ISSO Tax Workshop for International Students & Scholars, 2022 Tax Returns

The video script begins with an introduction by Alvira from Sprintex, who is hosting a webinar in collaboration with Columbia University. The purpose of the webinar is to educate non-resident students, scholars, and professionals about U.S. taxes. Alvira is joined by Neil Duffy and Ellen Cohen from Columbia's International Students and Scholars Office (ISSO). The session aims to explain the fundamentals of non-resident tax, tax filing obligations, and to answer any questions from attendees. Alvira emphasizes the importance of listening to the presentation for most questions, and mentions that the webinar is being recorded for future access. Housekeeping notes include the use of the question box for queries, and the availability of handouts and recordings. A disclaimer is provided about the personalized nature of tax advice. The agenda for the session is outlined, covering tax principles, filing incorrect tax returns, using Sprint tax software, and a Q&A segment. Important dates for the 2022 tax filing season are mentioned, including the tax year timeline and the IRS cutoff date.

The script continues with a discussion on tax residency for non-resident students and scholars. It clarifies that tax residency is independent of immigration status and is determined by the number of days spent in the U.S. International students on F, J, M, or Q visas are generally considered non-resident for tax purposes. The IRS uses a substantial presence test, which takes into account the days of presence in the U.S. over the past three years, to determine tax residency status. The tax filing deadline for the year 2023 is highlighted as April 18, 2023. The presenter also explains the different rules for researchers or scholars on J visas, who are only exempt for two years before the substantial presence test applies. A summary slide is mentioned, which outlines various visa types and their associated tax implications.

The presenter explains the filing requirements for non-residents, emphasizing that everyone, regardless of income, must file Form 8843, which serves as a declaration of non-resident status for the tax year. The form requests basic information such as name, address, visa type, and days spent in the U.S. Sprint tax software is mentioned as a tool that will prepare the necessary tax forms, including Form 8843. The presenter also notes that Form 8843 is known as a statement for exempt individuals and those with medical conditions, which is relevant for the substantial presence test. The script clarifies that non-residents cannot file a joint return with their spouse but can file jointly with a resident spouse if certain conditions are met. The importance of reporting all income and the changes due to the Tax Cuts and Jobs Act of 2017 are also discussed.

The script delves into various types of income that may trigger federal and state filing requirements for non-residents. Common sources of income include employment wages, taxable scholarships or grants, investment income, and cryptocurrency transactions. It is noted that any income earned over zero dollars is generally taxable and reportable. The presenter also outlines less common sources of income such as gambling winnings, rental income from platforms like Airbnb, and sales of art or design works. The script contrasts these with types of income that are exempt from triggering filing requirements, such as scholarships for tuition, scholarships received from outside the U.S., and income earned in the home country before arriving in the U.S.

The presenter discusses different income documents that non-residents may receive, such as the W-2 form for wages, the 1042s form for taxable scholarships and stipends, and the 1099 series for miscellaneous income. The importance of receiving these documents by their respective deadlines is emphasized, and advice is given on what to do if these documents have not been received. The presenter also explains the process for obtaining a copy of the W-2 from Columbia University and checking for the 1042s form. The script highlights that only non-resident aliens receive the 1042s form and that tax status changes may affect the type of documents one receives.

The script addresses how the tax system treats a non-resident's spouse, explaining that even if the spouse has no income, they must still complete Form 8843. If the spouse has income, they trigger a federal filing requirement and possibly a state filing requirement, following the same rules as the visa holder. Non-residents cannot file a joint return with their spouse but can file jointly with a resident spouse if eligible. The presenter also discusses FICA taxes, noting that non-residents on F1 or J1 visas are generally exempt but may have FICA taxes withheld in error by an employer. The script advises checking the W-2 form and, if necessary, submitting a FICA return via Form 843 or 8316 to claim a refund.

The presenter outlines the complexities of state taxes, which vary by state and can depend on factors such as visa type, days spent in the state, and the type of accommodation. The script provides specific information about New York State taxes, noting that undergraduate students are considered non-residents for tax purposes, while graduate students may become residents after their first year. The presenter advises that fellowship stipends and travel grants are taxable and that New York State and City taxes are not withheld from these types of income, which can be surprising to students. The script also touches on New Jersey state taxes, domicile rules, and the process for determining who must file a New Jersey income tax return.

The script discusses the Individual Taxpayer Identification Number (ITIN), which is required for individuals who receive taxable income and need to file a federal return but are not eligible for a Social Security number. The ITIN application process is detailed, including the use of Form W-7 and the role of a responsible officer at the school or a Certified Acceptance Agent (CAA) in certifying documents. The presenter also addresses the common misfiling of Form 1090-AT, which is applicable only to residents and not non-residents, and warns against claiming educational tax credits that are not applicable to non-residents.

The presenter advises on the implications of misfiling tax returns, emphasizing the importance of correcting any past errors. Non-residents who have not filed at all or who have filed incorrectly as residents are encouraged to catch up on their filings. The script outlines the potential for fees, penalties, and interest to accrue on owed taxes, and the possibility of receiving a refund. The importance of tax compliance for visa conditions and future immigration status is highlighted, with a reminder that tax returns must be up to date for every year spent in the U.S.

The script provides a step-by-step guide on using Sprint Tax to prepare non-resident tax returns. It details the process of logging into a Columbia account, registering an account, and entering information about residency status, income documents, states lived in, and dates of residence. The presenter explains that Sprint Tax will determine tax filing obligations based on the provided information and will prepare all relevant forms, including state tax forms. The script also covers the process for applying for an ITIN, the importance of using the correct link for a discount when using Sprint Tax, and the availability of educational resources and live chat support.

The presenter addresses several common questions related to non-resident tax filing, such as the need for an ITIN when no income was received, finding information about the first arrival date in the U.S., the deadline for receiving tax forms, and the treatment of different types of income like private loans and cash payments from experiments. The script also covers the process for determining residency status for tax purposes, the possibility of applying for a tax deadline extension, and the treatment of state taxes for those who intern in another state. The presenter encourages attendees to use the live chat on the Sprint Tax website for further assistance and thanks everyone for participating in the webinar.