2007 Income Tax Information

for WPI International Students and Scholars on F-1 and J-1 Visa

On this webpage we have listed information on resources you can access when filing your US Tax Return for 2007. We have included the most basic information and information on a program called CINTAX which you can access with a password available from the International House. We have also included a section with some of the most commonly asked questions and our answer to those questions. Finally, we have various links to the IRS website and to the Massachusetts Department of Revenue’s website.

Disclaimer: The information on this webpage is provided as a service to international students and scholars at Worcester Polytechnic Institute. The information does not constitute tax advice and the International House staff does not assist with the completion of individual tax return forms.

Basic information for all J-1 and F-1 students and scholars.

No US income in 2007

If you were present in the U.S for any part of 2007 in F-1 or J-1 status, but had NO US source income you only need to file form 8843. You mail the form to Internal Revenue Service Center, Austin Texas 73301-0215. The deadline for the form filed without a tax return is June 15, 2008.

US income in 2007

If you had US source income in 2007 you should have received a W-2 form and/or form 1042-S and you MUST file a US tax return before April 15, 2008 or file for an extension before that date.

Step one is to determine if you are a Resident Alien for tax purposes or a Nonresident Alien for tax purposes. Nonresident Aliens for tax purposes file the NR forms (1040NR or 1040NREZ) and form 8843. Resident Aliens for tax purposes file the regular forms (1040 or 1040EZ) and form 8843. Please note that being a Resident Alien for tax purposes has NO bearing on your immigration status. It does not get you a "green card".

Your tax filing status is determined by the Substantial Presence Test which can be relatively complicated. The following is a brief summary for the most common non-immigrant categories for students and scholars at WPI:

F-1 and J-1 students who have been in the U.S. for any part of five different calendar years before 2006, and were physically present in the U.S. at least 183 days in 2007, are considered Resident Alien for tax purposes.
F-1 and J-1 students who have been in the U.S. for less than 5 years or who were not physically present in the U.S. for at least 183 days in 2007 are considered Nonresident Aliens for tax purposes.
J-1 Researchers or Professors who have been in the U.S. any part of 2 of the proceeding 6 calendar years and were physically present in the U.S. at least 183 days in 2007 are considered a Resident Alien for tax purposes.
J-1 Researchers or Professors who have been in the U.S. for any 2 of the proceeding 6 calendar years but were not physically present in the U.S. for at least 183 days in 2007 are considered a Nonresident Alien for tax purposes.
H-1B, TN and O-1 status. If you have been in the U.S. for less than 183 days in any of these non-immigrant visa statuses, you are considered a Nonresident Alien for tax purposes and should file the NR form in addition to Form 8843 for yourself, your spouse and your dependents. If you have been in the U.S. in any of these visa statuses for more than 183 days, you are considered a Resident Alien for tax purposes.

Please note that the above is a very simplified summary of the "substantial presence test". Visa status and nationality can in certain situations alter the outcome of the test. Again using CINTAX will help you determine your status for tax purposes. IRS Publication 519 U.S. Tax Guide for Aliens describes the "substantial presence test" in detail.

Massachusetts State Tax

If you were a legal resident of Massachusetts and your gross income in 2007 was more than $8,000 you are required to file a Massachusetts income tax return. If your gross income was $8,000 or less, you do not need to file a return. If your gross income was less than $8,000 and you had Massachusetts State Tax withheld, you most likely would want to file a state tax return in order to get your state refund.

The Commonwealth of Massachusetts uses a different definition to determine if you are considered a Resident or Non-resident for tax purposes.

You are a Full-Year Resident if your legal residence (not living on campus) is in Massachusetts and you spend more than 183 days, in the aggregate, in Massachusetts. If you fit this description you should file a Massachusetts Resident Income Tax Return, Form 1. (Blue book)

You are a Nonresident if you do not fit the above description and if you need to file a Massachusetts state tax return you should use the Form 1-NR/PY (Red book)

CINTAX

We have purchased a license for the web-based tax return preparation system called CINTAX. This program is designed exclusively for international students and scholars and their dependents who are nonresident aliens. The program aids you in completing forms 1040 NR and 1040 NREZ. It takes about 20 minutes to complete the program and print a tax return. CINTAX is written in easy to understand language. You don’t have to understand the U.S. tax system; you simply need to answer a few questions about your time spent in the U.S. and any payments you have received. CINTAX does the rest by deciding which tax return to file and putting all the right information on the right line.

CINTAX can not be used if you are filing as a Resident Alien for tax purposes. Please note that none of the tax filing programs designed for the regular tax forms will work for the 1040NR forms.

To access CINTAX you need a password. You can obtain your password from the International House for a nominal fee of $6.

Frequently asked tax questions

1. What happens if I fail to file my taxes?: If you owe taxes and don't file, the IRS can assess penalty and interest and seize U.S. bank assets for repayment. Fines and penalties can often amount to more than the original tax debt.; There can also be immigration consequences for failing to file taxes. Applicants for permanent residency "green cards" are frequently asked to show proof of tax filing for previous years in the U.S.
2. I'm an F-1 or J-1 student and I had no U.S. earned income or scholarships for 2007. Do I need to file?: Yes. You must file IRS Form 8843. Dependents in F-2 and J-2 status must also file Form 8843.
3. I only arrived in the U.S. in December of 2007 and I didn't work. Do I still have to file Form 8843?: Yes. If you were in the U.S. even 1 day in 2007, you must file Form 8843.
4. I had bank interest on my checking or savings accounts. Is that earned income and must I file other tax forms?: No. Simple bank interest and interest on CD's are not considered earned income for non-resident aliens, and therefore are not reportable. Your bank generally reports this interest on Form 1099 and you should retain this form for your records, but not mail it with your tax filing. If you file taxes as a "resident alien" using form 1040, bank interest is taxable income.
5. I only worked for a very short time in 2007 and I didn't earn very much. Do I still have to file?: Yes. If you had any U.S. source earned income or scholarship you will need to file IRS Form 1040NR-EZ or Form 1040NR and Form 8843.
6. I'm married and have a child who was born in the U.S. Can I claim personal exemptions for my wife and child?: Generally, no. Only students & scholars from certain countries can claim exemptions for their dependents (Mexico, Canada, Korea, Japan. and India.).
7. I am a non-resident for tax purposes. Can I claim the HOPE or Tuition Tax Credit or the Earned Income Credit?: No. Nonresident aliens can not claim the HOPE or Tuition Tax Credit or the Earned Income Credit. Once you qualify to file as a resident alien for tax purposes, you may be eligible to claim these credits.
8. Can I use my WPI Student ID number as my tax payer identification number?: No. You must have a valid social security number or an ITIN (Individual Tax Payer Identification Number).
9. My country has a tax treaty with the U.S. and I earned below $5000, which is the amount of wages exempt by my treaty. Do I still need to file?: Yes. You must file Form 1040NR-EZ or Form 1040NR. In the case where you earned more than the exempt amount of your treaty, you may receive both a Form W-2 and a Form 1042-S or you may just receive only a Form 1042-S.
10. I had a teaching assistantship or research assistantship at WPI. Is this the same as a scholarship or fellowship?: No. TA and RA salary payments are not considered scholarships or fellowships. Income from TA and RA positions is considered earned income and is taxable.
11. I had a TA or RA position. Can I deduct or exclude the cost of my tuition, books and/or fees?: No. Only those students who had bona fide scholarships or fellowships (no work was required as a condition of receiving the award) may deduct expenses paid for tuition, books and fees up to the amount of the scholarship/fellowship.
12. I am a student from India. Can I claim the standard deduction?: Yes. Due to a tax treaty provision, ONLY students from India may claim the standard deduction on the non-resident forms. Note: Visiting Scholars and Researchers from India cannot claim the standard deduction.
13. Should I keep copies of my tax return and other tax forms?: Yes. Always keep copies of your tax return, W-2, 1042-S, 1099 bank interest statements and any other pertinent forms as proof that you have filed. The IRS can audit individual returns for up to 3 years following the filing deadline and your tax records are essential in proving your case.
14. What is the deadline for filing my tax return?: If you are filing Form 1040NR-EZ or Form 1040NR, the deadline to file is April 15, 2008. If you are filing Form 8843 only, the deadline to file is June 15, 2008.

Useful links to most common tax forms and information

IRS, Internal Revenue Service Home Page
IRS Publication 519, U.S. Tax Guide for Aliens
Information about Tax Treaties
IRS Form 8843
Form 1040 NR. - Tax Return Form, long version
Instructions for 1040 NR
Form 1040 NREZ. - Tax Return Form, short form
Instructions for 1040 NREZ
Form W-7 - form to request ITIN number
Form 4868 - To request an extension of time to file your federal income tax return

State Tax Forms

Massachusetts Department of Revenue

Maintained by webmaster@wpi.edu
Last modified: Jan 31, 2008, 11:23 EST