SEU Student Service --

IMPORTANT...IMPORTANT...IMPORTANT
Please Read Carefully!

TO: All Southeastern University International Students

FROM: Hanan M. Adnan

RE: Your Tax Obligations in the United States

If you are on an F or J visa (including F-2 and J-2), United States law requires that you complete and submit tax return forms for each year that you reside in the United States, whether or not you have earned income. For 2007, the forms must be submitted to the Internal Revenue Service (IRS) by April 15, 2008. If you were present in the United States for even one day in the year 2007, you must submit a tax return.

The information detailed below is for F and J visa holders who have remained in the United States for five years or less. By IRS definition, these people qualify for non-resident status when filing their taxes. For F visa holders who have been in the United States for more than 5 calendar years, the IRS may consider you as residents (even though you are not a resident by immigration (USCIS) standards; that is you do not have a green card). Please consult the information sheet we have attached called "The Substantial Presence Test" to learn if you are considered a nonresident alien or a resident alien by the IRS. This information has been extracted from the National Association of Foreign Student Advisor's 1997 "US Federal Income Tax Guide for International Students and Scholars" and from the Internal Revenue Service's "Foreign Student Text." For more complete information on the Substantial Presence Test, please consult IRS Publication 519-US Tax Guide For Aliens. If you pass the Substantial Presence Test, you must file your taxes as a resident of the United States and must use Form 1040EZ, 1040A or 1040. These forms may be obtained at your local post office or library. H-1 and H-4 visa holders should file as residents.

Non-resident (as defined above) students and dependents with any taxable U.S. income must file a form 1040NR or 1040NR-EZ. Also, anyone whose income is not taxable due to treaty exemption must file the 1040NR or 1040NR-EZ in addition to the 8243, which should be filed with your employer. See Publication 901, "US Tax Treaties," for information about whether your country has tax agreements with the U.S. In some cases the treaty will explain that certain types of income are taxed only in the person'' country of legal residence (home country). Also, students are generally exempt from tax on remittances (including scholarships and fellowship grants) received from abroad for study and living costs.

Scholarships or Fellowships from the U.S. are tax-free if they are used under the terms of the grant for university tuition, fees, books, supplies, and equipment, which are required for courses at the educational institution. The portions of the scholarship or fellowship from the U.S. that is used for other expenses, such as room and board and travel are taxable.

So whether a scholarship or fellowship is taxable depends on its source and its use under the terms of the grant.

Interest Income (interest on bank deposits, certificates on deposit, savings bonds, and deposits in credit unions) is not subject to U.S. tax if received by a nonresident alien.

ALL non-resident (as defined above) F-1 and J-1 students and F-2 or J-2 dependents are required to submit Form 8843 "Statement for Exempt Individuals," whether or not you have income to declare. Each individual is required to fill out an 8843 (even dependents).

If you are a non-resident alien by IRS definition, follow these directions to file your taxes:

A. Stop by the International Student Advisor's Office to pick up a Form 8843 (ALL students) and a Form 1040NR or 1040NR-EZ (only if you have income to declare). Also, if you do not have a social security number or ITIN number, you must fill out a W-7 form to send with your 8843. (If you have dependents, you must use the regular Form 1040NR. If you don't have dependents, you should use the Form 1040NR-EZ, which is much easier to fill out.) We have a limited supply of these forms. They will be given out on a first-come, first- served basis. You may also obtain the forms by calling the IRS' forms order line at 1 800 TAX FORM (which is 1 800 829-3676). Remember to order a Form 1040NR or 1040NR- EZ, a Form 8843, a copy of Publication 519 "US Tax Guide for Aliens," and a copy of Publication 901, "US Tax Treaties." You may also download these forms and publications from the IRS' website at http://www.irs.gov/formspubs/index.html

B. Before you start to complete the forms, make several copies. Complete a draft in pencil on the copies. That way, if you make a mistake, you will not have ruined the original form. After you finish and correct your draft, complete the original form in ink.

C. C. Southeastern will arrange a tax seminar to assist you in completing your tax return. We are only able to assist in the completion of basic, simple form like the 8843. This year's seminar will be held on Friday, April 4 from 11:00 am - 12:00 pm in classroom #7 and Saturday, April 5 from 11:30 am to 12:30 pm in Classroom #TBA.

When you come to the seminar bring:

Your passport
I-20
Tax Forms
W-2 Form (a statement of your earned wages, that should have been sent to you by your employer, if you worked)
1099 Form (a statement of interest earned that should have been sent to you by your bank, if you have a bank account in the U.S.)
1042-S Form (a statement of any scholarship or income eligible for tax treaty benefits)

If you are missing your W-2 form, 1099 form, or 1042-S form contact your employer, bank, or school.

D. Income is defined as wages you earned from an employer and interest you earned at the bank. Consult your W-2 and 1099 forms to complete your forms. Of course, use information that applies to you to complete your forms and not the numbers that are on the example forms.

E. After completing your tax return, be sure to make and keep copies or everything you send in (including your W-2 and 1099 forms). If the IRS questions your return, you can not respond properly without exact copies of the documents you submitted.

F. Mail your return, by April 15, to the:

Internal Revenue Service Center

Austin, TX 73301-0215

At Southeastern University, we do not claim to be experts in the US tax law. We are providing this information as a service to you. Please be aware that you individually are fully responsible for accurately reporting your situation to the IRS. We advise students who have a difficult tax situation to obtain guidance from a professional tax preparation service.

Note: The Internal Revenue Service (IRS) does not voluntarily share information from your tax returns with the United States Citizenship & Immigration Service (USCIS), but the USCIS can subpoena (order the right to examine) IRS records if they wish. The USCIS checks all back tax records when someone applies for permanent residency. You must have filed tax returns for each year you were in the U.S. even if you had no income.

The following information applies only to people who EARNED INCOME in the year 2007.

If you live in MARYLAND

If you have lived in Maryland for six months or more and have earned $8,750 or more, you must complete and submit a Maryland State Tax Return for residents (Form 502). The tax return form is available in post offices and libraries throughout the State of Maryland. You may also download it from the website http://individuals.marylandtaxes.com/taxforms/default.asp

If you live in VIRGINIA

If you earned $7000 or more and you lived in Virginia for 183 days in 2007 or more, you must complete and submit a VA 760 Form. The form is available at post offices and libraries in the State of Virginia or may be downloaded from the website http://www.tax.virginia.gov/site.cfm?alias=indforms.

If you moved to Virginia but lived there less than 183 days in 2007 and you earned more than $7000, you must complete and submit a VA 760PY Form. The form is available at post offices and libraries in the State of Virginia or may be downloaded from the website http://www.tax.virginia.gov/site.cfm?alias=indforms

If you live in WASHINGTON, DC

If you live in Washington, DC and earned income in 2007, you must complete and submit a DC tax return. The form is available at libraries and post offices in Washington, DC. http://otr.cfo.dc.gov/otr/cwp/view.asp?a=1330&Q=621624#d40

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