What's New For Tax Year 2008
(For Tax Year 2008)
A number of ISSS-BU readers who are familiar with the process for filling out their income tax forms have asked the ISSS to provide information on specifically what has changed, or what is new for Tax Year 2008.
For the fourth year, the ISSS has purchased a license with CINTAX to allow BU international students, alumni, scholars and faculty to use CINTAX to compute and print the federal income tax forms. CINTAX is a web-based tax preparation system designed exclusively for international students, scholars and faculty who file forms 1040NR or 1040NR EZ as non-residents for tax purposes.
An important item of note is to remind readers of the criteria that determines who qualifies as a non-resident for tax purposes for tax year 2008. F-1 and J-1 students, and their F-2 and J-2 dependents, qualify as non-residents if they have been in the United States in that status since 2004 or later. F-1 or J-1 students who have been in the United States in that status for more than five years (2003 or earlier) are considered to be residents for tax purposes.
J-1 scholars and their dependents qualify as non-residents if they have been in the United States in that status since 2007 or later. J-1 scholars who have been in the United States in that status for more than two years (since 2006 or earlier) are considered to be residents for tax purposes.
The personal exemption deduction (line 13 on form 1040NR EZ, line 38 on form 1040NR) is $3500 for tax year 2008. This amount increases each year.
The standard deduction (used only by students from India as their tax treaty amount) is $5450 for single individuals and those who are filing as "married filing separately" for 2008 on form 1040NR EZ. The standard deduction is $10900 for Indian nationals who are filing as "married filing jointly" for 2008 on form 1040NR. Indian nationals enter the standard deduction amount (line 11 on form 1040NR EZ, line 37 and page 3 line 3 on form 1040NR) instead of their state and local taxes.
New York State filers must continue to use New York State form, IT-2 "Summary of Federal Form W-2 Statements" which was introduced three years ago. New York State filers must use the IT-2 to copy over information from the W-2 forms onto this form, and include it with forms IT-203 and IT-203B.
There are changes to the tax treaties with both Belgium and Germany that will benefit students who receive salary or wages from US employers. The yearly amount of salary and wages that can be exempt from federal income tax has increased to $9000 per year for residents of both countries.