All posts tagged tax refund

April 23, 2019

Where’s My Tax Refund?
Filed your tax return and wondering where your refund is? Here’s how you can keep up to speed with your refund

With your tax return safely filed, you’re probably wondering ‘how long will it be before I receive my tax refund?’

Fortunately you can now get information about your tax refund online.

Here’s what you need to know…

Your Federal tax refund

Generally the IRS advises that you will have to wait 4 to 6 weeks after you mail your return before you receive your money.

If you would like to keep updated with the status of your Federal tax refund, you can do so by using the IRS’ online “Where’s My Refund?” tool.

The system will ask you for the following:
- Your Social Security Number, or your Individual Taxpayer Identification Number
- Your filing status (Single or Married Filing Separate Return for non-residents)
- The exact dollar refund amount shown on your tax return
It’s a good idea to have a copy of your federal tax return on hand so you can easily enter the required information.

You can also check the status of your refund over the phone by calling one of the following numbers:
- The IRS Refund Hotline – 800-829-1954. This number, available 24/7, is specifically for calls regarding tax refunds.
- The IRS TeleTax system – 800-829-4477. This provides general tax information as well as your current refund status. It is also available 24/7
Your State tax refund

Firstly Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don’t have income tax. If you received income such as wages, scholarship or any other earnings and/or income, you would not have been required to file a State tax return and you will therefore have no entitlement to a State tax refund.

In addition, New Hampshire and Tennessee only tax interest and dividend income, not wages, scholarship, earnings, or other type of income.

For all other States, you can check the status of your State tax refund by using the useful links listed below.

Alabama (AL)

The Alabama Department of Revenue advises that it usually takes 8-12 weeks for tax filers to receive a refund from the date a return is accepted.

To check the status of your Alabama state tax refund, go to My Alabama Taxes and then click ‘Check on My Refund Status’.

For more information, contact the Alabama Department of Revenue.

Arizona (AZ)

The Arizona Department of Revenue advises that the processing of a paper filed tax return can take up to 12 weeks to process. For a refund to be direct deposited or mailed, it may take up to an additional seven days from the date the tax return processing was completed.

You can check the status of your Arizona state tax refund here.

Or, for more information, contact the Arizona Department of Revenue.

Arkansas (AR)

It can take up to 6 weeks after the date your return was accepted to receive a refund from the Arkansas Department of Finance & Administration.

To check the status of your Arkansas State tax refund, simply follow this link (and click ‘Where’s My Refund?’)

For more information, contact the Arkansas Department of Finance and Administration (see the ‘Individual Income Tax’ section).

California (CA)

The State of California Franchise Tax Board says that it can take approximately 4 weeks to receive a refund (for paper filed returns). Some tax returns need extra review for accuracy, completeness, and to protect taxpayers from fraud and identity theft and extra processing time may be necessary in these cases.

To check the status of your California State tax refund, simply follow this link.

For more information, contact the California Franchise Tax Board.

Colorado (CO)

Follow this link to check the status of your Colorado state tax refund, and then click ‘Check the Status of Your Refund’.

Or you can find more information about your refund here or by contacting the Colorado Department of Revenue.

Connecticut (CT)

According to the Connecticut Department of Revenue Services, it can take 10 – 12 weeks to process a paper return.

Follow this link to check the status of your Connecticut state tax refund (and then click ‘Check on the Status of Your Refund’).

For more information, contact the Connecticut Department of Revenue Services (DRS).

Delaware (DE)

The Delaware Division of Revenue advises that has announced it can take approximately 6 weeks to receive a refund from the date a tax return is accepted.

Follow this link to check the status of your Delaware state tax refund.

Further information, can be found by contacting the Delaware Division of Revenue.

District of Columbia (DC)

The D.C. Office of Tax and Revenue advises that it can take 2 to 3 weeks for processing and issuance of a refund.

Follow this link to check the status of your D.C. tax refund and click on the ‘Where’s My Refund?’ button.

For more information, contact the D.C. Office of Tax and Revenue.

Georgia (GA)

The Georgia Income Tax Division has said that it can take 90 business days to process a return and issue a tax refund.

Follow this link to check the status of your Georgia tax refund (click on the Where’s My Refund? button).

For more information, contact the Georgia Department of Revenue.

Hawaii (HI)

Typically, it takes 9-10 weeks for the Hawaii Department of Taxation to process a tax refund.

Follow this link to check the status of your Hawaii tax refund (click on the ‘Where’s My Refund?’ button).

For more information, contact the Hawaii Department of Taxation.

Idaho (ID)

The Idaho State Tax Commission advises that it can take 10-11 weeks to process a return and issue a refund.

To check the status of your refund simply follow this link (and click the ‘Where’s My Refund?’ button).

For more details you can contact the Idaho State Tax Commission.

Illinois (IL)

You can check the status of your Illinois tax refund here.

For more information contact the Illinois Department of Revenue here.

Indiana (IN)

The Indiana Department of Revenue says that it can take approximately 10 weeks to process a return and issue a refund.

You can check the status of your Indiana tax refund here, or alternatively, if you’d like further information, contact the Indiana Department of Revenue.

Iowa (IA)

According to the Iowa Income Tax Department of Revenue and Finance, it can take approximately 3 weeks to process a return and issue a refund.

Check the status of your Iowa tax refund here.

Or for more information, contact the Iowa Department of Revenue.

Kansas (KS)

The Kansas Department of Revenue has announced that the normal processing time for a paper tax return is 16 weeks.

Follow this link to check the status of your Kansas tax refund.

And more information, can be obtained by contacting the Kansas Division of Taxation for Individuals.

Kentucky (KY)

The Kentucky Revenue Cabinet advises that you will typically have to wait 8-12 weeks before you will receive your tax refund.

Follow this link to check the status of your Kentucky tax refund and click on the ‘Check Refund Status online’ button.

For more information, contact the Kentucky Department of Revenue.

Louisiana (LA)

The Louisiana Department of Revenue says that processing time for paper returns is 12-16 weeks from the date the return was mailed.

You can check the status of your Louisiana tax refund here.

Or for more information, contact the Louisiana Department of Revenue or call 1-855-307-3893.

Maine (ME)

The Maine Revenue Services advises that tax refunds can take up to 14 days to be processed.

Check the status of your Maine tax refund here .

For more information, you can contact the Maine Revenue Services Department directly here.

Maryland (MD)

The Maryland Controller of the Treasury has outlined announced that the processing of paper returns takes approximately 30 days.

If you would like an update on your tax refund, you can check the status here.

Need more info? Simply contact the Comptroller of Maryland.

Massachusetts (MA)

You can check the status of your Massachusetts tax refund here (click on the ‘Where’s My Refund?’ button).

And you can find more information, by contacting the Massachusetts Department of Revenue.

Michigan (MI)

The Michigan Department of the Treasury says it can take approximately 8 weeks to process a return and issue a refund.

Follow this link to check the status of your Michigan tax refund and click on the ‘Check my tax and refund information’ option.

For more information, contact the Michigan Department of Treasury.

Minnesota (MN)

If you filed a Minnesota State tax return, you will probably have to wait 6 weeks for your tax refund.

You can check the status of your refund here. And you can find any further information you require by contacting the Minnesota Department of Revenue.

Mississippi (MS)

Check the status of your Mississippi tax refund here.

Or contact the Mississippi Department of Revenue for more information.

Missouri (MO)

The Missouri Department of Revenue advises that it can take 8-10 weeks to process a tax return and issue a refund.

Check the status of your Missouri tax refund here.

For more information, contact the Missouri Department of Revenue.

Montana (MT)

The Montana Department of Revenue has detailed that it can take approximately 8 weeks to process a return and issue a tax refund.

Follow this link to check the status of your tax refund (click on the ‘Where’s My Refund?’ button).

Or for more information, contact the Montana Department of Revenue.

Nebraska (NE)

The Nebraska Department of Revenue has announced it can take 15-21 days to process a return and issue a refund.

Follow this link to check the status of your Nebraska tax refund.

More details can be found by contacting the Nebraska Department of Revenue.

New Jersey (NJ)

According to the New Jersey State Department, it can take 12 weeks or longer to process a return and issue a refund.

Follow this link to check the status of your New Jersey tax refund.

Or for more information, contact the New Jersey Division of Taxation.

New Mexico (NM)

The New Mexico Taxation & Revenue Department has said that it can take approximately 8-12 weeks to process a tax return and issue a refund.

To check the status of your New Mexico tax refund, follow this link (and click on the ‘Where’s My Refund?’ button).

For more information, contact the New Mexico Taxation and Revenue Department.

New York (NY)

The New York State Processing Center usually issues refunds 8-12 weeks after they receive a tax return.

You can check the status of your New York tax refund here (click on the ‘Where’s My Refund?’) button.

Or for more information, contact the Department of Taxation and Finance.

North Carolina (NC)

The North Carolina Department of Revenue has announced it can take approximately 12 weeks to process a return and issue a refund.

Follow this link to check the status of your North Carolina tax refund (click on the ‘Where’s My Refund?’ button).

For more information, contact the North Carolina Department of Revenue.

North Dakota (ND)

The North Dakota Office of State Tax Commissioner says that it can take approximately 6 weeks to process a return and issue a refund.

You can follow this link to check the status of your North Dakota tax refund (click on the ‘Where’s My Refund?’ button).

Or for more information, contact the North Dakota Office of the State Tax Commissioner.

Ohio (OH)

The Ohio Department of Taxation advises that it can take a minimum of 30 days to process a return and issue a tax refund.

You can check the status of your Ohio tax refund here and find more information by contacting the Ohio Department of Taxation directly.

Oklahoma (OK)

Follow this link to check the status of your Oklahoma tax refund.

And for more information, you can contact the Oklahoma Tax Commission.

Oregon (OR)

You can check the status of your Oregon tax refund here.

And for more information, you can contact the Oregon Department of Revenue.

Pennsylvania (PA)

According to the Pennsylvania Department of Revenue it can take 3 to 4 weeks for a tax refund to be processed.

Check the status of your Pennsylvania tax refund here (click on the ‘Where’s My Refund?’ button).

More information can be found at the Pennsylvania Department of Revenue.

Rhode Island (RI)

The Rhode Island Division of Taxation says it can take 5 to 7 weeks to process a tax return and issue a refund.

Simply follow this link to check the status of your Rhode Island tax refund.

For more information, contact the Rhode Island Division of Taxation directly.

South Carolina (SC)

Follow this link to check the status of your South Carolina tax refund.

For more information, contact South Carolina Department of Revenue.

Utah (UT)

The Utah State Tax Commission says that it can take 90 days to process a return and issue a refund.

If you would like to check the status of your Utah tax refund, you can do so here (click on the ‘Where’s My Refund?’ button).

For more information, contact the Utah State Tax Commission.

Vermont (VT)

The Vermont Department of Taxes advises that it can take approximately 8 weeks to process a return and issue a refund.

You can check the status of your Vermont tax refund here (click ‘Individuals’ and then ‘Check the status of my return’).

For more information, contact Vermont Department of Taxes directly.

Virginia (VA)

The Virginia Department of Taxation says it can take up to 8 weeks to process a tax return and issue a refund.

Simply follow this link to check the status of your Virginia tax refund.

For more information, contact the Virginia Department of Taxation.

West Virginia (WV)

Follow this link to check the status of your West Virginia state refund.

Wisconsin (WI)

You can check your Wisconsin refund status here and find more information by contacting the Wisconsin Department of Revenue.

Haven’t filed your tax return yet?

Better late than never!

The April 15 deadline may have passed but you can still claim your tax refund.

Sprintax is the easiest way to prepare your Federal and State tax returns.

So what are you waiting for?

File your tax return and claim your cash today!

Get started here.

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US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

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January 8, 2019

Here’s everything you need to know about the W-2 tax form

Your questions answered!

The tax filing deadline is on the horizon and quickly approaching! And most employees are now on the lookout for their W-2 tax form. But why is this little form so important?

Here’s everything you need to know.

What is a W-2 Form and why do I need it?

The Internal Revenue Service (IRS) requires every employer that is engaged in a trade or business, and that pays remuneration for services performed by an employee, to file a Form W-2 for each employee.

You will find the W-2 Form to be very useful when you are filing your end of year tax return. The form includes important details regarding your total gross earnings including wages, tips and taxable fringe benefits, Social Security earnings, Medicare earnings, and the Federal and State tax that is withheld.

How do I read a W-2?

The information is divided into different sections on the form.

For example, in Box 1 you will find information about your annual wage and salary payments, together with the amount of federal tax withheld from it in Box 2. Other boxes on the W-2 form such as 3, 4, 5 and 6 include your wages subject to Medicare tax, Social Security tax and the amount of these taxes withheld from your income. Boxes 15 to 20 provide information about each state you worked in, state income subject to tax in this state, and the amounts of state and local taxes withheld, if applicable.

Important elements like your name, surname, address and SSN or ITIN (social security number or individual taxpayer identification number) as well as your employer’s EIN (employer’s identification number) are also included on the form.

Note: While you read your W-2, always double check that the information is correct. If you find any errors, inform your employer immediately about the mistakes so they can amend them before you start your yearly tax return.

When is the deadline?

Your employer must provide you with your W-2 form by 31 January after the end of the tax year to which it relates (for example, you must receive your W-2 form by 31 January 2020 for the year ending on 31 December 2019).

What if I still haven’t received my W-2?

If this deadline has passed and you still have not received your W-2 form from your employer, you should contact them immediately to confirm that it was sent and that it was dispatched to the right address. Your employer may also provide your copy via a secure link online.

Alternatively, you can contact the IRS or use Sprintax offline services provided by our team of tax professionals.

Got all your income documents?

Good for you!

If you have received your W-2 Form, as well as any other required income documents (such as 1042-S or 1099’s) you can use Sprintax to prepare your tax returns online. Last year Sprintax assisted approximately 100,000 international students, scholars and non-resident professionals with their tax returns. What’s more, 90% of those that had a Federal filing requirement were also due a refund!

Get started with Sprintax today and our live chat team will guide you through your tax return!

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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September 19, 2018

Can the college I choose to enroll in effect my US tax bill?
Want to work while studying in the US? It’s important to be aware that tax rates differ greatly from State-to-State

Every year, more and more students select the US as the destination in which they want to continue their education. And it’s easy to see why. The US boasts a world renowned university system and an outstanding program offering in virtually all fields.

But with so many universities in such a vast country, how can students choose the college and course that is right for them?

The truth is that there are many different factors that go into deciding where to study and which college to attend. While lifestyle, history and climate are always important elements for students, cost and financing college fees usually come out on top of their list of considerations.

Expenses and college fees vary from State-to-State and can have a big impact when choosing where to study.

Even though many US colleges and universities make financial aid and scholarships available, most international students must still rely on their own sources of funds in order to pay for their education – family funds, loans and savings etc.

It’s no surprise then that so many international students are interested in securing employment in the US during their time in college in order to earn some much needed cash.

These programs are known as ‘work & study’. If you are a full-time student in the US and want to be a member of a work & study program, you must either have an F-1 or M-1 visa – the two non-immigrant visa categories available for international students.

International students & tax

Every international student is legally obliged to file a tax return for each year they were in the US. If you worked in the US during your time in college you must detail your earnings on your tax return.

Many students are unaware that the State they choose to work in can affect their monthly tax withholding.

In the US, taxes withheld on wages by employers include Federal income tax, State income tax, and certain other levies by a few States.

While Federal tax withholding is required no matter which State you choose, not all States have an income tax on earned income. There are nine States that have no personal income tax:
1. Alaska
2. Florida
3. Nevada
4. New Hampshire
5. South Dakota
6. Tennessee
7. Texas
8. Washington
9. Wyoming
Note: Tennessee and New Hampshire only tax dividends and interest.

This means that if you chose to study and work in one of the States mentioned above, you will have one less tax deduction to worry about!

In other words, you can potentially receive a higher wage every pay period.

State tax refunds

If you do study and work in a State where there are State tax deductions, it’s important to note that it’s likely you’ll be entitled to a refund of a significant portion of your contributions.

You can claim your refund when you file your end of year tax return.

But does the State that you study in have any effect on the amount of money you’ll be refunded?

The answer to that question is yes!

At Sprintax we help hundreds of thousands of international students to file their tax returns and claim their State tax refund every year.

We’ve crunched the numbers and can reveal, as detailed below, that, in 2017, students who studied and worked in California received a larger State tax refund ($1015) than anywhere else in the US!

Top 10 average State tax refunds

Claiming your State tax refund

The easiest way to file your US tax return and claim your State tax refund is to choose Sprintax.

Sprintax is the only online Federal and State self-prep tax software for international students and non-residents in the US. It will help you prepare your US tax return in minutes and enable you to receive your maximum legal tax refund!

Sprintax is the ‘go-to’ tax filing software for numerous major universities in the US including NYU, Columbia, Arizona State University, Illinois Institute of Technology and Cornell. We’re also the non-resident partner of choice for Turbo Tax.

To file your US tax return the easy way, get started here!

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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August 15, 2018

When can I expect my tax refund?
How long does it take the IRS to process an international student tax return?

Have you ever wondered what happens to your tax return after you mail it to the IRS? Or how long it takes for the tax office to process your return?

You’re not alone.

Many international students file their tax returns as quickly as they can in order to receive their tax refund as soon as possible.

Yet once you mail your return, it can often seem like there is a long wait before you receive your refund.

So why is this?

In this blog you’ll find details on exactly what happens when you mail your tax return to the IRS.

Still haven’t filed your tax return? Just complete the registration form here to get started.

What happens after I mail my return to the IRS?

When you finalize your return and mail it to the tax office it will usually take several days to arrive at its destination.

Keep in mind that it’s not unusual for something to go wrong with mail processing. For example, if you used insufficient postage your return can get sent back to you which will cause delays in receiving your refund.

If you are mailing your tax return from outside the US, it will take even longer before it reaches the tax office. Tip: It’s always a good idea to mail your return using a certified mail service or an approved delivery service that will provide you with a tracking number of the letter and proof of your mailing date.

Once your return reaches the IRS it will have to pass through three stages before you receive the refund:
1. Return Received/ Accepted – This status updates you that your return was successfully received by the IRS and is in line to be reviewed and processed. Usually it will take the IRS from 4 to 6 weeks to process a paper filed return. At this stage of the refund process, the IRS checks your return for math errors, verifies that your filing status matches your exemptions, checks how you’ve calculated your itemized deductions, and if you are legally entitled to any claimed dependents and credits.
2. Refund Approved – This status means that your return was processed successfully and the refund amount shown on your tax return was approved by the IRS. At this stage your refund will be set for release either by electronic transfer or printed on a check and mailed to you via United States Postal Service, depending how you chose to receive your refund when filing your taxes.
3. Refund Sent – This status indicates that your refund has been sent to you. It’s important to note that if you’ve requested to receive your refund deposited to your account, it could take approximately five days after they’ve sent it before it reaches you. This is because banks vary in how and when they credit funds. It could take several weeks before you receive a mailed refund check. In most cases, an approximate date to expect your refund to arrive will be indicated.
Claim your refund with Sprintax here!

How can I check the status on my refund?

The IRS recommends using its online ‘Where’s My Refund’ tool (or the mobile app IRS2Go). The tool is updated once daily, usually overnight, so you don’t need to check it more often.

You can use ‘Where’s My Refund’ to start checking on the status of your return within four weeks after you’ve mailed your paper return. The tool has a tracker that displays progress through the three stages of processing:
- Return Received
- Refund Approved
- Refund Sent
You will get personalized refund information based on the processing stage of your tax return – it follows your tax return from receipt to completion. The tool will provide an actual refund date as soon as the IRS processes your tax return and approves your refund.

What information will I need to check my refund status?

When checking the status of your refund you’ll need to have the following elements:
- Your SSN/ITIN as shown on your Federal tax return. If you recently applied for an ITIN, you will need to wait for your ITIN notice in order to check your refund status online
- Your filing status (as indicated at the top of your 1040NR/EZ, Filing status section)
- The exact dollar amount of the refund as shown on your federal return
Still haven’t filed? Prepare your return with Sprintax today!

Note: If you’re requesting a refund of tax withheld on a Form 1042-S by filing a Form 1040NR, the IRS will need additional time to process the return. You should allow up to six months from the original due date of the 1040NR return, or the date you actually filed the 1040NR, (whichever is later) to receive any refund due.

Is there another way to check the status of my refund?

Yes. You can also call the IRS TeleTax System at (800) 829-4477 or the IRS Refund Hotline at (800) 829-1954.

The IRS typically accepts calls Monday through Friday from 7am to 7pm (local time).

Tip: If you decide to call the IRS, be prepared to be on hold for a while. In fact, the IRS says wait times average 15 minutes during filing season (January to April), with Mondays and Tuesdays being the busiest days. After filing season (May to December), waits can be even longer, averaging 27 minutes.

Claim your refund with Sprintax here!

What about the status of my State refund?

Each State tax office follows a similar processing procedure. You can check the status of your State tax refund using the online refund status tools on each State’s website.

More detail on how you can check the status of your State refund can be found here.

I’ve left the US and am having difficulties receiving my refund, what can I do?

If you have left the US, for example after completing your college course or J-1 program, you may encounter some obstacles when trying to get your hands on your tax refund.

The main reason for this is that cashing an American cheque outside the US can often be tricky.

Sprintax can handle the cheque cashing process for you and transfer your money to your bank account anywhere in the world.

What’s more, should the IRS request additional information before processing your tax return, Sprintax can handle all of the additional communication with the IRS on your behalf.

Claim your US tax refund the easy way! Get started with Sprintax here.

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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April 20, 2018

What to do if you miss the tax deadline

Step one: Don’t panic!

Missed the April 17^th deadline? Don’t panic! Nearly 30% of taxpayers are unable to organize their documents before the deadline. But you can still fix this! Here are a few important things you should consider if you missed the tax deadline.

(1) If you are due a refund or your tax return shows no tax liability

If you’re entitled to a refund or your tax return shows no tax liability, you may not be fined for filing late. If you’re due a refund, you should file as soon as possible to get it. You may be entitled to a refund if you had too much tax withheld from your wages or you qualify for certain tax credits.

Sprintax will help you determine if you are due a refund.

It’s important to note that there is a time restriction on claiming a federal tax refund. So, if you don’t file within three years from the due date of your tax return (17th of April, 2018 for 2017 tax year), you may not receive your refund.

In addition, there are some tax refund policy changes for late filing taxpayers that the IRS is implementing and these may affect how quickly you will receive your refund.

(2) If you owe tax

If you have underpaid tax, keep in mind that both late filing and late payment penalties may be charged on top of your tax liability. The failure-to-file penalty is the bigger portion of your penalty, and after 60 days of delay its minimum amount will be $205. So if you have not filed form 4868 – Extension to file – you may need to submit your tax return to the IRS as soon as possible in order to avoid a further increase of your fine.

Your failure-to-pay penalty will depend on the amount of tax you owe. The percentage of the penalty increases over time, so even if you are not ready with your documents, the more tax you pay on time (before the deadline) the less interest and penalty charges you will accrue.

If you are unable to pay your tax on time, you can choose to enter into installment agreement with the IRS. There are certain conditions you will have to meet and Sprintax tax experts can help you if you choose to request an installment agreement from the IRS.

Summary

If you missed the deadline, the best thing you can do is to prepare your tax documents and file your tax return as soon as possible!

Sprintax can help you to prepare your tax return and determine if you’re entitled to a refund.

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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January 17, 2018

How the ‘Tax Cuts and Jobs Act’ affects every nonresident student in the US
We examine how the bill effects the tax obligations of US non-residents

In November 2017, President Donald Trump introduced a ‘Tax Cuts and Jobs Act’ that will have wide ranging consequences for all US tax payers.

There has been much confusion surrounding the new bill and tax payers have been keen to work out what the changes will mean for their pockets.

Below we take a look at how the bill will affect the future tax obligations of US non-residents. Most of the changes have taken effect from January, 2018 and will change methods of withholding and the way non-residents will be taxed throughout 2018.

It’s important to note that these amendments do not affect the 2017 tax return filing season.

Changes to the current tax law:

1) Personal exemption will be waived in full

Permanent amendment

Effective date: 31 December 2017

This change means that the personal exemption available for all non-residents to decrease taxable income is reduced from $4,050 in 2017 to $0 in 2018 for all individuals (residents and non-residents).

In other words, overall taxable income has increased for all non-residents

2) Standard deductions increase from $6,350 to $12,000

Permanent amendment

Effective date: 31 December 2017

This change will only effect students and trainees from India who are covered by an income tax treaty between the US and India. From the 2018 tax year onwards, they will be able to claim higher standard deductions on their non-resident form.

All other non-residents are not entitled to avail of standard deductions.

3) Tuition waivers for tuition and books under Section 529(c) for university students (education next to secondary) will be taxable in full

Permanent amendment

Effective date: 31 December 2017

In previous tax years, tuition waivers under 529(c) were considered non-taxable and non-reportable. They were treated in a similar fashion as scholarships under Section 117.

However, this will no longer be the case. The Tuition waiver is now taxable as of the 2018 tax year. Scholarships under section 117 will remain non-taxable and non-reportable.

4) SALT (State and Local Taxes) will be retained for the tax years 2018 to 2025 (inclusive), but they are capped at $10,000 ($5,000 for married people who file separately)

Temporary amendment for tax years 2018 to 2025 (inclusive)

Effective date: 31 December 2016

Most non-residents (including students and other exchange visitors) can only use SALT as an itemized deduction on their Schedule A, 1040NR form or line 11, 1040NR-EZ form. The State and Local Taxes (SALT) deduction decreases taxable income by the amount paid to state and local tax government during the tax year.

This change sets a cap on SALT deductions to $10,000 which may not affect the deduction most of the students and scholars are eligible for. However, some non-residents paying larger state and local taxes may be unable to use all of them as a deduction.

5) State taxes paid for previous tax years during the current tax year are no longer allowed

Permanent amendment

Effective date: 31 December 2016

Under the former terms of SALT, individuals could claim state taxes for previous years that they were paying for in the current tax year. In other words, if a student paid their 2015 and 2016 state taxes during the 2017 tax year, they could claim that this added to SALT.

However, this will no longer be allowed from the 2018 tax year.

6) Miscellaneous itemized deductions are not allowed

Temporary amendment for tax years 2018 to 2025 (inclusive)

Effective date: 31 December 2017

Expenses under section – Job Expenses and Certain Miscellaneous Deductions, at Schedule A include:
- Unreimbursed employee expenses (2106 form)
- Tax preparation fees
- Other expenses (investment expenses, deposit box and etc)
Most students are not allowed to use itemized deductions (except for tax preparation fees and SALT). Additionally, some teachers, researchers and other cultural exchange visitors are eligible in some cases to use business expenses and expenses for professional equipment.

But from 2018 onwards, all of these expenses – tax preparation and business expenses – are not allowed for all resident and non-resident individuals.

7) Moving expenses are not allowed, except if a taxpayer is an employee of the US Armed Forces

Temporary amendment for tax years 2018 to 2025 (inclusive)

Effective date: 31 December 2017

Moving expenses (which are not covered by the employer) for starting a new job in the US, used to be allowed as a deduction. Usually, this deduction could not be granted to a student, however many teachers and researchers were entitled to avail of it.

But from the 2018 tax year, this deduction is suspended.

8) Expenses for personal casualty loss and theft are not allowed, except if they are under disaster area rules

Temporary amendment for tax years 2018 to 2025 (inclusive)

Effective date: 31 December 2017

While expenses for personal casualty loss and theft are very rare among students and exchange visitors, this cohort had been entitled to them. This will no longer be the case from the 2018 tax year onwards.

9) Change of the treatment of effectively connected income for non-residents: “effectively connected with the conduct of a trade or business within the United States (within the meaning of section 864(c), determined by substituting ‘qualified trade or business (within the meaning of section 199A)’ for ‘non-resident alien individual”

Permanent amendment

Effective date: 31 December 2017

From the 2018 tax year onwards, ‘qualified trade or business’ will not include ‘trade or business of performing services as a non-resident employee’.

This change is likely to have a noticeable effect on most non-residents income in regards to the option to treat FDAP (Fixed, Determinable, Annual or Periodic) income as affectively connected. This change will mainly affect Procedure 88-24, however it may also effect the tax rates for employment income.

The IRS will be supplying further details on this change in the near future.

10) Withholding on employee income by the employer

Permanent amendment

Effective date: 31 December 2017

While the certificate of allowance (currently W-4) will remain the same for 2018, the calculation of the amount to be withheld was changed from 1 January 2018.

The changes surrounds ‘Notice 1036’. The main change detailed (so far) is that standard deductions allowable will be the only eligible deduction considered before the monthly (periodical) tax withholding is calculated.

As non-resident aliens do not have the right to avail of standard deductions, they will now be taxed on their whole income.

The changes must be implemented by employers before 15 February 2018.

11) Tax rates are changed into 4 brackets

Permanent amendment

Effective date: 31 December 2017

New tax brackets for a single individual:

Not over $9,525 – 10% of taxable income.

Over $9,525 but not over $38,700 – $952.50, plus 12% of the excess over $9,525.

Over $38,700 but not over $82,500 – $4,453.50, plus 22% of the excess over $38,700.

Over $82,500 but not over $157,500 – $14,089.50, plus 24% of the excess over $82,500.

Over $157,500 but not over $200,000 – $32,089.50, plus 32% of the excess over $157,500.

Tax tables for resident and non-residents currently in use will be waived.

Procedure 88-24

As a result of the changes in points 3, 4, 7 and 8, it is not yet clear whether Procedure 88-24 (for the treatment of scholarship as wages on W-2 form) will be waived or simply be non-beneficial anymore (except for India students and trainees who can use standard deductions under their tax treaty agreement).

Procedure 88-24 is an alternative procedure for the calculation of withholding amounts on scholarships that enable the use of personal allowances (and itemized or standard deductions) as a tax deduction, leading to a decrease in the taxable scholarship. As all of these items will no longer be available, the Procedure 88-24 will not be applicable next year.

It might also be waived by the change of the treatment of the term “trade and business” in relation to non-residents. This treatment may cause the scholarship to be ineligible and treated as effectively connected income (wages) in future.

Confused about your tax obligations?

Sprintax can prepare your Federal and State tax returns for you. And we guarantee to maximize your tax refund too. Last year, 9 out of 10 Sprintax users with a Federal filing requirement were due a tax refund. What’s more, the average Federal refund was over $1,000.

So what are you waiting for? Get started today!

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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January 8, 2018

5 ways to maintain a valid F-1 visa status
Can I leave and return to the US on an F-1 visa?

Am I entitled to work during the semester?

How long can I stay in the country after my program is finished?

All your F-1 visa questions answered!

Dreaming of American college life?

Getting your hands on an all-important F-1 visa is a big step towards turning that dream into a reality. But getting an F-1 visa is one thing, maintaining it is another.

As a student, there are a number of important rules and regulations that you must follow in order to maintain your F-1 visa status. If you don’t do so, you will not be allowed to re-enter the US if you leave, and you won’t be eligible for practical training (OPT or CPT) or on-campus employment.

So, with this in mind, here are our top 5 tips for maintaining a valid F-1 visa status

(1) Arriving in the US

Once you receive your F-1 status, you’ll without a doubt be eager to hit the ground running with your studies.

But don’t be too eager!

One of the requirements of the F-1 visa is that you don’t arrive in the US more than 30 days before the first day of classes.

You’ll also need to link in with your institution’s international office within 30 days of your arrival. Be sure to provide them with your local address in order to keep your SEVIS (Student and Exchange Visitor Information System) record up-to-date. And if you change your local address at any time while in the US, you will need to notify them of this.

Once you have completed your program, you will have 60 days to leave the US.

But what if you want to stay extend your American college dream?! To stay in the US you will need to pursue one of the following options:
- Re-enrol in a higher program
- Transfer to another school to receive a new Form I-20 (Certificate of Eligibility for Non-immigrant Student Status)
- Apply to change your visa status
(2) Attendance and grades

All F-1 visa holders are required to be enrolled full time, go to class and maintain passing grades.

Students who are having difficulty in classes, should notify their international advisor. And if it’s not possible to complete your program by the date stated on your Form I-20, your international advisor can help you request an extension.

Full-time enrolment can differ depending on your student status. For example, undergraduate programs require students to enrol in at least 12 credit hours each semester during the academic year.

Meanwhile, each graduate program defines their own unique combination of credit hours and research time to be considered ‘full-time enrolment’. To uphold your F-1 visa status, it’s best to confirm the enrolment requirements with your college.

(3) Working

It’s common for students to seek full or part-time employment while they study in the US. But be careful, not all types of employment are eligible under the conditions of an F-1 visa.

For instance, F-1 students who want to work off campus can only do so in roles that are related to their studies (more on this below). Most of the other off campus roles are not authorised under F-1 and you will need permission by a DSO (Designated School Official) in special circumstances to do this work.

It’s important to note that, if you choose to work without the proper authorization, your visa can be revoked and you may have to leave the US.

F-1 students are entitled to find employment on campus.

However, while school is in regular session, a student can’t work for more than 20 hours per week. During extended holidays, breaks and summer sessions, you can work full time (up to 40 hours per week). If you are confused whether a job is considered on-campus employment, ask the employer before you accept the role.

Optional Practical Training (OPT)

F-1 students are permitted to work off-campus in Optional Practical Training (OPT) status both during and after completion of their degree. You can apply for OPT after being enrolled for at least 9 months, but you can’t begin employment until you receive your Employment Authorization Document (EAD) and you have been enrolled at the college for at least a year.

To qualify as OPT:
- The employment must be directly related to your major
- You must apply for OPT before completion of all work towards a degree
- OPT is permitted for up to 12 months (full-time) in total
- You can complete 12 months of OPT for each successive level of degree achieved – for instance 12 months of OPT after receiving your undergraduate degree, and a further 12 months after receiving your graduate degree.
OPT before completing a degree:
- You must be enrolled in school full-time
- You can only work 20 hours per week while school is in session
- But you may work full-time during summer and other breaks (as long as you will return to school after the break)
- You may work full-time after completion of all coursework, if a thesis or dissertation is still required and student is making normal progress towards the degree
OPT after completing a degree:
- After completion of your degree, OPT work must be full time (40 hours/week)
- All OPT must be completed within 14 months after completion of your degree
- Applications for post-completion OPT must be submitted before the completion of your degree
Curricular Practical Training (CPT)

Curricular Practical Training (CPT) is another off-campus employment option for F-1 students where practical training is an integral part of their curriculum or academic program. CPT employment is defined as ‘alternative work/study, internship, cooperative education, or any other type of required internship or practicum that is offered by sponsoring employers through cooperative agreements with the school’.

To be eligible for CPT employment:
- You must have been enrolled in school full-time for one year on valid F-1 status (except for graduate students where the program requires immediate CPT)
- The CPT employment must be an integral part of your degree program or requirement for a course for which you receive academic credit
- You must have received an eligible job offer before you submit your CPT authorization request
- Your job offer must be in your major or field of study
Note: All OPT and CPT employment requires prior authorization from your school’s International Student Office. And if you work for 12 months or more of full-time Curricular Practical Training (CPT) you will not be eligible for OPT.

(4) Leaving and re-entering the US

Thinking of heading home for a holiday during a break in semester?

As long as your absence from the US is for no less than 5 months, you will have no problem leaving and re-entering the US on an F-1 visa.

However, you will need to have some important documents in order to ensure your re-entry to the US is successful. These include:
- a valid Form I-20 (Certificate of Eligibility for Non-immigrant Student Status) with a current DSO signature (valid for one year) from the school that you attend in the US
- a valid F-1 student visa stamp
- a valid passport or travel document
To maintain your F-1 visa status you will need a passport that is valid for at least six months into the future. Your country’s consulate or embassy can help you extend your passport if needed.

Note: If you have completed your program you will not be able to re-enter the US as an F-

1 student unless you have been admitted to a new program of study and have a new Form I-20, or you are returning to an authorized OPT job.

(5) Don’t forget your taxes!

To maintain a valid F-1 visa, you are required by law to file a tax return if you were in the US during the previous calendar year. Filing a tax return is probably the last thing you’ll want to do when you’re enjoying an exciting time in the US. Fortunately help is on hand!

Sprintax can prepare your Federal and State tax returns for you. And we guarantee to maximize your tax refund too! Last year 9 out of 10 Sprintax users with a Federal filing requirement were due a tax refund. What’s more, the average Federal refund was over $1,000.

So what are you waiting for? Get started today!

Subscribe to the Sprintax Blog!

US tax can be confusing. Especially for nonresidents!

That’s why, if you’re an International Student or J-1 participant in the US, or you work in a University International Student Office, you should subscribe to the Sprintax blog.

You’ll find tons of useful content for nonresidents. We cover tax, student life, acclimatizing to the US and much more.

So what are you waiting for? Sign up today and never miss a thing!

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May 13, 2015

3 Smarter Ways to Spend Your Tax Refund

Wondering how to spend your IRS tax refund?

A big refund might feel like you’ve hit the jackpot, but it’s not always wise to spend it all at once. We’ve given you three awesome ideas for amazing life experiences, but if you’re not the ‘adventurous type’ or don’t feel like spending it all in on go, you might consider a more practical plan for your cash.

Here are some tips on how to spend your tax refund wisely:

Make a plan

Firstly, think about your current financial situation and how your tax refund could influence your short and long-term financial needs. Having a clear plan on how to spend your tax refund can greatly improve your future financial health and help you develop financial management skills.

Pay off your credit card debt

This might be the first and probably smartest idea that comes to the practical mind when it comes to getting a tax refund. And yes, paying off your high-interest credit card debt should be number 1 on your “smart-ways to-spend-your-refund” list. It might not be ‘fun’, but it will be such a relief to start afresh financially and when you finally have the money you need, you should definitely get your debt matters in order.

Start your emergency fund

Maybe this idea sounds better suited to someone in their forties? Well, you might think this way until the ‘emergency’ arises and you realize there isn’t a penny left in the piggy bank. Emergencies don’t just happen to people in their forties, and often occur suddenly, so an emergency fund will give you that welcome cushion to land on when you need it. That’s why putting aside part of your tax refund money (not necessary all of it) will prevent you from getting off-guard.

Finance your education

Using your tax refund to buy college or university textbooks, to start additional qualifications courses or sign up for an eBook subscription service, is a really smart way to spend it. The price of textbooks is constantly rising and next semester these could burn a hole in your pocket unless you’ve set some money aside. This could save you the usual money troubles you’ll likely encounter at the beginning of the semester and what’s more, will pay you out hundred times in future.

Save or spend your tax refund? The final say is yours. Sprintax can only help you get your refund. Sign up here!

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May 7, 2015

3 Awesome Ways to Spend your Tax Refund

The 2015 US tax season is officially over, so if you’ve filed your tax return you’re probably both relieved and eager to see if you’ll get a refund.

About 13% of Americans will put their tax refund towards an amazing vacation and 39% will use it to pay down their debts, according to a recent study conducted by the National Retail Federation.

How will you spend yours?

Enough with the stats, let’s start with the best part of every tax season – how to spend the money you could get back from the IRS! This year, our advice is to unleash your creativity and do something memorable instead of splashing out on a rainy afternoon.

Why not try one of these awesome ideas:

’’StartUP’’ your future

Remember that amazing business idea you promised to develop when you got enough money? Well now is the time! Startups are a huge part of the business world and if this is what you’ve been dreaming of, why not start today?

If you’ve got the idea, now you have the budget to make it happen! Get a pen, draft your first business plan, and give your dreams a head start.

A voyage of discovery

Nothing pushes you to grow as much as seeing the world. Travelling will open your mind up to new cultures and experiences, so why not try somewhere off the beaten track? If you’re planning on putting your tax refund towards an amazing adventure, we suggest something a little bit different than the well-known tourist destinations.

How about a Jungle Safari in Borneo or a Cycle Safari in Tanzania? You could brave an Ocean Exploration course in the deep blue waters of the Caribbean or an overland adventure in West Africa. It sounds incredible, doesn’t it? And if you’re a true explorer and adventurer, you should go on at least one epic trip during your lifetime.

“On the edge of life”

Does jumping out of an airplane sound fun? Then extreme sports might be the answer. Adrenalin is sometimes all you need to awaken the power within. What if now is the time to meet “The Brave” in you? Get your tax refund and put it towards a sky diving session, balloon flight or bungee jump.

The adrenalin is guaranteed as well as your safety if you rely on a recognized company, so keep this in mind when searching for exciting “on the edge of life” experiences.

Whatever you decided to do with your US tax refund, don’t forget Sprintax can help you, not only with great ideas but with filing next year’s return!

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