Taxes

Income taxes in the United States are imposed by the federal government (IRS) and most state governments. The income taxes due are determined by applying a tax rate to taxable income, which is the total income less allowable deductions.

Often, your employer/institution will withhold a portion of your paycheck to pay the IRS the estimated taxes due on your behalf. Sometimes taxes are not withheld, so you will be required to pay any taxes due when you file your tax return.

Income that comes from employment, assistantships, fellowships, scholarships that cover more than tuition and fees, investments, awards, etc. are all examples of taxable income. 

Anyone who was present in the U.S. for any length of time in the given tax filing year must file at least one tax form, even if no income was received.

For January 1 – December 31, tax returns are due in April of the following year. Example: Tax filing year 2022 is January 1, 2022 – December 31, 2022. Taxes are due April 15, 2023.

Tax residency is determined by the IRS Substantial Presence Test (or using a software like Sprintax). Determining your tax residency is very important, as it will determine which tax forms you are required to file. You must file the proper tax forms to be in legal compliance. Your tax status is different from your immigration status.

Nonresidents for tax purposes: 

*Must file Form 8843 to confirm status as a nonresident for tax purposes 

• Taxed on U.S. income only
• If income was received during tax filing year, individual will also need to file Form 1040NR or 1040NR-EZ
• May NOT submit/file tax return online, must print, sign, and mail to IRS
• Must use a specialized tax return software to assist with preparing tax return, like Sprintax, as IRS free file options are for residents only
• May NOT file joint return with nonresident spouse
• May NOT claim education tax credit (can be confusing if student receives Form 1098-T from Rice, but it is not relevant for nonresidents)

Residents for tax purposes: 

• Based on Substantial Presence Test determination
• Follow same rules as U.S. citizens
• Taxed on worldwide income
• If income was received during tax filing year, individual will need to file Form 1040 or 1040EZ
• May use any U.S. income tax preparation software
• May submit tax forms online to IRS
• May benefit from education tax credits and other tax deductions
• May claim dependents on tax return

The Internal Revenue Service (IRS) is the federal agency who applies and enforces U.S. federal tax laws. 

A tax return is a report you send to the IRS that indicates:

1. How much taxable income you received during the previous calendar year.
2. How much tax you have already paid (tax withholding from your employer/school).
3. How much tax you are required to pay (whether you owe tax or are due a refund for overpayment).

April 15

Tax treaties are agreements between the U.S. and 65 different countries. Each treaty is unique, and the terms vary regarding benefits to foreign nationals residing in the U.S. See IRS Publication 901 (09/2016), U.S. Tax Treaties for more information.

Yes! Anyone in the U.S. for any length of time last year is required to file a tax return this year to be legally compliant – whether you received U.S. funds or not. If you are a nonresident and did not receive any income last year, you still must file Form 8843 to be compliant. You may use Sprintax to assist you with the 8843, or you may complete it on your own - Form 8843 Download.

Foreign nationals are required to comply with all U.S. laws, and that includes tax filing obligations. Failure to comply can negatively impact future immigration benefits, like applying for a change of status or applying for visa renewals. Failing to comply can also include fines, penalties, and interest if you owe the IRS money.

If you cannot complete your tax filing on time, you may request a 6-month extension. Please note that if you expect to owe taxes, you must still pay on time to avoid penalties.
 
To request an extension, you will need to file Form 4868 by the April 15 deadline and submit any taxes you expect to owe. Always be sure to keep copies of any tax forms you file for your records.

If you are requesting an extension because you have not yet received your SSN or ITIN that you have applied for, you may file Form 4868 and indicate "Applied For" in the SSN/ITIN box.

You are still required to complete your U.S. tax filing obligation, even if you have moved back home. Read Sprintax's blog on Filing Your U.S. Tax Returns from Abroad to learn more.

If you failed to file your tax return in previous years, it is important to correct the problem so that you are in legal compliance. You are allowed to file for previous years at any time (not just tax time). You just need to make sure that you use the specific tax forms for that filing year. If you are a nonresident, you can purchase Sprintax software for the specific tax filing year you are missing to assist you with completing the tax forms that you forgot or you may choose to download the forms directly from the IRS. If you are a resident, you may look into programs like Turbo Tax for that particular filing year or you may look up older tax forms on the IRS website.

If you misfiled, you must fix it. Use Form 1040X – Amended U.S. Individual Income Tax Return to correct your mistake. Be sure to use Form 1040X for the proper year you are correcting and follow the instructions. You may also use a program like Sprintax to assist you.

It depends. If you lived/worked in a state that charges state income tax, you may need to file a state tax return as well. Texas does not have a state income tax.
 
If you lived in another U.S. state that does charge state income tax you will likely need to file a state tax return as well. See Federation of Tax Administrators Forms & Filing Options to learn more. You may use Sprintax to assist you with filing your state tax return if you are a nonresident.

If you are due a refund it can take between 6 weeks – 6 months to process. You can always check the status of your federal refund by visiting IRS: Where's My Refund.

These are tax documents that you will use to report how much income you have received and how much tax you have already paid to the U.S. government. If you are missing any forms, please contact the payroll office for your employer or educational institution to request a duplicate copy. These forms are a required part of your tax return. Be sure to follow the tax return instructions on which copy must be included as documentation in your tax filing submission.

Taxes are based on individual circumstances. The amount owed or due will depend on sources of income, resident vs. nonresident status, tax treaties, eligible deductions, income levels, and whether the forms were completed correctly. Just be sure to double check your entries and ask your tax software support if you have specific questions/concerns.

Free Tax Preparation by IRS Certified Preparers

• IRS: Online Tools and Resources
• IRS: Foreign Students, Scholars, Teachers, Researchers and Exchange Visitors
• IRS: International Taxpayers (Scroll down to the link listed at category 13 for aliens)
• Download Publication 519: U.S. Tax Guide for Aliens, Publication 901: U.S. Tax Treaties, and instructions for Forms 1040NR and 1040NR-EZ. If you will be claiming business expenses, child care expenses, or charitable contributions, ask for the appropriate forms which are also available at the IRS website.
• Toll-free IRS number: 1-800-829-1040 (live telephone assistance) or 1-800-829-4477 (recording). This is a general number. Be sure to mention that you will be filing as foreign national. 
• Houston Taxpayer Assistance (local IRS office) 281-721-7021
• Tax Payer Advocate Service: 713-209-3660 (in Houston) or 1-877-777-4778. See Publication 1546: How to Get Help with Unresolved Tax Problems
• Contact the IRS
• Automated Refund Information: 1-800-829-1954 or see "Where's My Refund" on the IRS website. Call 1-800-829-1040 if 8 weeks have gone by since you mailed your return and you expect a refund. Have a copy of your tax return in hand. You will be asked to supply your SSN, filing status, as well as the exact amount of refund. Receiving refund may take up to 12 months for non-resident aliens.
• Tax Treaties by Country