Income Tax Information For F-1 and J-1s Who are Residents for Tax Purposes(F and J in the United States for More than Five Years )
Until now, all of ISSS-BU's income tax resources have focused on F-1 and J-1 students who are non-residents for tax purposes; those who have been in F or J status for five years or less. This information is for those F-1 and J-1 students who entered the U.S. in 2002 or earlier, or J-1 scholars who entered the U.S. in 2005 or earlier, and therefore file as residents for tax purposes.
Need assistance with your resident tax forms? There are a number of resources available to you. If your total earnings for 2007 were less than $54,000, you can file both your Federal and your New York State income tax forms for free using special income tax software. Access free e-filing at http://www.irs.gov
Free assistance with resident tax forms is offered through the VITA volunteer program at the Broome County Public Library, 185 Court Street in downtown Binghamton. The hours are: (walk-in or by appointment) Monday through Saturday, 10am to 2pm. Call 607-778-6400 to confirm these times. The library is closed on Sundays. The volunteers at the Broome County Library are NOT trained to assist with non-resident tax matters.
Resident income tax filers can also purchase income tax software such as Turbo Tax or Tax Cut, which will complete both your federal and state forms. There are also paid preparers in the local community who can assist you including H & R Block and Jackson Hewett.
If you have been in F-1 or J-1 status for more than five years, you need to file form 1040, or its shorter versions; 1040A or 1040EZ. Residents with income should also file New York State tax form IT-150 and IT-2. Residents for tax purposes must report all world-wide income, including bank interest. However, residents for tax purposes can also list spouses and children as dependents, and therefore claim a greater number of exemptions and deductions.
In addition to the personal exemption of $3400, residents for tax purposes can also claim the standard deduction, which for a single person is $5350 for tax year 2007! Residents may also claim certain tax credits, if they meet the eligibility requirements. These credits include child care, earned income, and education credits. Graduate students who are eligible to file as residents for tax purposes may be especially interested in the lifelong learning education credit.
For more information on education credits, obtain IRS publication 970 "Tax Benefits for Higher Education." It can be found on the World Wide Web at the IRS Forms and Publications site; http://www.irs.ustreas.gov/pub/irs-pdf/p970.pdf
Remember that these benefits are only available to F-1 and J-1 students who have been in the U.S. in those statuses for MORE than five years.