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Form 8843 provides all F and J students with an exemption for the number of days spent in the U.S. If this form is not filed and you are a student who is currently studying in the US on an F-1 or J-1 visa, you will be responsible for paying taxes on your worldwide income (US income plus any income that was earned in your country of permanent residence) and you will not be eligible to take advantage of any treaty provisions that presently exist between your home country and the US

II. Who Should File?

If you were a student/scholar or the dependent of a student/scholar who entered the U.S. in F-1, F-2, J-1or J-2 nonimmigrant status and were present in the US for any length of time for the 2008 tax year, then you will need to file form 8843. As a nonresident alien residing in the US in F-1, F-2, J-1, J-2 student/dependent status, you are required to file this form regardless of whether or not you had any earned income during the tax year. You will also need to complete the form if you are filing a separate tax return. Form 8843 may be submitted with your other tax form(s).

If you arrived in the US on or after January 1, 2009, you are not required to file form 8843 for the 2008 tax year.

III. Spouses and Dependents

All spouses and dependents of F-1 and J-1 students currently residing in the US with the principle visa holder are required to complete form 8843. If your child is too young to sign the form, you may sign on his/her behalf. The form should be signed in the following manner for a minor who is unable to write his/her name:

(Example)

 If your spouse or child does not have a social security number and you are eligible to claim them as dependents on your tax form, they will need to apply for a Tax Identification Number (TIN). Form W-7 is used for this purpose. The completed form should be submitted to the IRS office located in Winston-Salem. The address of the office is as follows:

IRS Office
251 North Main St. (Federal Court Building)
Winston-Salem, NC

For verification of identity, the applicant will need to present a copy of his/her passport when submitting the W-7 form. New rules now dictate that a completed tax form (i.e. 1040NREZ) must be submitted with the application for the TIN. For more information on the TIN, please inquire at the Center for International Studies or go to www.irs.gov. The IRS will only issue a TIN to a nonresident/nonimmigrant for tax-related purposes.

IV. Filing Retroactively

If you were unaware of the fact that you were required to submit Form 8843 for previous tax years in which you resided in the U.S. in F or J student status, you may file retroactively for each year the form was not filed. Simply include a separate Form 8843 for each year that was missed. When filing forms retroactively, cross out the year in the upper right hand corner and write in the year for which you are filing.

V. Completing the Form

F-1 and J-1 students and their spouses and dependents need only complete sections 1 and 3 of the form. If you are filing form 8843 with another income tax form, it is not required that you complete the "Address" section of the form. If you are filing the form by itself, you will need to fill in the "Address" section.

VI. Where to Send the Form

All completed 8843 forms should be sent to the following address:

Internal Revenue Service
Austin, TX 73301-0215
(A street address is not necessary) 

I. Who Should File?

This form should be used by all foreign students who are currently residing in the US in F-1 or J-1 student status and had income of less than $60,000 for the 2008 tax year. This form cannot be used by those students who will be claiming dependents on their tax forms. The only students who are allowed to claim their spouse and dependents for US tax purposes are those whose permanent residency is listed as one of the following countries: Japan, South Korea, Mexico, Canada, and India. If you are a citizen or permanent resident of one of these countries and you will be claiming spouse or dependent deduction(s), you will need to file form 1040NR. A spouse or child cannot be claimed as a dependent unless they have a Tax Identification Number (TIN) at the time of filing.

II. Provisions of Tax Treaties with the US

As a nonresident alien residing in the US in F-1 or J-1 student status, you might be able to take advantage of a tax treaty provision between your home country and the US government. If your citizenship or permanent residency is listed as being in one of the countries listed below, you are able to exclude the entire amount of a fellowship, scholarship, or grant. This exclusion also includes any money that was received for the intended purpose of paying for room and board. If you are not from one of the listed countries, any money that you receive in a fellowship, scholarship, or grant that was specifically designated for room, board or other expenditures not directly related to tuition, books, or certain fees. may be classified as taxable income. All F-1 and J-1 students currently residing in the US as nonresident aliens, regardless of country of citizenship, are allowed to exclude all money in a fellowship, scholarship or grant that is intended for the purpose of paying for tuition, books, and fees at a recognized institution of higher learning. Please keep in mind that these exclusions do not apply to any remuneration that was paid for services rendered (i.e. wages or salary). Any money that was a part of your fellowship, scholarship, or grant that was paid as wages for services rendered is classified as taxable income and will be so noted on the W-2 or 1042-S form that you receive from your employer.

Belgium	Israel	Portugal
China, People's Rep.	Japan (old treaty)	Romania
Common. Ind. States(limited)	Kazakhstan	Russia
Cyprus	Rep. of Korea	Slovak Rep.
Czech Rep.	Latvia	Slovenia
Egypt	Lithuania	Spain
Estonia	Morocco	Thailand
France	Netherlands	Trinidad & Tobago
Germany	Norway	Tunisia
Iceland	Philippines	Ukraine
Indonesia	Poland	Venezuela (undergrads.)

IIa. Two and Three Year Exemption for J-1 Teachers and Trainees

Many teachers and researchers residing in the U.S. in J-1 status are exempt for 2 or 3 years (depending on the treaty) from paying taxes on income that is earned from teaching or conducting research. In order to be eligible to receive this tax benefit, the nonimmigrant must meet the exemption guideline. A J-1 teacher or researcher who has been in the U.S. no more than 2 or 3 (depending on the treaty provision)out of the last 6 years meets the requirement. As with students, a J-1 teacher/researcher who has been in the U.S. for any part of a calendar year as an exempt individual must count that presence as a whole year for tax purposes.

Example
(all examples are based on a filing for the 2006 tax year)

Dr. Lee, a J-1 research scholar from the Republic of Korea, arrived in the U.S. to work for a university laboratory on December 15, 2004. Even though he arrived in December of 2004, he would be considered as "temporarily exempt" for the whole calendar year. This means that he no longer qualifies for an exemption for the 2006 tax year because he has already met the two-year maximum stipulated by his country's tax treaty. He would be treated as a "resident" for tax purposes and would not be able to exempt income that he received as payment for his research activities.

WARNING: A J-1 teacher or trainee from Germany, India, Netherlands, Thailand, or the United Kingdom who exceeds the two-year maximum will lose all treaty benefits and will be responsible for paying taxes retroactively on any income that was previously exempted.

Example

Dr. Clark is a J-1 professor from the United Kingdom who is currently teaching in the economics deparment of a university. He began his teaching duties in August of 2003. As per the treaty between the U.S. and the U.K., Dr. Clark was able to exclude all income that he received from his emloyment as a teacher for 2003 and 2004. Since he is filing for 2005 and he is still residing in the U.S. as a J-1 nonimmigrant, Dr. Clark is no longer eligible to exclude any part of his income that was received from teaching, and, furthermore, he will now be responsible for paying taxes retroactively on all income that was excluded for 2003 and 2004.

Countries With Treaty Benefits for Income From Teaching:

Country	Max. Yrs. In U.S.	Amount	Treaty Article
Belgium	2	Unlimited	20
China, PRC	3	Unlimited	19
C.I.S.	2	Unlimited	VI(1)
Czech Rep.	2	Unlimited	21(5)
Egypt	2	Unlimited	22
France	2	Unlimited	20
Germany	2	Unlimited	20(1)
Greece	3	Unlimited	XII
Hungary	2	Unlimited	17
Iceland	2	Unlimited	17
India	2	Unlimited	22
Indonesia	2	Unlimited	20
Israel	2	Unlimited	23
Italy	2	Unlimited	20
Jamaica	2	Unlimited	22
Japan	2	Unlimited	20
Korea	2	Unlimited	20
Luxembourg	2	Unlimited	21(2)
Netherlands	2	Unlimited	21(1)
Norway	2	Unlimited	15
Pakistan	2	Unlimited	XII
Philippines	2	Unlimited	21
Poland	2	Unlimited	17
Portugal	2	Unlimited	22
Romania	2	Unlimited	19
Slovak Rep.	2	Unlimited	21(5)
Slovenia	2	Unlimited	20(3)
Thailand	2	Unlimited	23
Trinidad and Tobago	2	Unlimited	18
United Kingdom	2	Unlimited	20
Venezuela	2	Unlimited	21(3)

III. Income Exclusions

If you are from one of the following countries, a certain part of your income (i.e. wages, salary, tips) may be excluded from taxes for a designated period of time while you are residing in the US in F-1 or J-1 student status.. If you are in J-1 or F-1 student status for a period of time that exceeds that which is designated by the treaty, you are classified as a resident alien of the US by the IRS for tax purposes and are no longer eligible to receive the benefits outlined by the treaty. In addition, you will no longer able to file a tax form designated specifically for nonresident aliens.

Special Provision for Residents of China

The tax treaty between the U.S. and China is very unique in that it allows a resident of China to continue to take full advantage of all treaty benefits as long as he/she is classified as a student. This even applies in the case where a Chinese resident becomes a permanent resident of the U.S. and files as a resident alien for tax purposes.

Countries With Treaty Benefits for Student Wages:

Country	No. of Years Treaty Can be Claimed	Amount of Income that May be Excluded (should be noted on line 6 of Form 1040NR-EZ)	Treaty Article Citation for Income
Belgium	5	$2000	21(1)
China	No Limit	$5000	20(c)
C.I.S.	5	Limited	VI(1)
Cyprus	5	$2000	21(1)
Czech Rep.	5	$5000	21(1)
Egypt	5	$3000	23(1)
Estonia	5	$5000	20(1)
France	5	$5000	21(1)
Germany	4	$5000	20(4)
Iceland	5	$2000	22(1)
Indonesia	5	$2000	19(1)
Israel	5	$3000	24(1)
*Japan (old treaty)	5	$2000	20(1)
Korea (ROK)	5	$2000	21(1)
Latvia	5	$5000	20(1)
Lithuania	5	$5000	20(1)
Luxembourg	2	Unlimited	21(1)
Morocco	5	$2000	18
Netherlands	No Limit	$2000	22(1)
Norway	5	$2000	16(1)
Pakistan	No Limit	$5000	XIII(1)
Philippines	5	$3000	22(1)
Poland	5	$2000	18(1)
Portugal	5	$5000	23(1)
Romania	5	$2000	20(1)
Slovak Republic	5	$5000	21(1)
Slovenia	5	$5000	20(1)
Spain	5	$5000	22(1)
Thailand	5	$3000	22(1)
Trinidad and Tobago	5	$2000	19(1)
Tunisia	5	$4000	20
Venezuela	5	$5000	21(1)

*A new treaty between the U.S. and Japan no longer allows a $2000 exemption for qualifying students who entered the U.S. after March 30, 2004. Those students from Japan who qualified for the exemption and were in the U.S. in F-1/J-1 student status prior to the March 30, 2004 deadline, can continue to take the $2,000 deduction.

IV. Personal Exemption

All students, regardless of citizenship, are eligible to take a personal exemption of $3,500 on their 2008 tax return. This exemption should be noted on line 13 of form 1040NR-EZ

(Residents of Canada, Mexico, South Korea, Japan, and India may be eligible to claim exemptions for their spouse and dependents. The amount of the exemption for residents of South Korea and Japan will be determined by whether or not any income was earned in the home country in the 2008 tax year. Any income earned in the home country will be prorated and subtracted from the total amount of allowable exemptions. A formula for prorating home-based income can be found in the instruction booklet for form 1040NR. Citizens from India are only allowed to claim a child as a dependent if that child is a U.S. citizen or permanent resident. Furthermore, an Indian citizen may not claim a spouse as an exemption if that spouse had any earned income in the U.S.)

V. Filing Jointly

Most F-1 and J-1 students, regardless of marital status, will not be allowed to file a joint tax return with a spouse. There are exceptions that allow residents of Canada, Mexico, Japan, South Korea, and India to take their spouse as an exemption if they meet certain requirements. Also, those nonimmigrants who are married to a U.S. citizen, legal permanent resident, or someone who has met the substantial presence test and is treated as a nonresident alien for tax purposes may be eligible to file a joint return. Nonimmigrants who claim a spouse as an exemption or a child as a dependent are required to fill out Form 1040NR.

VI. Special Itemized/Standard Deduction for Residents of India

If you are a resident of India currently studying in the US in F-1 or J-1 visa status, you are entitled to take the itemized/standard deduction of $5450 for the 2008 tax year. This deduction should be noted on line 11 of form 1040NR-EZ.

VII. Interest and Dividend Income

International students on F-1 and J-1 visas are not required to pay taxes on interest income if that income is from a U.S. banking insituation and cannot be categorized as being a significant financial gain. This exclusion provision also includes interst that is paid on certificates of deposit (CD) or money market accounts.

Nonimmiigrants are, however, responsible for paying taxes on all dividend income earned from investments in the stock market. Dividend income will need to be reported on Form 1040NR. Dividend income is usually reported to the taxpayer on Form 1099-DIV

VIII. Social Security and Medicare Payments

As an F-1 or J-1 student, you are not required to make Social Security or Medicare payments. If money was mistakenly deducted from your wages for either Social Security or Medicare, you are entitled to a refund and should contact your present or former employer. If the employer refuses to grant a refund, you will need to file Form 843 with the Internal Revenue Service. Some J-2 dependents who are employed may be responsible for paying Social Secrity and Medicare taxes if they were not students who worked on campus.

XIV. Sample of Form 1042-S and Examples of Completed Forms 8843 & 1040NR-EZ

1042-S (form obtained from employer)

Internal Revenue Service
Austin, TX 73301-0215

XI. 1042S and W-2 Forms

The designated copy(ies) of either your 1042-S or W-2 form should be attached to your tax return on the left hand side of the paper in the appropriated space. Do not, however, attach your payment to the form. All payment checks should be enclosed with your form but not attached.

XII. Determining Your Tax (Line 15 of Form 1040NR-EZ)

In order to determine the tax on your annual income, you will need to refer to the table on page 11 of the 1040NR-EZ instruction booklet. Take the number that you wrote on line 15 of form 1040NR-EZ and use the number which is located in the second column to the right of that figure.

Example:

XIII. Addressing a Check to the IRS

If you owe taxes and are required to enclose a payment with your tax return, all checks should be made out to the "US Treasury." Please do not make out your

checks to the Internal Revenue Service or IRS.

XIV. Deadline for Filing

The deadline for submitting your 2008 tax return is April 15.

XV. IRS Home Page

All forms and instructions may be downloaded from the IRS web-page. www.irs.gov

• The vast majority of individual taxpayers in the state of North Carolina are required to file Form D-400( N.C. Dept. of Revenue Individual Income Tax Return)

Form DS-400 Instructions
Form DS-400

Sample Form DS-400 for individual with $5000 in federal adjusted gross income.

Important Points Pertaining to Form DS-400

N.C. Dept. of Revenue
P.O. Box R
Raleigh, NC 27634-0001

N.C. Dept. of Revenue
P.O. Box 25000
Raleigh, NC 27640-0640

XVII. Disclaimer

The information on this page is only to be used as a source of referential information. Tax laws change and different situations apply to different individuals. If you are unsure of how to complete your tax forms, you should consult a professional who is familiar with US tax laws. The Wake Forest Center for International Studies cannot be held responsible for any errant or outdated information that may be contained within this web page.