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home | taxes and social security | non-residents for tax purposes Non-Residents for Tax PurposesFederalIf you are in F or J status and a non-resident for tax purposes: You are required to fill out and mail in Internal Revenue Service (IRS) Form 8843 “Statement for Exempt Individuals and Individuals with a Medical Condition” if you were in the United States for any part of 2007. This is true even if you had no income from the United States (“U.S. source income”). Also, if your only U.S. source income was bank or credit union interest, it is only necessary to file Form 8843. If you received any U.S. source income in 2007, you may have to fill out and mail in IRS Form 1040NR or Form 1040NR-EZ in addition to Form 8843, depending on the kind and amount of U.S. source income you received. More than $3,400 of U.S. source incomeIf you received more than $3,400 in U.S.-source income in 2007, you are required to fill out and mail in IRS Form 1040NR or Form 1040NR-EZ in addition to Form 8843. If your U.S. source income was more than $3,400 in 2007, you still must file a tax form even if your employer deducted (“withheld”) money from your paycheck for taxes. The amount that is deducted is an estimate, so you may, in fact, owe more or less than your employer subtracts. Therefore, you must file a tax form to calculate the difference between what you owe and what you paid. Also, even if a tax treaty applies to you and the amount you owe in taxes is reduced or eliminated, you are still required to file IRS Form 1040NR or Form 1040NR-EZ if you had more than $3,400 of U.S. source income in 2007. Not filing one of these forms is a violation of U.S. tax law. Less than $3,400 of U.S. source incomeIf your U.S. source income was $3,400 or less in 2007, then your tax filing requirement depends on what kind of U.S. source income you received in 2007. Wage income only: If your only U.S. source income was less than $3,400 of “wage income” (you worked in order to receive this income), then you are only you are only required to fill out and mail in Form 8843 “Statement for Exempt Individuals and Individuals with a Medical Condition”. However, if your employer deducted (“withheld”) money from your paycheck for taxes, you must file IRS Form 1040NR or Form 1040NR-EZ in addition to Form 8843 if you want to receive a refund. Other kinds of income: If you had any amount of other kinds of U.S. source income, such as taxable U.S. source scholarship/fellowship income, you are required to fill out and mail in IRS Form 1040NR or Form 1040NR-EZ in addition to Form 8843. In general, if you are in a degree program, the only part of your fellowship or scholarship that will be taxable is the part used for living expenses. The part of your fellowship that is applied to tuition, fees, books, and supplies or equipment required for your courses is not taxable. You still must file a tax form even if money was “withheld” for taxes. The amount that is deducted is an estimate, so you may, in fact, owe more or less than the amount that was deducted. Therefore, you must file a tax form to calculate the difference between what you owe and what you paid. Also, even if a tax treaty applies to you and the amount you owe in taxes is reduced or eliminated, you are still required to file IRS Form 1040NR or Form 1040NR-EZ if you had any amount of U.S. source “non-wage” income. Not filing one of these forms is a violation of U.S. tax law. Income under Terms of a Tax TreatyIf your country has a tax treaty with the United States that exempts some or all of your U.S. source income from taxation, you are required to file Form 8843 and either Form 1040NR-EZ or Form 1040NR. See Tax Treaties with Other Countries below. Deadlines: In order to meet these deadlines, the form must be postmarked on or before the deadline.
StateSome international students and scholars are required to file a State of Michigan Tax Form. Review the handout 2007 Michigan State Income Tax for Non Resident Aliens [PDF] for complete guidelines and instructions.
Even if you are not required to file a State of Michigan tax form, you may want to file this form if you are due a refund of taxes withheld because if you do not file the State of Michigan will keep your refund. Notes: If you have income from several U.S. states, your situation may be more complicated. Attend a Michigan tax workshop or consult one of the online resources listed below. Resources: Internet Resources: State Taxes Tax Treaties with Other CountriesYour country may have a tax treaty with the United States which may reduce the amount you are required to pay in taxes. If your country has a tax treaty and you receive money from U-M, you can contact the U-M Payroll Office and fill out a form so that less (or no) money will be deducted (“withheld”) from the money you receive, or you can claim a refund of withheld taxes when you file your income tax return. Even if your country has a tax treaty with the United States, you are still required to file a tax return. Several internet resources list tax treaties. Other internet resources have information about how to apply tax treaties when you fill out your tax form. If you use CINTAX, the software will take any tax treaties that apply to into consideration when it prepares your tax form. Internet Resources: Tax Treaties
Last reviewed: 3/08 The information contained in this web site is not a substitute for advice obtained from the Internal Revenue Service or a qualified tax professional. |