Tax return on J1, tax exempt
 

Hello!

I've been working in Indiana for a little under a year now as a post-doc on a J1. I understand I have to file tax forms for 2012 by April 15th this year, but I have no idea which forms to fill in, and it's all a bit daunting.

Looking on a few other posts, I saw that this is probably either 1042NR or 1042NR-EZ, though I don't know which and if there are others also (W-2?), and probably State income tax forms also. Last year was the first year I could take any tax exemption, and I took it so I don't need to claim any back. It looks like from one of caleyjag's old posts that it's 1042NR-EZ, though I wasn't sure.

Any help? Is there any guide on the internet? The IRS website happily has "come back later" (http://www.irs.gov/pub/irs-pdf/i1040nre.pdf), so I don't know...

Much obliged to anyone who can help!

Re: Tax return on J1, tax exempt
 

Your return will be some sort of 1040 (not 1042) and your W2 will give to the amounts of earnings and tax to enter into that form. Take a look at the various tax software programs available. Those will ask you simple questions and file the forms for you on line.

Re: Tax return on J1, tax exempt
 

Well it would be at least 1040NR, as I am not resident? Also I thought most of the tax software did not support non-residents?

Re: Tax return on J1, tax exempt
 

Hi Scramble.....
Since this will be your first time filing - you (quite understandably) may indeed be a bit "Scramble(d)" :confused::
The W2 is not a form which YOU (the Employee) file.
It's one your employer must send you - and is HIS statement of your total annual earnings for the year in question. You use the info contained on this statement (the W2) when filling in your return, but you do not submit any W2s (W2 plural- in case you receive several - if you had more than 1 employer during the year) to the IRS. Hang on to them for record-keeping however!
Here's a Google link to all you (n)ever wanted to know about the subject:
https://www.google.com/search?q=how+...ient=firefox-a
And try this link for IRS forms and publications (look for both 1040 and also 1040 instructions for tax year 2012)
http://www.irs.gov/uac/Forms,-Public...r-Tax-Products

By the way, IMHO - Turbo Tax is great - you can try it out for free online/ see how you like it/ pay nothing unless and until you submit your completed forms by filing online :thumbsup:
Nothing ventured, nothing gained, right?

Re: Tax return on J1, tax exempt
 

Hi MMcD, thanks! Are you sure turbotax supports non-residents though? http://turbotax.intuit.com/support/i.../GEN83484.html suggests otherwise...

Re: Tax return on J1, tax exempt
 

.....I'm afraid I was writing my post after you'd sent your 2nd message. I don't know the answers to your new questions...sorry...


update: http://turbotax.intuit.com/support/i.../GEN83484.html

Looks like you're right. Turbo Tax won't work for non-residents. (Hope you can use the links in my post - I use Firefox on a Mac and not sure whether Google search URLs will work(?) for different Browsers....

Re: Tax return on J1, tax exempt
 

If you've been working in the US for "a little under a year" it sounds as if you will.meet the substantial presence test and be US tax resident. If your only income is from the post doc a 1040EZ might be appropriate, be careful if you have any foreign bank accounts or investments like an ISA as you are liable for US tax on those too and may have to declare them on informational forms.

Re: Tax return on J1, tax exempt
 

Hi Nun,

Yes it's about 260 days and I am 'substantially present' under that test - but under the terms of the UK/USA treaty I am none-the-less non-resident. It was my understanding that all UK J1s, except those are either married to residents or elect otherwise, are automatically non-resident if they stay under 2 years (though if they stay more than 2 years, the benefits are lost retroactively).

As an aside, I know I am definitely non-resident (and so would be filing some kind of NR form) as I just had to go through the GLACIER system last week which determined me non-resident for 2013 also.

Re: Tax return on J1, tax exempt
 

OK. Have you filed an 8843 to establish your NR status with the IRS? You should check with your payroll dept that they are deducting the appropriate FICA and income taxes given your J1 visa and treaty status. You might receive a 1042-S rather than a W2, but you should make sure your taxable income is correct reported so that when you file the 1040NR you pay the correct tax

Re: Tax return on J1, tax exempt
 

Hi Scramble,

Can't the GLACIER system help you complete your federal return? My husband is a post-doc on a J-1, and at tax time he usually feeds all his data into the GLACIER account his college set up for him, and that basically completes most of the form. (I think he does 1040-EZ, but I'll have to double-check.) Our first year here, we went into an H&R Block and were going to pay them to complete it all -- it seemed daunting -- but they kindly recommended we try GLACIER first, and that worked fine. We then did our state tax returns manually.

We do pay tax here, though -- didn't use the treaty, as we knew we'd probably be here 2+ years.

I haven't found that any of the online free programs like TurboTax etc support non-resident tax returns. The J1 tax situation, whether or not you use the treaty, is really quite specialized, and so watch out when reading any more generic advice, as sod's law is it won't apply to you. Examples: the substantive presence test; being able to choose whether you file single or married; declaring foreign bank accounts. If you do end up paying for tax help, make sure it's someone who's worked with J1s before.

(Some of this stuff changes again after you've been here a couple of years, but luckily that won't apply to you yet.)

If there are a lot of post-docs where you work, you may find the college can provide some J1-specific info or tax seminars.

Hope this helps. I'm putting off doing my own tax returns.

Re: Tax return on J1, tax exempt
 

Thanks MoshiMoshi. It looks like the international student place at my University does some seminars in February, and also has the "GLACIER pre-tax" thing (separate though related to the GLACIER system I used to define my tax liability at the start of the year) I can't access it yet though :/ ), so I will ask them...thanks for the advice though.

Re: Tax return on J1, tax exempt
 

Make sure your employer is not deducting FICA. If you have under 2 years on a J1 you don't have to pay FICA.

If you are going to claim US tax exemption under Article 20 of the tax treaty carefully look at your pay check and W2 when it arrives. Many times an employer will withhold tax and leave it up to the employee to claim the tax back as a refund.

Re: Tax return on J1, tax exempt
 

OK - You are exempt from FICA so should not pay at all.

For Federal tax purposes you are a non-US resident simply because the days don't count for the substantial presence test.

Wait a while though for the W-2 to arrive and for the IRS and your State to provide final versions of the tax returns and fill them in by hand.

Re: Tax return on J1, tax exempt
 

Be aware that 'resident' for tax purposes is not the same thing as the immigration status of Permanent Resident.

Regards, JEff