F1 Student Alien Resident

[Impots23]

Hi,

I've been on an F1 visa since January 2014. Bachelor degree from January 2014 until December 2017.  I then did an OPT from February 2018 until February 2019. In February of 2019 I was accepted in a Masters program which I'm going to be finished with in May of 2020.

I never made any income here as I was a student, even on OPT I was doing an internship that didn't pay, my parents were supporting me financially. I was about to take care of the tax return. I just discovered that apparently I'm now a Resident Alien for tax purposes...  I read about the 8843 form, or 8840 form. I'm confused which next step(s) I need to take to make sure I do things correctly. Thank you so much for your help

[pk]

@Impots23 , generally when you enter the country under F-1 student visa, you are exempt  from having count days present in the USA for five calendar years starting with the year of entry.  Since you do not count days, you remain as a Non-Resident Alien  { during this period  you report  only US sourced  income on form 1040-NR ).  In your case  your exempt period  finished  on 12/31/2018.  So during 2019 Jan 1  on wards you count days present and thus mid year you pass the substantial presence test  ( 183  present counting all the days in the current year, 1/3 of the days in the priors year and 1/6 days in the prior to prior year. ).  Thus for the year 2019 you would need to file as a Resident Alien  for tax purposes ( for the Immigration purposes you are still a Non-Immigrant Alien ) i.e. you are now taxed on your world income.

You can use TurboTax to complete the a 1040 return  with no dificulty.

But since you had no income either from US sources  or from  foreign sources ( monies from your parents  are not your income and cannot be taxed in the USA ), I do not understand why you want to file a return.

Which country are you from  ( in case you need to assert  treaty benefits )

Forms  8843  ( exempt individuals ) and form 8840  ( closer connection )  are both only required if you  are a Non-Resident Alien   reporting exempt status ( i.e. exempt from counting days present ) or   a non-exempt  person showing that his/her income must not be taxed because of closer connection to another country.  Neither of these I think apply to you ( from what you have posted so far )

Does this answer  your query ?

[Decla2020]

Hi,

Thank you so much for your response

im from from France, could you tell me a little more about asserting treaty benefits?

thanks again!

this is very helpful

[KarenJ2]

Please see attached IRS Publication 4011 and IRS Publication 901 regarding tax treaties.

[pk]

@Decla2020 , assuming that your situation is not exactly the same as @Impots23 , please tell me  your  information:

(a) date of arrival 

(b) what visa

(c) are  you still on OPT and is your visa on extension 

(d) do you have  income while still on F-1 and OPT

please answer and I will come back on the  US-France treaty benefits that may be available to you.

[Decla2020]

Hi, thank you both Impots23 and decla2020 is me I don’t know what happened here, I was trying to reset my password and it generate those two usernames.. but yes both are me 😀

thank you

[pk]

@Decla2020 , @Impots23 , I am  copying below  article 21 of the US France  tax treaty -- there are  are  two assertions  that may  be applicable    (a) the monies that you receive from your parents for school and maintenance cannot be taxed in the USA and (b) monies earned  for personal services  by you up to $5000, per year is exempt from US taxes  . I have underlined  the clauses.  To exercise   the second  assertion, you have to file  the forms , I reff'ed to earlier  

see here -->

ARTICLE 21
Students and Trainees
1. (a) An individual who is a resident of a Contracting State immediately before his
visit to the other Contracting State and who is temporarily present in the other
Contracting State for the primary purpose of:
(i) studying at a university or other recognized educational institution in
that other Contracting State;
(ii) securing training required to qualify him to practice a profession or
professional specialty; or
(iii) studying or doing research as a recipient of a grant, allowance, or
award from a not-for-profit governmental, religious, charitable, scientific, artistic,
cultural, or educational organization,
shall be exempt from tax in that other State with respect to amounts referred to in
subparagraph (b).
(b) The amounts referred to in subparagraph (a) are:
(i) gifts from abroad for the purposes of his maintenance, education, study,
research, or training;
(ii) a grant, allowance, or award described in subparagraph (a) (iii); and
(iii) income from personal services performed in the other Contracting
State in an amount not in excess of 5,000 United States dollars or its equivalent in
French francs for any taxable period.
(c) The benefits of this paragraph shall only extend for such period of time as may
be reasonably or customarily required to effectuate the purpose of the visit, but in no
event shall any individual have the benefits of this Article and Article 20 (Teachers and
Researchers) for more than a total of five taxable periods.
(d) The provisions of subparagraph (a) shall not apply to income from research if
such research is undertaken not in the public interest but primarily for the private benefit
of a specific person or persons.
2. An individual who is a resident of a Contracting State immediately before his visit to the
other Contracting State, and who is temporarily present in that other State as an employee of, or
under contract with, a resident of the first-mentioned State for the primary purpose of:
(a) acquiring technical, professional, or business experience from a person other
than that resident of the first-mentioned State, or
(b) studying at a university or other recognized educational institution in the other
State,
shall be exempt from tax by that other State for a period of 12 consecutive months with respect to
his income from personal services in an aggregate amount not in excess of 8,000 United States
dollars or its equivalent in French francs.