All posts in Sprintax

  • How to prepare W-2 forms for your nonresident employees

    Preparing tax forms for your nonresident employees can be a time-consuming and complicated process.

    After all, when preparing tax documents there are different rules to follow for nonresidents than there are for residents.

    Coupled with this, each nonresident is taxed differently – depending on their personal circumstances and their country of residence.

    At the end of each tax year, nonresidents will need a number of different forms when they sit down to file their tax documents. The forms they need depend on the income they earned.

    The W-2 is one of the most common forms that nonresidents require during tax season.

    And in this guide we will discuss how to prepare W-2 forms if you employ nonresidents at your organisation.

    What is a W-2 form?

    The main purpose of a W-2 (Wage and Tax Statement) form is to report wage and salary information along with other taxes withheld from the paycheck of the employee.

    After receiving their W-2 form, the employee will also know if they can expect a tax refund or if they will have to make an additional tax payment.

    When are W-2 forms due?

    You should provide a filled out W-2 form to your employee by 31 January

    You must send the employee the W-2 form on or before 31 January to ensure that the employee has more than enough time to file income taxes before the tax deadline of 15 April.

    Therefore, you will need to provide the employee and the IRS copies of the worker’s W-2.

    You can give the employee their W-2 in person, or alternatively send them it via email or mail.

    How to prepare a W-2 form

    There are several things you will need to know before you begin to prepare a W-2 form for your employee.

    It’s important that you gather this information in time, however.

    You will need to have information for both the employee and the employer on hand.

    What information is needed for W-2 form?

    To create W-2s for your employees, you will need to include your Employer Identification Number as well as the employee’s name, address, Social Security Number and details of their wages.

    Other information necessary to correctly fill out a W-2 form includes: 

    • The name of your business, the address, EIN (Employer Identification Number) and state ID number
    • Total figures for wages, tips and other compensation
    • Total figures for taxes

    See below an image of a W-2 form for more information on what you will be asked for.

    Can I fill out a W-2 form online?

    Yes. You can use Sprintax Calculus to create W-2 forms for your nonresident employees.

    Sprintax Calculus has been developed specifically with the goal of helping organizations to manage the tax withholding of their nonresident employees.

    In fact, with Sprintax Calculus, your Payroll Department can easily manage the tax profiles of your nonresident employees all-in-one place, through a user-friendly dashboard. 

    Our software will enable your team to report the correct amount of tax from US payments to nonresident students and scholars as well as workers who are being paid scholarships, wages and stipends.

    Sprintax Calculus can help you efficiently prepare W-2 forms for all of your employees, generating them in a matter of seconds and keeping them in a secure online location.

    Great! But how does Sprintax Calculus work?

    Login anywhere, anytime to manage your nonresident employees.

    We will help you with the following common problems, and more:

    • Not sure who is a nonresident for tax? Sprintax Calculus carries out residency tests for your employee 
    • Having trouble preparing important tax forms? Our software automatically generates key forms including – 1042-S, W-4, W-8BEN and more
    • Not sure if the employee can claim a tax treaty? Sprintax Calculus applies all relevant tax treaty benefits and reliefs to each employee

    Why Sprintax Calculus?

    • Safe and automated tax solution based on the cloud
    • Residency and tax treaty eligibility determination.
    • Calculation of tax withholding rates
    • Generation of key tax forms in a matter of seconds
    • Simple to use admin & dashboards. Advanced Reporting tools

    Interested in learning more about Sprintax Calculus? Set up a free, no-obligation demonstration today.

  • Taxes on eSports income – everything nonresidents need to know

    Do eSport players have to pay taxes?

    eSports are a form of competition where video gamers from around the world connect and compete for money.

    Despite being around since the 1970s, eSports only began to truly take off in the late 2000s. In fact, it is estimated that nearly 500 million people tuned into Esports in 2020, whether as enthusiasts or occasional viewers.

    From amateur level gamers to tournaments with millions of dollars in prize money on offer, eSports has blown up in a big way over the past decade.

    But tournament play isn’t the only way to earn an income from eSports.

    The outbreak of COVID-19 has empowered gamers to find opportunities to earn an income from live-streaming and even ‘influencer’ marketing!

    Many US universities are jumping on the eSports bandwagon too!

    In fact, more than 60 education institutions in the US have introduced an eSports program and the NCAA are reportedly considering a role in the sport.

    However, the IRS does not consider tax evasion to be a game.

    So if you are in the US as a nonresident and have eSports gaming earnings, it’s important to keep in mind that you are obliged to declare this income for tax.

    Determining how to include your eSports income on your tax return can be tricky.

    With that in mind, we’ve put together this guide on everything you need to know about your eSports tax requirements.

    Are nonresidents entitled to earn income from Esports in the US?

    The answer to this question largely depends on your visa and immigration status.

    While many nonresidents will be entitled to earn an income from eSports, it is important to be aware that you will need to obtain the proper immigration status before you earn an income.

    How much tax will I have to pay on my eSports income and will I have to file a tax return?

    As eSports becomes increasingly popular and a greater number of individuals earn income, it is easy to imagine that the IRS will put a larger emphasis on the taxation of this industry.

    With this in mind, it is wise to correctly determine your tax liability early so that you can avoid a tax bill (and potential fines) from the IRS later on.

    Exactly how much you will pay in tax will depend on the type of income you earned. There are two options to consider: if you are paid to participate and play a number of hours daily, then your income will be treated as personal services and it may be taxed at a graduated rate.

    However, if you win a one-off prize, the amount is taxable at 30% nonresident rate, unless it is covered by a tax treaty between your home country and the US. More on that here.

    However, things may get confusing if you earn income from a tournament held in one state but play it remotely from the state in which you live.

    To examine this in more detail, let’s take a look at a case study.

    Case Study – Abdul

    Abdul is a 23-year old Esports gamer, originally from Pakistan, but living in California on an F-1 visa. Abdul does not meet the Substantial Presence Test and is therefore deemed a nonresident for tax purposes.

    In March 2021, he took part in an online tournament from his bedroom in California. He ended up finishing the tournament in first place and pocketing the prize money.

    However, the tournament was held in New York.

    Abdul may have to pay taxes on his Californian tax return as well as a New York tax return.

    Abdul will be entitled to pay what is known as ‘jock tax’.

    This is used by a state tax authority in order to charge eSport players that aren’t residents for income earned there.

    How to include eSports income on your tax return

    Firstly, it depends on how you received the money.

    If you entered a competition and won the money by yourself, you will technically have won a prize or award, which still needs to be taxed.

    In general, nonresidents who receive this are taxed at a rate of 30%. You should complete a W-8BEN in order to confirm your foreign status and treaty eligibility with the payer of the award from this tournament.

    If you are a nonresident in the US, and you are employed by a gaming company and received the money as salary, you will be required to file a form 1040-NR in order to pay tax on esports winnings.

    On top of this, if you are hired by a company to play games professionally, which many gamers are, income will need to be added to your W-2 form by your employer.

    The W-2 form should be issued by the company that hires you. Dependent personal service income (wages, salaries) are taxed at a graduated rate to NRA, unless these are not covered by a tax treaty agreement.

    Depending on where the tournament took place, you may also be required to file a state(s) tax return.

    Where to include it on your tax return will also depend on how much money you made from it.

    If you only earned a small amount of money, you can claim it as additional income on your tax return.

    What happens if I don’t file my tax return

    It’s hugely important that you comply with US tax regulations.

    After all, with the growth of the eSports industry, the IRS is stepping up its approach to the taxation of Esports income.

    The message from the IRS? File your taxes!

    You will need to file before the US tax deadline (April 15).

    By not filing or declaring all of your income, you may receive penalties and fines from the IRS.

    In general, you will be hit with the late-filing penalty of 5% for each month left unfiled.

    If, after 60 days have passed and you still haven’t filed, the minimum penalty is $435 or 100% of the unpaid tax, whichever is less.

    There is also a chance that any future US visa and Green Card applications may be affected as a consequence.

    The good news is that you can easily prepare your US tax documents online with Sprintax!

    Who can help me with my US tax return?

    Sprintax Returns can help you take care of your tax responsibilities!

    If you are a nonresident in the US, our software will ensure that your income is properly declared, meaning you won’t end up paying any more income than you need to.

    In fact, we are the only online Federal and State self-prep tax software currently available for nonresidents in the US!

    If you are confused about any aspect of your tax obligations, we also offer 24/7 Live Chat.

    If you have any questions about your tax situation, feel free to reach out to our team at any time.

  • Should nonresidents in the US report Cryptocurrency on their tax return?

    Reporting cryptocurrency on nonresident tax return

    Although Bitcoin was invented in January 2009, from a taxation point of view, cryptocurrency is still a relatively new phenomenon.

    Since its inception, investors in cryptocurrency have been unsure of their tax and reporting requirements. And many important questions on the topic have gone unanswered for years.

    Is cryptocurrency considered taxable in the US? If so, how much tax is deducted from gains? What type of tax should be deducted and how should this be reported to the IRS?

    The situation is even trickier for nonresidents in the US. While every nonresident is required to file tax documents to account for their time in the US, it can be hard to declare your cryptocurrency profits for taxation when you are unfamiliar with IRS tax law.

    The overall market value of digital currencies has increased roughly 75% in 2021. In fact, the value of the cryptocurrency market passed $2 trillion for the first time in April 2021. Bitcoin is the most popular digital currency – representing approximately 50% of this $2 trillion.

    With this in mind, it is easy to see why so many investors are attracted to these virtual, volatile currencies.

    In years past, it had been somewhat easy to avoid declaring your crypto-gains for tax. However, times are changing.

    If you are in the US as a nonresident – for example as an international student on an F-1 visa – and you are earning income from cryptocurrency, in this guide, you will find out everything you need to know about your tax reporting requirements.

    Do I need to report Cryptocurrency on my US tax return?

    Yes. If you have made a profit from cryptocurrency (which you traded from a US exchange or broker) while you were living in the US, you will have to declare this income.

    In short, cryptocurrency is treated as property by the IRS.

    That means any profit you make on it will be subject to Capital Gains Tax at 30% and must be included on your 1040-NR tax return.

    If you dispose of your investment for a loss, you will not need to pay tax. However, as a nonresident, you will not be able to use your losses against any tax liabilities in future years.

    While the lines may seem slightly blurred in regards to cryptocurrency and tax filing now, this will unlikely be the case in future years.

    Crispian Robinson, Strategic Partnerships at Koinly, says that cryptocurrency is high on the agenda of tax authorities globally:

    “It’s clear that Tax Authorities around the world are increasingly applying pressure on the Crypto Industry in order to drive tax compliance, ranging from partnering with exchanges to gain user trading data to developing new legislation bills.

    For example, President Biden’s latest $1 trillion infrastructure bill has specifically singled out tighter tax regulation over the Crypto industry as a key source of funding, expecting to raise $28 billion over 10 years as a direct result.”

    It appears inevitable that tighter regulation and tax compliance is coming and will be key in helping to further legitimize the cryptocurrency industry in the eyes of regulators.

    Crypto investor? We’ve teamed up with Koinly to calculate the tax you might owe on your cryptocurrency capital gains and income.

    How much tax will I pay?

    Firstly, all of the following cryptocurrency transactions are considered taxable:

    • Sale of cryptocurrency, mined personally, to a third party.
    • Sale of cryptocurrency, purchased from someone else to a third party.
    • Using mined cryptocurrency in order to buy goods or services.

    Nonresidents will pay tax at 30% on their income from cryptocurrency. And unlike residents, nonresidents are not entitled to use losses from previous years to offset their tax liability.

    As we mentioned above, the IRS considers cryptocurrency to be property. That means they are taxed in a similar fashion to gains made from stocks, shares and bricks and mortar property.

    In other words, if you sell some stock for a profit of $1,000, this is considered a “taxable event” and you must declare this money for Capital Gains Tax.

    But things aren’t always that straightforward when it comes to cryptocurrency.

    For example, if you use your Bitcoin to purchase Ethereum, does the IRS consider this to be a taxable event?

    What about if you pay for dinner or buy basketball tickets with Litecoin?

    The answer is yes!

    Every time you purchase something with cryptocurrency, the IRS will treat this as an instance where the asset was liquidated. And if you have made a profit, you must declare that for tax.

    However, if you have made a profit from cryptocurrency, it’s important to know that even if your home country has a tax treaty with the US, the gain is not covered by the treaty and will still be taxed accordingly.

    How do I determine the correct amount of cryptocurrency income to declare for tax?

    Many investors struggle to work out exactly how much they made or lost from their cryptocurrency investment.

    If you trade stocks or shares through a brokerage, the brokers should issue a Form 1042-S which documents your transactions, you may need to request this though.

    However, this form is often not generated to account for cryptocurrency transactions.

    Meanwhile, some exchanges have begun to issue a 1099-K form to account for cryptocurrency transactions. This is typically done where there are at least 200 transactions worth an aggregate of $20,000 or more.

    However, this form only reports the total value of transactions and does not detail how much the investor put in at the outset.

    As a result, many investors over-report their gains and pay more tax than they need to.

    With this in mind, it is advisable to properly document each cryptocurrency investment that you make and keep these records in a safe place.

    It’s important to remember that the purchase of digital currency is not a taxable event.

    Instead an investor must determine their tax liability when they sell their cryptocurrency for a profit.

    Some cryptocurrency exchanges will provide you with an excel summary of all your trades. This document will enable you to determine the amount you originally invested as well as the profit that you have made, so be sure to keep them safe.

    Alternatively, if the sale involves the disposal of assets from a variety of sources, the investor will need to know the fair market value of the asset on the day of sale.

    David Kremmer, bitcoin expert and CEO of CoinLedger, outlines that transactions may be difficult to report if assets are sent from wallet-to-wallet.

    He says: “Due to the transferable nature of cryptocurrencies, it’s easy for investors to send their assets from wallet-to-wallet or from one exchange platform to another.

    This creates difficulties when reconciling transactions for tax reporting.

    To help calculate your total profit, you should keep records of your cost basis (the original purchase price) for each cryptocurrency when you first acquired it. Having these records will dramatically help you when tax time comes around.”

    Sprintax Returns (formerly Sprintax Tax Preparation) can help you file your tax return no matter where you are in the world!

    What happens if I don’t report my Cryptocurrency income?

    The IRS is taking the taxation of virtual currency seriously and has recently stepped up its efforts to crack-down on cryptocurrency tax-dodgers.

    The agency is liaising with crypto exchanges for information regarding non-compliant taxpayers.

    In fact, over the last two years, the IRS announced it was sending letters to more than 10,000 people who potentially failed to report cryptocurrency income.

    The letters state that individuals have 30 days to respond to the IRS. The result of non-compliance? Usually a tax audit for the investor.

    The message from the IRS is clear; file your taxes.

    This US tax deadline falls on 15 April each year, so you should know before then whether or not you need to file.

    If you do not file and declare all of your income, you leave yourself open to penalties and fines from the IRS.

    The late filing penalty is generally 5% of the unpaid taxes for each month or part month that it is late.

    However, if you still haven’t filed more than 60 days after the due date or extended due date, the minimum penalty is $435 or 100% of the unpaid tax, whichever is less.

    As a nonresident, failure to comply with your US tax obligations can also jeopardize your future US visa and Green Card applications.

    H1B taxes

    I earned a profit from bitcoin in previous years. Can I retrospectively declare this income to the IRS?

    2019 was the first year that the IRS included a reference to cryptocurrency on their tax documents.

    Citizens and resident aliens were asked on Form Schedule 1; “At any time during 2019, did you receive, sell, send, exchange or otherwise acquire any financial interest in any virtual currency?”

    Schedule 1 is used to report income that is otherwise not listed on Form 1040. This typically includes capital gains, alimony, or gambling winnings.

    However, Schedule 1 which nonresidents received did not reference cryptocurrency. Instead, nonresidents were expected to report their gains on Schedule NEC along with their Form 1040NR.

    In 2020, the IRS recognized that the process needed to be simplified as millions of dollars of cryptocurrency slipped through the net.

    With this in mind, the IRS moved the virtual currency question to the main 1040 tax return form.

    If you have earned income from cryptocurrency which has not previously been reported, it is advisable to declare this income to the IRS.

    Despite the IRS only beginning to update their tax documents in 2019 in relation to cryptocurrency, the US tax authority had issued notices as far back as 2014 and many of the rules outlined at that time are still in force today.

    In summary, if you were paid for personal services with cryptocurrency such as Bitcoin, it’s advisable to report it on your tax return, the same as ordinary income.

    Case Studies

    Case study 1 – Mike buys 3 Bitcoin

    Mike, who is on an F-1 visa in the US, purchases 3 Bitcoin for $9,000 and later sells it for $11,000, meaning he made a profit of $2,000.

    In this case, Mike’s profit of $2,000 will be taxed at 30%. This means that he will have a federal tax bill of $600 on his cryptocurrency income.

    Case study 2 – Sachin purchases multiple Bitcoin at different times

    Sachin is in the US on an F-1 visa. He purchased five Bitcoin in 2010 for $5,000 ($1,000 each), and three Bitcoin in 2018 for $12,000 ($4,000 each). He then sells six Bitcoin three years later for $20,000 in 2021.

    How should Sachin calculate his tax liability?

    The IRS says that if you can identify the Bitcoins that have been sold, their cost basis can be used. For example, Sachin sold three Bitcoin of $1,000 ($3,000 in total) from his wallet created in 2010 and three Bitcoin of $4,000 ($12,000 in total) from his wallet from 2018.

    In this case, the cost basis is $15,000 and the profit is $5,000 ($20,000 sales price minus the aforementioned $15,000 cost basis).

    So, the tax due in this case will be $1,500 ($5,000 at a tax rate of 30%).

    If it is difficult for Sachin to distinguish which Bitcoin are sold, the IRS advises that he should use a ‘first in, first out’ (FIFO) method to calculate his liability.

    Therefore, the first five Bitcoin would be based on the oldest cost basis of $1,000 ($5,000), followed by one Bitcoin of $4,000 – the newer purchase.

    As a result, the basis would be $9,000 and the profits under FIFO method would be $11,000 with tax bill of $3,300.

    How should nonresidents declare their cryptocurrency gains to the IRS?

    Simply put, it depends on how you use cryptocurrency.

    If you invest in cryptocurrency and you earn a profit from it, it will be taxed as Capital Gains Tax, and you will need to report it as a capital gain on the table at the bottom of the Schedule NEC page and transfer the same total as capital gains on the relevant line on your 1040NR form.

    If you were paid in bitcoin for work done as a self-employed person, this will count as personal services income – and you will need to report it on 1099-NEC.

    It is important to know that you may not need to pay tax on any profit until you purchase something or sell your investment. When you do this, you will need to pay Capital Gains Tax.

    Does the source of income matter?

    Yes.

    If you earned income from cryptocurrency from a US source you will need to pay tax on the amount of profit gained.

    If you earned your cryptocurrency profit from a different country, you will not have a US tax liability but may have tax requirements in the country where the digital currency was bought and sold.

    How can Sprintax help me?

    In short, Sprintax can help you organize your tax responsibilities ahead of the US tax deadline.

    If you are earning income from cryptocurrency, or from other types of investments, we will ensure that your income is properly declared to the IRS and that you don’t pay any more income than you need to.

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

    What’s more, we also offer 24/7 Live Chat tax support. So if you have any questions about your personal tax situation, you can contact our team at any time.

    To get started, simply create your Sprintax account here.

  • How the rule changes for NCAA compensation affect the taxation of nonresident student athletes in the US

    NCAA rules affecting taxation of nonresidents

    Thursday 1 July 2021 will forever be remembered for the dawn of a new era in US college sports.

    Students who participate in National Collegiate Athletic Association (NCAA) competitions are now – for the very first time – entitled to make money from a wide variety of business ventures, without losing their eligibility to compete.

    Perhaps the most interesting developments surround what is known as ‘NIL’ rights (name, image and likeness).

    A combination of state laws and NCAA NIL policy changes has now removed restrictions preventing athletes from selling their NIL rights.

    While these changes do not mean that college football players can suddenly begin to receive big salaries, they do open the door for athletes to claim a bigger piece of the billions of dollars generated by US college sports each year.

    However, making money from NIL will not necessarily be straightforward for every student athlete.

    There are thousands of nonresident athletes on scholarships at universities around the US.

    For many of these international students, it will be advisable to steer clear of NIL income – at least for now – lest they violate the terms of their visa.

    In this guide, we will take a closer look at the NCAA rule changes and examine how they affect nonresident athletes in the US.
    Continue reading “How the rule changes for NCAA compensation affect the taxation of nonresident student athletes in the US” »

  • How to File Prior-Year Tax Returns as a Nonresident Alien

    File previous year tax return

    People do not file their taxes for a variety of reasons. Perhaps you forgot or were unaware that you had to file. Perhaps you had a hefty tax bill that you could not cover.

    Whatever the reason, if you did not file your tax return by the deadline, you should do it as soon as possible. Otherwise, you risk being hit by fines, and you can jeopardize your future visa applications.

    As a nonresident, you probably know that you have the obligation to file a tax return if you were in the US for just one day, and even if you did not earn any income in order to stay compliant with your visa tax commitment.

    This guide will outline everything you need to know as a nonresident if you did not file your prior-year tax return(s). So, keep reading!

    Continue reading “How to File Prior-Year Tax Returns as a Nonresident Alien” »

  • Here’s the ultimate guide to nonresident taxes in the US

    NRA tax guide

    Whether you are dreaming of a trip to the US, or you are about to embark on one, the prospect of jetting off to The Land of Opportunity is bound to be exciting.

    While you get to grips with the culture in the US, one area that often confuses nonresidents is tax.

    That’s why Sprintax is here!

    We specialize in making tax as straightforward as possible to newcomers in the US.

    So, without further ado, here’s our ultimate guide to nonresident tax in the US. Continue reading “Here’s the ultimate guide to nonresident taxes in the US” »

  • Introducing your one stop shop for determining tax treaty entitlements!

    Sprintax Calculus (TDS) new tax treaty engine

    Sprintax Calculus (formerly Sprintax TDS) launch new Tax Treaty Engine

    Every year, the proper documentation and withholding of tax from nonresidents becomes a bigger issue for organizations around in the US.

    Exactly how a nonresident should be taxed depends on a number of unique circumstances including where they’re from, the type of income they are earning and the amount of time they have spent in the US.

    Staying on top of these requirements has become a significant challenge for payroll office staff in a plethora of different industries.

    The correct determination and application of tax treaty benefits to employee paychecks is particularly challenging.

    After all, the US has signed tax treaty agreements with 66 different countries. Continue reading “Introducing your one stop shop for determining tax treaty entitlements!” »

  • 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” »

  • Hiring a J1 worker? Here’s everything you need to know about tax!

    Hiring a J1 visa employee

    The J1 visa program was stopped in its tracks in March 2020, following the outbreak of COVID-19.

    Thankfully, in large part due to vaccination rollout, demand for J1 visas is starting to climb again in 2021.

    If you intend to hire J1 employees at your organization, it is important to ensure that their tax compliance is managed correctly from the start.

    With that in mind, this article will cover everything you need to know to ensure J1 workers are taxed correctly, as soon as they start work.

    Continue reading “Hiring a J1 worker? Here’s everything you need to know about tax!” »

  • Nonresident aliens: Your guide to navigating the COVID-19 CARES Act Stimulus Payments

    Who is eligible for stimulus checks

    Updated: 19 April 2021

    Note: In March 2021, the US government began distributing a third round of stimulus checks – worth $1,400. If you received this check, and you are not entitled to it, you will find the advice in this article useful!

    You can also read more about the second pandemic stimulus payment (worth $600) here.

    This article was originally published on 17 April 2020

    What you need to know about the CARES Act

    In response to the COVID-19 pandemic, the US government introduced the CARES (Coronavirus Aid, Relief and Economic Security) Act in April 2020.
    Continue reading “Nonresident aliens: Your guide to navigating the COVID-19 CARES Act Stimulus Payments” »

  • Tudo o que você precisa saber sobre os impostos de Au Pair nos EUA

    Impostos Au pairs nos EUA explicados

    Sonha com uma longa viagem internacional?

    Muitas famílias nos Estados Unidos optam por contratar uma au pair para seus filhos. Todos os anos, aproximadamente 20.000 au pairs entre 18 e 26 anos de idade vão aos EUA vindas de outros países.

    Um dos muitos desafios que uma au pair terá que enfrentar no período de adaptação é o de se familiarizar com o sistema tributário americano.

    Com isso em mente, elaboramos este guia prático com tudo o que uma au pair precisa saber sobre os impostos americanos. Continue reading “Tudo o que você precisa saber sobre os impostos de Au Pair nos EUA” »

  • Todo lo que necesitas saber sobre los impuestos de las “Au Pairs” en Estados Unidos

    Impuestos de Au pairs en EEUU guia-completa

    ¿Sueñas con hacer un viaje internacional prolongado?

    Muchas familias en Estados Unidos optan por contratar una Au Pair para sus hijos y cada año, aproximadamente 20.000 Au Pairs de entre 18 y 26 años vienen del extranjero.

    Al adaptarse a su nueva vida en Estados Unidos, uno de los muchos retos que se encontrará una Au Pair es el de adaptarse al sistema fiscal estadounidense.

    Por eso, hemos elaborado esta guía práctica con todo lo que una Au Pair debe saber sobre los impuestos en Estados Unidos. Continue reading “Todo lo que necesitas saber sobre los impuestos de las “Au Pairs” en Estados Unidos” »

  • 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!” »

  • 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 only 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 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.

    It’s also important to note that, by E-Filing your tax return, you will receive your US tax refund much faster than you would if you filed a paper tax return.

    E-File your tax return with Sprintax

    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 2020 US tax return.

    If you wish to E-File your taxes, you must firstly confirm that you have not previously E-Filed your 2020 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 35 of your 2019 1040NR or on line 10 of your 1040NR-EZ. Please ensure the information you provide here is correct.

    If you did not file a tax return for tax year 2019, please enter ‘0’ as your prior year adjusted gross income.

    If you filed an amended tax return for tax year 2019, 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 authorising 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 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 W2 forms do not have a control number
    4. Any of your 1042-S forms do not have a unique code identifier
    5. You allocated some of your income as ‘earned outside the USA’
    6. You have capital gains income
    7. You have form 1099-NEC
    8. You have form 1099-MISC with box 4 higher than box 0
    9. You have included one of the following documents – Final payslip, 1099-DIV, 1099-INT or 1099-B
    10. You have self-employment income
    11. 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.

    You will also be unable to E-File a tax return using an ITIN which was issued in the same tax year you are filing the tax return.

    For example, if you apply for and receive an ITIN in 2020, you may not E-File any tax return using that ITIN (including prior-year returns) until 2021.

    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?

    With our new OCR feature, you will save a lot of time when filing your tax return this year.

    In short, you will no longer be required to manually enter details from your income documents into the Sprintax questionnaire.

    Instead, you can simply upload your income documents and our software will populate the required information into your tax return.

    When is the tax filing deadline?

    It is important to file your tax return before the 17 May (the 2021 tax deadline has been extended from 15 April 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.

    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 US taxes today!

  • 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” »