In light of the COVID-19 crisis, will there be a change to the federal and state tax filing and/or tax payment deadline?
Yes. The federal and Massachusetts filing due dates for calendar year 2019 were both extended to July 15, 2020.
The federal income tax filing due date is extended from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers and does not require filing additional forms to qualify for the automatic federal tax filing extension and payment relief.
The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.
The IRS has temporarily closed all Taxpayer Assistance Centers and discontinued face-to-face service throughout the country until further notice.
For more information, visit https://www.irs.gov/coronavirus
The extension for filing and payment only applies to federal returns that were originally due on April 15, 2020.
Massachusetts is also extended from April 15, 2020 to July 15, 2020.
For more information, visit: https://www.mass.gov/news/massachusetts-announces-state-income-tax-filing-deadline-being-extended-to-july-15
For other states in which you may have a filing requirement, please visit each state's department of revenue or department of taxation websites to confirm whether an automatic extension for filing and/or payment is available in that state.
Yes. A PDF of the slides is currently posted to the VPF website under “Individual Tax Workshops”
or download directly
Yes. Nonresidents are required to file Form 1040-NR to report income received during the calendar year. This is true even if your income was subject to withholding throughout the year. Filing your federal return will determine whether you overpaid taxes and are due a refund from the IRS, or if you underpaid and owe tax to the IRS. You may also have a state filing requirement if you lived or worked in a particular state during the calendar year.
If you did not receive U.S.-sourced income, Form 8843 is still required if you were present in the U.S. for at least one day during the calendar year and are claiming a student or scholar exemption from the substantial presence test to be treated as a nonresident alien.
If I did not receive any U.S.-sourced income in 2019, am I only required to file Form 8843? What about Form W-7 for the ITIN application?
If you did not receive any U.S.-sourced income during calendar year 2019, you are only required to file Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition) with the IRS. Form 8843 is an informational return (no tax calculated) that is used to claim your nonresident tax status.
Individual Taxpayer Identification Numbers (ITIN) are issued to foreign nationals and other individuals who have federal tax reporting or filing requirements and do not qualify for a Social Security Number. You may apply for an ITIN using the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number. Attach Form W-7 and supporting documentation to your federal income tax return upon filing. Note that an ITIN is not required to file Form 8843.
See Social Security Number or Individual Taxpayer Identification Number for more information.
If you are a nonresident, you and your spouse would file separate returns using the single filing status.
If you are a U.S. citizen or resident, you may choose to treat your nonresident spouse as a resident and file a joint tax return. If you choose to do so, your nonresident spouse will need an SSN or an ITIN and you will both be subject to tax on income from all sources during the year.
Failure to file a tax return may result in penalties, interest, and/or an audit by the IRS. There may also be consequences with regard to your immigration status if you fail to file your returns when you were required to file. You should consider filing a return even if the deadline has passed, especially if you believe you owe taxes to the IRS for a previous calendar year.
If you are aware of an error on a tax return already filed, you can file an amended return. See instructions here.
You may e-file Form 1040NR however, certain circumstances may require you to send a paper file including:
- Dual-status returns
- Tax treaty claims/amounts reported on Form 1042-S
Note that some U.S. states may only provide a paper filing option.
Nonresident aliens are not required to report salaries or other income earned abroad unless the income is effectively connected with a trade or business in the United States.
Resident aliens must report foreign-sourced income on their individual income tax return, which will then be taxable at the applicable rates.
Resident aliens may be eligible to take a foreign tax credit in the U.S. for certain foreign taxes paid to a foreign country using Form 1116: https://www.irs.gov/forms-pubs/about-form-1116
Prizes and awards are amounts paid in recognition of an outstanding achievement or winnings in a competition, raffle, or other contest. Generally, prizes and awards must be included in gross income and taxable at the applicable rates, regardless of your tax residency status. Certain exceptions may apply.
Please see IRS Publication 525 for more information.
Sold real estate property I owned abroad – Nonresident aliens do not need to include income derived from foreign sources such as from the sale of property, unless the income is effectively connected with a trade or business in the United States.
Resident aliens must include all worldwide income, including income from foreign sources.
Sold real estate property I owned in the U.S. – Income from the sale of property located in the U.S. is considered taxable income to nonresident aliens and resident aliens, but certain exclusions may apply for a primary residence.
Sold stocks or other investments in the U.S. – Capital gains from the sale of stock or other investments in the U.S. are considered taxable income to nonresident aliens and resident aliens.
A dual-status alien is an individual who is classified as both a U.S. resident alien and a nonresident alien in the same tax year. Dual-status does not refer to your citizenship, only to your resident status for tax purposes in the United States.
Typically, you will be classified as a dual-status alien during the tax year under the following circumstances:
- You arrived in the U.S. during the tax year and received permanent residency status (a green card) through your employment status or spouse.
- You entered the U.S. and passed the substantial presence test during the year. (See below for more information about the substantial presence test.)
- You held a J, F, M, or Q visa the first part of the year and received permanent residency status during the year.
- You left the United States permanently during a year in which you qualified as a tax resident.
See IRS Publication 519 for more information on dual-status aliens.
As a dual-status alien, the income tax return you file will depend on whether you are a resident alien or a nonresident alien at the end of the tax year. Only one form will be required, along with the applicable statements, for each residency scenario.
What if I don’t want to be a resident for tax purposes because I don’t want Social Security and Medicare withheld from my pay?
Residency for tax purposes is determined by the substantial presence test, based on an individual’s physical presence in the United States over a three-year period. You may not elect to be a nonresident in order to avoid Social Security and Medicare withholding. Social Security and Medicare are payroll taxes, not income taxes.
Why didn't I receive a Form 1042-S for tax treaty benefits claimed last year, even though my fellowship/stipend/scholarship was not taxed?
Form 1042-S is provided only to nonresidents for tax purposes, who claimed a tax treaty or had a fellowship payment without a tax treaty. If you didn’t have either one, you received a W-2. If you were a nonresident alien last year, and either claimed a treaty or received fellowship payments without a treaty and didn’t receive a Form 1042-S, contact email@example.com.
If you were a resident alien for tax purposes and had fellowship payments, you will not receive a Form 1042-S. It is your responsibility to report the income on your personal tax return and to have made estimated tax payments during the year for whatever portion of your income that was used for non-qualified expenses, and therefore subject to taxation.
If you received certain types of U.S-sourced income throughout the calendar year, you can expect to receive certain tax forms that are used to report this income.
Refer to the links below for more information on tax reporting documents from MIT:
For information about the Form 1098-T, refer to the FAQ on this form: https://vpf.mit.edu/irs-form-1098-t-tuition-statement-faq
VPF HR/Payroll provides access to the Glacier Tax Compliance System (GTCS) to help foreign national students and scholars determine their U.S. tax residency status. GTCS can also determine if you are exempt from paying U.S. tax due to your home country’s tax treaty with the U.S.
GTCS will determine your U.S. tax residency status and your eligibility for a tax treaty based on the information you enter about your presence in the U.S. GTCS will generate tax forms (e.g. W-4, 8233, W-8-BEN) for you to submit to VPF HR/Payroll.
VPF HR/Payroll will use these forms to determine how much money to deduct from your pay for taxes and process your tax treaty coverage, if applicable. Tax may be withheld due to one or more of the following situations:
- Your GTCS paperwork is incorrect and/or incomplete
- Your GTCS paperwork has not yet been processed
- You have become a resident alien for tax purposes and are now subject to FICA tax
- Your Form 8233 has expired; this form must be submitted annually to receive tax treaty benefits
If you believe that your pay is being taxed incorrectly, contact firstname.lastname@example.org.
As a resident alien, how can I report 1042-S income and/or claim tax treaty benefits on my tax return?
Please refer to the Workshop Presentation slides of the U.S. Citizen and Resident Students and Scholars (pages 14-16) for information on how to report 1042-S income and/or claim tax treaty benefits on your return.
Do nonresidents need to declare overseas bank accounts by filing the Foreign Bank Account Report (FBAR), FinCEN 114?
No. Nonresidents are not required to file an FBAR.
U.S. citizens and residents who have a financial interest in or signature authority over foreign financial accounts must file an FBAR if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during the calendar year.
No, bank transfers from a personal foreign bank account to a personal U.S. bank account are not reportable as income.
Yes. Interest income from a U.S. bank reported on Form 1099-INT is considered taxable to the recipient. You should include the amount reported on Form 1099-INT on your federal income tax return.
I lived and earned income in more than one U.S. state during the tax year. Do I have to file tax forms in each state?
If you earned income in multiple states in a given tax year, you may need to file a return in each state that you resided in during the tax year as a part-year resident, based on that state’s residency and income sourcing rules.
In Massachusetts, part-year residents are generally taxed on all of their income while residents of Massachusetts, whether received from sources inside or outside of Massachusetts. A Massachusetts full-year and/or part-year resident is entitled to claim a credit for incomes taxes paid to other states on income reported and taxed in Massachusetts. A part-year resident is only allowed credit for taxes paid on income earned and/or received during the Massachusetts residency period.
If you received Massachusetts gross income of more than $8,000 during the calendar year, you must file a Massachusetts state tax return. The form you file will depend on your Massachusetts residency status. Refer to the links below for more information:
As a nonresident alien for federal tax purposes, am I a nonresident for Massachusetts tax purposes as well?
Massachusetts has state residency rules that may differ from your federal status. If you have a permanent place of abode in Massachusetts and you have lived in Massachusetts for 183 days or more during the calendar year, you may be required to file as a resident in Massachusetts.
Whether a particular residence constitutes a "permanent place of abode" is a question of facts and circumstances of each individual’s situation. A permanent place of abode generally will not include a dormitory or campus residence hall, however, it may include an off-campus apartment without university affiliation.
Refer to the link below for more information:
Whether or not a state chooses to honor federal income tax treaty agreements will vary on a state-by-state basis. In Massachusetts, to the extent that income is excluded federally per a tax treaty, that income will also be exempt from state income tax. The income must still be reported on the return as wages and then claimed as a deduction.
Yes. Massachusetts requires adult residents to maintain minimum creditable health insurance coverage throughout the calendar year in order to avoid a tax penalty.
Your health insurance provider will send you Form 1099-HC, as proof of health insurance coverage for the calendar year. If you are covered by the MIT health plan, you will receive Form 1099-HC from Blue Cross Blue Shield of MA.
You will use Form 1099-HC to complete Schedule HC on your Massachusetts state tax return. Remember to keep a copy of your Form 1099-HC for records.
The content in this website is provided for informational purposes only. MIT does not offer legal, accounting, or tax advice and services. This information should not be used as a substitute for consultation with a professional accounting, tax, or legal advisor. MIT recommends that students consult a tax advisor for individual tax advice.