All posts tagged Federal tax return

  • Missed the US tax return deadline? Here’s what to do

    international student did not file taxes

    Last Updated: 28 April 2022

    Every nonresident alien in the US is obliged to file a federal tax return before the tax deadline, which in 2022 was 18 April.

    If you’re an international student or scholar in the US, by law you must file Form 8843 at least, but depending on your circumstances, you may also need to file a Federal tax return by filing a 1040NR, a State Tax return or two and maybe even a FICA return. Not filing a tax return could get you into a whole heap of trouble, leaving you with hefty tax fines and penalties, on top of possible problems getting US visas in the future.

    What happens if an international student does not file taxes on time?

    Don’t panic! Nearly 30% of taxpayers are unable to organize their documents before the deadline and file late. But you can still fix this!

    Here are a few important things you should consider if you expect to miss the deadline.

    Continue reading “Missed the US tax return deadline? Here’s what to do” »

  • 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” »

  • 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” »

  • 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

     

     

  • US tax season survival guide for international students on F-1 visas

    F1 International student tax filing guide

    A handy tax guide for international students and scholars in the US on an F-1 visa

    While tax filing might not be the most exciting aspect of international student life in the US.

    After all, tax returns for international students probably weren’t high on your list of priorities when moving to the US!

    However, the importance of completing these forms correctly cannot be underestimated – the way you handle your international student tax affairs will have a major impact on future Green Card and visa applications.

    With this in mind, we’ve created this handy tax guide for international students and scholars in the US on an F-1 visa.

    We’ve covered everything you need to know about tax returns, refunds, and how to stay in the taxman’s good books! So, let’s get started!

     

    Continue reading “US tax season survival guide for international students on F-1 visas” »

  • 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.” »

  • 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

     

  • The dangers of not filing a tax return

    Not filing a tax reurn

    If you have worked or studied in the USA, did you know that you are obliged to file taxes?

    Many nonresidents are unaware of this fact due to a combination of factors, such as busy lifestyle or they have left the country.

    However, whatever the case may be, not filing your taxes has very serious consequences.

    If you are a nonresident and still live in the US, continuing to avoid your responsibility can result in automatic wage seizure by the courts, asset seizures like your car and may even lead to arrest and jail time for tax evasion.

    What happens if I don’t file?

    If you do not pay the taxes you owe by the tax deadline (15 April every year, except 2020 and 2021 which were 17 May and 15 July respectively) you could be hit with a variety of punishments.

    Here are a few different dangers of not filing your tax return:

    You could miss out on your tax refund!

    If you are entitled to a tax refund, you won’t be punished for filing late by the IRS.

    If you wait longer than three years from the date your refund is published, however, you will lose out on your chance to claim the refund as it will automatically be handed over to the US government.

    You could be hit with fines and penalties

    If you have unpaid taxes, you will owe the IRS interest in addition to any penalties.

    You should do your best to file your tax return before the deadline to avoid facing penalties and fines!

    The penalty for filing late is normally 5% of the unpaid taxes for each month or part month that a tax return is late. That penalty starts accruing the day after the tax filing due date and will not exceed 25% of your unpaid taxes.

    If you file your tax return more than 60 days after the due date or extended due date, the minimum penalty is strong – $135 or 100% of the unpaid tax, whichever is less.

    If you do not pay your taxes by the tax deadline, you will normally face a failure-to-pay penalty of 0.5% of your unpaid taxes.

    Residency status for tax purposes

    Can I file if I have left the US?

    Yes!

    You can file your US tax return with Sprintax from anywhere in the world!

    Sprintax is the only online Federal and State self-prep tax software for nonresidents in the US!

    Our system will assist you in preparing fully compliant Federal and State tax returns and secure your maximum legal tax refund.

    The average federal refund in the US is $1,126!

    With Sprintax you can:

    • Save time and stress!
    • Determine your residency status
    • Prepare a fully compliant US tax return
    • E-file your Federal tax return
    • Maximize your State tax refund
    • Avail of our 24/7 Vita Qualified Live Chat facility

    Complete your nonresident tax return today!

  • H2B workers and taxes – all you need to know

    H2B visa temporary worker-tax guide

    What is the H-2B visa?

    The H2B program allows employers in the US, who meet regulatory requirements, to bring nonresidents to the US to fill temporary (non-agricultural) jobs – for example, hotel staff, janitors, amusement park workers, landscapers, etc.

    US Government announces increase in H2B visa cap for 2021

    The US government has announced that the H2B visa cap has been extended by 22,000 visas to a total of 88,000 per year. Continue reading “H2B workers and taxes – all you need to know” »

  • Novidade: Sprintax agora está ATIVO para o E-Filing Federal de Não-residentes!

    Sprintax ativo para e-filing federal

    Nunca foi tão fácil para não-residentes nos EUA apresentar a declaração de impostos federais.

    Estamos animados em anunciar que a Sprintax – a única solução online para declarações de impostos federais e estaduais de não-residentes nos EUA – está agora disponível para o Federal E-Filing.

    Isso significa que, ao preencher o questionário fácil da Sprintax, você pode apresentar sua declaração de impostos federais diretamente na IRS online. Continue reading “Novidade: Sprintax agora está ATIVO para o E-Filing Federal de Não-residentes!” »

  • Your frequently asked nonresident tax questions answered

    nonresident alien FAQs

    Here are the answers to some of the most frequently asked questions about U.S. taxes. Continue reading “Your frequently asked nonresident tax questions answered” »

  • Did you leave the US due to Covid-19? You could be due a tax refund!

    due a tax refund

    Covid-19 called a halt to countless peoples plans in 2020!

    Many nonresidents had to leave their adventures in foreign lands and travel home.

    If you were one of the people who had to leave the US due to the pandemic…we feel your pain!

    However, you should know that you still have tax filing obligations in the US!

    Lucky for you, you could be due a big tax refund! Continue reading “Did you leave the US due to Covid-19? You could be due a tax refund!” »

  • What income is taxable for nonresident aliens in the US?

    Taxable income of nonresident aliens

    Are you a nonresident living in the US? We know it can be confusing to understand the tax system in your home country, let alone in a different one, so we are here to help explain what income is taxable for nonresidents in the US.

    As a foreign national you can be subject to one of two different systems of taxation in the US, depending on whether you are classified as a nonresident or resident alien in the US.

    If you are a nonresident alien, you are subject to US income tax only on your US source income and just like residents, you must report your income on US income tax returns.

    In this guide, we are going to take a closer look at the various different types of income which are taxable in the US and outline our tips on managing your tax requirements.
    Continue reading “What income is taxable for nonresident aliens in the US?” »

  • 5 Top Tax Tips for Last-Minute Filers

    student with laptop

    (Updated for 2021)

    International students must file a tax return as a condition of their visa. You may be subject to penalties and interest if you don’t do it.

    However, many will inevitably wait until the last minute to file their US tax returns.

    If you’ve procrastinated and haven’t done your taxes yet, you are not alone!

    But don’t worry! We are here to help with our 5 top tax tips for last-minute filers.
    Continue reading “5 Top Tax Tips for Last-Minute Filers” »