Lesley1020

My first experience of tax returns and I have a couple of questions if anyone can help!

I know that I have to file the 1040NR-EZ, anD I have my W2. I know that had I been filing regularly, I would have got about $1,000 back... just wondering if the rules on how they calculate it are different on this form?

Thanks!!!

dunroving

Compared to which form - the 1040NR (i.e., the longer NR form), or the 1040 (i.e., the regular 1040)?

If you mean the 1040NR, the tax is calculated the same regardless of whether you use the short or long form. The EZ is just shorter for those people with less complicated lives tax-wise. I assume you mean this, as you state you are NR.

If you mean the 1040, there are some differences in how you are taxed if you are resident as compared to non-resident, but these differences aren't major if you live an uncomplicated life, tax-wise. Of course, even though this form is a bit different, I assume you are not thinking of using the incorrect form... ?

dbj1000

Why would you use the NR form? I'm pretty sure from your posts that you were in the US for more than 183 days last year, weren't you? If so, you're resident, and need to file as such - particularly since if you file as a non-resident you lose many of the more useful tax deductibles.

Lesley1020

It seems that the J1 visa has an exemption from the 183 day rule, and CIEE have told me I must file as non resident, which I am going to do....completely straightforward, just a single person etc.

I didn't realize initially that I couldn't use the regular 1040 and had worked it all out online, and it looked like I was going to get soem money back.

I am just concerned that if the rules are different, could I have not been paying enough etc, and wind up owing them money. Also it makes reference on the form to tax treaties and if you are claiming them etc, and much as I have tried to research online, cant quite get information that isn't conflicting.

I guess a trip to H&R Block may be just the thing!

fatbrit

Owing the tax man money is a good thing as long as it's within limits. Otherwise, your money is tied up in the bank of no interest!

dbj1000

Well you learn something every day!

As you say, J-visa holders are exempt individuals. I'm not sure if that's a good or a bad thing when it comes down to the tax you owe/are owed though. The rules are definitely different, since non-residents are not allowed to take the standard deduction, etc.

Lesley1020

All this is no new to me I really have no clue! I do know that my boss has been deducting single and zero and friends have told me I just gave an interest free loan to the government.

Ah well, I was thinking I would have a nice little cheque to get some air conditioning in my car for the summer, I guess not!!!

fatbrit

Your friends are good friends!

If you plan now for next year, you should be able to avoid this folly.

If you want to save for a bonus at this time next year, throw a little money every paycheck into the highest interest savings account. The money is liquid (for those little emergencies that crop up from time to time!) and you'll make a buck or two in interest.

BTW, air conditioning not really necessary unless temperature goes over 110F for at least 24 hrs!

Lesley1020

Hmmm... my friends that were good friends may not want to be around me if I don't get AC! LOL. I think perhaps trading in the car might be the thing, rather than waste $700 on a car that just aint worth it!

OK now I am totally confused about the tax issue. I ran it through Turbo Tax type thing as a regualr 1040 and it says I should get $1002 back but they dont do NR filing as it has to be on paper.

I guess what I am asking is, am I going to be taxed hugely differently on the NR form, or can I still expect to get around the same amount back?

dbj1000

According to the IRS page here you can't claim many of the deductions what a resident can claim, so there's a chance that your refund will be smaller than TurboTax calculates. The link has a list of allowable deductions for non-residents, along with a link to publication 519, which should tell you your situation in great detail, but is far too long and dull for me to read through

AdobePinon

Typically, the tax rates are similar but your taxable income will generally be higher with the NR form. That's because (as others have said) you're not entitled to all the deductions of a resident. End result - you will get a smaller return. But chances are you won't owe anything unless you are claiming quite a few witholdings on your W-4 (which you filed with payroll when you started).

anotherlimey

Just a note on H&R Block;

I was confused with my tax return so I went down to my local H&R Block and it seems their tax return software asks all the questions it needs about resident and non-resident status, I was also asked what visa I was on, so you may be better off going to them.

My tax return was double what I thought it was going to be. I did buy the 'piece of mind' insurance for $27, only because this is my first year filing. The total cost for me was $194,

-tom

dbj1000

I'm somewhat surprised that any H&R Block employee has sufficient excess brain-power to sell pieces of it for only $27!

Still, anything for an extra buck or two, I guess