All posts in Sprintax Returns

  • I filed an incorrect tax return. Should I file an amended return to fix it and how?

    how to amend my tax return

    (Last updated: 17.05.2022)

    “Don’t worry if you made a mistake on your tax return or forgot to claim a tax credit or deduction. You can fix it by filing an amended return.” – The IRS

    Made an error on your nonresident alien income tax return? Don’t worry, fixing it is not as difficult as you might think!

    Continue reading “I filed an incorrect tax return. Should I file an amended return to fix it and how?” »

  • Are nonresidents subject to tax if they receive a Form 1099-K?

    Form 1099-K tax guide for US international students

    If you have received an IRS 1099-K form, you may be wondering whether the document has any implications for your tax requirements in the US.

    You may receive a 1099-K document (also referred to as a Payment Card and Third Party Network Transactions form) if you received payments through credit or bank card transactions. Continue reading “Are nonresidents subject to tax if they receive a Form 1099-K?” »

  • Your US Tax Residency Status Explained

    US residency for tax purposes

    Resident or Nonresident – this is the question!

    Determining your tax residency status is important, as it will decide how much tax you must pay while in the US.

    The most common mistake nonresidents make is filing their taxes as a resident. If a nonresident files as a resident they can claim benefits and receive refunds that they’re not entitled to. Incorrect filing breaks the terms and conditions of a nonresident visa, this can lead to fines and penalties and you may also jeopardise your future visa or green card applications.

    In this article, we will discuss everything you need to know about your residency and how you can determine your residency status.
    Continue reading “Your US Tax Residency Status Explained” »

  • US tax explained for J-1 visa holders

    J1 visa tax return guide

    Tens of thousands of people flock to the US on J-1 student visas each year.

    Every J-1 participant has a tax filing requirement, it’s the law!

    Many J-1 visa holders are confused by the often tricky US tax jargon. However, it’s not as bad as it seems, and knowing even a little about your filing requirements can go a long way!

    With this in mind, we’ve created a blog post that will answer some common queries from J-1 participants in the US! Continue reading “US tax explained for J-1 visa holders” »

  • How to get the forms you will need to file your taxes as a nonresident

    forms you need to file nonresident tax return

    Tax season can be a difficult time for nonresidents in the US. After all, you are filing taxes in an unfamiliar country!

    However, it’s not all bad – Sprintax is here to help!

    And while filing your taxes may seem like a big job, you can make the job easier by breaking it down into smaller tasks.

    Step one is to gather all of the income forms and documents you will need in order to file your return. Continue reading “How to get the forms you will need to file your taxes as a nonresident” »

  • The ultimate tax guide for international students on OPT

    tax guide for students on OPT

    Are you OPT/CPT program participant?

    While doing your taxes might not be the most exciting aspect of international student life in the US, the importance of filing your federal tax return correctly cannot be underestimated.

    With this in mind, we’ve created this handy tax guide for international students on OPT. Continue reading “The ultimate tax guide for international students on OPT” »

  • Everything a nonresident needs to know about the US Recovery Rebate Credit

    Recovery Rebate Credit for nonresident aliens

    There is some confusion from nonresidents in the US around the topic of stimulus payments from the pandemic.

    Nonresidents are typically not eligible to receive these payments. However, the IRS sent many checks to nonresidents in error.

    The IRS has recently announced that people who are missing a stimulus payment or got less than the full amount may be eligible to claim a Recovery Rebate Credit on their 2020 or 2021 federal tax return.

    In this guide we will cover everything a nonresident needs to know about the Recovery Rebate Credit.

    Here’s what you should know about the US Recovery Rebate Credit as a nonresident.

     

    What is the US Recovery Rebate Credit?

    The Recovery Rebate Credit was a payment that was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that came into existence in the early days of the pandemic, in 2020.

    This initial part of this stimulus payment was of up to $1,200 for any of the qualifying adults and up to $500 per qualifying dependent.

    A lot of these payments were sent out in mid-2020.

     

    How much is the credit?

    For the majority of people, the base amount received from the credit was $1,400.

    For married couples who filed a joint tax return, the total was $2,800.

    The amount received is generally based on factors such as

    • Filing status
    • Amount of children who can qualify
    • Adjusted amount of any impact payments already received
    • Gross income

     

    Can a nonresident claim the Recovery Rebate Credit?

    At the time of the payments, there was confusion around the qualifying factors as many nonresidents and residents alike received it.

    However, strictly speaking, nonresidents (including nonresident international students) do not qualify for any of the credit, as you:

    • Must be a US citizen or U.S. resident alien in 2020
    • Cannot have been a dependent of another taxpayer in 2020
    • Must have a Social Security number that is valid for employment before the 2020 tax return due date

     

    I filed as a resident and Recovery Rebate Credit in error, what should I do?

    The first point to remember is that you shouldn’t worry, you are not alone in receiving this in error!

    The good news is that all you need to do is file an amended tax return for the relevant year you filed as a resident and thus pay any tax liability that you owe to the IRS.

    Thousands of amended returns are sent to the IRS each year, this is completely normal and happens to many nonresidents. An amended nonresident tax form is formally known as 1040X.

    Completing a 1040X online is quite easy, and you can do it today with Sprintax!

     

    I filed correctly but received the payment. What should I do?

    This is another common scenario we have seen over the past year.

    Most people find they have either cashed the check or have not cashed it, so will be left with two options:

    1. You received the check but have not yet cashed it:

    1. You’ll need to write “Void” on the back of the check.
    2. Mail the check to a valid IRS branch location closest to you.
    3. Include in it a note outlining why you are returning the check.

    2. You received the payment as a check and cashed it/ you received the payment through direct deposit:

    1. This will require you to send a personal check, or money order, etc., to your relevant IRS branch location.
    2. On the check/money order, you’ll have to write “made payable to ‘U.S. Treasury’” and also write ‘2020EIP’, and your taxpayer ID (in this case your social security number, or individual taxpayer identification number/ITIN).
    3. Again, give an explanation of the reason for returning the payment.

     

    How Sprintax can help you

    Sprintax is the go-to service for nonresident and international student tax preparation in the US.

    If you accidentally claimed the recovery rebate credit, we can help you prepare your 1040X to ensure you are on the right side of the tax authorities.

    If you are unsure of your tax obligations, our tax team is more than happy to discuss your case with you.

    We have a 24/7 Live Chat service that will provide you with key assistance when you need it the most.

    We’ll complete a full tax review on our user-friendly system, ensuring you are ready to file your optimized tax return.

     

    Prepare your 1040X form with Sprintax Returns.

    Start here

     

     

  • A Complete Tax Guide for Au Pairs in the U.S.

    au pair paying taxes

    Each year, thousands of au pairs move to the US to live with host families.

    We’ve put this handy guide together to fill you in on everything you need to know about foreign au pairs and tax in the US.

    Continue reading “A Complete Tax Guide for Au Pairs in the U.S.” »

  • The Ultimate J-1 scholar tax guide

    J-1 research scholar tax guide

    Thousands of people travel to the US on J-1 visas every year.

    But did you know if you go to the US on a J-1 visa you have a tax-filing requirement? It’s the law!

    With that in mind, we have put together this post that outlines all J-1 Scholars need to know about tax when in the US. Continue reading “The Ultimate J-1 scholar tax guide” »

  • Tax Hacks from Sprintax! How to file nonresident tax returns for multiple US states

    how to do state taxes for multiple states F-1/J-1
  • How are royalties paid to nonresidents taxed in the US

    US royalty payments income tax for nonresident aliens

    Many nonresidents who come to the US are unsure about various different aspects of taxation.

    One of the areas that can prove troublesome is the taxation of royalties.

    Many nonresidents are unsure how their royalty income will be taxed, and this can lead to a stressful situation come tax season.

    Bearing that in mind, we have put together this article that outlines all you need to know about royalties and tax in the US.

    Continue reading “How are royalties paid to nonresidents taxed in the US” »

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

    Sprintax Federal efiling live

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

    We are thrilled to announce that Sprintax – the best 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 2021 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.

    By E-Filing your tax return, you can ensure that your taxes are processed by the IRS faster than if you filed a paper tax return.

     

    File 1040NR Online

     

    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 2021 US tax return.

    If you wish to E-File your taxes, you must firstly confirm that you have not previously E-Filed your 2021 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 11 of your 2020 1040NR. Please ensure the information you provide here is correct.

    If you did not file a tax return for tax year 2020, please enter ‘0’ as your prior year adjusted gross income.

    If you filed an amended tax return for tax year 2020, 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 authorizing 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 I E-File for tax years prior to 2021?

    At present, E-Filing is only available for the 2021 tax year.

    However, Sprintax can help you to prepare the tax documents you need for prior tax years.

    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 1042-S forms do not have a unique code identifier
    4. You have capital gains income
    5. You have form 1099-NEC
    6. You have form 1099-INT
    7. You have form 1099-MISC with box 4 higher than box 0
    8. You have included your final payslip
    9. You have self-employment income
    10. 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

    Note: If your W2 forms do not have a control number you must enter any 5 digit number instead.

    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?

    We have launched a new website!

    We have made significant improvements to our site – enhancing our user experience and making it even easier to file your taxes with Sprintax.

    When is the tax filing deadline?

    It is important to file your tax return before the 18 April 2022 (the 2021 tax deadline was extended from 15 April to 17 May 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

    File 1040NR Online

     

    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 tax return with Sprintax

    Start here

     

  • New year, New Look – Re-Introducing Sprintax!

    Launching the Sprintax rebranded website

    Making the complex simple for nonresidents and their employers in the US

    Team Sprintax are delighted to unveil our new look. We’re excited to share our brand updates with you and a little background on why we made them.

    Sprintax first launched in 2014 as a nonresident tax advisory for US universities. Today we work with over 500 organizations across the US delivering tax education and tax filing services to international students and scholars – and their employers. Given our expanded product, team and ambition, we felt the time was right to update our branding too.

    At the heart of our rebranding is the goal to seamlessly transition all of our nonresident services under one roof, bringing together our products and technologies under one name, Sprintax.

    Sprintax for individuals

    Here at Sprintax, we understand the unique challenge of moving to a new country as an international student, intern, au pair or graduate. In fact, most of our team have worked or studied abroad at one stage or another! Navigating a new country, school or workplace can be difficult, not least when it comes to taxes. That’s why we’ve made it our mission to make the complex simple, so you can focus on the important things like finding a great apartment or the nearest coffee place.

    Our software is designed to support US nonresidents on every step of their journey, from preparing their pre-employment payroll forms (Sprintax Forms), to filing their first US tax return (Sprintax Returns).

    Sprintax has rebranded. Introducing Sprintax Returns and Sprintax Forms

    Sprintax for business

    At Sprintax, we don’t just support students and interns. We are passionate about our schools and during the tax season you’ll mostly likely find us on the road, delivering on-campus tax clinics or sitting in on a NAFSA panel session. You can learn more about our partner program here.

    If you are an employer or institution with international employees, we can help ensure you tax them correctly and that your organization remains tax complaint with the IRS.

    If your payroll department are dealing with international employees, then they’ll be all too familiar with the world of international tax treaties. Ever changing, it can prove a time-consuming and daunting task to determine the eligibility status of each international employee.

    Enter Sprintax Calculus, our multi-jurisdiction, tax compliance software, built to simplify payroll processing for nonresident employees and international vendors. The software will automatically determine the tax withholdings for your nonresident population, generate aggregated reports and integrate with your payroll platform for a smooth transition of data. Nifty huh?!

    TLDR; so what’s new with Sprintax?

    For our current users, you’ll notice some big changes on the website! It’s now much easier to navigate between our services. We’re also working on our new and improved help site and resource centre which will go live over the coming weeks.

    As part of our rebrand, we have introduced a new naming convention for each of our services. Here’s a quick recap!

    Personal services

    Sprintax Returns (Formerly, Sprintax Tax Prep)

    Sprintax Returns is the new name for our nonresident federal tax e-filing and state tax return preparation solution. Start here to determine tax residency status and to prepare and file US nonresident federal and state tax returns.

    Sprintax Forms (Formerly, SprintaxTDS Personal)

    As a nonresident student, scholar or employee in the US, you may be eligible for specific tax treaties. When you start working and earning an income in the US, Sprintax Forms will help ensure that you pay the right amount of tax on your salary – assisting with pre-employment paperwork including form W-4, W-8BEN and more.

    Business services

    Sprintax Returns Partners (Formerly Sprintax Tax Prep Partners)

    We partner with schools and institutions across the US to deliver nonresident tax education and tax return filing services to their international population. To find out more about partnering with us on Sprintax Returns, schedule a call.

    Sprintax Calculus (Formerly, SprintaxTDS)

    The documenting and reporting on payments made to nonresident employees has become a significant challenge for many US-based organisations. Sprintax Calculus (Formerly SprintaxTDS) helps payroll offices to manage the tax profiles of their nonresident employees on a single, user-friendly dashboard. Find out more here.

    Note: If you are a Sprintax Calculus partner, your student users will be asked to login and create their profile under the individual dashboard, Sprintax Forms.

    Sprintax has rebranded. Introducing Sprintax Calculus

    A word from our Vice President

    “Sprintax is going from strength-to-strength. The product we launched in 2014 is very different to who we are today, so it was time for a refresh. However, while the look and feel are more modern, it’s still the same goal that drive us – the ambition to make the complex simple. We hope you and your clients like what we’ve done – as always we’re keen on your feedback!”

    Enda Kelleher
    Sprintax Vice President

    More to come…

    Our new website is the first of many exciting developments at Sprintax. Over the next few months, you’ll notice more improvements to our software which we hope will further enhance your user experience, making Sprintax an intuitive and helpful tool to use, no matter what your use case!

    We want to hear from you!

    It would not have been possible for Sprintax to have grown over the last few years without the incredible support of our clients and partners. We are incredibly grateful for this support and, with that in mind, we would love to know what you think of our new site and any recommendations you may have for our next phase of development.

    Be sure to email your feedback to [email protected] or tag us on social!

  • Which tax form should I use: Form 1040, 1040NR or 1040NR-EZ?

    Using-form-1040-or-1040NR

    (Updated for 2022)

    Important: Since 2020, the IRS no longer uses form 1040-NR-EZ. Form 1040NR has been simplified and will be used instead.

    Coming to the US from a foreign country presents both thrills and challenges to every nonresident. One of the more common difficulties nonresidents face is filing their tax return.

    In this blog post, we’ll be discussing Forms 1040, 1040NR, 1040NR-EZ, and how they apply to each person’s situation.

    Form 1040 (NR & NR-EZ) figures out the total taxable income of the taxpayer and determines how much of a refund the person may be due.

    So, without further ado, let’s examine how to find out which form applies to you! Continue reading “Which tax form should I use: Form 1040, 1040NR or 1040NR-EZ?” »

  • Form 8843 – what is it and how do I file it?

    how to file form 8843

    (Updated for 2022)

    There are 3 things that every US international student and J-1 visa holder needs to know about American tax:

      1. Every US international student and J-1 visa holder has a tax filing requirement
      2. It doesn’t matter if you have earned income. You must still file your documents before the deadline
      3. The IRS takes this stuff seriously! In other words, if you don’t comply with your tax obligations, you may encounter complications when applying for US visas in the future

    Regardless of whether you have earned income during your time in the US, if you are a nonresident in the US, you will still need to file what’s known as a Form 8843 “Statement for Exempt Individuals and Individuals With a Medical Condition”.

    This blog post will focus on exactly what you need to do in order to file this form and remain compliant with the IRS.

    NOTE: If you are considered a resident for tax purposes, you are not required to file form 8843.
    Continue reading “Form 8843 – what is it and how do I file it?” »