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italy669 · Mar 13, 2009, 02:43 PM

Hi,
I just received my 1042-s form.I am a student in India. I was on summer internship last year in university in Colorado. The tax rate is 00.00 as written on form. Every other column to be filled by the university has been marked 0 except gross income. Also exempt code is 04. So I am exempt from paying taxes(due to treaty). So should I do/file anything now? Should I contact anyone or do anything?

MukatA · Mar 14, 2009, 02:17 AM

What is in box 1 and box 2?
May be box 2 income is less than $5,450 amount exempt under treaty.

If box 2 income is more than $3500, you will file tax return and report this income (depends upon what is in box 1).Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

italy669 · Mar 14, 2009, 02:41 AM

Originally Posted by MukatA

What is in box 1 and box 2?
May be box 2 income is less than $5,450 amount exempt under treaty.

If box 2 income is more than $3500, you will file tax return and report this income (depends upon what is in box 1).Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

Why should I file return when I am exempted from tax? Did you not see exempt code? Box 1 is 18.Box 2 is 5700(income). But tax is 00.00. So all boxes are zero. As given in form. The question is why should I file anything when I am exempted from filing tax? Kindly do not answer stupidly if you do not have proper knowledge.

IntlTax · Mar 14, 2009, 06:05 AM

Italy, there is a difference between being required to pay tax and being required to file. MukatA correctly answered your question. You need to file, even if you don't owe tax. The last sentence of your latest post was unnecessary.

italy669 · Mar 14, 2009, 07:56 AM

Originally Posted by IntlTax

Italy, there is a difference bewteen being required to pay tax and being required to file. MukatA correctly answered your question. You need to file, even if you don't owe tax. The last sentence of your latest post was unnecessary.

Dude,
Even I knew I do not have to pay tax. So why should I file return? I think you did not answer my question of why? Ok.. what will happen if I do not file.. anyways I have nothing to pay.. so no penalty ,right? No Mukta did mention that he/she was not fully aware of tax payments... So basically, if I do not file, what will happen? In any case, no tax to pay.

IntlTax · Mar 14, 2009, 08:14 AM

Your original question was "should I . . . file"? The answer was yes. If you are such an expert about these rules, I am not sure why you are asking questions on this bulletin board.

Now you have asked "why" should I file. Depending on your circumstances, you may or may not be subject to certain civil fines of $1,000 or more and possibly non-tax negative consequences.

If you are requied to file and intentionally do not file, and the IRS were to come after you, you can be subject to criminal penalties of a fine of no more than $25,000 and a prison term of no more than one year. The IRS likely wouldn't come after you, but theoretically they could.

italy669 · Mar 14, 2009, 09:14 AM

Originally Posted by IntlTax

Your original question was "should I . . . file"? The answer was yes. If you are such an expert about these rules, I am not sure why you are asking questions on this bulletin board.

Now you have asked "why" should I file. Depending on your circumstances, you may or may not be subject to certain civil fines of $1,000 or more and possibly non-tax negative consequences.

If you are requied to file and intentionally do not file, and the IRS were to come after you, you can be subject to criminal penalties of a fine of no more than $25,000 and a prison term of no more than one year. The IRS likely wouldn't come after you, but theoretically they could.

I am not sure who made you tax-expert? Basically you yourself suggested you do not know much about tax-returns.. and you have confirmed this with your last post.. check this one.. http://www.irs.gov/businesses/small/...,00.html..stop posting useless stuff since no-one is requesting to post and you are not doing any good to anyone by posting wrong things.