(Last updated: 30 Oct 2024)
Every nonresident student and J-1 participant is legally obliged to file a tax return before the 15 April deadline (18 Apr in 2023).
And for thousands of nonresidents each year, the prospect of filing a tax return is incredibly daunting.
Let’s face it. US tax can be pretty complicated, even for Americans! So it makes sense that so many nonresidents seek help with completing their tax returns.
There are countless tax agents and accountants who offer tailored US tax services for international students and J-1 participants. But the fact is that not every tax agent acts in the best interests of their nonresident clients.
Let’s take a look at some of the pitfalls facing nonresidents who want to enlist the services of a tax agent.
Spotting Scammers
Unfortunately, choosing a nonresident tax agent is not as straightforward as it may seem for nonresidents.
For example, there are many dubious tax companies out there who boast about how much they save their customers on their tax bill or claim that they can retrieve inflated tax refunds.
However, it’s important to ask yourself – are they really the best people to handle your tax affairs? After all, if you choose the wrong tax company, and incorrect information is submitted on your tax return, you will be seen as fraudulent by the IRS and you may have to pay fines and penalties.
Inflated tax refunds
Whoever said; ‘if something seems too good to be true, then it probably is too good to be true’ was really on to something!
The well-known idiom particularly rings true when it comes to US nonresident tax!
One of the main reasons certain tax companies advertise inflated refund figures is because they are claiming expenses and reliefs that their nonresident clients are not entitled to claim. As a result, their clients file fraudulent tax returns and run a high risk of incurring penalties and interest payments.
The Personal Exemption
Take the ‘personal exemption’ for example.
In previous years, every nonresident (such as international students and J-1 participants) who was working in the US was entitled to earn up to $4,050 without paying tax, through the personal exemption.
However, following the introduction of the ‘Tax Cuts and Jobs Act’, the personal exemption was reduced from $4,050 to $0 in January 2018.
Nonresidents are no longer entitled to claim a personal exemption. If a tax agent is telling you that you can claim this deduction, they are not acting in compliance with the IRS.
It doesn’t matter if you filed the return yourself, or a dishonest company filed the tax return on your behalf, it is you that will be held responsible should a fraudulent tax return be filed in your name.
Tax agents for US residents
Some US tax agents specialize only in returns for residents.
If, as a J-1 participant or international student, you use one of these companies, you will prepare an incorrect tax return (i.e. form 1040).
Nonresidents should file Form 1040NR .
How to stay compliant with the IRS and claim your maximum legal refund?
There is a way that you can get help with your tax return, ensure that you stay compliant with the IRS and claim your maximum legal tax refund.
How?
Choose Sprintax!
Sprintax Returns is the only online Federal and State self-prep tax software for nonresidents in the US.
When you create a Sprintax account, our software will guide you through the entire tax filing process from beginning to end and ensure that your tax return is prepared in full compliance with the IRS.
We’ll first determine your tax residency status before identifying which forms you need to complete based on your own personal circumstances. You’ll be able to avail of any tax deductions or benefits you’re entitled to and claim your maximum legal tax refund.
You’ll be asked a few easy questions and based on the information you provide, you will then be able to download your fully completed and compliant nonresident tax return.
Sprintax is a fully transparent service.
What are the fees
You can prepare your Federal tax return from $51.95 and your State tax return from $51.95 (see all fees here). There are no hidden fees.
Live Support
And if you need a hand during the tax prep process, our tax team are available 24/7 to offer uncomplicated guidance in plain English.
Security of your data
Not only do we guarantee to keep you compliant with the IRS, we’re also dedicated to protecting your personal and financial information.
You can have peace of mind that the quality management of our personal income tax filing and refund services is certified by the internationally recognized ISO 9001 quality mark!
We conduct security tests on our site every day and use the most advanced security technology available. All security protection measures are overseen by a team who are dedicated to protecting your privacy.
But don’t just take our word for it…
We prepare more than 100,000 US tax returns every year. So it’s safe to say we know a little bit about US tax!
Sprintax Returns is the ‘go-to’ tax preparation software for numerous major universities in the US including Columbia, Arizona State University, Illinois Institute of Technology and Cornell. And we’re also the nonresident partner of choice for Turbo Tax.
Through the years we have received countless positive responses from our customers.
In fact, we have an 4.6 (/5) Trustscore on Trustpilot.com and you can see some of our reviews and testimonials here: Trustpilot.com and our website.
We value all customer feedback, as it provides an important way for us to review the quality of our service. So why not drop us a line and tell us how we’re doing!
Prepare taxes with Sprintax. File with confidence!
With Sprintax you can:
- Save time and stress!
- Prepare a fully compliant US tax return
- E-file your federal tax return
- Determine your residency status
- Maximize your State tax refund
- Avail of our 24/7 Vita Qualified Live Chat facility
- Enjoy a user-friendly system.
Prepare your taxes with a reliable software.
Complete your nonresident tax return the easy way with Sprintax!
