In this guide, we will discuss:
(Updated for 2024)
Resident or Nonresident – this is the question!
Determining your tax residency status is important, as it will determine 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 jeopardize 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” »
The topic of e-signatures on tax forms is a relatively new subject.
That is because the IRS has traditionally required paper signatures on all of their tax forms.
However, for some tax forms, the rules have changed somewhat over recent years.
This is due to a number of reasons, mainly due to the fact that the IRS is constantly looking to modernize the way in which they operate.
In this blog, we’ll delve into what the current rules on whether or not you as a nonresident alien on an F, J, M or Q visa can sign your tax forms online, and if it is beneficial for you.
An e-signature, also known as an electronic signature, is an efficient way to sign documents electronically with a digital ID.
Where does this apply to tax forms? Well, many tax forms can be completed electronically, but rules have stated that they need a paper signature.
However, the IRS has recognized that completing, printing, and sending tax forms is a significant burden as opposed to e-filing them, so they are beginning to change their rules.
The current law that allows e-signatures on tax documents is in place until 31 October 2023.
From the end of October 2023 onwards, it is likely that it will be extended.
The main benefit of using an e-signature is that it saves time on tax return preparation for workers.
As well as this, when you apply an electronic signature to your document, it will lock it from further editing. This provides a safeguard against potential document manipulation after the taxpayer has completed the form.
They can also save you money, as every time you use an e-signature, it prevents you from having to print the document and ultimately spend more money on paper (and ink!).
To add an e-signature to a tax form, you will need to try a software that offers this service. For example, DocuSign e-signature is officially recognized by the IRS.
There are subtle differences between electronic signatures and digital signatures, despite how similar they sound.
Although both are used to add authenticity to documents, they perform different operations.
Digital signatures use technology to encrypt a signature – ensuring the person is not lying about their identity.
The difference is that e-signatures outline that a signatory is to be legally bound by the terms within a specific document.
Recently, the IRS has begun to lax its rules on tax document signatures.
For nonresidents, that applies to many of the common tax forms used in tax season.
Sprintax can add e-signatures on W-4, W-9, W8-BEN, and Form 8233, but not W-7. You can do this with Sprintax Forms.
To e-file your tax documents with Sprintax, you will need to electronically sign your forms using the information requested on the screen when you are finalizing your return.
Before signing your return, you must verify your identity with us. This will require you to provide information from your previous federal tax return (If you did not file a tax return for tax year 2020, please enter ‘0’ as your prior year adjusted gross income).
Next, you’ll be asked to agree to a disclaimer and consent statements before agreeing the information you entered is correct.
Finally, simply click ‘E-File My Return’ to electronically send your tax return to the IRS.
Check out the handy video below that outlines how to electronically file your return with Sprintax Returns!
As a nonresident, Sprintax will offer assistance with all you need come tax season.
At Sprintax, we:
E-file nonresident tax return with Sprintax
At the recent Nonresident Tax Clinic for J-1 visa holders, our panel of industry thought leaders explored the world of tax compliance and outlined the latest developments in rules and regulations for the taxation of J participants in the US.
This fascinating event was perfect for J program participants, J program sponsors, agents, responsible officers, employers of J visa holders or even if you simply have an interest in the J program.
If you missed the Nonresident Tax Clinic and would like to check it out, you can watch it back here. Continue reading “Tax and Immigration for J-1/J-2 visa holders – 5 top takeaways from the Nonresident Tax Clinic” »
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?” »
(Updated for 2023)
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” »
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. Continue reading “Everything a nonresident needs to know about the US Recovery Rebate Credit” »
Filing taxes in multiple states doesn’t have to be a stress. Here’s everything you need to know about dual state tax filing
In this article you will discover:
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” »
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. Continue reading “New year, New Look – Re-Introducing Sprintax!” »