Foreign Student

Where I live there is such a shortage of classroom teachers that the school district has hired International teachers from Mexico, Nigeria, Jamaica, and other places. We also have International students at our local University and College.
Teachers and students here on VISAs have special filing requirements for their first few years here. They cannot file the 1040.

Shared by Beth H.from Utah-- Study Guide for Foreign Student test
Love how we all come together to help others!

For Foreign Student and International Teacher returns, you will need this small Publication from the IRS. PUB 4011
Have this on your desktop: Determining resident/non resident tools.nrvtap.com/aminra
And you should have the following printed and at the site in case you need them:

Foreign Student Checklist
How to reclaim Medicare/Social Security taxes paid in error
Now What? Optional Handout to give students/teachers
Exempt form taxes and want employer to stop withholding? https://www.irs.gov/pub/irs-pdf/f8233.pdf

Am I a Resident? An Incredible tool share with me by Marea Clarke--this has been a game changer! WOW!

Training Presentation: Power point (click here)
for PDF click HERE
for recording, click image

Foreign Student Training--Part 1

Introduction
Resident or Non-resident and what does that really mean?
Form 8843--what it is and how to complete
Important NOTE**If mailing he Form 8843--each family member must mail their own form in its own envelope (1 form per envelope)

The amazing tool shared by Marea, thank you!
Determining resident/non resident tools.nrvtap.com/aminra

Practice Scenarios for 8843 (4) **for these--we are saving time and not entering mailing address of student in US and foreign country. You will in real life though.
Completed 8843's to compare yours to:

Foreign Student Training--Part 2 Updated TY2023
Income & Forms, Tax Treaties, and How to enter

Training Presentation: Power point (click here)
for PDF click HERE
for recording, click image

Foreign Student Tax Preparer's Checklist (click image below) So you don't forget something

Scenario 2 Kim Lee page 179-- I would love to show you the completed 1040NR for this scenario so you can compare yours to mine to make sure you did it correctly, but if I do--it gives away all the test answers... so rather, if you want to email me the PDF of your 1040NR--I don't mind checking it for you. (use 119-00-0000 for Social Security # and 36-2111555 for EIN #s for W2s and 1042S')

Optional Handout--not sure if we will use....

Forms we will be using -- System Generates
Schedule NEC to report all income that is not connected to trade or business like

Dividends
Capital Gains
Gambling
Pension

Form 843 - When employers withheld Medicare/Social Security Tax and the student/teacher is not obligated to pay it--this is a form to Claim a refund for those taxes back.
Form 1040NR Tax return for Non-Resident Individuals
Form 8843 -- Allowed to Exclude Days--Dont have to do the Substantial Presence Test ? This form must be completed every year for all Non-residents who do not have to count their days present in the U.S. whether they have income to report or not. **Each form in its own envelope**
Schedule OI - Other Information (OI) is the form that gathers passport, visa, travel, and treaty info
Form 1042S-- is used to report things like

Income from treaty benefits--like scholarships for room/board not subject to tax
Income from a job on campus that is not subject to income tax
Gambling winnings and taxes withheld by casino for a Non-Citizen **I see these a lot at normal tax sites who have Resident aliens filing a standard 1040

Student in U.S. over 5 years, but still has scholarship treaty benefits and taxes withheld on 1042-S (following from email sent to listserv from J. Yorgey from Asset Builder)
International Student in U.S. over 5 years, qualifies to file a 1040, received a 1042-S for scholarship and federal taxes withheld. She still qualifies for Scholarship treaty benefits.

Enter the 1042-S full scholarship income under Income->Other Income-> Compensation->Scholarship
To reduce the scholarship by the tax-free portion due to treaty, go to Income->Other Income --> Income not Reported Elsewhere enter a negative value for treaty benefit amount (e.g. -5,000) and put treaty article number in description
Enter taxes withheld under Payments & Estimates-> Other Federal Withholding
I suggest putting a Preparer Note in system at Misc Forms->Explanation->Preparer Notes (this will get transmitted with the return)

Here are some resources to help you learn more and become Foreign Student certified

IRS Publication 4152 Non Resident Alien -Electronic Toll Kit for Preparing Returns for Non-Resident Aliens **Awesome Resource
IRS Publication 4011 Foreign Student and Scholar Resource Guide
Resident vs Nonresident Notes--just by me
IRS Publication 901 Tax Treaties
IRS Publication 519 Tax Guide for Aliens
The test is in PUB 6744
IRS Forms used for Foreign Student Returns:
Non-Resident Intake Form
Form 8843 Statement for Exempt Individuals
Form 8316 Request for Refund of Social Security Tax Withheld
Form NEC (part of the tax return--used to report Dividends & Capital Gains)
Form OI (Other Info--make sure to complete this in Taxslayer)

Notes I put together for myself
Explanation of 1042-S I found from a school website

Note: If the client is a Non-resident AND has self-employment, they are out of scope!!!! We cannot do Schedule C's on a 1040-NR at a a VITA/TCE site.

Below is Prosperity Now's Dispatch on Foreign Student Returns. Starting a program at your site.

Foreign Student & International Teachers

Here are some resources to help you learn more and become Foreign Student certified