Sprintax US Tax Preparation STEP 6 - Living in the US
TLDRThe video script from Sprintex, hosted by Amy, explains the intricacies of determining state tax residency in the U.S., which can differ from federal tax status. After completing federal tax returns, users are guided through step 6 of Sprintex Tax to ascertain their state residency status. This involves detailing each state lived in and periods spent outside the U.S. during the tax year. The system auto-populates dates and requires users to select entry and exit dates for each state or country visit, categorizing them as temporary or permanent based on the duration and intent. A detailed example is provided using Maria, a student from Spain, to illustrate the process. The video emphasizes the importance of accuracy in listing visits to ensure correct state tax calculations and offers live chat support for any queries.
Takeaways
- ๐ Federal and state tax residence statuses can differ, and being a non-resident for federal taxes doesnโt automatically make you a non-resident for state taxes.
- ๐ Use Sprintax to determine your state residency status after completing your federal tax return.
- ๐ The U.S. tax year runs from January 1st to December 31st, and you only need to list visits for the relevant tax year.
- ๐ก List all your visits to different U.S. states or periods spent outside the U.S., including the first entry date set to January 1st.
- ๐๏ธ Select an exit date that corresponds to the day you left a state or entered the U.S. from abroad.
- ๐ข Specify the type of visit and accommodation for each period you lived in a state or outside the U.S.
- ๐ Sprintax automatically pre-selects 'Outside the U.S.' in the state field for the first entry.
- ๐ Continue listing every visit to different U.S. states and exits from the U.S. until the final exit date of the tax year.
- ๐ Review and adjust entry and exit dates on the residency status step if you cannot list all periods outside the U.S. correctly.
- ๐ซ Understand the difference between temporary (fixed, limited period) and permanent (unlimited term) visits for tax purposes.
- โ If you have questions, Sprintaxโs live chat team is available 24/7 for support.
Q & A
What is the main topic of the video?
-The video discusses the difference between federal and state tax residence status and how to determine state residency status using Sprintax.
Why might federal tax residence status differ from state tax residence status?
-Federal and state tax systems have different criteria for determining residency. Being a non-resident for federal taxes doesn't automatically make you a non-resident for state taxes.
When does the U.S. tax year start and end?
-The U.S. tax year starts on January 1st and ends on December 31st.
What is the purpose of listing all visits in and out of each state on Sprintax?
-Listing all visits helps Sprintax determine your state residency status based on the dates you spent in each state and outside the U.S.
Why is the first entry date in the residency status step automatically set to January 1st?
-The first entry date is set to January 1st because it marks the beginning of the tax year, and users only need to list their visits for the relevant tax year.
How should one select an exit date in the Sprintax questionnaire?
-The exit date should be the day before you entered the U.S. from outside the country or the day you left a particular U.S. state.
What are the two types of visits that Sprintax differentiates between?
-Sprintax differentiates between temporary visits, which are fixed and limited, and permanent visits, which are unlimited and sever all personal ties with the prior state or country of residence.
Why is it important to correctly list all periods outside the U.S. during the tax year?
-Correctly listing all periods outside the U.S. is crucial for accurate residency determination and to avoid errors in the tax return.
What should you do if you are unable to list all the periods outside the U.S. correctly?
-If you cannot list all periods correctly, you may need to review and change the entry and exit dates you entered on the residency status step earlier in the Sprintax questionnaire.
What happens if you do not list your visits correctly on the residency status step?
-If visits are not listed correctly on the residency status step, you will not be able to list them correctly on the residency determination step either.
How can users get support if they have questions while using Sprintax?
-Users can get support from Sprintax's live chat team, which is available online 24/7.
What is the name of the person presenting the video?
-The presenter's name is Amy, and she is from Sprintax.
Outlines
๐ Understanding Federal vs. State Tax Residence Status
The video introduces viewers to the concept that federal tax residence status can differ from state tax rates and status. Amy from Sprintex explains that being a non-resident for federal taxes does not automatically make one a non-resident for state taxes. Sprintex Tax can help determine state residency status. The process involves completing the federal tax return and reaching step 6 in Sprintex Tax, where details of each state lived in during the tax year and any periods spent outside the U.S. are required. The tax year in the U.S. runs from January 1st to December 31st, and the system will use these dates to establish state residency. The video also clarifies how to input entry and exit dates for each state or country visit, and the difference between temporary and permanent visits, emphasizing the importance of listing all periods outside the U.S. correctly to avoid needing to revise previous entries.
Mindmap
Keywords
๐กFederal Tax
๐กState Tax
๐กResidence Status
๐กSprintax
๐กTax Year
๐กEntry and Exit Dates
๐กType of Visit
๐กTemporary Visit
๐กPermanent Visit
๐กLive Chat Support
๐กTax Residency Determination
Highlights
Federal tax residence status can differ from state tax rates and status.
Sprintax can help determine your state residency status for tax purposes.
To determine state residency, provide details of each state lived in during the year and any time spent outside the US.
List all visits in and out of each state for the relevant tax year.
The tax year in the US runs from January 1st to December 31st.
The first entry date is automatically set to January 1st and cannot be changed.
Select an exit date that corresponds to the day before entering the US or leaving a state.
Choose the type of visit and accommodation for each period listed.
Sprintax automatically pre-selects 'outside the US' in the state field for the first entry.
Continue listing every visit to different US states and exits from the US until the final exit date of December 31st.
Maria, a student from Spain, provides a detailed example of how to complete the state residency table.
If you cannot list all periods outside the US correctly, you may need to review and change entry and exit dates.
A temporary visit is for a fixed, limited period with an intent to return to a permanent home.
A permanent visit has no time limit and requires severing all personal ties with the previous state or country of residence.
Sprintax's live chat team is available 24/7 for support.
Completing step 6 in Sprintax involves listing all visits and determining the type of visit.
Transcripts
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