What if an international student has already filed income tax return using TurboTax and is approved by TurboTax?
Turbo tax says IRS has approved my filed return, but when I see my status on IRS website it says waiting for approval.
What will happen next and what m I supposed to do now?
No, If you are an international student and need to file Form 1040-NR, you will not be able to use TurboTax. Unfortunately you have to find another method to prepare your tax returns.
TurboTax partners with Sprintax for international filers: <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/2437638-does-turbotax-handle-form-1040nr-for-nonresident-aliens">https://ttlc.intuit.com/questions/2437638-does-turbotax-handle-form-1040nr-for-nonresident-aliens</a>
the answer would actually depend on the time spent in the US.
I think it depends on the definition of residents vs non resident for tax purposes. This irs site considers international students as United States residents for tax purposes if they meet the substantial presence <a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test">https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test</a>
So if someone meets this test, can he/she use Turbo tax?
but the SPT only applies after the first five calendar years on a student visa.
To make sure we have the same situation. I worked as full time and stayed the whole 2016 and 2017 in USA on OPT status.
I filed 2016 taxes using turbo tax and got the refund and the IRS haven't contacted me for any mistake.
After reading that turbo tax might not work, I went to a tax service office to file my 2017 taxes. They confirmed that I am treated as a residence for tax purposes because I pass the presence test described here <a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test">https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test</a>
So they filed 1040 for me (NOT 1040NR) and 1040/1040EZ is the same form that is generated by Turbo Tax. I paid $50 for the accountant and I got the same refund as Turbo Tax (and Turbo Tax is free).
I confirmed and asked her if my 2016 turbo tax filing is wrong, she said it is good and nothing needs to be modified/amended. From now on, I’ll only use turbo tax and is absolutely right to use it because:
- This kind of status is treated as residence (based on the irs definition in the link above)
- If something is wrong, I would’ve received a notice from the IRS but here I am. It is 2018 and I haven’t received anything about my 2016 filing.
@Mosheer, on F1 (including OPT) you are a nonresident alien for the first 5 calendar years, only after these 5 years are used up would you start using the substantial presence test.
No. You are a non resident and need to file form 1040NR. Check 1040nra.com which support preparing 1040NR form for international students
attaching link to IRS for more details:
https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test
Upvote post so others can find this, also feel free to correct if i got my facts wrong.
Let me explain difference in filling as non-resident and resident,
residents are taxed for all the income in USA as well outside, whereas NR are taxed only for income in USA.
so for students, short answer it doesn't matter. You would be fine if you file thru turbotax which is free or through sprintax which charges fee.
Personal suggestion, if you have complicated condition like me (if you have 1099-Misc) file through sprintax.
if you are only filling W-2s go ahead with turbotax. or fill up details on both and check what estimated refund you are getting (it would be same in most cases but at sometimes sprintax can give you better estimate).
Sprintax is basically NR filling partner of turbotax, if you dont know what it is.
Basically Resident aliens are non-U.S. citizens who have green cards or who have been in the country for at least 183 days (acc to the presence test) over a three-year period including the current year. Nonresident aliens are those who are legally present in the U.S. but do not have green cards, such as tourists.
now for students it depends if you have been USA for 183 days you can file as resident (ie. turbotax)
What is presence test?
You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:
Example:
You were physically present in the U.S. on 120 days in each of the years 2012, 2013, and 2014. To determine if you meet the substantial presence test for 2014, count the full 120 days of presence in 2014, 40 days in 2013 (1/3 of 120), and 20 days in 2012 (1/6 of 120). Since the total for the 3-year period is 180 days, you are not considered a resident under the substantial presence test for 2014.
There are exemptions to this as well
Exempt Individual
Do not count days for which you are an exempt individual. The term "exempt individual" does not refer to someone exempt from U.S. tax, but to anyone in the following categories:
Hi, I'm a bit confused about this part. So, I'm a F-1 student in the US, and according to the presence test, I should pass that. However, under the Exempt Individual, it includes "A student temporarily present in the U.S. under an "F," "J," "M," or "Q" visa". So does this mean I'll never be a resident alien for tax purpose (with my F-1 status), since the days being present as F-1 student just do not count towards to presence test?
Many thanks to anyone who can clarify this.
technically speaking, yes you would never be resident alien unless you get greencard maybe. F-1 students are non resident aliens. Stating that I know lot of people filling using turbotax they didn't had any problem so far.
If you have been in the US for less than five years, you must file Form 1040-NR.
TurboTax does not support 1040-NR. You will have to use Sprintax to complete the form.
Thank you for your answer! Can you share the link containing that information about the 5-year rule? I've heard about it a lot but couldn't find it on IRS website.
Thank you for sharing,
Though, If I fir the criteria since I have been here more than 5 years on student visa. Can I then file using turboTax?
If you have been in the US for more than 5 years or part years, you can start counting your US days of presence after December 31st of the 5th year.
If you are considered a resident alien using the Substantial Presence Test you can file your return with TurboTax.
Your days on your F1 or J1 visa during the 5 years do not count as days of presence
You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:
31 days during the current year, and
183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
All the days you were present in the current year, and
1/3 of the days you were present in the first year before the current year, and
1/6 of the days you were present in the second year before the current year.
@VictoriaD75 @KarenJ2 I already used Turbo tax to file my taxes while on my F1 visa for 2019 and I have received the tax return from IRS. Now I understand that it was a mistake as I am considered a Non Resident Alien . Is there anything I can do to correct this? What problems would I face ? Thank you for your time.
You just need to amend your return(s) and return your refund to the IRS. If you amend and return(s) the refund, you should be fine.
You can use the steps here below to amend from 1040 resident return and file a correct 1040NR, TurboTax does support nonresident returns however we partner with Sprintax and they can help you with a 1040NR. You will need to go to the state website and locate their amended return form and print it and complete it. You can attach your correct to the state amendment.
After your 1040NR is complete, print your 1040NR with Sprintax; do not e-file it.. You must mail the 1040NR along with the amended return Form 1040X
Per IRS Form 1040X instructions, page 8:
To amend and file the correct return, do the following:
Enter your name, current address, and social security number (SSN) or individual taxpayer identification number (ITIN) on the front of Form 1040X.
Don’t enter any other information on page 1. Also, don’t complete Parts I or II on page 2 of Form 1040X.
Enter in Part III the reason why you are filing Form 1040X.
Complete a new or corrected return, Form 1040NR,
Across the top of the new or corrected return, write “Amended.”
Attach the new or corrected return to the back of Form 1040X.
**Make sure you check the box to show the tax year that you are amending on Form 1040X. Make sure you sign your 1040X and 1040NR.
Sprintax Form 1040X 1040X Instructions
To return your refund please see the attached link from the IRS: Returning an Erroneous Refund - Paper Check or Direct Deposit
What to do regarding the state tax.. specifically Pennsylvania
If sprintax was free no one would have been asking this question.
No, no and no you can't technically use TurboTax if you are an international studying on visa. No matter how tempting it is to use TurboTax , since it's free. Use sprtintax!!
You might not get into any problem by filling it in the wrong but read this
My friends applied through TurboTax it has efile so they got tax returns back in like 2 weeks. Bang then corona happened and came along with it the CARES package, they all wrongfully received 1200$, they were happy only till we received a mail from university explaining how that money doesn't belong to us and how they should file tax amendment and get it corrected. Now they have to do it.
i paid 60$ to sprintax to file taxes.
they paid 0 to turbotax then received 1200$, now would have to pay 100$ for amendment.
So don't just file via TurboTax bcoz its free, do it the right way helps in long run. Don't mess with IRS on chances that nothing's gonna go wrong or over few bucks. It will suck to know, you got into trouble just to save couple of bucks. Use Sprintax if you are eligible to file as resident alien it will tell you so. chat with their agents. Don't use friends or seniors advice.
I don't think i could be clearer than this.
@sanz Thank you for the advice, I'm currently in the process of filing my taxes. I'm a university student and have an on-campus job (so I have a W-2 form). I also have been in the U.S for more than 5 years. When I used Sprintax it says that my profile won't be support by Sprintax and need to use other services. I was wondering what should I do in this case?