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-   -   F-1 Not filing 8843 or 1040NR-EZ (https://www.askmehelpdesk.com/showthread.php?t=162629)

  • Dec 14, 2007, 07:46 AM
    cachick
    F-1 Not filing 8843 or 1040NR-EZ
    Doing some research on the internet, I came across a bunch of things saying as a Student on an F-1 visa, I should have been filling both a 8843 and a 1040NR-EZ every year. I am a Canadian who went to school in the states since the fall of 2003. My school was 99% funded by scholarships I got through the school. I have always gotten an W-2 form, but have used it to file taxes in Canada only. I am currently on Optional Practical Training in the US. Should I go back and file the 1040NR-EZ forms since I had US income through scholarships? I have never worked until this year, so I would not have any other income for the previous years.

    I am scared by going back and filing things now, I may get in trouble and lose my status. I do not believe I owe any taxes because most of the money went towards tuition, and only a small amount towards room and board.

    Please Help!
  • Dec 14, 2007, 09:11 AM
    AtlantaTaxExpert
    The scholarship income is probably not taxable, but the W-2 income reflects EARNED income which IS subject to U.S. income taxes.

    Tell me how much was on each W-2 for each year and I will further guide you on whether to file or not.

    BTW, if you paid Canadian tax on the W-2 income, you probably will owe ZERO U.S. taxes due to the Foreign Tax Credit.
  • Dec 14, 2007, 11:22 AM
    MukatA
    As a F1 student you must file 8843 even if you are not required to file. Since you filed taxes in Canada, that means you have proper income record with you. File form 8843 and Form 1040NR/1040NR-EZ for 2003, 2004, 2005 and 2006. If there is no tax due, then may not have to pay interest and penalty. Any income from the U.S. souces is taxable as per tax treaty.

    About scholarship income:
    If you are a degree candidate and if the financial aid (includes scholarship and fellowship) is for tuition fee, other fees, books, supplies and equipment, then it is not taxable. For a degree candidate aid for boarding and travel are taxable.
    If you are not a degree candidate, then all the financial aid is taxable.
    You must use Worksheet 1-1 in Chapter 1 of Publication 970 to figure out the taxable amount.

    This is from Publication 901: Tax Treaties
    A full-time student, trainee, or business apprentice who is or was a Canadian resident immediately before visiting the United States is exempt from U.S. income tax on amounts received from sources outside the United States for maintenance, education, or training.
    Also see Publication 597, Information on the United States—Canada Income Tax Treaty.
  • Dec 17, 2007, 09:07 AM
    cachick
    Thank you for your answers. I contacted the school and they said that they never sent me a 1098-T form because I did not have a social security number. Now that I have one, they are going to send me one for 2007. But that doesn't solve the issue for the previous years because they said that they cannot send ones for past years. Most of my scholarships went to tuition and some to room and board and to food. I think I will be fine with the standard deduction for the previous years, although in 2004 I might have had to pay a bit. But I had filed it in Canada (where all the money counted as taxable income) and I had to pay some on it that year.

    What can I do for documentation for the previous years? The school said that they could work out a spreadsheet with the allocation of scholarship money for me, but this doesn't seem very official. Can I still use it to file my taxes?
  • Dec 18, 2007, 08:21 PM
    AtlantaTaxExpert
    The spreadsheet will work to give you the documentation for the scholarship data. You can file your U.S. return using this information, then keep the spreadsheet as back-up if the IRS questions the returns.
  • Jan 4, 2008, 02:32 PM
    cachick
    I have another question... as a non-resident student on an F1 Visa, do I have to file State tax returns as well?
  • Jan 4, 2008, 09:32 PM
    AtlantaTaxExpert
    Yes; most states do NOT recognize any tax exemption under international tax treaties, so a state tax return is required.

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