Ask our virtual assistant Stacy  here.

  • The New 2014 Tax Year Is Open

    Tax just got real

    Ready…Tax…Sprint!

    IRS announced that the new 2014 tax filing season is open! We are very excited to share with you, that Sprintax is already up and running as we speak! Our team worked very hard, determined to get Sprintax ready and available for you from day one of the new tax filing season.

    • Are you resident or non-resident for tax purposes?
    • Do any international tax treaties apply in your case?
    • Do you have to file a State tax return?
    • Sounds confusing?

    If you’re not an accounting major (or even if you are!), it’s only natural US taxes seem tricky to you. Well it’s not for us!

    Sprintax is designed for international students and scholars in the US, to help you prepare your Federal, State and FICA tax returns and guarantees you stay fully-compliant with the IRS. What’s more, Sprintax looks through 350 Income tax deductions, international tax treaty benefits, personal allowances and different tax credits; to make sure you get the maximum legal income tax refund.

    All you need to do is answer a few easy-to-understand questions. Sprintax will guide you through the step-by-step process, and if you need any assistance, there is a 24/7 live chat help available. After the process is completed, Sprintax will instantly generate your documents and voila! All that’s left for you to do is sign the forms and post them to the tax office. It could not be any easier!

    Sprintax will safely store your records in your account for future reference. If you need to prepare tax returns for previous years, that’s ok too – Sprintax will do it for you using the same account. The great thing is, as a past user Sprintax will already have your personal details, and the process will be even faster! Check out the Video Demo to get an idea of how Sprintax works.

    Are you still reading this post? Get started with your taxes! The sooner you file your tax return, the better! If you are due a tax refund, you might just receive it in time for Spring break!

    And don’t forget to let us know if you enjoyed your Sprintax experience by completing a short survey.

  • End of 2014 Tax Year Is a Fact

    Time to get serious about taxes

    With 31st December already behind us, it’s time to start thinking about the upcoming filing season.  We know, we know… It’s hard enough to readjust to school after the holidays, without having to worry about taxes. And that’s why Sprintax is here to help!  Below, we’ve listed some useful tips to save you time and energy when it comes to taxes.

    Stay updated

    The tax season for Non- residents like yourselves doesn’t officially start until the IRS has released the tax forms for the new financial year. This usually takes place in the second half of January. In order to keep you informed, we created an option for you on the Sprintax website, which allows you to sign up for an instant update, the minute the IRS announces the new 2014 tax year is open. We will let you know, so you can focus on other important things. So sign up today

    Be one of the first to file

    As soon as we send out the word about the new tax filing season being open, we strongly advise you to visit the Sprintax website and get your tax return done as early as possible. The sooner you get this off of your To-Do-List, the better. April 15th seems far away now; however the deadline will be knocking on our doors in no time. The good news is, this way your documents will be processed fast and you will avoid any delays. The even better news is, if you’re due a tax refund, you’ll be getting it right on time for Spring break! Awesome, right?

    Be prepared

    Once you sit down in front of your computer to start completing your tax returns, here’s what you need to have handy:

    • Passport – Sprintax will need to gather some details about you and your Visa, which will be reported on the first page of your tax return
    • Entry/Exit dates in the US – reporting the history of your entry and exit dates is very important, as it has a lot to do with your residency status for tax purposes in the US.
    •  Payment documents – if you have received any income during 2014, you should have received a summary payment document. For example – W-2 from an employer if you worked; 1042-S from you university if you received a scholarship, etc. Check out our FAQ page for more information on payment documents.
    • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). (If you don’t have any of those assigned to you, Sprintax will help you out. Check out how by contacting the team.)
    • Form DS-2019 (for J-Visa holders) or Form I-20 (for F-Visa holders)
    • If you are using Sprintax for your State Tax Return(s) preparation only you will need a copy of your already prepared Federal Tax return.

    Most importantly, don’t forget the Sprintax team is available 24/7 to help you, guide you and answer any questions you may have about US taxes.

    We hope you find these tips useful, in the meantime, if you think of any questions or you need additional information, visit the Sprintax FAQ section or contact the team via the Live chat or by email.

  • Sprintax is now even better!

    Sprintax is now even better

    Great news for all international students and scholars in the US!