Tax Treaty for international students (F1)

[PrinceAzih]

Hi, I'm an international student (F1), so I'm opting to use sprintax because that's the e-file tool for non-residents. While filling out the forms on sprintax it notified me that due to the tax treaty between the US and my home country that I have the "right under US and [my-home-country] file your tax return as a resident of US which will allow you to use all deductions, tax credits and benefits available for US residents". Since the tax treaty allows me to file as a resident, does this mean I can use turbotax? I ask this because when I opt to move forward with the tax treaty benefits on sprintax it says that "Sprintax software isn't suitable for you and your tax return should be prepared offline". Looking forward to a response

[ShirlynW]

Yes, as a resident alien you can file a resident return in TurboTax. You are a resident alien of the United States for tax purposes if you meet either the green card test or the substantial presence test for calendar year 2021 (January 1–December 31)

[PrinceAzih]

Thanks for your reply; I know I have to pass the aforementioned tests to be considered a resident alien. However, I have not yet been in the US for 5 years, this is my fourth year, and from my understanding, the tests only come into account after your fifth year. So I believe I am a non-resident alien (for tax purposes). what I wanted to clarify is, does the tax treaty allow me to file as a resident with TurboTax?

[DaveF1006]

To clarify, do you live in the US now?  If so, when did you enter?

@PrinceAzih 

[PrinceAzih]

@DaveF1006 HI, yes, I live in the US now. I entered August 2019, I have never left since entering.

[DaveF1006]

To clarify again, what is your home country?

@PrinceAzih 

[PrinceAzih]

@DaveF1006 Jamaica is my home country

[DaveF1006 · Accepted solution]

It depends.  According to the IRS,  foreign students  temporarily present in the United States in F-1, J-1, or M-1, status for less than 5 calendar years are generally nonresident aliens under residency rules of IRC section 7701(b). Please refer to this IRS publication for further details. F-1 Teachers or trainees have a two-year exemption period before being able to file as a resident alien provided they meet the terms of the Substantial Presence Test or Green Card Test.

In this case, you are exempt from filing US taxes thus would file as s non-resident. This exemption is not a choice but is automatic for this type of a Visa. A teacher or researcher have a two-year exemption period before they can be resident alien.

When you filed with Sprintax, it may have not taken your F-1 status into consideration. You may wish to contact them and talk to a live customer service agent that can be of further assistance.  

I read the Jamaica/US tax treaty and i could not find any reference regarding student visa holders so for now, we must rely on the IRS rules regarding F1 Visa holders.

Do not hesitate to write back if you have additional questions because we are here to help.

@PrinceAzih 

[PrinceAzih]

@DaveF1006 Thank you!