For the most up to date tax products, 

information and other training options 

such as visit www.irs.gov.

2007 VITA/TCE ITA/TCE

Publication 678-FS

Foreign Student and

Scholar Text

(for use in preparing Tax Year 2007 Returns for Nonresident Aliens)

Coming together to 

strengthen communities 

through free volunteer 

tax return preparation 

programs

Publication 678-FS (Rev. 2007)

Catalog Number 13740R
Confi dentiality Statement

All tax information received from taxpayers in your volunteer capacity is strictly confi dential 

and should not, under any circumstances, be disclosed to unauthorized individuals and should be 

properly safeguarded.

All persons, scenarios and addresses appearing in this product are fi ctitious. Any resemblance to 

persons living or dead is purely coincidental.

Technical Updates 

Tax law changes implemented after this product was published may cause various forms, 

tables, and worksheets to change. The supplemental changes (if any) are normally available in 

mid-December on www.irs.gov (keyword: Community Network). 

Technical updates are also conveyed in Volunteer Quality Alerts during the fi ling season on 

www.irs.gov. Also, consult your course facilitator and/or site coordinator. 

IRS

Department of the Treasury

Internal Revenue Service

www.irs.gov

Provide America’s taxpayers 

top quality service by helping 

them understand and meet 

their tax responsibilities and 

by applying the tax law with 

integrity and fairness to all.
Introduction ........................................................................................................... I-1

Lesson 1 Residency Status for Federal Tax Purposes ..................................1-1

Lesson 2 Filing Requirements and What to File ..........................................2-1

Lesson 3 The Effect of Tax Treaties ..............................................................3-1

Lesson 4 Family Issues ..................................................................................4-1 

Lesson 5 Taxation of Nonresidents ...............................................................5-1

Lesson 6 Form 8843 Filing Requirements ....................................................6-1

Lesson 7 Finishing the Return ......................................................................7-1

Lesson 8 Social Security Tax Matters ...........................................................8-1

Lesson 9 State Income Tax Issues ................................................................9-1

Appendix A Common Questions and Processing Issues ..................................A-1

Appendix B Comprehensive Problems .............................................................B-1

Test for International Students and Scholars 

 U.S. Federal Income Tax Issues ........................................................................T-1

TABLE OF CONTENTS

Table 0f Contents i
STUDENT NOTES

ii Table 0f Contents
This International Student and Scholar Supplement is designed to 

provide assistance to volunteers who will be working at Volunteer 

Income Tax Assistance (VITA) sites that assist international 

 students and scholars. This text can be used in conjunction with 

the on-line tax law training course (Link and Learn Taxes) at 

www.irs.gov (keyword: volunteer training). 

Effective for Tax Year 2007, Foreign Students and Scholars 

on-line course and certification is available on Link and Learn 

Taxes. We encourage you to reinforce the tax law training in this 

course at your own pace using the on-line course.

The Foreign Student and Scholar Volunteer Resource Guide

(Publication 4011) is a training tool and site reference guide for 

the volunteer return preparation program for foreign students and 

scholars. This publication features Treaty summaries for code 15 

(scholarship or fellowship grant), code 18 (teaching or research 

income), and code 19 (studying and training income) in addition to 

other quick reference topics. 

The Nonresident Alien Intake and Interview Sheet (Form 

13614NR) is the starting point for your interview and conversation 

to assess the taxpayer’s tax situation—filing status, number of 

exemptions, income, adjustments, deductions, credits, etc. Form 

13614 NR (see page I-6) can be downloaded from www.irs.gov and 

photocopied as needed.

The Internal Revenue Service also publishes the U.S. Tax Guide 

for Aliens (Publication 519) that is referenced throughout this 

course. Pub lication 519 is revised annually and can be accessed 

or downloaded from www.irs.gov along with Publication 678, 

Volunteer Assistor’s Guide—Student Text (for U.S. citizen and 

resident alien returns) and Publication 17, Your Federal Income 

Tax For Individuals which also contain information that you may 

find helpful.

We welcome your comments and suggestions for improving our 

products and encourage you to complete the course evaluation 

 survey, Form 6317(FS), on the last page of this book.

Over 500,000 international students and scholars are at American 

colleges and universities to study, teach, and do research. Due 

to the complexity of the U.S. federal tax laws, many of these 

individuals have difficulty understanding and meeting their tax 

obligations. Failure of nonresidents to comply with U.S. tax laws 

can lead to monetary penalties and immigration problems, and 

even destroy eligibility for citizenship.

This book is designed to let learners teach themselves and monitor 

how well they have learned. To do that, read each lesson carefully. 

Work the exercises as you go along to confirm what you learned.

INTRODUCTION

Introduction I-1
After completing the chapters, work the comprehensive problems 

in Appendix B, and compare your answers to those provided. 

Self-grade using the answers provided. If your answers were not 

correct, go back to the sections on those topics and find out why.

A comprehensive test and certification begins on page T-1 of 

this publication. All volunteers who prepare tax returns must be 

certified and acknowledge receipt and acceptance of the Volunteer 

Standards of Conduct.

OBJECTIVES OF THIS COURSE

At the end of this course, you will be able to:

1. Distinguish between

■ resident aliens and

■ nonresident aliens.

2. Determine whether a nonresident alien is required to file.

3. Determine the correct form(s) to file.

4. Determine whether a tax treaty applies.

5. Using an applicable treaty, determine which income is

■ taxable, and which is

■ excludable from income.

6. Determine

■ what income is “effectively connected” and what is not,

■ what income must be reported, and

■ where an international taxpayer’s return should be sent.

7. Correctly complete Form 8843.

8. Correctly complete Forms 1040NR and 1040NR-EZ.

9. Establish an International VITA site.

SITE, SPONSOR AND VOLUNTEERS LIABILITY ISSUES

Some colleges and universities are reluctant to sponsor an 

international VITA site because of the potential liability they feel 

it causes them. This section is intended to serve as a reference. 

It does not constitute legal guidance. Legal counsel should be 

consulted if you have questions.

Volunteers at all VITA sites (including international sites) appear 

to be covered by the federal Volunteer Protection Act of 1997, Public 

Law 105-19 (42 U.S. Code sections 14501 et seq.). The Act applies 

to volunteers who perform services for a nonprofit organization 

or governmental entity and receive no compensation other than 

reasonable reimbursement or allowance for expenses actually 

incurred (or any other thing of value in lieu of compensation over 

$500 per year) and to a volunteer serving as a director, officer, 

trustee, or direct service volunteer.

I-2 Introduction
The Act generally protects volunteers from liability for negligent 

acts they perform within the scope of their responsibilities in the 

organization for which they volunteer. The Act excludes conduct 

that is willful or criminal, grossly negligent, or reckless, or that 

constitutes a conscious, flagrant indifference to the rights or safety 

of the individual harmed by the volunteer. The Act does not protect 

volunteers from liability for harm arising from the operation of a 

motor vehicle, vessel, aircraft, or other vehicle for which a license 

and insurance are required or from crimes of violence, hate crimes, 

sexual offenses, civil rights violations, or acts committed under the 

influence of alcohol or drugs. Volunteers are not liable for punitive 

damages for harm caused by acts they perform within the scope of 

their responsibilities, unless a claimant establishes by clear and 

convincing evidence that the harm was proximately caused by an 

action constituting willful or criminal misconduct or a conscious, 

flagrant indifference to the rights or safety of the individual 

harmed.

The Act provides that certain conditions imposed in state 

laws limiting the liability of volunteers will not be considered 

inconsistent with the Act. In other words, those limitations are not 

invalidated by the Act and may limit the effects of the Volunteer 

Protection Act. The state conditions that remain in force are 

listed in subsection 4(d) of the Act. Most significant among the 

conditions that may apply in some states are: (1) volunteers 

may be subject to liability if the civil action was brought by a 

state or local government official pursuant to state or local law; 

(2) volunteers may be protected only if the sponsoring organization 

has provided a secure alternate source of compensation for those 

harmed; and (3) some states waive liability only if sponsors adhere 

to risk-management procedures, including providing mandatory 

training of volunteers. State limitations will vary, so protection of 

volunteers may vary also.

In conclusion, it is the opinion of the Internal Revenue Service 

that the Volunteer Protection Act of 1997 offers significant 

protections from liability for those meeting its requirements. The 

most significant requirement is that the volunteer’s sponsor must 

be a nonprofit organization or governmental entity, and that the 

act causing harm is performed within the scope of the volunteer’s 

responsibilities. It is also important to note that the Act’s best 

protection covers only negligent acts—not willful, criminal, 

reckless, or conscious, flagrantly indifferent acts; and that state 

limitations on volunteer protection may apply.

ESTABLISHING INTERNATIONAL VITA SITES

The following information is intended for International VITA site 

coordinators. If you are just forming your International VITA 

site, you may have many questions about how to establish the site. 

You can find out more about partnering with the IRS by visiting 

Introduction I-3
www.irs.gov (keyword: community network). This section provides 

suggestions and guidance that you may find helpful. Keep in mind 

that no two sites are exactly the same.

Talk to the School Officials

Possibly the first step that you need to take is to inform the school 

officials that you plan to offer this service. They can help you with 

publicity and they may be able to provide the space for the site. 

The foreign student advisor can help you develop the site. In some 

schools, the foreign student advisor serves as the site coordinator. 

If possible, talk to school officials during the summer.

Find a Location

You also need to start searching for a location for your site. Keep 

in mind that many students have limited transportation. If you 

cannot find a spot on campus for the site, consider asking a nearby 

religious organization or library for space. Be prepared to tell them 

the amount of space that you will need and how long you will need 

the space. The amount of space will depend on the number of 

volunteers you will have working at the same time. Don’t forget 

to think about space for people to wait in line. Since international 

 students and scholars have very few places to turn for help on their 

taxes, you may have a very good turnout at your site.

Find Site Sponsors

It is a good idea to find multiple site sponsors. For example, maybe 

the local office supply store will sponsor all of your office needs 

(staplers, pens, paper, and calculator). Try to see if the local pizza 

places will donate some food for your training class. Better yet, see 

if the local food places will take turns providing food for your 

volunteers while they are working at the site. Keep good records 

of the businesses that have helped you. Make sure that you send 

them a thank-you note at the end of the season. See if the local 

paper will run a free thank-you ad for you.

Recruit Volunteers

In the fall, start recruiting volunteers. There are many places that 

you can look for volunteers. If the school has an accounting club, 

approach the club president and see if the club would be willing 

to take on the VITA site as a service project. Explain that training 

will be provided and that the volunteers do not need to be 

multi-lingual. You might also want to contact the professor who 

teaches the Income Tax class in the Accounting Department. Some 

students from that class may be available to help.

You can look to sources outside of the campus for volunteers. In 

some communities, all of the international VITA site volunteers 

are senior citizens. They have a desire to help the international 

students and scholars and they have the time to volunteer. In other 

I-4 Introduction
communities, the local accountants volunteer at the International 

VITA site. In a couple of locations, the Rotary Club provides the 

volunteers. Use your connections and don’t be afraid to ask.

Not all of your volunteers need to prepare taxes. You could have 

someone who is the greeter or receptionist at your site. Someone 

else might watch the children while married students and scholars 

get help with their returns. If you have people willing to help you, 

find something for them to do.

Plan for Training

You need to determine what type of training you will offer to the 

volunteers. The tools that the IRS will provide include this book 

and all of the forms that you will need for your training.

If you plan to have a class for your volunteers, you will need to 

recruit an instructor. The IRS does not have the resources to 

provide instructors for individual VITA sites. You may wish to 

have the volunteers self-study this book.

Testing and Certification

Testing and certification is mandatory for all volunteers 

who prepare returns. The comprehensive test that begins on 

page T-1 of this publication also includes the Volunteer Agreement, 

which denotes the Volunteer Standards of Conduct and testing 

and certifications requirements.

Keeping Records

VITA sites are not allowed to keep copies of the returns that they 

prepare. No records can be kept of social security numbers or 

income. You should ensure that your volunteers are familiar with 

the privacy and confidentiality rules for VITA volunteers.

Year-Round Assistance

While the greatest need for International VITA sites is during the 

filing season, many international students and scholars need tax 

help throughout the year. If you have the resources available, you 

might consider keeping your site open after April 15th. Maybe you 

could provide walk-in assistance on the first Friday of the month 

from 1–3 p.m., for example.

Link and Learn Taxes

Volunteers can reinforce their understanding of tax law for U.S. 

citizens and resident aliens by using Link and Learn Taxes 

online at www.irs.gov (keyword: volunteer training). Actions are 

underway to move this (foreign student and scholar) course to an elearning environment.

Introduction I-5
Form 13614NR

(Rev. 8-2007) Nonresident Alien Intake and Interview Sheet OMB# 1545-2075

Last or Family Name: First: Middle Initial:

ITIN or Social Security #: Visa #: Passport #: 

Date of Birth:

(mm/dd/yyyy) / / Telephone #: ( ) e-mail Address:

Are you a U.S. citizen or resident alien all year? Yes No Were you ever a U.S. citizen? Yes No

U.S. Local Street Address:

City: State: Zip Code:

Foreign Residence Address:

Address Line 2: 

Postal Code: Province/Region: Foreign Country:

Country of Citizenship: Country that issued Passport:

Are you married? Yes No If YES, is your spouse in the U.S.? Yes No

Are you a:

U.S.National Yes No

Resident

of Canada Yes No

Resident

of Mexico Yes No

Resident of 

Republic of Korea Yes No

Do you have dependents? Yes No If YES, how many? Are they in the United States? Yes No

Dependent Information

First Name Last Name (mm/dd/yyyy)

Date of Birth

ITIN or SSN 

Relationship

to you

Months

in U.S.

Canada, Mexico,

Republic of Korea

U.S. Citizen,

National,

Resident of 

Did

person

file joint

return?

their own

support?

Did child

provide

more than 

50% of 

Did you

provide

50% of 

their

support?

more than

Did the 

person

have

Income

of $3400

or more?

Gross

What is the date you FIRST entered the United States? / /

Entry Immigration Status - Check one:

U.S. Immigrant/Permanent Resident

H-1 Temporary Employee

F-1 Student

J-1 Exchange Visitor

F-2 Spouse or child of Exchange Visitor

J-2 Spouse or child of Exchange Visitor

Other: (List)

Current Immigration Status - Check one:

U.S. Immigrant/Permanent Resident

H-1 Temporary Employee

F-1 Student

J-1 Exchange Visitor

F-2 Spouse or child of Exchange Visitor

J-2 Spouse or child of Exchange Visitor

Other: (List) 

On what date did your visa type change? / /

Enter the type of U.S. visa you held during these years:

2001 2002 2003 2004 2005 2006

If Immigration status is J-1, what is the subtype? Check one:

01 Student

02 Short Term Scholar

05 Professor 12 Research Scholar

Other: (List)

What is the actual primary activity of the visit? Check one:

01 Studying in a Degree Program

02 Studying in a Non-Degree Program

03 Teaching

04 Lecturing

05 Observing

06 Consulting

07 Conducting Research

08 Training

09 Demonstrating Special Skills

10 Clinical Activities

11 Temporary Employment

12 Here with Spouse 

Form 13614NR (Rev. 8-2007) Catalog Number 39748B Department of the Treasury — Internal Revenue Service

I-6 Introduction
Were you present in the United States as a teacher, trainee or student for any part of 2 of the 6 prior calendar years?

2001 2002 2003 2004 2005 2006

Were you present in the U.S. as a teacher, trainee or student for any part of more than 5 calendar years? Yes No

How many days were you present in the U.S. during 2005 2006 2007

List the dates you entered and left the United States during 2007: 

Did you file a U.S. income tax return for any year before 2007? Yes No If “Yes”, when / / What form?

During 2007, did you apply for or take affirmative steps to apply for lawful permanent resident status in the United States? 

Yes No

Do you have an application pending to change your status to lawful permanent resident? Yes No

Are you claiming treaty benefits? Yes No If Yes, What country

Treaty Article Number:

Type & Amount of Income:

Information about academic institution you attended in 2007

Name: Telephone Number:

Address:

Name of the director of your specialized program:

Address:

Telephone Number:

During 2007 did you receive:

Scholarships or Fellowship Grants Yes No

Wages, Salaries or Tips Yes No

Interest or Dividend Income Yes No

Distributions from IRA, Pension or 

Annuity Yes No

Business Income Yes No

Unemployment Compensation Yes No

Gambling Winnings Yes No

Any Other Income Yes No

Did you have:

Educator Expenses Yes No

Student Loan Interest Yes No

State Income Taxes Yes No

Charitable Contributions Yes No

Moving Expenses Yes No

Business Expenses Yes No

Child/Dependent Care Expenses Yes No

IRA Contributions Yes No

Form 13614NR (Rev. 8-2007) Catalog Number 39748B Department of the Treasury — Internal Revenue Service

Introduction I-7
STUDENT NOTES

I-8 Introduction
U.S. immigration laws speak of immigrants, non-immigrants 

(also called nonresident aliens), and illegal aliens (undocumented 

aliens), but U.S. tax laws speak of resident aliens and 

nonresident aliens.

The basic facts to remember about taxation of aliens are that 

resident aliens are taxed like U.S. citizens, while nonresident aliens 

are taxed differently. The tax law applicable to aliens—although 

based on U.S. immigration law—defines residency for tax purposes 

differently from how it is defined in immigration law. Under the 

Internal Revenue Code, even undocumented aliens (sometimes 

referred to as “illegal aliens”) are treated as resident aliens if they 

meet the “substantial presence” test in the tax code. 

The first step in assisting international students and scholars is 

to determine their residency status for tax purposes. As described 

in future chapters, that status affects the amount of income to be 

reported, the availability of deductions, and treaty benefits. 

It is important to emphasize that the following discussion of 

residency status is for federal income tax purposes only. Residency 

for immigration purposes is determined differently. Some state 

taxing agencies follow IRS residency determinations; others use 

their own criteria. If you plan to help international students and 

scholars with state income tax returns, you will need to check with 

the taxing agency of the state where they live and/or work.

HOW TO DETERMINE RESIDENCY STATUS

All noncitizens of the United States are legally “aliens.” There

are three types of aliens for tax purposes: (1) nonresident;

(2) dual-status; and (3) resident. Persons in categories (2) and

(3) are taxed like U.S. citizens. This book focuses almost entirely on 

group (1), nonresident aliens (“nonresidents” for short). 

Nonresidents become residents for federal tax purposes in one of 

two major ways. One is by receiving permanent resident status

from the U.S. Citizenship and Immigration Service (USCIS). The 

other is by having a substantial presence in the United States. 

For non-resident aliens, having a substantial presence normally 

means being present for a total of more than183 days. But most 

international students and scholars are exempt individuals (also 

described below) for this purpose.

RESIDENCY STATUS FOR

FEDERAL TAX PURPOSES Lesson 1

Lesson 1 1-1
Note: Being an “exempt individual” does not mean that one is 

exempt from taxation. It merely affects how days of presence are 

counted.

The charts in this lesson will help you determine the residency 

status of foreign students and scholars, based on the information 

they provide. Before using the charts, you must know a few terms 

used in them.

Permanent Resident Status

A taxpayer is considered a resident for federal tax purposes if 

he or she is a lawful permanent resident of the United States. 

This is known as the green card test. The taxpayer is a lawful 

permanent resident of the United States if he or she has been 

given the privilege, according to immigration laws, of residing 

permanently in the United States as an immigrant. This status is 

generally evidenced by an alien registration card, also known as a 

“green card” (the original color of the registration card).

These individuals have resident status under this test unless the 

status is taken away from them or is administratively or judicially 

determined to have been abandoned. Green cards are issued by the 

USCIS.

Substantial presence

Nonresident aliens meet the substantial presence test if they 

have spent more than 183 days in the United States. To meet the 

substantial presence test and thus be considered a resident alien 

for tax purposes, an alien must at least:

1. be physically present for 31 days in the current year, and

2. be physically present for 183 days (as calculated below) during 

the 3-year period consisting of the current year and the

2 immediately prior years. The 183 days are calculated as 

follows:

a. all days of presence in the current year;

b. 1/3 of days of presence in the year immediately before the 

current year; and

c. 1/6 of days of presence in the year before that.

Exempt individual

An exempt individual is any person who is temporarily exempt 

from the substantial presence test. Time spent in this category does 

not count toward the 183 days in the United States that normally 

will convert a nonresident alien into a resident alien. Being in any 

of the following categories will temporarily exempt a person from 

counting days toward the substantial presence test: 

1-2 Lesson 1
Student

A student is anyone who is temporarily in the United States on an 

F, J, M, or Q visa and substantially complies with the requirements 

of that visa. A person is considered to be substantially complying 

who has not engaged in activities prohibited by the immigration 

law. Immediate family members of a student are also counted 

as students for this purpose—including a spouse and unmarried 

children under age 21 who reside with the student. Students are 

exempt from the substantial presence test for 5 years. But any

part of a calendar year in which the student is present in the 

United States counts as a full year. (See “Counting Years of 

Exemption” later in this lesson).

Teacher or Trainee

A person who (1) was primarily admitted to the United States to teach 

or research (not study); (2) is temporarily present with “J” or “Q” visa 

status; and (3) substantially complies with all requirements of that 

visa is considered a teacher or trainee—as is the person’s immediate 

family. Teachers and trainees are exempt from the substantial 

presence test only if they have been in the United States for no more 

than 2 out of the last 6 years. As with the student exception, any part 

of a calendar year in which the person was present counts as a full 

year. (See “Counting Years of Exemption” later).

Closer Connection to Home Country

A third exception to the substantial presence test applies if the 

person can show a closer connection to a foreign country than to 

the United States. To qualify for this exception, the person must 

file IRS Form 8840, Closer Connection Exemption Statement 

for Aliens and be able to show that he or she:

1. was present in a non-exempt status for fewer than 183 days 

during the current year;

2. has a tax home in a foreign country; and

3. has a closer connection to that country than to the United States.

Remember to refer taxpayers with tax situations outside of 

your scope of training, experience, and certification to your site 

coordinator and/or a paid preparer.

Lesson 1 1-3
Chart 1-A. Are you a Nonresident Alien for U.S. Income Tax Purposes?—Decision Tree

Are you a nonresident alien for U.S. 

Income Tax Purposes?

START HERE

Are you a U.S. citizen?

Do you have a “green card?”

Do you have an F, J, M, or Q Visa? (This includes 

members of the immediate family if their visa 

statuses are derived from and dependent on the 

primary visa holder’s visa classification.)

Do you have any other type Visa?

Go to Flowchart

“Figure A” in

Pub. 519

File Form 1040,

1040A or 1040EZ

Go to “Are you an 

exempt

individual?”

Flowchart

YES

YES

YES

YES

NO

NO

NO

NO

1-4 Lesson 1
Chart 1-B. Are you an Exempt Individual?—Decision Tree

Are you an exempt individual?

If you are temporarily present in the United States on an F, J, M, or Q visa, use this chart to determine if 

you are an exempt individual for purposes of the Substantial Presence Test (SPT).

Student

F, J, M, or Q Visa

Teacher or Trainee

J Visa

Are you a full-time student?

Are you in substantial compliance 

with your visa?

Have you been in the U.S. for 

any part of more than 5 calendar 

years?

Are you a student?

Are you in substantial compliance 

with your visa?

Have you been in the U.S. for 

any part of 2 of the preceding 6 

calendar years? You are 

an exempt 

individual for the

Substantial

Presence

Test

Yes

Yes

Yes Yes

Yes

Yes No

No

No No

No

No

You must apply the Substantial Presence Test

Were you exempt as a teacher, 

trainee, or student for any 

part of 3 (or fewer) of the 6 

preceding years, AND Did a 

foreign employer pay all your 

compensation during the tax 

year in question, AND Were 

you present in the U.S. as a 

teacher or trainee in any of the 

preceding 6 years, AND Did a 

foreign employer pay all your 

compensation during each of 

the preceding 6 years you were 

present in the U.S. as a teacher 

or trainee?

Have you received permission 

from the IRS Field Assistance 

Area Director to continue to be 

an exempt individual?

Yes

Yes

No

No

Lesson 1 1-5
Chart 1-C. Nonresident Alien or Resident Alien?—Decision Tree

Were you a lawful permanent resident of the United States (had a 

“green card”) at any time during the tax year?

Were you physically present in the United States on at least 31 days 

during the tax year?3

Were you physically present in the United States on at least 183 days 

during the 3-year period consisting of the tax year and the preceding 

2 years, counting all days of presence in the tax year, 1/3 of the days 

of presence in the fi rst preceding year and 1/6 of the days of presence 

in the second preceding year?

You are a 

resident alien 

for U.S. tax 

purposes.1,2

You are a 

nonresident 

alien for U.S. 

Yes tax purposes.

Yes

Yes No

No

No

Start here to determine your residency status for federal income tax

Were you physically present in the United States on at least 183 days 

during the tax year?

Can you show that for the tax year you have a tax home in a foreign 

country and have a closer connection to that country than to the 

United States?

Yes

Yes

No

No

1 if this is your fi rst or last year of residency, you may have a dual status for the year.

2 In some circumstances you may still be considered a nonresident alien under an income tax treaty between the U.S. and your country. Check the provision of the treaty 

carefully.

3 See Days of Presence in the United States in Publication 519 for days that do not count as days of presence in the United States.

4 If you meet the substantial presence text for the year after the tax year, you may be able to choose treatment as a U.S. resident alien for part of the tax year.

1-6 Lesson 1
COUNTING YEARS OF EXEMPTION

For both the 2-year period during which a scholar can be exempt, 

and the 5-year period during which a student can be exempt from 

counting days toward the substantial presence test, the person’s 

presence in the United States for any part of a calendar year 

counts as a full year’s presence. Thus, if a scholar (or student) 

arrived in the United States in December 2002, the year 2002 was 

the first of that person’s 2 (or 5) years. If the person stayed in the 

United States into 2003, and is subject to a 2-year limit, that limit 

was reached at the end of 2003—so the substantial presence test 

began to apply at the beginning of 2004.

Example 1

Julianna came to the U.S. in an F-1 visa status in October 

2002 to study American art history. She had never been in 

the U.S. before. As a student, she is exempt from counting 

her days of presence during her first 5 years—which are 

2003, 2004, 2005, 2006, and 2007. If she remains in the U.S. 

beyond July 2, 2008, she will become a resident alien for 

tax purposes at the beginning of that year, unless she 

claims a closer connection to her home country.

_____

Example 2

Neeni came to the U.S. in a J-1 visa status in 2006 to 

teach for 2 years at a state university. She knows that the 

cultural adjustment will go smoothly because she also 

taught in the U.S. in 2001 and 2002 in a J visa status. To 

determine her residency status for 2007, use a 6-year

“look-back” period (2002–2007). During that time she had 

been in the U.S. with a J visa for 2 years. Thus for tax 

purposes, she is no longer an exempt individual and she 

must count her days towards the substantial presence test. 

She will be a resident alien for tax purposes.

Lesson 1 1-7
Example 3

Eduard is a junior at the local university. He came to the 

U.S. in 2002 from France as an F-1 student. He studied in 

the U.S. until the end of 2003 and then returned home. He 

re-entered the U.S. as a J-1 student in 2007. For federal 

income tax purposes, he is still a nonresident alien 

because he has not yet been in the U.S. for 5 years.

Example 4

Xhao came to the U.S. in a J-1 visa status in 2005 to 

teach at a university for two years. He brought his 

wife and three children (each in a J-2 visa status). In 

November 2006, the university contracted with Xhao’s 

wife for her to teach there in fall 2007 (she had received 

work authorization). It also extended Xhao’s original 

contract. For the year 2007, both Xhao and his wife will be 

considered resident aliens for tax purposes because they 

have already spent 2 years as exempt individuals. Their 

children can be claimed as dependents if they meet all 

dependency tests (like those for citizens).

Exercise 1

Bridgette arrived in the U.S. as a student in F-1 visa status in 

December 2003. For tax year 2007, is she a resident or

non-resident alien for federal income tax purposes?

Answer: ___________________________________________________

Exercise 2

Guladua came to the U.S. in a J-1 visa status in June 2005 to 

teach for 2 years, starting in August 2005. For tax year 2007, is he 

considered a resident or nonresident alien for federal income tax 

purposes?

Answer: ___________________________________________________

✔ Check your answers at the end of the chapter.

1-8 Lesson 1
RESIDENCY STARTING DATE

A person who becomes a resident by meeting the 183-day substantial 

presence test, the start date of residency for tax purposes is the first 

day the person was present in the United States in the tax year 

in which the person met the substantial presence test. By 

contrast, for a person who is granted permanent resident status by 

the USCIS (a “green card”), the starting date of residency for tax 

purposes is the first day the person was in the United States as 

a lawful permanent resident. That usually is the day of receipt of 

notification from the USCIS that the residency application had been 

approved. For someone who both meets (1) the substantial presence 

test, and (2) has been granted permanent residency, residency 

begins on the earlier of the two dates.

Example 5

Edem has been in the U.S. continuously since 2002 in an 

F-1 visa status. He is considered a resident alien for tax 

purposes as of January 1, 2007.

Example 6

Assume the same facts as in Example 5. Edem also applied 

for resident alien status in 2007, and was notified by the 

USCIS on October 20, 2007, that his residency application 

was approved. He is still considered a resident alien for 

tax purposes as of January 1, 2007.

Example 7

Zachary who entered the U.S. in F-1 status on August 15, 

2006, received notification from USCIS on July 13, 2007, that 

his application for residency was approved. He is considered 

a resident alien for tax purposes as of July 13, 2007.

Exercise 3

Mike, a graduate student, is present in the U.S. temporarily on a 

J-1 visa. He arrived on June 15, 2002, to prepare for his studies 

that fall. Mike had never been in the U.S. before. When does Mike 

start counting days toward the substantial presence test?

Answer: ___________________________________________________

Lesson 1 1-9
Exercise 4

Assume the same facts as in Exercise 3. Mike’s wife accompanies 

him in a J-2 visa status. She is given permission to work by 

the USCIS and begins working in July. Is she a resident or 

nonresident alien for federal tax purposes?

Answer: ___________________________________________________

Exercise 5

Wei Wu, a citizen of the People’s Republic of China, is temporarily 

in the U.S. as a graduate student in an F-1 visa status. He has 

resided continuously in the U.S. since arriving on August 15, 

2002. His immigration status has not changed, and he was in the 

U.S. all of 2007. When did Wei become a resident alien for federal 

income tax purposes?

Answer: ___________________________________________________

Exercise 6

Kuongeza Muda Mpya, a resident of Kenya, is in the U.S. as a 

teaching scholar in a J-1 visa status. He arrived in the U.S. on 

December 17, 2005, and has been here continuously since. On

July 7, 2007, Kuongeza was notified by the USCIS that his 

application for permanent residence was approved and a 

permanent resident card would be issued by July 20, 2007. What 

is his residency starting date for federal income tax purposes?

Answer: ___________________________________________________

✔ Check your answers at the end of the chapter.

RESIDENCY THROUGH MARRIAGE

A nonresident alien who does not meet the substantial presence 

test and does not have a green card may elect to be treated as a 

resident for tax purposes if the nonresident is married to a U.S. 

citizen, legal permanent resident, or someone who has met the 

substantial presence test. This election can be made if:

1. at the end of the year, one spouse is a nonresident alien and the 

other is a U.S. citizen or resident, and

2. both spouses agree to file a joint return and to treat the

non-resident alien as a resident alien for the entire tax year.

1-10 Lesson 1
Example 8

Norman is a student temporarily in the U.S. in an F visa 

status. He is married to Pat, who is a U. S. citizen. Since 

Pat is a citizen, she and Norman can elect to treat Norman, 

who would otherwise be a nonresident alien, as a resident 

alien for the entire tax year.

To make the election, the married couple must attach a statement 

to the joint return that is filed for the year of the election. There 

is no form for this statement; it can be handwritten or typed. It 

should be attached to the back of the tax return, after all schedules 

and forms. The statement should contain the following information:

1. A declaration that one spouse was a nonresident alien and the 

other spouse was a U.S. citizen or resident on the last day of the 

tax year, and that they choose to be treated as U.S. residents for 

the entire tax year, and

2. Each spouse’s name, address, and taxpayer identification 

number. 

For the year of the election to treat the spouse of a U.S. citizen 

as a resident, the spouses must file a joint return. The election 

continues into future years; but the spouses can file separately 

after the first year, if they choose. The election to treat the spouse 

as a resident is terminated by revocation, the death of either 

spouse, or their legal separation, or the IRS may terminate it for 

failure to keep adequate records or failure to allow the IRS access 

to records. Since a person’s status as a resident or nonresident 

affects the income to be reported, availability of deductions, and 

treaty benefits, an election to be treated as a resident alien should 

be considered carefully.

DUAL-STATUS ALIEN

A dual-status alien is a person who is a resident alien and a 

nonresident alien at different times in the same tax year. This 

usually occurs in the year a person arrives in the United States or 

leaves the United States. It may also occur if a person’s residency 

status changes during the year. More information is in IRS 

Publication 519, U.S. Tax Guide for Aliens. Completing dual-status 

returns is an advanced task and thus not covered by the volunteer 

program.

Lesson 1 1-11
Exercise 1 Bridgette would still be considered a nonresident 

 alien for federal income tax purposes.

Exercise 2 Guladua is considered a resident alien for federal 

 income tax purposes in 2007. He was in an 

 exempt status in 2005 and 2006. Even though 

 he was not in the U.S. for a full year in 2005, he 

 must count that entire year toward his 2 years of 

 exempt status.

Exercise 3 Mike will begin counting days of presence as of 

 January 1, 2007.

Exercise 4 Mike’s wife would be a nonresident alien also. 

 Her status depends on her husband’s status. 

 While F-2 visitors are not permitted to work, 

 J-2 visitors can. (This information will be covered 

 in a later lesson.) Permission to work does not 

 change her residency status for tax purposes.

Exercise 5 Wei Wu is a resident alien for federal income tax 

 purposes in 2007. His residency starting date is 

 January 1, 2007. His 5 years of exempt status 

 were 2002, 2003, 2004, 2005, and 2006. 

Exercise 6 Kuongeza will be considered a resident alien for 

 tax purposes as of January 1, 2007. He was in 

 an exempt status in 2005 and 2006. He meets 

 the substantial presence test in 2007. He also 

 received a “green card” in 2007. If both apply, the 

 earlier starting date governs.

1-12 Lesson 1

Lesson 1 RESIDENCY STATUS ANSWERS TO EXERCISES
In many countries, the government assesses and collects taxes 

that are owed. But in the United States, it is each individual’s own 

responsibility to meet his or her tax obligations.

Each student or scholar is responsible for helping his or her 

employer estimate how much to withhold (deduct) from the 

student’s or scholar’s pay for income tax. The employer pays those 

amounts directly to the U.S. Treasury on the employee’s behalf.

A student’s or scholar’s yearly tax return must reconcile the 

amounts withheld with actual tax liability for that year. If too 

much was withheld from pay, the Treasury will refund the excess 

after receiving the return. If too little is withheld, the student or 

scholar will have a balance due to be paid in full when the return 

is filed.

In Lesson 1 you learned that all non-citizen taxpayers fall into one 

of three statuses for tax purposes: resident alien, nonresident alien, 

or dual-status alien. Each status has different filing requirements. 

This lesson will give information on filing requirements for 

nonresident aliens. But first will be a brief discussion of filing 

requirements for resident and dual-status aliens.

RESIDENT ALIENS

Resident aliens are subject to the same federal income tax filing 

requirements as U.S. citizens. Whether they must file depends on 

their filing status and income. Filing requirements for U.S. citizens 

and resident aliens are described in IRS Publication 678, VITA 

Assistor’s Guide, and Publication 17, Your Federal Income Tax 

Guide.

DUAL-STATUS ALIENS

As mentioned in Lesson 1, international VITA site volunteers do 

not assist with filing dual-status returns. The following information 

is for reference only. Completed examples are available in IRS 

Publication 519, U.S. Tax Guide for Aliens.

A taxpayer who is a resident alien at the end of the calendar year 

must file Form 1040 if the person is a dual-status taxpayer who 

became a resident during the year. Write the words “Dual-Status” 

across the top of the return. Also, attach a statement to the return 

showing the income for the part of the year when the taxpayer was 

a nonresident. Form 1040NR or 1040NR-EZ can be used as that 

statement; write the words “Dual-Status Statement” across its top.

FILING REQUIREMENTS AND

WHAT TO FILE Lesson 2

Lesson 2 2-1
A taxpayer who is a nonresident alien at the end of the year 

must file Form 1040NR or 1040NR-EZ if he or she is a dual-status 

taxpayer who gave up residency during the year. Write the words 

“Dual-Status” across the top of the return. Also, attach a statement 

to the return showing the income for the part of the year when 

the taxpayer was a resident. Form 1040NR can be used as that 

statement; you must write “Dual-Status Statement” across its top. 

Do not sign Form 1040NR. File your return and statement with the 

Internal Revenue Service Center, Austin TX, 73301-0125, USA.

NONRESIDENT ALIENS

General Rule

Generally, the requirement to file a return has been eliminated 

for nonresident aliens who earn wages effectively connected with 

a trade or business that are less than the amount of one personal 

exemption ($3,400 for 2007).

Notice 2005-77, 2005-46 IRB 951

Students and Scholars

Nonresident aliens who are students, teachers, or trainees, and 

are temporarily present in the United States in F, J, M, or Q 

immigration status, must file a return if they have income that is 

subject to withholding, even if no tax was withheld. (Note: Even if 

they are exempt from filing a return, they must file a tax form. See 

Lesson 6.) But even students and scholars who are not required to 

file a return should do so if they are eligible for a refund.

Example 1

Pedro is a junior at the state university. He is in F-1 

visa status. In 2007 he had wages of $213 from his job on 

campus. His wage statement shows that $14 of federal 

income tax was withheld. He is not required to file a 

return, since his wages are less than $3,400. Pedro should 

file a return to receive a $14 refund. 

2-2 Lesson 2
Example 2

Jose, who is from Peru, worked on campus last year. He 

earned $4,142 and had no withholding. He must file a 

return because his wages are over the filing requirement 

amount of $3,400 for 2007.

FORM 1040NR OR 1040NR-EZ

Once you have determined that a nonresident needs to file a 

return, you should choose the best form to use. Nonresident aliens 

file either Form 1040NR or Form 1040NR-EZ. Form 1040NR is 

5 pages long and can accommodate all types of income and expenses. 

Form 1040NR-EZ is only 2 pages long and is limited to specific 

situations. Nonresidents cannot file joint returns and are very 

limited in claiming dependents. You should choose the simplest and 

shortest form that will accommodate all the taxpayer’s income and 

deductions.

You can use Form 1040NR-EZ instead of Form 1040NR if all nine

of the following statements are true:

1. No dependents are claimed (rules for this are covered in 

Lesson 4).

2. The taxpayer cannot be claimed as a dependent on another U.S. 

tax return.

3. The only sources of income were wages, salaries, tips, taxable 

refunds of state and local income taxes, and scholarship or 

fellowship grants.

4. Taxable income is under $100,000.

5. The only adjustment to income is the student loan interest 

deduction or scholarship exclusion.

6. No tax credits are claimed.

7. No exemption is claimed for the spouse.

8. The only itemized deduction is state and local income tax.

9. The only taxes owed are income tax.

Lesson 2 2-3
Example 3

Joy is a married student from China. She can’t be claimed 

as a dependent on any U.S. return. Her only income is 

$8,390 that she earned on campus. Her only deduction is 

$96 of state income tax. She can file Form 1040NR-EZ.

Example 4

Peter is a married student from Canada. His wife 

meets all the requirements to be claimed as a personal 

exemption. His only income was $11,000 he earned from 

his assistantship. He should file Form 1040NR. He can 

take an exemption for his wife on that form if she has a 

U.S. taxpayer identification number.

Example 5

Lee is a single student from China. He tells you that he 

gave a local church $10 every week. His total income was 

$7,950. His state income tax withholding was $65. He can 

still file a Form 1040NR-EZ, because his treaty benefit 

and allowable deductions (both covered in later chapters) 

reduce his income below $0 even without considering his 

charitable contributions.

 Income $ 7,950

Minus:

 Treaty benefit 5,000

 Personal exemption 3,400

 State tax 65

 Total income: $ (515)

Example 6

Olga does not know which form to file. She had no wages, 

but she sold $50,000 of stock online. She made only $70 

after expenses. You should tell Olga to file Form 1040NR. 

She will also need a Schedule D (the same as used on 

domestic returns) to report the stock sales.

2-4 Lesson 2
WHEN AND WHERE TO FILE

A nonresident who received any wages must file a tax return by 

April 15, 2008. If the only income was from scholarships or other 

income not subject to withholding, the return must be filed by

June 16, 2008.

All Forms 1040NR and 1040NR-EZ must be mailed to:

Internal Revenue Service

Austin TX 73301-0125

USA

FAILURE TO FILE

Many students and scholars who are required to file returns either 

don’t file or file incorrectly. Many of them would be eligible for a 

refund if they filed the required forms. Some would rather forgo the 

refund than try to figure out what form they should file and when. 

Part of your job is to inform them whether they need to file.

If they have no tax liability, the IRS will not penalize them for not 

filing (although they must still file Form 8843). However, the terms 

of students’ and scholars’ visas require that they stay in compliance 

with all laws of the United States, including income tax filing. If 

they want to apply for residency at a later date, they may be asked 

to show proof of tax compliance. Therefore, they should file a tax 

return, even if they are not interested in or eligible for a refund.

ALTERNATIVE METHODS OF FILING

You can use software to help you prepare nonresident returns, 

but the forms cannot be filed electronically. Very little software 

is available for preparing foreign students’ and scholars’ tax 

returns. If you can use such software (some colleges provide it), 

it can be of great help in preparing returns. The VITA program 

does not currently furnish software to international VITA sites. 

The TaxWise® software used in Form 1040 preparation does have 

Form 1040NR on it, but it does not help you with calculations. If 

you have access to TaxWise®, you can use it as a template and 

type in the information for Form 1040NR, but you must still do the 

calculations and know the treaties. If you have additional software 

questions, talk to your VITA coordinator or the foreign student 

advisor.

Note: Returns cannot be faxed to the IRS.

Lesson 2 2-5
STUDENT NOTES

2-6 Lesson 2
Many countries have tax treaties with the United States that 

allow their residents to earn some money while temporarily in the 

United States without being subject to income tax on those earnings 

in both countries. These treaties will have a large impact on your 

volunteer work with international students and scholars. The texts 

of the treaties are posted on the IRS Web site (www.irs.gov), but 

understanding them can be a challenge. IRS Publication 901, 

U.S. Tax Treaties, has an overview of them. This chapter 

provides very general treaty information and is not 

intended to replace the governing rules of the treaties. The 

Publication 901 overview appears at the end of this lesson. 

India is the only country whose international students are allowed 

to use the standard deduction in the United States. On the other 

hand, all international students and scholars are entitled to the 

personal exemption for themselves and, in some cases, for family 

members. (See Lesson 4 for more information.) 

International students and scholars may complete Form 8233,

Exemption From Withholding on Compensation for 

Independent (and Certain Dependent) Personal Services 

of a Nonresident Alien Individual annually and give it to their 

employer. This allows the employer to avoid withholding federal 

income tax on their earnings or other payments until the applicable 

treaty benefit amount is exceeded. It also enables the employer to 

issue the correct type of wage statement at the end of the year. But 

the students and scholars are entitled to claim their treaty benefits 

on their tax returns even if they did not give the proper forms to 

their employer or college. The individual is also allowed to claim 

the treaty benefit even if the employer did not issue the correct 

reporting document.

Each type of income that an alien can earn is identified by a 

numeric code on Form 1042-S (which international students and 

scholars should receive in lieu of Form W-2 for any income that 

is covered by a treaty). A code often seen is “19”— wage income 

for a student. The codes are helpful in determining the application 

of the treaty benefits. Table 1 on page 3-3 lists these codes and 

their meanings.

The pages following the income codes give a quick guide to treaty 

benefits. However, they do not list all the restrictions on treaty 

benefits. Publication 901 provides additional information. Tables 2 

through 4 summarize treaty benefits applicable to each of the 

three major kinds of income (codes 15, 18, and 19) of students and 

scholars from each country for which a treaty gives benefits for 

that code. Countries not listed in the tables had no treaty benefi ts 

for their students or scholars when this publication went to press. 

THE EFFECT OF TAX TREATIES Lesson 3

Lesson 3 3-1
However, new treaties are ratified from time to time. Students can 

often tell you what they think their treaty benefit should be. If you 

don’t see information for their country listed in Tables 2 through 

4, you can check the IRS Web site (www.irs.gov) to see whether 

a new treaty has been ratified. Treaty benefits are tied to the 

residency of the individual immediately before entering the

United States, not the country that issued the passport.

TAX RESIDENCY

As noted in lesson 1, you must determine the residency status for 

U.S. income tax purposes. You also learned that the residency status 

for tax purposes could be different than the residency status for 

immigration. Now we need to introduce one more residency status.

For an individual to be eligible for treaty benefits, the individual 

must be a resident in the treaty country at the time designated by 

the treaty. This requires that you determine the tax residence for 

the individual. Most of the time, the person will be both a citizen 

and resident in the treaty country. However, as we become a more 

mobile society, students who are citizens of one country may have 

been residents of a different country immediately before coming to 

the United States. The application of the treaty benefit is usually 

determined by where the person resided immediately before 

entering the United States. This is illustrated in the following 

example.

Example 1

Suigita is a citizen of India. In 2003 she received her undergraduate 

degree from the University of Toronto. In April 2004, she entered 

the U.S. from Canada to begin work on her graduate degree. Since

she was a resident of Canada immediately before entering the 

United States, she is governed by the Canada treaty not the India 

treaty.

3-2 Lesson 3
Table 1 Income Codes for Aliens

(This is a comprehensive list. The codes most often applying 

to international students and scholars are in boldface. Many 

codes rarely apply to students and scholars, but are shown here 

for reference.)

Code Description

01 Interest paid by U.S. obligors—general

02 Interest on real property mortgages

03 Interest paid to controlling foreign companies

04 Interest paid by foreign corporations

05 Interest on tax-free covenant bonds

06 Dividends paid by U.S. corporations—general

07 Dividends qualifying for direct dividend rate

08 Dividends paid by foreign corporations

09 Capital gains

10 Industrial royalties

11 Motion picture or television copyright royalties

12 Other royalties

13 Real property income and natural resources income

14 Pensions, annuities, alimony, and/or insurance premiums

15 Scholarship or fellowship grants

16 Compensation for independent personal services

17 Compensation for dependent personal services

18 Compensation for teaching and researching

19 Compensation during study and training

20 Earnings as an artist or athlete 

 . . . 

24 Real estate investment trust (REIT) distributions of 

 capital gains 

25 Trust distributions subject to Code section 1445 

26 Growing crops and timber income 

27 Publicly traded partnership distributions 

28 Gambling winnings 

29 Deposit interest 

30 Original issue discount (OID) 

31 Short-term OID 

32 Notional principal contract income 

 . . . 

50 Other income

Lesson 3 3-3
INCOME CODE 15: SCHOLARSHIP OF FELLOWSHIP GRANTS

International students and scholars often receive scholarships, 

fellowships, grants, and assistantships from U.S. sources. 

Regardless of the term used, the taxability of such payments (or 

waivers of charges) depends on their nature, as described below. 

All such grants and waivers fall into one of three categories:

a. Money received for (or a waiver of charges for) tuition, fees, 

books, and/or supplies. This money is not taxable if it was 

spent for the purpose intended and there was no requirement 

to perform services. (The same is true for domestic students.) 

This rule applies whether the payer is foreign or domestic.

b. Money received from a domestic payer for (or a waiver of charges 

for) room and board—again, if paid with no requirement to 

perform services. This money is normally taxable, but some 

countries have treaty provisions making it nontaxable. These 

countries are listed on the next page. Usually there is a 

maximum number of years of presence in the United States 

during which such money will be nontaxable. If those years 

are exceeded, the treaty benefit ends. The maximum years are 

listed in Table 2, along with the article number containing the 

provision in the treaty.

c. Money received (or a waiver of charges) on condition that the 

recipient perform services such as teaching or research. This 

money is treated as wages and is considered code 18 or 19 

income. Its taxation is discussed later.

3-4 Lesson 3
Table 2 Countries With Treaty Benefits for Scholarship Income 

(income code 15)

 Maximum years Treaty

Country in U.S. Amount article

Bangladesh 2 Unlimited 21(2)

Belgium 5 Unlimited 21(1)

China, People’s Rep. of No limit Unlimited 20(b)

C.I.S. 5 Limited† VI(1)

Cyprus 5 Unlimited 21(1)

Czech Republic 5 Unlimited 21(1)

Egypt 5 Unlimited 23(1)

Estonia 5 Unlimited 20(1)

France 5 Unlimited 21(1)

Germany No limit Unlimited 20(3)

Iceland 5 Unlimited 22(1)

Indonesia 5 Unlimited 19(1)

Israel 5 Unlimited 24(1)

Kazakhstan 5 Unlimited 19

Korea, Republic of 5 Unlimited 21(1)

Latvia 5 Unlimited 20(1)

Lithuania 5 Unlimited 20(1)

Morocco 5 Unlimited 18

Netherlands 3 Unlimited 22(2)

Norway 5 Unlimited 16(1)

Philippines 5 Unlimited 22(1)

Poland 5 Unlimited 18(1)

Portugal 5 Unlimited 23(1)

Romania 5 Unlimited 20(1)

Russia 5 Unlimited 18

Slovak Republic 5 Unlimited 21(1)

Slovenia 5 Unlimited 20(1)

Spain 5 Unlimited 22(1)

Thailand 5 Unlimited 22(1)

Trinidad and Tobago 5 Unlimited 19(1)

Tunisia 5 Unlimited 20

Ukraine 5 Unlimited 20

Venezuela 5 Unlimited 21(1)

† The annual income limit under the tax treaty with the C.I.S. is 

less than $10,000 if that amount is spent for the purposes for 

which the person is in the United States.

Lesson 3 3-5
Example 2

Aseye is from Ghana, Africa. She is an F-1 student in the 

U.S. She receives a tuition waiver from her college. She is 

not required to work to get the waiver. She also received 

a $250 scholarship from a local group to help cover her 

books. She pays her own room and board with monies 

from her home country. She has no taxable scholarship or 

fellowship income.

Example 3

Birgit is from Sweden. She is an F-1 student at a graduate 

school in the U.S. She receives a tuition waiver in exchange 

for services as a graduate assistant. Her waiver is taxable 

to the extent it equals the value of her services.

Example 4

Reinhard, who is from Germany, is a student with an F-1 

visa. He receives a tuition waiver from his college. He is 

not required to perform any services to get this waiver. The 

tuition waiver is not taxable. He has another scholarship 

that covers all his room and board. It would normally be 

taxable, but his treaty provision makes it nontaxable.

INCOME CODE 18: COMPENSATION FOR TEACHING AND RESEARCHING

Pay of professors and teachers may be exempt from U.S. income 

taxes for either 2 or 3 years if they are temporarily in the 

United States to teach or do research. Table 3 lists the countries 

with treaty benefits for this type of income. These exemptions by 

treaty apply to pay earned by the visiting professor or teacher 

only—not to any earnings of a spouse or dependents. 

The treaty exemption for teaching or research income is counted 

from the day of arrival in the United States. Some countries, 

including Germany, India, Netherlands, Thailand, and the 

United Kingdom have treaty clauses saying that if the maximum 

years of presence are exceeded, the entire treaty benefit is lost. 

This could require the teacher to file amended returns and pay tax 

on past years. Thus a taxpayer who expects to stay more than the 

limit on years of presence should avoid claiming the treaty benefit 

for any years.

3-6 Lesson 3
Example 5

Deepak is from India. He is on a J-1 visa and is teaching 

engineering at a local university. He has been offered an 

18-month contract with that university and fully expects 

to return to India when it ends. He should claim his treaty 

benefit when filing his return.

Example 6

Assume the same facts as in Example 5, except that 

Deepak renews his contract for an additional year in its 

second year. Now all of his earnings from the university 

will be taxable from the beginning of his employment. 

He will have to file amended returns for the tax years he 

claimed the treaty benefit.

Example 7

Assume that Deepak was hired on a 4-year contract to 

teach at the university. Since he expects to stay beyond 

the maximum years of presence allowed by treaty, he 

should not claim the treaty benefit for any year.

Example 8

Assume the same facts as in Example 7, except that 

Deepak stays only 1 year and then returns to India. He 

is entitled to the treaty benefit, even though his original 

contract exceeded the limit on years of presence.

Lesson 3 3-7
Table 3 Countries With Treaty Benefits for Income From Teaching 

(income code 18)

 Maximum years Treaty

Country in U.S. Amount article

Bangladesh 2 Unlimited 21(1)

Belgium 2 Unlimited 20

China, People’s Rep. of 3 Unlimited 19

C.I.S. 2 Unlimited VI(1)

Czech Republic 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 21

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, Republic of 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 Republic 2 Unlimited 21(5)

Slovenia 2 Unlimited 20(3)

Thailand 2 Unlimited 23

Trinidad and Tobago 2 Unlimited 18

Turkey 2 Unlimited 20(2)

United Kingdom 2 Unlimited 20(A)

Venezuela 2 Unlimited 21(3)

3-8 Lesson 3
INCOME CODE 19: COMPENSATION DURING STUDY AND TRAINING

Students and trainees from many countries are allowed to earn 

some money tax-free in the United States. Table 4 lists these 

amounts, which vary by country.

Immigration restrictions usually bar students from working

off-campus during their first year in the United States. Even after 

that year, special BCIS permission is needed to work off-campus. 

Most international students earn money from the college or

university they attend. If they work for the campus food service 

but it is managed by an outside company, their wage statements 

will show the name of that company. That is considered on-campus 

work for immigration purposes.

A spouse or dependent of an F-1 student is not permitted to work 

while in the United States on an F-2 visa. A spouse who acquires his 

or her own F-1 visa may be granted permission to work on campus.

Sometimes, students earn more wages than their treaty benefit. If 

that happens, the excess must be reported on their tax return. As 

you will see later, international students are allowed only limited 

deductions against their income.

Example 9

Yumiko is an international student from Korea. She 

earned $4,516 last year working in the campus library. She 

had $118 of federal income tax withheld. This is her second 

year in the U.S. Her treaty allows her to earn $2,000 taxfree. Her taxes would be computed as follows:

 Wages $ 4,516

 Treaty benefit 2,000

 Wages subject to tax 2,516

 Personal deduction 3,400

 Taxable income 0

 Refund $ 118

Note: She must file an income tax return (Form 1040NR or 

Form 1040NR-EZ) to receive the refund.

Lesson 3 3-9
Table 4 Countries With Treaty Benefits for Student Wages 

(income code 19)

 Maximum years Treaty

Country in U.S. Amount article

Bangladesh 2 $8,000 21(2)

Belgium 5 2,000 21(1)

China, People’s Rep. of No limit 5,000 20 (c)

Cyprus 5 2,000 21(1)

Czech Republic 5 5,000 21(1)

Egypt 5 3,000 23(1)

Estonia 5 5,000 20(1)

France 5 5,000 21(1)

Germany 4 5,000 20(4)

Iceland 5 2,000 22(1)

Indonesia 5 2,000 19(1)

Israel 5 3,000 24(1)

Korea, Republic of 5 2,000 21(1)

Latvia 5 5,000 20(1)

Lithuania 5 5,000 20(1)

Morocco 5 2,000 18

Netherlands No limit 2,000 22(1)

Norway 5 2,000 16(1)

Pakistan No limit 5,000 XIII(1)

Philippines 5 3,000 22(1)

Poland 5 2,000 18(1)

Portugal 5 5,000 23(1)

Romania 5 2,000 20(1)

Slovak Republic 5 5,000 21(1)

Slovenia 5 5,000 20(1)

Spain 5 5,000 22(1)

Thailand 5 3,000 22(1)

Trinidad and Tobago 5 2,000 19(1)

Tunisia 5 4,000 20

Venezuela 5 5,000 21(1)

3-10 Lesson 3
DEPENDENT AND INDEPENDENT PERSONAL SERVICES

Students and scholars sometimes try to make use of the treaty 

benefits for dependent and independent personal service income 

(income codes 16 and 17). Generally, this is an incorrect

interpretation of the treaties, except for Canadian students. 

Treaties often do not permit students and scholars to earn those 

types of income. They are allowed to engage only in employment 

that is related to the reason they were admitted to the country. 

Students are not admitted to be performers or have dependent

service income. The immigration laws usually do not allow a

student to engage in independent personal services in the

United States.

UNUSUAL TREATY PROVISIONS

Although every treaty is unique, most have very similar rules 

for students and scholars. However, three countries have unusual 

 provisions for students and scholars. The following information is 

a summary of those provisions.

Canada Treaty

The Canadian treaty has some provisions that are unique to it. 

Publication 597, Information on the United States–Canada 

Income Tax Treaty is a good reference tool on its benefits to 

students and scholars from Canada. Residents of other countries 

often go to Canada, establish residency there, and then come to the 

United States to study. Generally, they follow the treaty provisions 

of the country in which they were most recently residents.

The U.S.–Canada tax treaty contains no specific benefits for either 

students or visiting scholars who are residents of Canada. The 

treaty does, however, contain a benefit that will apply to some

students and scholars for Canada. The students and scholars

are permitted to use article 15 of the tax treaty, which applies

to dependent personal services. As we noted earlier, generally

international students and scholars can’t use the treaty benefits

for dependent personal services. Canada is an exception to the

general rule.

The tax treaty with Canada is different from all other tax treaties 

because it (1) exempts all earned income if the nonresident earned 

no more than $10,000 in the tax year, but (2) taxes all income if the 

nonresident earned over $10,000. This treaty benefit is lost if the 

nonresident becomes a resident for tax purposes.

Lesson 3 3-11
Example 10

Henry LaRue is an international student from Canada. He 

entered the U.S. on an F-1 visa in 2006. In 2007 he earned 

$5,600 from on-campus employment. His federal tax

withholding was $593. He must file either Form 1040NR 

or Form 1040NR-EZ. In either form’s question-and-answer 

section, he will provide the following information: “Tax 

treaty article XV exempts all earned income from tax. I 

earned $5,600 in 2007.” Henry will receive a refund of $593. 

If Henry had earned more than $10,000, he could not use 

the earned income treaty benefit. He would owe federal 

taxes on all his earnings that year.

India Treaty

The IRS issued procedures for a new tax treaty with India in 

1994. The treaty’s benefits apply to tax years beginning on or after 

January 1, 1993.

An Indian student may take a standard deduction equal to 

the amount allowable on Form 1040 and may claim the personal 

exemptions for a nonworking spouse and U.S.-born children.

Treaty benefits for a scholar from India are very different from 

those for a student. The scholar benefit for income code 18 is lost 

retroactively if the visit exceeds 2 years.

Example 11

Kumar Dali arrived in the U.S. in 2005 on a J-1 visa. He

had a 1-year contract to teach agriculture at the local

university. His teaching was well received, and he was 

asked to stay and teach until the fall of 2008. In 2005 and 

2006 he excluded all his earnings from tax by using the 

Indian treaty benefit. In 2007, all of his earnings will be 

taxable. He also must file amended returns for 2005 and 

2006, changing his income from non-taxable to taxable.

China Treaty

Almost all U.S. tax treaties are limited to a specific number of 

years and may not be available for residents for tax purposes. But 

the U.S. treaty with China is different. Many of its provisions are 

available to both nonresident and resident aliens. 

The treaty provides that a scholar is exempt from tax on earned 

income for 3 years. After 2 years, a scholar will become a resident 

alien for tax purposes but is still entitled to 1 more year of tax 

 benefits under the treaty.

3-12 Lesson 3
Example 12

Joy Chen came to the U.S. in 2005 to teach for 3 years at 

the local university. She was paid $38,000 per year for her 

full-time “Art as Clothing” program. For 2005 and 2006 

she filed Form 1040NR-EZ, reporting no taxable income 

because her treaty benefit exempted all her income. 

In 2006, she is a resident alien for federal income tax 

 purposes. She will file a Form 1040, but her earnings 

are still exempt from tax. She will attach Form 8833, 

Treaty-Based Return Disclosure Under Section 6114 or 

7701(b), to her Form 1040.

A student from China is entitled to the $5,000 exemption for the 

amount of time reasonably necessary to complete education or 

training. A student will become a resident alien for tax purposes 

after 5 years but is still entitled to the treaty benefit as long as he 

or she remains a student.

Example 13

Kia came to the U.S. in 2000 on an F-1 visa to study

bio-engineering. She has not left the U.S. except for short 

visits home. In 2007 she earned $10,700 as a graduate

assistant. She must file a Form 1040. She can exclude 

$5,000 of her wages under her treaty benefit. The

remaining $5,700 will be her adjusted gross income. She 

will attach Form 8833, Treaty-Based Return Disclosure 

Under Section 6114 or 7701(b), to her Form 1040.

Exercise 1

Determine the treaty benefit available for the following 

students. Assume that all money was earned in the U.S. 

Use Table 4 to help you answer these questions.

Years Earned Treaty

Country in U.S. income benefit

China 6 $6,200 

Germany 2 5,400 

Ghana 3 4,700 

Nigeria 1 2,100 

Poland 4 7,600 

Israel 6 5,800 

Russia 2 7,300 

What form should be given to the university payroll office to 

claim exemption from withholding on the amount of income 

covered by the treaty?___________________________________

Lesson 3 3-13
Exercise 2

Determine how much of the following scholars’ income from U.S. 

universities will be exempt from U.S. taxation. Use Table 3 to help 

you answer these questions.

Years Nontaxable

Country in U.S. Salary portion

India 1 $34,000 

China, People’s Rep. of 1 34,000 

China, People’s Rep. of 3 34,000 

South Africa 1 34,000 

Sweden 2 34,000 

Exercise 3

Determine how much of the following scholars’ income from U.S. 

universities will be exempt from U.S. taxation in 2007. They each 

entered the U.S. on August 1, 2005, and were still here in 2008. 

Use Table 3 to help you answer these questions.

 Nontaxable

Country Salary portion

India $34,000 

China, People’s Rep. of 34,000 

South Africa 34,000 

Sweden 34,000 

3-14 Lesson 3
Exercise 4

Did the following students have any taxable scholarships? Assume 

that their tuition was equal to the tuition scholarship. Also 

assume that each student arrived in the U.S. for the first time in 

2004, and that all scholarships are provided by U.S. institutions. 

Use Table 2 to help you answer these questions.

 Room & Amount

Tuition board subject

Country scholarship scholarship to tax

Australia $4,950 $5,000 

China 5,000 4,600 

Guyana 4,400 2,950 

India 3,150 4,900 

Pakistan 3,700 7,300 

Poland 3,800 6,700 

Russia 4,600 5,900 

Lesson 3 3-15
Exercise 1 China, People’s Rep. of $5,000

Germany $5,000

Ghana (No tax treaty) 0

Israel $3,000

Nigeria (No tax treaty) 0

Poland $2,000

Russia (No treaty benefit) 0

Form 8233 should be used to inform the university

payroll office of the treaty benefit being claimed.

Exercise 2 China (1 year) $34,000

China (3 years) $34,000

India $34,000

South Africa (No treaty benefit) 0

Sweden (No treaty benefit) 0

Exercise 3 China, People’s Rep. of $34,000

China is $34,000 because the treaty allows the benefit for 

3 years even though the scholar must file Form 1040. In 

2008, the benefit will have to be prorated to July 31st.

India 0

India is zero because the scholar exceeded two years in 

the U.S.

South Africa (No treaty benefit) 0

Sweden (No treaty benefit) 0

Exercise 4 None of the tuition scholarship money would be taxed 

to any of these students. That is because the Internal 

Revenue Code allows any recipient of tuition, fees, and 

books scholarships to exclude them from income.

Australia $5,000

China, People’s Rep. of 0

Guyana $2,950

India $4,900

Pakistan $7,300

Poland 0

Russia 0

TAX TREATIES ANSWERS TO EXERCISES Lesson 3

3-16 Lesson 3
IDENTIFICATION NUMBERS

Most nonresident students and scholars cannot claim family 

members as dependents. Any family member who can be claimed 

as a dependent must have a Taxpayer Identification Number 

(TIN). If the dependent has been issued a social security number 

(SSN), that is the TIN. But most family members do not have work 

authorization, so the Social Security Administration will not issue 

them social security numbers. 

Family members who are not eligible for a social security number 

can apply for an identification number from the IRS. The IRS 

issues Individual Taxpayer Identification Numbers (ITINs) to 

individuals who are required to have a U.S. taxpayer identification 

number (TIN) but who do not have and are not eligible to obtain an 

SSN. The ITIN is a nine-digit number that begins with the number 

9 and is formatted like an SSN (NNN-NN-NNNN). The fourth and 

fifth digits of an ITIN falls within the range of 70–89. The ITIN 

was created for use on tax returns only. 

The issuance of an ITIN does not:

■ Entitle the recipient to social security benefits or the 

Earned Income Credit (EIC),

■ Create an inference regarding the individual’s 

immigration status, or 

■ Give the individual the right to work in the United States.

The IRS has taken several steps to strengthen controls over the 

issuance of ITINs. For the most current information, go to 

www.irs.gov (keyword: ITIN).

FAMILY ISSUES Lesson 4

ALERT

Incorrect SSN/ITIN 

Usage

The incorrect use of 

SSNs/ITINs can delay 

a taxpayer’s refund. 

There are two types 

of incorrect usage:

■ Using a SSN/

ITIN that was not 

assigned to the 

taxpayer (i.e., using 

some other person’s 

SSN/ITIN)

■ Usage of a correct 

SSN/ITIN by more 

than one taxpayer 

(i.e., two taxpayers 

fi ling separately and 

claiming the same 

dependents)

Lesson 4 4-1
FILING STATUS AND SPOUSAL EXEMPTION

All unmarried nonresidents must use the Single filing status. 

Married nonresidents must use one of the Married filing statuses 

even if the spouse is not present in the United States. Nonresidents 

cannot use the Head of Household status. 

The filing status determines what tax rate schedule will be used, so 

you should be careful when marking the filing status on the return.

Nonresidents from Canada, Mexico, the Republic of Korea 

(South Korea), or India may be able to claim an exemption for 

their spouse. (This is not the same as claiming their spouse as a 

dependent. The term “dependent” is reserved for family members 

other than the spouse.) The following rules apply:

Canada and Mexico: Residents of Canada or Mexico can 

claim a personal exemption for a spouse if the spouse had no 

gross income for U.S. tax purposes and was not a dependent on 

another U.S. return.

Republic of Korea (South Korea): Residents of the Republic 

of Korea (South Korea), may be able to claim a personal 

exemption for a spouse. The spouse must live with the taxpayer. 

If the student or scholar also has income from outside the 

United States, the exemption will have to be prorated. See IRS 

Publication 519 for more information.

India: Some nonresidents from India are eligible to claim a 

personal exemption for a spouse. The deduction applies only 

to students and business apprentices. A student can claim an 

exemption for a spouse if the spouse had no gross income during 

the year and cannot be claimed on someone else’s U.S. return. 

When completing Form 1040NR, write the spouse’s information 

on line 7c.

Example 1

Zenobia, a married scholar from Nigeria, arrived in the 

U.S. on a J-1 visa in 2006. Her husband and child live with 

her in the U.S. Her husband, Kentaznib, has a J-2 visa and 

works for a local computer company. Zenobia must file a 

tax return for herself and mark the Married box, but her 

deductions and taxes must be calculated at the Married 

Filing Separately rate. Kentaznib must file his own return 

using the same filing status. Neither of them can claim the 

child or any child-related tax credits.

4-2 Lesson 4
Example 2

Ming, a married student from the Republic of Korea 

(South Korea), came to the U.S. in February of 2005 as an 

F-1 student. Her husband came with her. Her only income 

was from her on-campus job. Her husband had no income. 

As a nonresident, she cannot file a joint return with him. 

She can claim him on her return. He will need to have a 

tax identification number (either an SSN or an ITIN).

DEPENDENTS

Most nonresidents cannot claim an exemption for their dependents. 

Even if the dependents are U.S. citizens, usually they cannot be 

claimed on a nonresident return. 

Exceptions apply to persons from Canada, Mexico, the Republic of 

Korea (South Korea), and India, as follows:

Canada and Mexico: Dependents can be claimed if they 

meet all of the tests for dependency listed in Publication 678, 

VITA/TCE Volunteeer Student Guide, and Publication 17, 

Your Federal Income Tax Guide.

Republic of Korea (South Korea): Dependents must 

live with the nonresident in the United States at least 

part of the year. The dependency exemption will need to be 

prorated if the nonresident has both U.S.-source income and 

foreign income. 

India: Dependents can be claimed if they were not admitted 

to the United States on an F-2, J-2, or M-2 visa. They must 

also meet the tests for dependency listed in Publication 678, 

VITA/TCE Volunteeer Student Guide, and Publication 17, 

Your Federal Income Tax Guide.

Lesson 4 4-3
Example 3

Dehni and Aschuma are married international students 

at the local university. They are both on F-1 visas from 

India. They have been in the U.S. since 2004. In 2007 they 

had a baby girl. Dehni earned $4,300 in 2007 and Aschuma 

earned $5,027. Normally, the person who provided most 

of a child’s support can claim the exemption. But Dehni 

and Aschuma each earned less than the amount of their 

deductions (which are covered in a later chapter), so they 

owe no federal income tax. Thus, neither of them needs to 

claim the child. Each of them can file Form 1040NR-EZ and 

report his or her earnings.

Example 4

Jesus and Maria are married international students from 

Mexico. They arrived here in December 2005 and Maria 

had a baby boy (Jose) in February 2007. Maria did not 

work in 2007. She was busy with her full-time classes and 

taking care of Jose. Jesus’s mother came to help them in 

late December 2006, and was in the U.S. all of 2007. Jesus 

maintained his full-time class schedule in pre-med and 

worked to support his family. He worked at the health 

center on campus and earned $7,800. He should file a Form 

1040NR and claim an exemption for his wife and baby. He 

may also be entitled to claim his mother, but because of his 

low income he will not benefit from doing so.

Exercise 1:

Jenny is from Australia. She arrived in the U.S. in 2007 with her 

husband and son. She had an F-1 visa, and her husband and son 

were on F-2 visas. She earned $4,100 from an on-campus job.

What is Jenny’s filing status? _____________________________

Can she claim her husband and son? ______________________

Can she use Form 1040NR-EZ? ___________________________

4-4 Lesson 4
Exercise 2:

Devesh is from India. He arrived on an F-1 visa in 2004. In 2006, 

his wife and two children joined him in the U.S. and obtained 

identification numbers. In 2007, his wife had a third child while in 

the U.S. Devesh earned $7,850 from on-campus work in 2007. He 

provided all support for his family. His wife is on an F-2 visa and 

is not permitted to work.

What is Devesh’s filing status? _____________________________

Can he claim an exemption for his wife? _______________________

Can he claim exemptions for his two children born in India? 

_________________________________________________________

Can he claim an exemption for his child born in 2007? __________

QUALIFYING CHILD

A “qualifying child” may enable a nonresident to claim several 

tax benefits, such as the exemption for a dependent, the child tax 

credit, and the child and dependent care credit. Prior to 2005, each 

of these items defined a qualifying child differently, leaving many 

taxpayers confused.

The Working Families Tax Relief Act of 2004 set a uniform 

definition of a qualifying child, beginning for Tax Year 2005. This 

standard definition applies to all of the tax benefits noted above, 

with each benefit having some additional rules.

In general, to be a taxpayer’s qualifying child, a person must 

satisfy the following tests:

■ Relationship—the taxpayer’s child or stepchild (whether 

by blood or adoption), foster child, sibling or stepsibling, or a 

descendant of one of these. 

■ Residence—has the same principal residence as the taxpayer 

for more than half the tax year. Exceptions apply, in certain 

cases, for children of divorced or separated parents, kidnapped 

children, temporary absences, and for children who were born or 

died during the year. 

■ Age—must be under the age of 19 at the end of the tax year, or 

under the age of 24 if a full-time student for at least five months 

of the year, or be permanently and totally disabled at any time 

during the year. 

■ Support—did not provide more than one-half of his or her own 

support for the year. 

Lesson 4 4-5
■ Special Test for a Qualifying Child of More than One 

Person—If a child meets the relationship, age, residency, and 

support tests to be a qualifying child of more than one person, 

only one person can actually treat the child as a qualifying 

child. If the taxpayer and another person have the same 

qualifying child, the taxpayer and the other person may decide 

who will treat the child as a qualifying child. That person can 

take all of the following tax benefits (if eligible for each benefit) 

based on the qualifying child:

• Dependency Exemption

• Head of Household

• Child Tax Credit

• Earned Income Tax Credit

• Child and Dependency Care Expense Credit

• Exclusion from income for Dependent Care Benefits

 The other person cannot take any of these benefits based on the 

qualifying child. Thus, the benefits cannot be divided between 

the taxpayer and the other person. If the taxpayer and the other 

person cannot agree on who will claim the child, and more than 

one person files a return claiming the same child, the IRS will 

use the tiebreaker rule.

Additional Rules

While the above qualifying child tests generally apply, there are 

some additions or variations for particular provisions:

Dependent—a qualifying child must also meet these tests:

• Nationality—be a U.S. citizen or national or a resident of the 

United States, Canada or Mexico. There is an exception for 

certain adopted children. 

Credit for Child and Dependent Care Expenses—a qualifying 

child must be under the age of 13 or permanently and totally 

disabled. A qualifying child is determined without regard to the 

exception for children of divorced or separated parents and the 

exception for kidnapped children.

Child Tax Credit—a qualifying child must be under age 17 and a 

U.S. citizen or national or a U.S. resident.

CHILD AND DEPENDENT CARE CREDIT

Generally, nonresident aliens do not qualify for this credit. To 

qualify for the credit, a nonresident alien must do all four of the 

following:

1. Pay someone to care for your dependent under age 13 or your 

disabled dependent (any age) or disabled spouse, and 

2. Pay for care provided during the hours when the student or 

scholar was working (or looking for work) rather than attending 

classes or studying, and

4-6 Lesson 4
3. If married, file a joint return with a spouse who is a U.S. citizen 

or resident alien, under an election for the nonresident spouse 

to be treated as a resident, and

4. Not claim an expense for the credit in an amount exceeding 

earned income.

For more information, see Publication 519.

CHILD TAX CREDIT

Few nonresident aliens can claim this credit either. To claim it, a 

nonresident alien must have a qualifying child who:

1. Is a U.S. citizen, national, or resident alien or if you are a U.S. 

national, your adopted child who lived with you all year as a 

member of your household, and

2. Is a son, daughter, adopted child, grandchild, stepchild, or foster 

child, brother, sister, stepbrother, stepsister, or a descendant of 

any of them (for example, niece, nephew), and

3. Is under age 17 at the end of the tax year.

For additional information, see Form 8901, Information on 

Qulifying Children Who Are Not Dependents (For Child Tax Credit).

EARNED INCOME TAX CREDIT

A student or scholar who is a nonresident for any part of the tax 

year generally does not qualify for the Earned Income Tax 

Credit (EITC). However, a student or scholar who was married and 

chose to file a joint return with a U.S. citizen or resident spouse may 

be eligible for the credit. See Publication 596, Earned Income 

Credit for more information.

SPOUSE AND DEPENDENT FILING REQUIREMENTS

Immigration regulations do not allow spouses and dependents on 

F-2 visas to work. The amount of U.S.-source income those persons 

are allowed to have is extremely limited. Spouses and dependents 

in the United States under F-2 visas are generally not required 

to file Form 1040NR or 1040NR-EZ. However, they do need to file 

Form 8843.

Spouses and some dependents on J-2 visas can be authorized to 

work. They need to file Form 8843, and either Form 1040NR or 

Form 1040NR-EZ. Their visa status does not exempt them from 

paying social security tax nor can they file claims to get social 

security tax refunded to them.

Lesson 4 4-7
Exercise 1 Jenny’s filing status is married filing 

separately. She cannot claim her husband and 

son on her return.

She can file Form 1040NR-EZ.

Exercise 2 Devesh’s filing status is married filing separately.

He can claim a personal exemption for his wife.

He cannot claim dependency exemptions for his 

two children born in India.

He can claim a dependency exemption for his 

child born in the United States.

4-8 Lesson 4

Lesson 4 FAMILY MATTERS ANSWERS TO EXERCISES
Many international students and scholars believe that since they 

are not U.S. citizens, they are not subject to U.S. taxes. This is a 

mistaken belief. Indeed, international students and scholars are 

normally entitled to fewer exemptions from U.S. tax than are U.S. 

students. International students and scholars can claim a personal 

exemption, but they cannot normally use the standard deduction or 

take exemptions for dependents.

Let’s review the U.S. federal income tax return filing requirements 

for foreign students and foreign scholars.

There is a minimum dollar amount of income that triggers a filing 

requirement for a nonresident alien, including foreign students or 

foreign scholars. The dollar limit threshold that triggers a filing 

requirement is $3,400 for 2007. 

1. Filing is required by nonresident alien students and scholars 

who have: 

a. A scholarship or fellowship that is not partially or totally a 

tax free scholarship or fellowship as described in Chapter 1 

of Publication 970, Tax Benefits for Education; 

b. Income partially or totally exempt from tax under the terms 

of a tax treaty; and/or 

c. Any other income that is taxable under the Internal Revenue 

Code. 

2. Filing is not required by nonresident alien students and 

scholars who have income only from: 

a. Foreign sources, 

b. Interest income from: 

 i. A U.S. bank 

 ii. A U.S. savings and loan institution 

 iii. A U.S. credit union 

 iv. A U.S. insurance company 

 v. An investment that generates portfolio interest 

(described in section “Exclusions From Gross Income – 

Interest Income – Portfolio interest” of Publication 519, 

U.S. Tax Guide for Aliens) 

c. A scholarship or fellowship that is entirely a tax free 

scholarship or fellowship as described in Chapter 1 of 

Publication 970, Tax Benefits for Education; and/or 

TAXATION OF NONRESIDENTS Lesson 5

Lesson 5 5-1
d. Any other income that is nontaxable under the Internal 

Revenue Code. However, income that is not taxable because 

of an income tax treaty must be reported on a U.S. income 

tax return even though no income tax is due on the U.S. 

income tax return. 

This lesson deals with taxation of nonresident aliens only. If an 

international student or scholar is a resident alien and your site 

does not prepare returns for resident aliens, you should direct the 

student or scholar to a conventional VITA site. 

You must first determine the source of each kind of income. That 

is necessary because the U.S. does not tax nonresident aliens’ 

foreign-source income. Table 1 summarizes how to determine 

the source of each kind of income.

 Table 1 Types and Sources of Income

Income type

Source is 

determined by

Dividends Where payer is incorporated

Interest Payer’s place of residence

Pension payments attributable to:

 Contributions (employer 

or employee, pretax)

 Where the services were 

performed

 Earnings of domestic 

(U.S.) trusts

 The U.S. is the source

Rents Where property is located

Royalties from natural 

resources

Where property is located

Royalties from patents, 

copyrights, etc.

Where property is used

Salaries, wages, and other 

compensation for personal 

services

Where services are performed

Sale of inventory that was 

purchased

Where the inventory is sold 

(where title passes)

Sale of personal property 

(except inventory)

Tax home of seller

Sale of real property Where the property is located

Scholarships and 

fellowships

Residence of grantor

Social Security benefits Residence of payer

5-2 Lesson 5
IS THE INCOME “EFFECTIVELY CONNECTED” WITH U.S. 

TRADE OR BUSINESS?

As noted above, the United States does not tax foreign-source

income received by nonresident aliens. If income does have a U.S. 

source, the United States taxes it—but at different rates depending 

on whether it is “effectively connected” with a U.S. trade or business. 

A nonresident alien who is a student or scholar is considered to be 

engaged in a U.S. trade or business: studying, teaching, or doing 

research. Thus, income from such activities is “effectively connected” 

with a U.S. trade or business—along with income from other 

employment that has been authorized by the USCIS. Income that 

is effectively connected must be reported on either Form 1040NR or 

1040NR-EZ, and is taxed at the same rates as apply to U.S. citizens 

and resident aliens. 

Income that is not effectively connected is treated quite differently. 

It must be reported on Form 1040NR (it cannot be reported on Form 

1040NR-EZ), no deductions can be taken against it, and it is taxed at 

a flat rate—either 30 percent or at a lower treaty rate.

Most investment income is treated as not effectively connected with 

a U.S. trade or business. This includes dividends, capital gains, rental 

income, and interest—with one exception, bank interest. Interest 

received on deposits held in the “banking business” is excluded 

from nonresident aliens’ income; they need not even report it. (The 

“banking business” includes commercial banks, mutual savings 

banks, cooperative banks, credit unions, domestic building and loan 

associations, and other savings institutions chartered and supervised as 

savings and loans or similar associations under federal or state law.)

Note: The exemption of bank interest applies only if it is not 

connected with a U.S. trade or business. Thus the exemption may 

be lost if a nonresident holds large sums in a bank for the purpose 

of earning money.

Example 1

Jose is a junior at a state university. He is in F-1 

immigration status. When he came to the U.S. to study, his 

parents gave him $20,000 for expenses. He lent $5,000 to 

his cousin, a U.S. resident. His cousin paid him $1,050 in 

2007 ($1,000 of principal repayment and $50 interest). He 

deposited the remaining $15,000 in the college credit union 

and earned $600 interest. The $50 from his cousin is not 

from the banking business nor is it connected to his trade 

or business (studying). Therefore it must be reported on 

Form 1040NR, page 4. The $600 interest from the credit 

union is excluded from income.

Lesson 5 5-3
WAGES, SALARIES, AND TIPS

Wages are generally subject to tax withholding by the employer. 

Upon being hired, an employee files Form W-4 to advise the 

employer of the employee’s status for withholding. Due to the 

restrictions on deductions that can be claimed by nonresidents, 

a nonresident should check the “Single” box on Form W-4 even if 

married, and should claim only one withholding allowance—unless 

the nonresident is from Canada, Mexico, the Republic of Korea 

(South Korea), or a student from India and can claim a spouse or 

child as an exemption.

Example 2

Sean, an international student from South Africa, is 

 temporarily present in the U.S. as a student in F-1 status. 

His wife and daughter accompanied him to the U.S. He 

will be paid every two weeks. He should mark Form W-4 

as Single with one withholding allowance.

Some tax treaties provide for a limited exemption from tax for 

wages earned while temporarily studying in the United States. 

To avoid withholding on wages eligible for such an exemption, a 

student to whom one of those treaties applies should fill out IRS 

Form 8233, Exemption From Withholding on Compensation for 

Independent Personal Services of Nonresident Alien Individual, 

and give it to the employer in duplicate. A new Form 8233 must 

be given to the employer each year. Pay earned but not subject 

to withholding because of a treaty is reported on Form 1042-S, 

which the employer is required to provide by March 15 each year. 

If a student either fails to give Form 8233 to the employer or 

earns more than the treaty exemption amount, federal tax will be 

withheld and amounts earned will be reported on Form W-2.

5-4 Lesson 5
Example 3

Assume the same facts as in Example 2. Sean is from 

Belgium and is entitled to a $2,000 treaty exemption for 

wages. He didn’t know about Form 8233 and never filed it. 

He earned $4,600 during 2007, all of which was reported 

on Form W-2. Sean will enter $2,600 ($4,600 minus the 

$2,000 treaty exemption) on Form 1040NR, line 8, or Form 

1040NR-EZ, line 3.

The following worksheet can help you determine the correct 

amount of wages to report on Form 1040NR or Form 1040NR-EZ. 

Some of the lines may not apply to the student or scholar you are 

assisting. If the student or scholar has more than one W-2, add the 

box 1 amounts together before completing this worksheet.

Wages from Form W-2, box 1 

Code 18 income from Form 1042-S + 

Code 19 income from Form 1042-S + 

Code 18 treaty benefit – 

Code 19 treaty benefit – 

Wages to be entered

on return 

 

INTEREST INCOME

As mentioned earlier, interest paid to a nonresident alien by 

an entity in the banking business is not taxable. Many banks 

erroneously report this income on Form 1099-INT because they 

have not been informed that the student or scholar is a nonresident 

alien. For purposes of Form 1042-S, generally no reporting is 

required on deposits if the interest is not effectively connected 

with the conduct of a trade or business in the United States. If 

the nonresident alien individual uses Form 1040NR to report his 

income, then such nontaxable interest income shall not be reported 

anywhere on Form 1040NR except in response to question L on 

page 5 of Form 1040NR. If the nonresident alien individual uses 

Form 1040NR-EZ to report his income, then such nontaxable 

interest income shall not be reported anywhere on Form 1040NREZ. The erroneous reporting of such interest income on Form 1099 

by one of the institutions listed above shall not cause such interest 

income to be included in the gross income of the nonresident alien 

recipient if such recipient has filed the proper income tax return.

Lesson 5 5-5
DIVIDEND INCOME

If a nonresident alien student or scholar invests in the stock 

market and receives dividend income, it is not considered 

effectively connected with the person’s trade or business. This 

income must be reported on Form 1040NR, page 4.

Example 4

Jason, from South Africa, has been in the U.S. since 

8/1/04 in F-1 immigration status. In March 2007, he bought 

some stock. The stock generated $26 of dividend income, 

as reported to him on Form 1099-DIV. He must report this 

income on Form 1040NR, page 4. 

SCHOLARSHIPS AND FELLOWSHIPS

Income in the form of a scholarship or fellowship is treated in one 

of three ways:

1. Excludable under the Internal Revenue Code (called the 

Section 117 exclusion),

2. Exempt by treaty, or

3. Taxable.

Under section 117 of the Internal Revenue Code, a student who is 

a candidate for a degree may be able to exclude from income some 

or all amounts received under a “qualified” scholarship. (The same 

is true of students who are U.S. citizens.) A qualified scholarship is 

any amount received as a scholarship or fellowship grant and used 

for tuition, fees, books, supplies, and equipment that the student 

is required to buy. Amounts received but used for other purposes, 

such as room and board or travel, are not excludable. Section 117 

does not apply if the student must perform services to receive the 

money (i.e., teaching assistant).

Some treaties also exempt amounts received as scholarship 

or fellowship grants. To prevent withholding on the amount of 

scholarship money that is exempt by treaty, the student must file 

Form W-8BEN, Certificate of Foreign Status of Beneficial 

Owner for United States Tax Withholding, with the 

educational institution or other provider of the scholarship.

5-6 Lesson 5
SCHOLARSHIP AND FELLOWSHIP GRANT REPORTING BY PAYERS

Schools are not required to report the nontaxable portion of 

scholarships and fellowships on Form 1042-S. 

Example 5

Daniela, an international student from Brazil, received a 

$6,000 scholarship from Mountain State University. She 

used $4,700 of it for tuition, fees, and books. The other 

$1,300 was used for living expenses. The university will 

issue Form 1042-S for $1,300; Daniela must report $1,300 on 

either Form 1040NR, line 12 or Form 1040NR-EZ, line 5.

CAPITAL GAIN OR LOSS

This is discussed below, under “Income Not Effectively Connected 

With a U.S. Trade or Business.”

OTHER INCOME

Any other income received by a nonresident alien student or 

scholar is generally classified as “not effectively connected with a 

U.S. trade or business” and reported on Form 1040NR, page 4.

Lesson 5 5-7
INCOME NOT EFFECTIVELY CONNECTED WITH A

U.S. TRADE OR BUSINESS

Dividend Income

If a nonresident alien student or scholar invests in the stock 

market and receives dividend income, the earnings are not 

considered to be effectively connected with the student’s trade 

or business. Therefore, it should be reported on Form 1040NR, 

page 4. The brokerage firm should have reported that income to 

the taxpayer on Form 1042-S and have withheld a percentage of 

it (varying with the taxpayer’s country) for income tax. But if the 

student or scholar did not tell the brokerage firm that he or she is a 

nonresident alien, it may have been reported on a Form 1099-DIV. 

If it was, probably nothing will have been withheld from it.

Interest Income

Interest received on deposits held by persons in the banking 

business is excluded from nonresident aliens’ income. (The 

banking business includes commercial banks, mutual savings 

banks, cooperative banks, credit unions, domestic building and 

loan associations, and other savings institutions chartered and 

supervised as savings and loans or similar associations under 

federal or state law.)

If a nonresident alien received interest from another source, it 

must be reported on Form 1040NR, page 4.

Gambling Income

Some international students and scholars receive income from 

gambling. This income is not effectively connected with the reason 

for their visit to the United States and must be reported on Form 

1040NR, line 84. On the dotted lines after the arrow, the type of 

income must be specified. The racetrack or casino should report it 

to the taxpayer on Form 1042-S; but as with dividends, such income 

may erroneously be reported on Form W-2G.

Capital Gains and Loss

Nonresident alien students and scholars are subject to 30 percent 

taxation of their U.S. capital gains unless a tax treaty allows a 

lower rate. This should be reported on page 4 of the 1040NR.

5-8 Lesson 5
Example 6

Nabil, a resident of Iran, entered the U.S. in 2004 on an 

F-1 visa to study engineering. He invested the money that 

he brought with him in the stock market. In 2007, he sold 

some stock to pay tuition and fees. The sale of that stock 

is reportable on Form 1040NR, page 4, line 83. Any gain is 

taxable at 30%; any loss is not deductible.

ADJUSTED GROSS INCOME

Nonresident alien students and scholars are allowed some 

adjustments to their “effectively connected” income. One such 

adjustment is deduction of student loan interest.

Example 7

Dino came to the U.S. in 2004 for postgraduate study. He 

borrowed $1,500 from the college credit union for his last 

semester’s fees and books. Dino graduated in December 

2006 but remained in the U.S. for one year of practical 

training. He began repaying the loan on July 1, 2007 and 

paid $45 in interest during 2007. He can deduct that on 

Form 1040NR, line 32 or Form 1040NR-EZ, line 9.

ITEMIZED DEDUCTIONS

Nonresident aliens (except students from India) are not 

 permitted to take the standard deduction. Therefore, they must 

itemize deductions. They are further limited in the type of expenses 

they can deduct even as itemizers. They can’t claim a deduction for 

medical costs, mortgage interest, or investment interest. Below 

is a summary of the types of expenses they can itemize.

State and Local Taxes

State and local income taxes are fully deductible in the year paid, 

no matter to which state they were paid. They will normally be 

listed on the student’s or scholar’s Form W-2 or 1042S. A student 

or scholar may also have a cancelled check or receipt for additional 

state or local income taxes paid during the tax year.

Charitable Contributions

New recordkeeping requirements for cash contributions. 

You cannot deduct a cash contribution, regardless of the amount, 

unless you keep as a record of the contribution a bank record 

(such as a canceled check, a bank copy of a canceled check, or 

a bank statement containing the name of the charity). The 

written communication must include the name of the charity, 

date of the contribution, and amount of the contribution. For more 

information, see Publication 526. Lesson 5 5-9
Nonresidents can deduct charitable contributions to U.S. charities 

and nonprofit organizations. Those generally include religious, 

charitable, educational, scientific, and literary organizations, and 

organizations that work to prevent cruelty to children or animals. 

Contributions made directly to a foreign organization are not 

deductible. But contributions made to a U.S. organization that 

transfers funds to a foreign organization may be deductible. To be 

deductible, the U.S. organization must control use of the funds.

If a contribution exceeds $250, the student or scholar must have a 

receipt for it. Also, if the student or scholar benefited from making 

the contribution, the deduction will be limited.

Casualty or Theft Loss

Nonresident students and scholars can deduct losses from fire, 

storm, shipwreck, or other casualty, or theft of property, if the 

property was located in the United States at the time of the loss.

The loss is limited to the lower of (1) the decline in the fair market 

value of the property or (2) the cost of the property. The loss must 

be reduced by any insurance or other compensation received. If the 

property was covered by insurance, a loss cannot be claimed unless 

a timely insurance claim was filed.

The first $100 of a loss is not deductible. A nonresident’s loss is 

further limited to 10 percent of his or her income. These limitations 

are reflected in Form 4884, Casualty and Thefts.

Job Expenses

Students and scholars can deduct their job expenses such as:

■ unreimbursed travel costs required for the job

■ union dues

■ safety equipment

■ small tools

■ dues to professional organizations

■ subscriptions to trade journals

These deductions are subject to a limit: only the amount over 

2 percent of adjusted gross income can be deducted.

Educational Costs as Itemized Deductions

Most students cannot deduct the cost of their education from 

taxable income. Educational costs are deductible only by a person 

who has already worked in the field being studied, and only if the 

current studies will not prepare the person for a new line of work. 

If a student’s course of study is less than a year and his or her 

educational expenses are deductible, the student can treat the 

education as a business trip and deduct costs of transportation, 

meals, and lodging.

5-10 Lesson 5
Most students will receive a Form 1098T, Tuition Payments 

Statement from their school. The purpose of this form is to 

substantiate that the recipient was a student during the year. 

Further, the form can be used to provide information for possible 

education credits. Non-resident aliens are not entitled to any 

of the educational credits and do not need to do anything with 

Form 1098T.

Example 8

Richard comes to the U.S. as a student on a J-1 visa to 

attend a 3-month course on advanced radiology techniques 

in cardiac care. While in the U.S., he will work part-time 

in a hospital since he is already a licensed, practicing, 

cardiac radiologist. The hospital will pay him $5,000 per 

month. Richard paid $1,890 to fly here from England. He 

rented an apartment for $800 per month. He spends about 

$20 a day for food. His course cost $1,600. His books cost 

$250, and he had to pay a university fee of $40.

Richard will report wages of $15,000 on his Form 1040NR. 

He can deduct all his travel, lodging, food, tuition, books, 

and fees as itemized employee business expenses.

PREPARING THE 1040NR-EZ

The following information is provided to help you understand how 

to complete Form 1040NR-EZ. The information is presented in the 

order it appears on the return.

Information Section

It is advisable to have the student or scholar complete the top 

section of the form, although you can provide guidance. Remind 

the filer about the importance of listing his or her name in the 

exact order it appears on the social security card or ITIN letter. 

Filing Status

As discussed earlier, generally the only two filing statuses available 

to nonresident aliens are single and married filing separately. If 

the student is married, the “Married nonresident alien” box must 

be marked—even if the spouse is not in this country.

Lesson 5 5-11
Wages

The amount to list on the wage line should be computed as follows:

 Amount in Form W-2, box 1

 plus: Code 18 income in Form 1042-S, box 2

 plus: Code 19 income in Form 1042-S, box 2

 minus: Treaty benefit

 equals: Amount to list on wage line of tax return

Example 9

Choi, a student from China, received a Form 1042-S 

showing code 19 income of $5,000. Choi also received a W-2 

with $3,900 in box 1. Choi would report $3,900 on the wage 

line, calculated as follows. 

 Form W-2, box 1 $ 3,900 

 Plus: Code 19 income 5,000 

 Less: Treaty benefit 5,000 

 Equals: Amount to 

 be listed on return $ 3,900

Example 10

Christiane, from Germany, worked part of the year at the 

local university in California. She gave the university 

Form 8233 and they properly applied her treaty benefit. In 

August she moved to Illinois and began the fall semester 

at a local university. She also gave this university a Form 

8233. The Illinois university was not aware that Christiane 

had already exempted part of her income in California. 

At the end of the year, Christiane’s taxable wages are 

 calculated as follows:

 W-2 California university $ 380

 1042-S Code 19 California university 5,000

 W-2 Illinois university 1,685

 1042-S Code 19 Illinois university 5,000

 Total wages 12,065

 Allowable treaty benefit 5,000

 Taxable wages $ 7,065

Most likely, Christiane will have a significant balance due 

on her tax return. The only income from which money was 

withheld was the $2,065 reported on her Forms W-2. If she 

had filed the correct paperwork at both universities, she 

would have had tax withheld on $7,065.

5-12 Lesson 5
Taxable Refunds of State and Local Taxes

Students, except from India, may have received taxable refunds 

of state and/or local taxes. Remember that nonresident students, 

except from India, must itemize their deductions. This can include 

state and local income taxes paid.

They deduct the full amount of the taxes in the year in which 

they are paid or withheld. If they get a refund of part of those 

taxes, they may need to include the refund in their return filed the 

next year. Students from India are allowed a standard deduction, 

therefore, do not include the amount of their state or local tax 

refund in taxable income.

Example 11

Arthur, from England, had $348 of state income tax 

withheld in 2006. His total income was $5,800 in 2006. The 

deduction of his state income taxes helped reduce his 

taxable income, as illustrated below. 

 Wages $5,800

 Personal exemption 3,300

 State income tax 348

 Taxable income $2,352

He received a $22 state income tax refund in 2007 on his 

2006 state return. That $22 must be listed as income on his 

2007 federal return.

Example 12

Sari, from India, had $269 of state income tax withheld 

in 2006. On her federal return for 2006 she claimed the 

standard deduction; thus she did not get to deduct her 

state income tax.

In 2007 she received a $56 state income tax refund from 

her 2006 state return. She does not have to include this 

refund on her federal return for 2007, because she claimed 

a standard deduction in 2006 and did not receive a 

deduction for the state income tax.

Lesson 5 5-13
Example 13

Alexander from Russia earned $3,643 in 2006. He had $189 

withheld for state income taxes. Even though he listed 

the taxes as a deduction on his federal return for 2006, 

they did not help lower his taxable income for 2006. The 

personal exemption of $3,300 was more than enough to 

lower his taxable income to zero. Alexander received a 

state refund of $34 in 2007. He would not include this on 

his 2007 federal return because he did not receive any tax 

benefit from his state income tax deduction.

Scholarship and Fellowship Grants

Nonresident alien students must report all scholarships they 

receive for room and board and living expenses that are not 

exempted by their treaty. Scholarships that cover only tuition, 

books, and fees are not reported. Scholarships from outside the 

United States are not reported either. 

If the student uses part of a reportable scholarship to pay for 

tuition, books, fees or supplies, he or she can deduct those expenses 

on Form 1040NR-EZ, line 8.

Example 14

Emmanuel from New Zealand received the following 

scholarships:

 Tuition waiver $3,600

 Science Scholar Scholarship $2,000

 Abbott Scholarship $1,000

 Merrill Scholarship $1,000

Emmanuel is not required to report the tuition waiver 

on his tax return. He must report the other $4,000 

of scholarships. He spent $750 on books and $250 on 

required fees other than health insurance. (The fee for 

health insurance is not a deductible fee even if the school 

requires it.) He can take a deduction of $1,000 on line 8. He 

will have to attach a written statement showing how he 

arrived at this amount.

5-14 Lesson 5
Student Loan Interest Deduction

Many foreign students and scholars incur interest charges while 

temporarily in the United States. However, very few of their 

interest charges are tax-deductible. The only type of interest they 

can deduct is qualified student loan interest. All of the following 

conditions must be met for interest to be qualified student loan 

interest:

1. The interest must have been paid during the tax year,

2. The interest repayment must have been required to be paid,

3. Filing status must be single,

4. The loan must have been issued to pay for educational 

expenses, and

5. The recipient of the loan must be at least a half-time student.

Itemized Deductions

The only allowable itemized deduction on Form 1040NR-EZ is the 

state and local income tax deduction. If a student or scholar has 

any other deductions and they would help lower taxable income, 

Form 1040NR should be filed instead of 1040NR-EZ. Students from 

India can take the standard deduction on either form. For 2007, 

the standard deduction for single students is $5,350. The deduction 

for married students is $5,350.

Personal Exemptions

All taxpayers who complete Form 1040NR-EZ are entitled to claim 

a personal exemption for themselves unless they are being claimed 

as a dependent on another U.S. income tax return. Students and 

scholars who are eligible to claim family members must file Form 

1040NR. The personal exemption for tax year 2007 is $3,400.

Tax

If a positive number is on line 14, the student or scholar has 

some income subject to tax. Since all of the income on Form 

1040NR-EZ is considered “effectively connected” income, you can 

use the standard tax tables to determine the correct amount of 

tax. Be sure to use only the “Married filing separately” column for 

married students.

Lesson 5 5-15
Social Security and Medicare Tax on Tip Income

Students and scholars are exempt from the social security and 

Medicare tax as long as they are nonresidents. Therefore, they will 

not have an entry on Form 1040NR-EZ, line 16. But a nonresident 

with a J-2 visa is liable for these taxes, and must complete line 16 

if he or she worked for tips and has not paid the full amount of the 

social security and Medicare taxes. This is an advanced issue, so 

you may prefer to let a tax professional handle it. See Lesson 8 

if the student or scholar has had social security or Medicare 

tax withheld.

Federal Income Tax Withheld

A student or scholar may have federal income tax withholding 

listed in one of two places: Form W-2, box 2 and Form 1042-S, box 7. 

If a student or scholar has income from more than one payor, add 

all the federal withholding amounts together.

Estimated Tax and Overpayment from Prior Year

For most students and scholars, this line will be blank. Very few 

nonresidents make estimated tax payments, especially if their only 

income is from wages and scholarships (all that is allowed on Form 

1040NR-EZ). Also, very few of them elect to have their refunds 

applied to next year’s taxes. If a student or scholar had either of 

those types of payments, list the amount on line 19.

5-16 Lesson 5
Any alien who excludes days of presence from the substantial 

 presence test must file Form 8843, Statement For Exempt 

Individuals and Individuals with a Medical Condition. This 

applies to many of the international students and scholars you will 

be assisting. Form 8843 is shown on page 6-3.

Even a student or scholar who had no income must still file 

Form 8843. Form 8843 must be filed for every family member who 

is in the United States on an F-2 or J-2 visa. There is no monetary 

penalty for failure to file, but days of presence can’t be excluded 

from the substantial presence test unless Form 8843 is filed. 

Generally, students complete Parts 1 and 3 of Form 8843, and 

scholars complete Parts 1 and 2. The VITA program does not deal 

with Parts 4 or 5 of the form. Professional athletes and people with 

medical conditions should be referred to tax professionals.

Canadian Students and Form 8843

Canadian students need to complete Form 8843 as long as they are 

exempt individuals. If a Canadian resident does not have a visa, 

you should use the information from his or her work authorization 

papers when completing Form 8843.

Tips for Completing Form 8843

Form 8843 asks for information on why the student or scholar is in 

this country. Information on the student’s educational institution is 

also requested. Most of the information needed is self-explanatory. 

Some tips on completing the form are given below. 

■ When listing the name on the top portion of the form, be careful 

to list the family name and personal name in the correct places. 

■ The space for taxpayer identification number should be filled 

in if the alien has either a social security number (SSN) or an 

 individual tax identification number (ITIN). If the alien has 

 neither kind of number, this area can be left blank. 

■ The address area should be completed only if the alien is filing 

this form by him or herself. If the alien is filing the form along 

with a tax return, the address section need not be completed.

■ Questions 1a and 1b often confuse students and scholars. 

Students may enter the United States in F-2 status and then 

change to F-1 immigration status. But unless they leave the 

United States, they will not actually have F-1 visas. What 

questions 1a and 1b really ask is what immigration status they 

FORM 8843 

FILING REQUIREMENTS Lesson 6

Lesson 6 6-1
are in. Also, there is not complete agreement on what number to 

use as the “visa number.” Generally, the control number is now 

considered the VISA number.

■ Question 2 asks for country of citizenship. Some countries allow 

dual citizenship, so the student or scholar may be a citizen of more 

than one country. The country listed on this line should be the 

foreign country with which the filer has the closest connection.

■ Question 3 asks for the country that issued the passport and the 

passport number. Some passports are in foreign languages. Ask 

the student or scholar to help you interpret the passport.

■ Questions 4a and 4b ask the number of days that the student or 

scholar spent in the United States. Some students and scholars 

may ask you if they actually have to count the days. The answer 

is yes. In many cases, the answer to question 4a for the current 

year will also be the answer to 4b.

■ Questions 5 and 6 are for scholars, teachers, and trainees. These 

questions ask about the academic institution these persons 

“attended” and about the director of their academic program. 

They often think this means where they went to school and 

attended classes. Since most of them did not attend any classes 

during the year, they leave the question blank. Another way to 

word the question would be: “At what academic institution were 

you employed or trained during the year?” If they were at more 

than one place, report the most recent place.

■ Question 7 asks for the visa type held during the year. Again, 

this may confuse scholars because their immigration status may 

have changed during the year although they do not have a new 

visa. If the status changes during the year, you need to attach 

an explanation. The explanation can be handwritten on plain 

paper.

■ Question 8 is self-explanatory.

Exercise 1:

Using the blank form on the next page, prepare a Form 8843 

for Dr. Wolfgang Marzolf, from Germany. He will be filing a 

Form 1040NR also. His address in his home country, where he 

is a citizen, is 34 Spiegelstrasse, 21144 Hamburg, Germany. 

He entered in J-1 status as a guest professor at the University 

of Higher Learning, 426 Main Street, Anytown, IL 60000. He 

works under the direction of Dr. Friederich Heilreich at the same 

address. Dr. Heilreich’s phone number is (999) 555-5555.

Dr. Marzolf has a social security number (XXX-XX-XXXX) and did 

not change immigration status during the year. His visa number 

is 2001345678. His German passport number is 97415826. He 

arrived on August 16, 2006, and has not left the U.S. nor changed 

immigration status since then. He had never been to the U.S. 

before. His visa was issued on August 1, 2006.

6-2 Lesson 6
Exercise 1 Blank Form 8843, page 1

Draft as of

04/25/2007

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2007, or other tax year

beginning , 2007, and ending , 20 .

OMB No. 1545-0074

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (for example, F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2007, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (2001 through 2006)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee

unless you meet the Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

Cat. No. 17227H Form 8843 (2007)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar 

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to

establish that you do not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

2003 2004 2005 2006

2001 2002

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2007 you claim you can exclude for purposes of the substantial presence test 

2007 2006 2005

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

2003 2004 2005 2006

2001 2002

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2007

Lesson 6 6-3
■ Question 9 asks students to enter the identifying information for 

their academic institution. A student who attended more than 

one institution during the year should give the information on 

the one being attended at the end of the year.

■ Question 10 asks students about the director of the academic 

program they are enrolled in. This should be someone the IRS 

can contact, if necessary, to verify that the student was present 

at the school. Students can list the foreign student advisor 

if necessary.

■ Question 11 asks the type of visa held during each of the last 6 

years. If the visa type has changed, a note explaining the change 

must be attached to the form.

■ Question 12 is self-explanatory.

■ Questions 13 and 14 ask whether the student has taken any 

steps to become a permanent resident of the United States. This 

information is needed to determine whether the student is still 

entitled to treaty benefits.

Exercise 2:

Complete Form 8843 on the next page for Daniel Beregovoy. 

Mr. Beregovoy, a citizen of Switzerland, has come to the 

U.S. on an F-1 visa to attend State College, 80 East Broadway, 

Anytown, MO 64000. His academic director is Dr. Small.

Dr. Small uses the same address as the college. His phone

number is (999) 444-4444. Daniel’s home address is 73 Rue de le 

Boulanger, Genéve, CH (Switzerland). His address in the U.S. is 

324 East Broadway, Anytown, MO 64000. He had never been to 

the U.S. before arriving here on July 13, 2006. His social security 

number is XX-XXX-XXXX, and he had no income during 2007. His 

visa number is 17318842. His passport number is 2674130984.

Exercise 2:

Complete Form 8843 on the next page for Daniel Beregovoy. 

Mr. Beregovoy, a citizen of Switzerland, has come to the 

U.S. on an F-1 visa to attend State College, 80 East Broadway, 

Anytown, MO 64000. His academic director is Dr. Small.

Dr. Small uses the same address as the college. His phone

number is (999) 444-4444. Daniel’s home address is 73 Rue de le 

Boulanger, Genéve, CH (Switzerland). His address in the U.S. is 

324 East Broadway, Anytown, MO 64000. He had never been to 

the U.S. before arriving here on July 13, 2006. His social security 

number is XX-XXX-XXXX, and he had no income during 2007. His 

visa number is 17318842. His passport number is 2674130984.

6-4 Lesson 6
Exercise 2 Blank Form 8843, page 1

Draft as of

04/25/2007

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2007, or other tax year

beginning , 2007, and ending , 20 .

OMB No. 1545-0074

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (for example, F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2007, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (2001 through 2006)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee

unless you meet the Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

Cat. No. 17227H Form 8843 (2007)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar 

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to

establish that you do not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

2003 2004 2005 2006

2001 2002

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2007 you claim you can exclude for purposes of the substantial presence test 

2007 2006 2005

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

2003 2004 2005 2006

2001 2002

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2007

Lesson 6 6-5
Marzolf, Answer to Exercise 1

Draft as of

04/25/2007

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2007, or other tax year

beginning , 2007, and ending , 20 .

OMB No. 1545-0074

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (for example, F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2007, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (2001 through 2006)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee

unless you meet the Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

Cat. No. 17227H Form 8843 (2007)

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar 

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to

establish that you do not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

2003 2004 2005 2006

2001 2002

For Paperwork Reduction Act Notice, see page 4.

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2007 you claim you can exclude for purposes of the substantial presence test 

2007 2006 2005

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

2003 2004 2005 2006

2001 2002

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2007

WOLFGANG MARZOLF XXX-XX-XXXX

J-1 8-16-2006

J-1

GERMANY

GERMANY

97415826

365 137

365

UNIVERSITY OF HIGHER LEARNING, 426 MAIN STREET, ANYTOWN, IL 60000

DR. FRIEDERICH HEILREICH, 426 MAIN STREET, ANYTOWN, IL 60000

J-1

6-6 Lesson 6

Lesson 6 FORM 8843 ANSWERS TO EXERCISES
Draft as of

04/25/2007

Form 8843

Department of the Treasury

Internal Revenue Service

Statement for Exempt Individuals and Individuals

With a Medical Condition

For the year January 1—December 31, 2007, or other tax year

beginning , 2007, and ending , 20 .

OMB No. 1545-0074

Your first name and initial

Address in country of residence

Your U.S. taxpayer identification number, if any

General Information

1a

2

3a

13

5

6

Type of U.S. visa (for example, F, J, M, Q, etc.) and date you entered the United States 

Of what country were you a citizen during the tax year?

What country issued you a passport?

Enter your passport number 

During 2007, did you apply for, or take other affirmative steps to apply for, lawful permanent resident

status in the United States or have an application pending to change your status to that of a lawful

permanent resident of the United States?

7

8

9

10

11

12

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Enter the type of U.S. visa (J or Q) you held during: 

Were you present in the United States as a teacher, trainee, or student for any part of 2 of the 6 prior

calendar years (2001 through 2006)?

If you checked the “Yes” box on line 8, you cannot exclude days of presence as a teacher or trainee

unless you meet the Exception explained on page 3.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

Part III

Part I

Part II Teachers and Trainees

Yes No

Students

Enter the name, address, and telephone number of the director of the academic or other specialized program you participated 

in during 2007 

Were you present in the United States as a teacher, trainee, or student for any part of more than 5 calendar 

years?

If you checked the “Yes” box on line 12, you must provide sufficient facts on an attached statement to

establish that you do not intend to reside permanently in the United States.

Enter the name, address, and telephone number of the academic institution you attended during 2007 

Yes No

14 If you checked the “Yes” box on line 13, explain 

For use by alien individuals only.

Attachment

Sequence No. 102

2003 2004 2005 2006

2001 2002

Last name

Address in the United States Fill in your

addresses only if

you are filing this

form by itself and

not with your tax

return

b Current nonimmigrant status and date of change (see instructions) 

b

4a

b

Enter the actual number of days you were present in the United States during:

Enter the number of days in 2007 you claim you can exclude for purposes of the substantial presence test 

2007 2006 2005

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

Enter the type of U.S. visa (F, J, M, or Q) you held during: 

2003 2004 2005 2006

2001 2002

. If the type of visa you held during any

of these years changed, attach a statement showing the new visa type and the date it was acquired.

2007

 DANIEL BEREGOVOY XXX-XX-XXXX

73 RUE DE LE BOULANGER, GENEVE 324 EAST BROADWAY

ANYTOWN, MO 64000

F-1, 7-13-2006

F-1

SWITZERLAND

SWITZERLAND

2674130984

365 171

365

STATE COLLEGE, 80 EAST BROADWAY, ANYTOWN, MO 64000

DR SMALL, STATE COLLEGE, ANYTOWN, MO 64000

F-1

✔

✔

Beregovoy, Answer to Exercise 2

Lesson 6 6-7
STUDENT NOTES

6-8 Lesson 6
This lesson covers the final steps in finishing the return. They 

include signing, assembling the return, information about a

refund and amount owed, consideration of estimated tax paid 

and withholding, and the importance of doing a quality review 

on the return.

GENERAL ISSUES

The following points apply to both Forms 1040NR and 1040NR-EZ.

Identification Numbers

Every individual return filed with the IRS must show a tax

identification number. This can be either a social security number 

(SSN) or an individual tax identification number (ITIN). Every 

dependent listed on the return must also have a tax identification 

number.

The Social Security Administration issues social security numbers 

to U.S. citizens and to aliens who have work authorization. Any 

person who is eligible for a social security number (SSN) should 

apply for one. Anyone else who needs an identification number 

should file Form W-7 or W-7(SP) with the IRS.

Form 8843 does not require an identification number. A student or 

scholar who is not required to file any other return does not need 

an identification number to file Form 8843.

Taxpayer Identification Section

The taxpayer identification section should be completed after the 

return is finished. Often, this will save you time because after you 

begin preparing a 1040NR-EZ, you may realize that the taxpayer 

should actually file a Form 1040NR or 1040 instead. If so, you can 

avoid filling out the taxpayer identification section again.

Some students and scholars will already have completed the 

taxpayer identification section but may need your assistance only 

on the other parts of the return. You can use a form they started, 

but it wise to have correction fluid available while preparing 

a return.

FINISHING THE RETURN Lesson 7

Lesson 7 7-1
A taxpayer who received a package of forms mailed by the IRS 

should have a label that can be used in the identification section. 

Make sure that the information on the label is correct before 

attaching it to the return.

Other Information

Nonresident returns contain a section asking for information very 

similar to that requested on Form 8843. While this may seem 

repetitive, it is necessary to complete this section. 

Please pay close attention to the section that asks the type and 

amount of income that is exempt from tax. You need to provide both 

the amount excluded and the treaty article number that allows 

its exclusion. Failure to complete this section fully could cause the 

form to be returned to the student or scholar.

Signing the Return

Make sure the taxpayer signs and dates the return before mailing. 

An unsigned return cannot be processed and will be returned to the 

taxpayer. You should put the VITA designation in the preparer’s 

section of the return.

Assembling the Return

Make sure that all forms, schedules, and attachments show 

the taxpayer’s name and social security or individual taxpayer 

identification numbers. Attach forms and schedules behind 

Form 1040NR or 1040NR-EZ. Attach Forms W-2 and 1042S to the 

left margin of the front page. If any Form 1099 indicates income 

withholding, attach it to the return also.

Direct Deposit

Many students and scholars prefer the direct deposit option for their 

refunds. If the student or scholar prefers direct deposit, complete the 

direct deposit information section of the return. The following

examples will help you determine what information to use.

Xu Chung

123 College Street

Collegetown, IL 60000

PAY TO THE

ORDER OF

1234

15-000000000

|:250250025 |:202020❚ 86❚'1234

COLLEGETOWN BANK

Collegetown, IL 60000

For

DOLLARS

$

20

SAMPLE

The “routing number” for Xu Chung is 250250025. The “account 

number” is 20202086. Do not include the check number (which in 

this example is 1234).

ALERT

Caution! Make sure

you enter the correct 

bank account routing 

transit and account 

information on the

return. The IRS is

not responsible for 

a lost refund if the

information is entered 

incorrectly.

7-2 Lesson 7
Sometimes students and scholars want their refunds deposited to 

a savings account. They often have a small paper card issued by 

the bank that contains the necessary information. 

Collegetown Bank Instant Savings Account

Collegetown, IL 60000

The best way to save for a rainy day! Get your account today!

250250025:/// 203621:///

In this case, the routing number is 250250025 and the account 

number is 203621.

SPLIT REFUNDS

Taxpayers may now split their refunds. They can send part of 

their refund to checking and put part of it away into a savings 

account for future use. 

This ability to split or allocate their direct deposit refunds among 

multiple accounts is available to all individual filers, including 

1040NR and 1040NR-EZ.

Taxpayers must attach Form 8888, Direct Deposit of Refund,

to their returns indicating amounts for each allocation along 

with the account information. The refund amount is shown in the 

“Refund” section of the tax form including amounts to be direct 

deposited into more than one account. To split the direct deposit 

of a refund among two or three accounts, check the appropriate 

box on Form 1040NR or 1040NR-EZ and attach Form 8888.

If the taxpayer wants the refund deposited into one account, do 

not check the split refund lines. 

PAYMENT OPTIONS

Some students and scholars owe money with their tax return. This 

usually is due to insufficient withholding from wages. Nonresidents 

have the same payment options as citizens: 

1. They can pay the entire balance by the due date for the return.

2. They can pay by credit card.

3. They can ask for an installment agreement.

You should explain to filers that interest and any applicable 

penalties will continue to accrue until they pay the full amount 

due. Also, remind them not to send cash through the mail. Personal 

checks, cashiers’ checks, and money orders are acceptable ways to 

pay.

ALERT

Savings account 

deposit slips, in 

particular, are not a 

dependable source 

for routing numbers.

ALERT

Taxpayers

requesting direct 

deposit will be able to 

split their refunds and 

direct their funds into 

up to three seperate 

accounts. Taxpayers 

must attach Form 

8888 to their returns 

indicating amounts 

and account 

information for each 

account.

Lesson 7 7-3
ESTIMATED TAX

Estimated tax is an amount the taxpayer expects to owe for the 

next year, even after federal withholding. In other words, it is the 

amount the taxpayer expects to have to pay when filing a return in 

the spring of 2007.

Any student or scholar who expects to owe over $1,000 on the 

tax return due next year must make estimated tax payments. For 

further information, see IRS Publication 505, Tax Withholding 

and Estimated Tax.

7-4 Lesson 7
Social Security and Medicare Tax Liability

An exemption from social security and Medicare taxes applies 

to nonimmigrant students, scholars, teachers, researchers, and 

trainees (including medical interns) who are temporarily present 

in the United States in F-1, J-1, M-1, or Q-1 status as long as 

they remain nonresidents for federal income tax purposes. The 

exemption also applies to any period in which a foreign student 

is in “practical training” or other off-campus employment allowed 

by the USCIS. Such persons are exempt from social security and 

Medicare taxes as long as they remain nonresident aliens for 

tax purposes. Those who become resident aliens must start paying 

social security and Medicare taxes. 

As discussed in Lesson 1, foreign students in F-1, J-1, M-1, or Q-1 

nonimmigrant status who have been in the United States over

5 years—and foreign scholars, teachers, researchers, trainees, and 

other non-students in J-1 or Q-1 nonimmigrant status who have 

been in the United States over 2 years—are normally resident 

aliens. If so, they must pay social security and Medicare taxes. 

Federal tax regulations state that spouses and dependents of alien 

students, scholars, trainees, teachers, or researchers temporarily 

in the United States in F-2, J-2, M-2 status are not exempt from 

social security and Medicare taxes on any wages they earn in the 

United States. That is because they did not enter the United States 

for the primary purpose of engaging in study, training, teaching, or 

research.

As was stated earlier, U.S. immigration law does not allow 

spouses and dependents in F-2 and M-2 status to be employed in 

the United States. But if they are employed in violation of their 

nonimmigrant status, the IRS imposes both income tax and social 

security and Medicare taxes on their income.

Alien students, scholars, trainees, teachers, or researchers in F-1, 

J-1, M-1, or Q-1 status who change to a nonimmigrant status other 

than F-1, J-1, M-1, or Q-1 become liable for social security and 

Medicare taxes—in most cases on the day they change status.

Teachers, trainees, and researchers in H-1b status and alien 

nurses in H-1a status are liable for social security and Medicare 

taxes from the first day of U.S. employment—regardless of whether 

they are nonresident or resident aliens and whether or not their 

wages may be exempt from federal income tax under an income 

tax treaty.

SOCIAL SECURITY

TAX MATTERS Lesson 8

Lesson 8 8-1
Foreign scholars, teachers, researchers, or trainees who arrive 

in the United States in O-1 status or TN status (from Canada or 

Mexico under the NAFTA treaty) are fully liable for U.S. social 

security and Medicare taxes if they are employed by the university, 

whether they are resident or nonresident aliens.

Self-Employment Tax Liability

The Internal Revenue Code normally imposes “self-employment 

tax” on any self-employment income of a person in the 

United States. But self-employment income of nonresident aliens 

is exempt from this tax. Again, the exemption is lost if an alien 

becomes a resident.

As discussed in Lesson 1, foreign scholars, teachers, researchers, 

trainees, and other non-students who enter the United States on 

J-1 or Q-1 visas usually become resident aliens on January 1 of 

their third calendar year in the United States; and foreign students 

who enter the United States on F-1, J-1, M-1, or Q-1 visas usually 

become resident aliens on January 1 of their sixth calendar year in 

the United States.

Note: U.S. immigration law usually does not authorize 

nonimmigrants (such as nonresident aliens) to earn 

self-employment income. Thus, the question of a foreign 

student’s or scholar’s liability for self-employment tax does not 

often arise. But if a nonresident violates his or her nonimmigrant 

status by earning self-employment income, the IRS will impose 

self-employment tax on it.

FORM 843

If social security and Medicare taxes were withheld in error from 

pay received that was not subject to the taxes, you must first 

contact the employer who withheld the taxes for reimbursement. 

If you are unable to get a refund from the employer, file a claim for 

refund with the Internal Revenue Service on Form 843, Claim for 

Refund and Request for Abatement.

You must attach the following to your claim: 

• A copy of your Form W-2, Wage and Tax Statement, to prove 

the amount of tax withheld; 

• Form I-797, INS Approval Notice, is needed if you have 

changed your status from F-1 or J-1 to another status prior 

to filing the claim; 

• If your visa status changed during the tax year, you should 

attach copies of the pay stubs that cover the period of 

exemption from social security taxes; 

• A copy of INS Form I-94, Arrival/Departure Record, if 

you are still in the United States; 

• A copy of your valid entry visa; 

8-2 Lesson 8
• Form 8316, Information Regarding Request for Refund of Social Security 

Tax, or a signed statement stating that you have requested a refund from the 

employer and have not been able to obtain one; and 

• A copy of Form 1040NR, U.S. Nonresident Alien Income Tax Return (or Form 

1040NR-EZ), for tax the year in question. Processing of your claim may be delayed 

if you submit it less than six weeks after you filed Form 1040NR or 1040NR-EZ. 

In addition to the documentation listed above, foreign student visa holders should also 

attach the following: 

• A copy of Form I-20, Certificate of Eligibility, endorsed by your student 

advisor and stamped by the Bureau of Citizenship and Immigration Services; and 

• A copy of the Employment Authorization Document of your Optional Practical 

Training (e.g., Form I-766 or I-688B). 

• If you are an exchange visitor, attach a copy of DS-2019 to your claim. 

File the claim, with attachments, with the IRS where the employer’s returns were filed. 

If you do not know where the employer’s returns were filed, send your claim to the 

Internal Revenue Service Center, Austin, TX 73301-0215 USA. 

Lesson 8 8-3
Form 843

Draft as of

09/11/2007

Form 843

OMB No. 1545-0024

Claim for Refund and Request for Abatement

(Rev. November 2007)

Department of the Treasury

Internal Revenue Service See separate instructions.

Use Form 843 if your claim or request involves:

Daytime telephone number

Name(s)

( )

Address (number, street, and room or suite no.)

City or town, state, and ZIP code

Spouse’s SSN or ITIN

Your SSN or ITIN

Employer identification number (EIN)

Name and address shown on return if different from above

1 Period. Prepare a separate Form 843 for each tax period 2 Amount to be refunded or abated

From / / to / / $

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. Cat. No. 10180R Form 843 (Rev. 11-2007)

7 Explanation. Explain why you believe this claim or request should be allowed and show the computation of the amount shown 

on line 2. If you need more space, attach additional sheets.

Under penalties of perjury, I declare that I have examined this claim, including accompanying schedules and statements, and, to the best of my knowledge and

belief, it is true, correct, and complete.

Signature (Title, if applicable. Claims by corporations must be signed by an officer.) Date

Signature (spouse, if joint return) Date

Signature. If you are filing Form 843 to request a refund or abatement relating to a joint return, both you and your spouse must sign the claim.

Claims filed by corporations must be signed by a corporate officer authorized to sign, and the officer’s title must be shown.

Do not use Form 843 if your claim or request involves:

an overpayment of income taxes (use the appropriate amended income tax return),

an overpayment of excise taxes reported on Form(s) 11-C, 720, 730, or 2290.

a refund of excise taxes based on the nontaxable use or sale of fuels, or

a refund of one of the taxes (other than income taxes) shown on line 3,

an abatement of employment or certain excise taxes, or

(a)

(b)

(c) a refund or abatement of interest, penalties, or additions to tax for one of the reasons shown on line 5a.

(a)

(b)

(c)

Dates of payment 

3 Type of tax. Indicate the type of tax to be refunded or abated or to which the interest, penalty, or addition to tax is related.

Employment

Type of penalty. If the claim or request involves a penalty, enter the Internal Revenue Code section on which the penalty

is based (see instructions). IRC section:

Estate Gift

4

Interest was assessed as a result of IRS errors or delays.

A penalty or addition to tax was the result of erroneous advice from the IRS.

709

990-PF 1120

706 940 945

Excise (see instructions)

Other (specify) 

943

Income

Interest, penalties, and additions to tax. Check the box that indicates your reason for the request for refund or

abatement. (If none apply, go to line 6.)

5a

Reasonable cause or other reason allowed under the law (other than erroneous advice) can be shown for not

assessing a penalty or addition to tax.

b

6 Original return. Indicate the type of return filed to which the tax, interest, penalty, or addition to tax relates.

Preparer’s Date Preparer’s SSN or PTIN

signature Check if

self-employed Paid

Preparer’s

Use Only Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN



Phone no. ( )

941

1040 4720

I am a nonresident alienstudent of an F-1 visa status. Section 3121 (b) (19) of the Internal Revenue 06060912D-W1200000-1C-T011E-2PN55

I am a nonresident alien student of an F-1 visa status. Section 3121 (b) (19) of the Internal Revenue Code and the 

regulations thereunder state that a NRA student on an F-1 visa is not liable for paying SS and MC taxes on wages 

for as long as he/she remains an NRA under the residency rules stated in Sect. 7701 (b) of the Internal Revenue Code. 

I state that for calendar year 2007, I was a NRA student and not liable for the SS and MC taxes. I hereby ask for a 

refund of SS and MC taxes withheld from my wages. I have asked my employer for a refund of these taxes and have 

been refused.

8-4 Lesson 8
Form 8316

Information Regarding Request for Refund of Social

Security Tax Erroneously Withheld on Wages Received

by a Nonresident Alien on an F, J, or M Type Visa

Department of the Treasury - Internal Revenue Service

Form 8316

Rev. January 2006

OMB No. 1545 - 1862

Was the income that the Social Security taxes were withheld from directly related to your course of studies as

identified by the provisions of your entry visa:

If you checked “NO,” the taxes were correctly withheld and you are not entitled to a refund. Do not complete the rest of

this form.

If you checked “YES,” you must first try to get a refund of the Social Security taxes from your employer before filing a

claim with the Internal Revenue Service. If you did this but have not been able to get a refund from your employer,

please complete the remainder of this form and attach it to your claim Form 843.

1. Has your employer paid you back for any part of the tax withheld

Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are

required to give us this information so that we can process your claim for refund of erroneously withheld FICA. We need to ensure that you are entitled

to the refund and that your employer has not previously issued you a refund of this withholding. If you do not provide all of the information, we may not

be able to process your claim. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless

the form displays a valid OMB control number. Books or records relating to a form or its instructions may be retained as long as their contents may

become material in the administration of any Internal Revenue Law. Generally, tax returns and return information are confidential, as required by Code

section 6103. The time needed to complete this form will vary depending on the individual circumstances. The estimated average time is 15 minutes. If

you have comments concerning the accuracy of this estimate or suggestions for making this form simpler, we would be happy to hear from you. You can

write to the Tax Products Coordinating Committee, 1111 Constitution Ave. NW, Washington, DC 20224.

Please do not send your order for Form 8316 to the Tax Products Coordinating Committee. Send your forms order to the IRS National Distribution

Center.

Form 8316 (Rev. 1-2006)

 2. If yes, show amount

Yes No

A

.

C

.

B.

3. Have you authorized your employer to claim any part of the tax as a credit or refund

5. Has your employer claimed any part of the tax as a credit or refund

If you cannot get a statement from your employer concerning the above information, please tell us why in the space below.

7. Have you claimed any part of the tax as credit against, or a refund of your Federal income tax

 4. If yes, show amount

 6. If yes, show amount

Yes No

 8. If yes, show amount

9. Name and address of employer (include street, city, State and ZIP code)

Catalog Number 62323Y Department of the Treasury - Internal Revenue Service

Your signature Date

Your telephone number (include area code) Convenient hours for us to call

Yes No

Yes No

Yes No

$

$

$

$

Do not Know

Lesson 8 8-5
8-6 Lesson 8

STUDENT NOTES
TREATIES AND STATE INCOME TAXES

Income tax treaties do not cover state income taxes. However, many 

states define income based on federal taxable income or federal 

adjusted gross income. In some states, like Illinois, this allows 

students and scholars to exempt the same amount of income from 

state taxes. In other states, the students and scholars are required 

to add back in the treaty exclusion when computing state income 

taxes. Whether state income taxes allow the treaty benefit must 

be determined on a case-by-case basis. Please check with the state 

income tax authorities for further information.

The India treaty allows students to claim the standard deduction 

on their federal return. Since some states (such as Illinois) base the 

state income tax on the federal adjusted gross income, the Indian 

students will not always benefit from their treaty provisions on the 

state returns.

INTERNET ADDRESSES FOR STATE INCOME TAX

You may wish to use the Internet to find out more about the state 

income taxes. Every state that has an income tax has a web site. 

The web addresses are not printed here because they are subject to 

change. If you do not know the web address for a state income tax 

site, you may visit www.irs.gov for links to the state income tax 

web pages.

STATE INCOME TAX ISSUES Lesson 9

Lesson 9 9-1
STUDENT NOTES

9-2 Lesson 9
Most international students and scholars will ask you questions if 

they do not understand what you are telling them. This appendix 

contains actual questions from students and scholars. Following 

the questions and answers is a section on most frequent errors.

Where do I mail my tax return? The address you gave me 

seems incomplete.

You should mail your return to: 

 Internal Revenue Service

 Austin TX 73301-0215 

 USA

You do not need a street address or building number.

What type of postage and envelope should I use to mail my 

tax return?

You can use any envelope to mail your tax return. It is okay to 

fold the return. You should put the proper postage on the 

envelope. Generally, you can send 4 or 5 pieces of paper with one 

first class stamp. You need not use registered or certified mail, 

but you can if you want to.

I forgot to put my social security number on my return. 

What should I do? Should I send in another return and put 

my number on it?

You should wait to see if the IRS sends the return back to 

you. Often, they can find your number by looking at one of the 

attachments to your return. Do not send in another tax return.

My wife was on a J-2 visa last year. We filed Form 843 for 

her but it was rejected. Why?

Form 843 is used by individuals who are nonresident aliens for 

federal tax purposes to claim a refund for social security and 

Medicare taxes that were withheld inappropriately. Not all 

nonresidents are exempt from social security and Medicare tax. 

If your wife was a J-2 student last year and her income was from 

COMMON QUESTIONS AND

PROCESSING ISSUES Appendix A

Appendix A-1
working on campus, she is eligible to file 843. If your wife was not 

a student and she worked on or off campus, she is not eligible for a 

refund of the social security and Medicare taxes.

My family could not live on my income as an F-1 student, so 

my wife earned some money. She is an F-2 and was paid $50 

per week to deliver a newspaper to several locations near 

our house. She did not receive a W-2. She has a 1099-MISC. 

What should we do now?

For income tax purposes, your wife is considered self-employed. 

She should file Form 1040NR with Schedule C and pay income and 

social security tax on her earnings. Note that even though she did 

not have permission from USCIS to work, she still must file the 

required tax forms. Since she is F-2 status, she is not entitled to 

any treaty benefit.

Last year I was in a bad car accident. My insurance did not 

cover the damages. I had to pay $789 to get my car fixed. 

This was a lot of money to me because I earned only $5,000 

last year. Where can I deduct this?

Casualty losses are deductible if you file Form 1040NR. You will 

need to file Form 4884, Casualty and Theft Losses, with your 

return. The first $100 of your loss is not deductible. You also have 

to limit your loss by 10% of your income. Therefore, you should be 

able to deduct a casualty loss of $189 on your return.

I have not received my Forms W-2 and 1042S. Could you 

please make one for me?

You need to ask your employers to reissue the forms. If this is not 

possible, IRS can help you complete a substitute wage statement if 

you have all the information on your earnings and withholding.

Last year I went to an American church. I gave them $10 

per week. Can I deduct this money? 

If you file Form 1040NR, you can deduct monies donated to U.S. 

charities. In America, all churches are considered charities. If you 

received anything of value from the donation, such as a book, you 

may need to adjust the amount that you deduct.

I filed my return late; what will happen?

If you owed money to the IRS, there may be a penalty for not 

 sending your return in on time. If you did not owe any tax, there 

will not be any IRS penalties for not filing on time. However, the 

USCIS may not look at this favorably since you are required to 

timely comply with all laws while in the United States.

I never got my return back. What should I do?

A-2 Appendix
If you are talking about your refund money, you should contact 

your nearest IRS office to determine why your refund was not 

issued. The most common reason is because people move. If you 

move after you file your return, you can file Form 8822, Change 

of Address to change your address.

I am a second-year F student and I received Form 1098T. 

What should I do with it?

You should keep it with your tax records, but you do not need to 

send it in with your return or mention it on the return. The 

purpose of the form is to let you know that you were a student 

at the college or university that issued it. It also can contain 

information about how much tuition and fees you paid. If you were 

a domestic student, this information could be used to calculate tax 

credits. International students are not entitled to education credits 

as long as they are nonresidents.

I changed my immigration status from F-2 to F-1 on 

May 11, 2007 (the day I received the notice from the 

USCIS). I also left the United States for a home visit late in 

December and I acquired an F-1 visa on December 21, 2007. 

I don’t know which date to use on question 1b on Form 8843.

You should use the date of May 11, 2007. Even though we ask 

if you changed visas, we actually want to know if you changed 

immigration status. Therefore, the date we want is the one that 

coincides with your status change.

I arrived in the United States in December of 2007 and I 

didn’t work. Do I still have to file Form 8843?

Yes. Even if you were in the United States only 1 day in 2007, you 

must file Form 8843.

I am married and have a child who was born in the

United States. Can I take a deduction for my wife and child?

Generally, no. Students and scholars from Canada, Mexico, Korea 

and India may be able to claim exemptions for their spouses and 

children if certain conditions are met. Students and scholars from 

all other countries are not permitted to take a deduction as long as 

they are nonresident aliens for tax purposes.

Appendix A-3
I am from China and my three children live with me. I pay 

everything for them. Can I claim them as dependents? Can I 

get any child-related credits for them?

No. Chinese nonresidents are not allowed to claim a deduction for 

their children nor are they entitled to any child-related credits.

I have been a student for two years and I still can’t figure 

out how to calculate the Hope Credit. In Germany we don’t 

have such credit.

You can stop being concerned because as a nonresident alien, you 

are not entitled to the HOPE or Tuition Tax Credit. You also are 

not eligible for any earned income credit.

Can I deduct the computer I had to buy to write my term 

papers and do other homework?

Generally, no. Unless a specific class required that you have a 

computer, no deduction is allowed. Many times you need access to a 

computer, but it isn’t stipulated that you need your own computer.

Should I keep a copy of my return?

Yes. And you should keep a copy of all of the attachments such as 

W-2 and 1042S. This helps prove that you filed a tax return. You 

may need this proof if you apply for permanent resident status 

with the USCIS.

I owe money. Can I send a check, and for whom do I make it?

You can send a check made out to U.S. Treasury. Make sure 

you write your social security number or individual taxpayer 

identification number and tax year on the check in the memo 

section. 

I will be graduating in June. I am going home to India. I did 

have work this year (2008). What do I need to do next year 

to fix my tax problems?

You need to make sure that the payroll office at your college has an 

address to forward your wage statements. You can download the 

tax forms you will need by going to www.irs.gov or you can have 

someone mail the forms to you. You will still send your completed 

forms to the Austin Submission Processing Center.

A-4 Appendix
PROCESSING ISSUES

The Internal Revenue Service’s processing center in Austin, 

Texas, processes all nonresident alien returns (Form 1040NR and 

Form 1040NR-EZ).

The following are return process issues:

■ A mismatch between the SSN or ITIN and the name is the 

most common error. Exercise caution when completing the 

taxpayer information section of the return.

■ If wages are present on the return, it must be filed by 

April 15, unless an extension of time to file has been 

submitted before April 15.

■ Tax treaty exclusions should be adequately addressed in the 

questions and answers section of the tax return. Particular 

attention should be given to the amount of time spent in 

the United States under the relevant visa, and the treaty 

country and article number should be clearly indicated.

■ Particular emphasis is needed on the provisions of the India 

treaty and calculation of possible standard deduction and 

exemption amounts.

■ Amended returns should be prepared for scholars who lose 

all of their treaty benefit if they stay past the maximum 

presence allowed by their treaty.

Appendix A-5
STUDENT NOTES

A-6 Appendix
Comprehensive problems and their solutions are contained in this 

appendix. Work the problems and then check your answers. You 

will then be ready to proceed to the test. 

To determine the amount of the income tax, use the tax tables that 

can be found at www.irs.gov.

COMPREHENSIVE PROBLEM 1

Michelle Deventer, a citizen and permanent resident of Belgium, 

came to the United States in F-1 immigration status on August 1, 

2005. She has remained in the country since then and is a 

full-time student at the local university. Michelle, born 4-15-1982, 

is single. Her address in her home country is 4111 East Road, 

Anycity, Belgium. She wants any refund mailed to her. She does not 

want to authorize anyone else to discuss the return with the IRS. 

She began working on the university campus on January 3, 2007. 

She filed Form 8233 with the payroll department on

January 15, 2007. She did not have to pay income tax in Belgium 

on her U.S. earnings. She did not take any affirmative steps to 

apply for permanent residence in the United States. Using the 

following information, complete Michelle’s income tax return. 

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy B

for Recipient Department of the Treasury

Internal Revenue Service

U.S. Federal

tax withheld

Exemption

code

Withholding Net income

allowances

Tax

rate

Income

code

Amount repaid

to recipient

WITHHOLDING AGENT’S name

Recipient’s U.S. TIN, if any 

RECIPIENT’S name

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19a

Payer’s state tax no.

1

12

2

Form 1042-S (2007)

20

Name of state

21

AMENDED

Gross income 3 4 5 6 7 8

24

10a

22

13a

Country code

23

NQI’s/Flow-through entity’s address (number and street)

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

10b Address (number and street)

10c Additional address line (room or suite no.)

10d City or town, province or state, and country 10e ZIP code or foreign postal code

13b Address (number and street)

13c Additional address line (room or suite no.)

13e ZIP code or foreign postal code

19b Additional address line (room or suite no.)

19c City or town, province or state, and country 19d ZIP code or foreign postal code

13d City or town, province or state, and country

2007

19 2,000 2,000 04

XX-XXXXXXX

✔

HOMETOWN UNIVERSITY

123 HOME AVENUE

TOWNCENTER, KS 67000

MICHELLE DEVENTER

345 TOWN AVE FAIRMONT TOWER 

TOWNCENTER, KS 67000

XXX-XX-XXXX

✔

BELGUIM BE

Exhibit 1 Deventer

COMPREHENSIVE PROBLEMS Appendix B

Appendix B-1
1

Retirement

plan Third-partysick pay Statutoryemployee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number (EIN)

Medicare wages and tips

Social security tips

13

5

Control number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B—To Be Filed With Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

b

c

d

e

f

W-2 Wage and Tax

Statement 20 70

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS website

at www.irs.gov/efile.

Suff.

a Employee’s social security number

xxx-xx-xxxx OMB No. 1545-0008

xx-xxxxxxx

HOMETOWN UNIVERSITY

123 HOME AVENUE

TOWNCENTER, KS 67000

 MICHELLE DEVENTER

345 TOWN AVE 

TOWNCENTER, KS 67000

$3,200 $788

KS XX-XXXXXXX $3,200 $79

Exhibit 2 Deventer

B-2 Appendix
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

9876 WEST ROAD, ANYCITY MALASIA 

Exhibit 3 Deventer

Appendix B-3
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Form 1040NR-EZ (2007)

Exhibit 4 Deventer, continued

B-4 Appendix
COMPREHENSIVE PROBLEM 2

Determine what type of return that Sue from Malaysia should file. 

She is single and 26 years old. She entered the U.S. on an F-1 visa 

on August 1, 2002 and has not left the country since she arrived 

here. She has been a full-time student at the local university 

since then. She began working on January 2, 2003, in the campus 

bookstore. In 2007, her W-2 shows that she earned $5,200 and no 

income tax was withheld.

Is she a resident or a nonresident for tax purposes? What tax form 

should she file?

Answer: ______________________________________________________

COMPREHENSIVE PROBLEM 3

Kiwal Chee, a citizen and resident of Malyasia, entered the U.S. on 

August 1, 2005 in F-1 immigration status. He is a full-time student 

at the local university and has not left the country since he arrived 

here. He is single and 27 years old. In his home country he lives 

at 9876 West Road, Anycity, Malaysia. He wants his refund to be 

mailed to him in the U.S. He does not want to authorize anyone 

else to talk to the IRS about this return. He started to work in 

the cafeteria in 2006. He does not have to pay tax in Malaysia on 

his U.S. income. He did not take any affirmative steps to apply for 

 permanent residency. Last year and this year, he received the same 

amount of income. He tells you that he did not file a 2006 return 

because he didn’t know how. Using the W-2 form below, prepare his 

1040NR-EZ for 2007. Should he file a return for 2006 also?

1

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number (EIN)

Medicare wages and tips

Social security tips

13

5

Control number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B—To Be Filed With Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

b

c

d

e

f

W-2 Wage and Tax

Statement 20 70

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS website

at www.irs.gov/efile.

Suff.

a Employee’s social security number

xxx-xx-xxxx OMB No. 1545-0008

xx-xxxxxxx

DELICIOUS ENTERPRISES

PO BOX 1230

SUPERVILLE, IL 53000

 KIWAL CHEE

678 EAST STREET

SUPERVILLE, IL 53000

$4,100 $400

IL XX-XXXXXXX $4,100 $40

Exhibit 5 Chee

Appendix B-5
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

9876 WEST ROAD, ANYCITY MALASIA 

Exhibit 6 Chee

B-6 Appendix
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Form 1040NR-EZ (2007)

Exhibit 7 Chee, continued

Appendix B-7
Comprehensive Problem 1

See the completed Form 1040NR-EZ for Michelle Deventer on 

pages B-9 and B-10.

Comprehensive Problem 2

Sue is a resident for tax purposes. She should file Form 1040EZ.

Comprehensive Problem 3

See the completed Form 1040NR-EZ for Kiwal Chee on pages B-11 

and B-12. He should also file a return for 2006.

B-8 Appendix

Appendix B—Part 2

Appendix B ANSWERS TO COMPREHENSIVE PROBLEMS
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

MICHELLE DEVENTER

345 TOWN AVENUE FAIRMONT TOWER ROOM 216

TOWNCENTER, KS 67000

USA

BELGIUM

4111 EAST ROAD, ANYCITY BELGUIM

✔

3,200

2,000

3,200

3,200

79

3,121

3,400

0

0

0

788

788

788

788

XXX-XX-XXXX

X

 Answer, Deventer

Appendix B-9
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Form 1040NR-EZ (2007)

BELGIUM

✔

STUDY

F-1

F-1

8-1-2005

✔

153 365 365

✔

BELGIUM

WAGES $2,000 ARTICLE 21 (1)

✔

✔

Answer, Deventer continued

B-10 Appendix
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

KIWAL CHEE

678 EAST STREET 

SUPERVILLE IL 53000

USA

9876 WEST ROAD, ANYCITY MALASIA 

✔

4,100

4,100

4,100

40

4,060

3,400

700

71

71

400

400

329

329

XXX-XX-XXXX

X

Answer, Chee

Appendix B-11
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Form 1040NR-EZ (2007)

MAYALSIA

✔

STUDY

F-1

F-1

8-1-2005

✔

153 365 365

✔

✔

✔

Answer, Chee, continued

B-12 Appendix
Please complete the test on your own. Taking the test in groups or 

with outside assistance could prove to be a disservice to the people 

you’re volunteering to assist.

The test is divided into three parts:

Part 1 – Residency Status and Form 8843

Part 2 – Taxability of Income and Form 1040NR-EZ

Part 3 – Advanced Issues and Form 1040NR

All volunteers must pass Part 1. Your instructor will tell you what 

other parts of the test that you are expected to pass.

The general criteria for passing are:

Part 1 – You must answer 7 out of the 10 questions correctly.

Part 2 – You must answer 11 out of the 15 questions correctly.

Part 3 – You must answer 6 out of the 9 questions correctly.

There is not a retest for this course. If you do not successfully 

complete the test, please work with your site coordinator to 

determine if you can provide volunteer assistance to 

international students and scholars.

Note: The tax charts can be downloaded from www.irs.gov.

VOLUNTEER AGREEMENT, TEST ANSWERS, AND VITA/TCE 

CERTIFICATION

All volunteers must properly complete and sign Form 13615 on 

the next page. The properly completed form and your consolidated 

answers to the test questions (page T-3) must be given to your 

instructor. Your site coordinator or sponsor will complete the 

 certification portion of the form based on your responses to the test 

questions.

Your site coordinator or instructor may provide you a wallet 

card (Form 13645) as notification that you passed the test. If 

given the card, you should bring it to the tax preparation site for 

 identification purposes. The card was designed to acknowledge the 

accomplishment of certified volunteers as well as assist internal 

and external stakeholders with identifying certified volunteers.

Note to Instructor: Contact your local IRS-SPEC representative 

for the test answers. The answers are located in Publication 678 

FS-A, which can be accessed from irs intranet only.

TEST FOR INTERNATIONAL

STUDENTS AND SCHOLARS

U.S. FEDERAL INCOME TAX ISSUES

Test T-1
The mission of the VITA/TCE Program is to provide free basic tax return preparation for eligible taxpayers. 

Volunteers are the program's most valuable resource. To establish the greatest degree of public trust 

Volunteers have a responsibility to provide high quality service and uphold the highest of ethical standards.

As a participant in the VITA/TCE Program, I agree to the following standards of conduct:

I will treat all taxpayers professionally, with 

courtesy and respect.

Print Full Name Signature and Date

Home Street Address Daytime Telephone

City, State and Zip Code E-mail Address

Site and/or Partner Name

This form is to be retained at the Site or by the Partner.

Volunteer Agreement

Standards of Conduct – VITA/TCE Programs

Department of the Treasury – Internal Revenue Service

•

•

•

•

•

•

•

Cat. No. 38847H Form 13615 (Rev. 7-2007)

Form 13615

(Rev. 7-2007)

I will exercise reasonable care in the use 

and protection of equipment and supplies. 

(Partner Use Only) Test Results – Only volunteers preparing federal tax returns, answering tax law 

questions, or reviewing federal tax returns for accuracy are required to be certified. 

Foreign Student/Scholars Basic Intermediate Advanced Military Part 1 Part 2 Part 3

Volunteer’s Test Score

Certification level – 

Mark the appropriate box

Cat. No. 38847H

Volunteer Information

Privacy Act Notice–The Privacy Act of 1974 requires that when we ask for information we tell you our legal right to ask for the information, why we

are asking for it, and how it will be used. We must also tell you what could happen if we do not receive it, and whether your response is voluntary, 

required to obtain a benefit, or mandatory. 

Our legal right to ask for information is 5 U.S.C. 301. We are asking for this information to assist us in contacting you relative to your interest and/or 

participation in the IRS volunteer income tax preparation and outreach programs. The information you provide may be furnished to others who 

coordinate activities and staffing at volunteer return preparation sites or outreach activities. The information may also be used to establish effective 

controls, send correspondence and recognize volunteers.

Your response is voluntary. However, if you do not provide the requested information, the IRS may not be able to use your assistance in these 

programs.

Volunteer position(s) 

(screener, preparer, interpreter, reviewer, etc.)

I will safeguard the confidentiality of

taxpayer information.

I will apply the tax laws equitably and 

accurately to the best of my ability.

I will only prepare returns for which I am 

certified. (Basic, Advanced, etc.)

I will not solicit business from taxpayers I 

assist or use the knowledge I have gained 

about them for any direct or indirect 

personal benefit for me or any other 

specific individual.

I will not accept payment from taxpayers

for the services I provide. I may receive 

compensation as an employee of a 

program sponsor.

Instructions: To be completed by all volunteers in the VITA/TCE program. 

International

T-2 Test
Publication 678FS Test Answer Sheet

Part 1: Residency Status and Form 8843

1. 8.

2. 9.

3. 10.

4.

5.

6.

7.

Part 2: Form 1040NR-EZ

1. 6. 11.

2. 7. 12.

3. 8. 13.

4. 9. 14.

5. 10. 15.

Part 3: Form 1040NR and Advanced Issues

1. 4. 7.

2. 5. 8.

3. 6. 9.

Test T-3
Carefully read the following questions and write your 

answers on the answer sheet.

 1. Juliana arrived in the United States on August 1, 2007, in F-1 

immigration status. She had never been to the United States 

before and she did not change immigration status during 

2007. For federal income tax purposes, is Juliana a resident or 

nonresident alien for 2007?

 2. Lei came to the United States in 2000 in F-1 immigration 

 status to study engineering. He has not left the country 

nor has he changed immigration status. For federal income 

purposes, is Lei a resident or nonresident alien for 2007?

 3. Miguel is a visiting professor at the local university. He 

entered the United States in J-1 immigration status on May 

18, 2006. For federal income tax purposes, is Miguel a resident 

or nonresident alien for 2007?

 4. Sasha served as a visiting scholar from August 2004 through 

May 2005. In April of 2007, Sasha returned to the United 

States and served another year as a visiting scholar. For 

federal income tax purposes, is Sasha a resident or nonresident 

alien for 2007?

 5. Hans came to the United States in F-2 immigration status on 

July 11, 2007. He has not changed his immigration status. For 

federal income tax purposes, is Hans a resident or nonresident 

alien for 2007?

Determine whether the following taxpayers need to file a 

Form 8843. Please record your answers on the answer sheet.

 6. Celina is an F-1 student who has been in the United States 

since August 6, 2005. Does she need to file a Form 8843 

for 2007?

 7. Devesh is an F-1 student from India who has been in the 

United States since June 30, 2001. Does he need to file a Form 

8843 for 2007?

 8. Christiana is the wife of Albert who is an F-1 student. 

Christiana has been in F-2 immigration status since her 

arrival on December 14, 2007. Does she need to file a Form 

8843 for 2007?

 9. Assume that Christiana and Albert have a child who is with 

them in F-2 status. Do they need to file a Form 8843 for 

that child?

 10. Sara is an F-1 student and her husband Franco is also an F1 student. They have a daughter who was born in the United 

T-4 Test States. Do they need to file a Form 8843 for their daughter?

PART 1 DETERMINATION

OF RESIDENCY FORM 8843
Carefully read the following questions and record your 

answers on the answer sheet.

 1. Rebecca, a degree candidate, received a tuition waiver from the 

university. She did not have to perform any services to get this 

waiver. Is this waiver taxable?

 2. James received $419 of interest on his bank account. He is 

an international student from Ireland. He just arrived in the 

United States in 2006. Is his interest income taxable?

 3. Raji has a teaching assistantship. The school reports his wages 

of $4,250 on Form W-2. Must Raji include this income on his 

tax return?

 4. Miya is from the People’s Republic of China. She earned $3,400 

in wages in 2007. Her wages are reported to her on Form 

1042S. Will she have to pay tax on her wages?

 5. Hildae is an international student from South Africa. She 

earned $12 of dividend income on her investment in the U.S. 

stock market. Must Hildae report this income on her tax return?

Use the following information to prepare a Form 1040NR-EZ. 

Record the requested answers on the answer sheet.

Melissa Brigham, a permanent resident of Belgium (visa number 

3344123344), came to the United States on an F-1 visa on August 1, 

2006. She has remained in the country since then and is a full-time 

student at the local university. Melissa, born March 15, 1986, is 

single. She began working at the university campus on January 

3, 2007. She filed the proper withholding and treaty forms with 

the university payroll office before beginning her job. Melissa is 

a citizen of Belgium, her address in Belgium is 420 East Court, 

AnyCity, Belgium. If she is entitled to a refund, she wants it mailed 

to her. She doesn’t want to designate anyone else to discuss this 

return with the IRS. She did not take any affirmative steps to 

apply for permanent residence in the United States. She will not 

be taxed in her home country on the income she has from the 

United States. Belgium will not tax her on wages that she earns 

here. Using the following information (Form 1042-S and Form W-2), 

complete Melissa’s federal income tax return. (She would also need 

to file Form 8843, but assume that she has already completed that 

on her own.)

 6. Enter the amount from line 3, Form 1040NR-EZ.

 7. Enter the amount from line 10, Form 1040NR-EZ.

 8. Enter the amount from line 15, Form 1040NR-EZ.

 9. Enter the amount from line 21, Form 1040NR-EZ.

PART 2 TAXABILITY OF

INCOME FORM 1040NR-EZ

Test T-5
 10. Does Melissa have an overpayment of tax?

Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy B

for Recipient Department of the Treasury

Internal Revenue Service

U.S. Federal

tax withheld

Exemption

code

Withholding Net income

allowances

Tax

rate

Income

code

Amount repaid

to recipient

WITHHOLDING AGENT’S name

Recipient’s U.S. TIN, if any 

RECIPIENT’S name

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19a

Payer’s state tax no.

1

12

2

Form 1042-S (2007)

20

Name of state

21

AMENDED

Gross income 3 4 5 6 7 8

24

10a

22

13a

Country code

23

NQI’s/Flow-through entity’s address (number and street)

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

10b Address (number and street)

10c Additional address line (room or suite no.)

10d City or town, province or state, and country ZIP code or foreign postal code

 14200

10e

13b Address (number and street)

13c Additional address line (room or suite no.)

13e ZIP code or foreign postal code

19b Additional address line (room or suite no.)

19c City or town, province or state, and country 19d ZIP code or foreign postal code

13d City or town, province or state, and country

2007

19 2,000 04

XX-XXXXXXX

✔

STATE UNIVERSITY

123 MAIN ST

TOWN, NY 0 

MELISSA BRIGHAM

233 MAIN ST

TOWN, NY 14200

XXX-XX-XXXX

✔

BELGIUM

1

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number (EIN)

Medicare wages and tips

Social security tips

13

5

Control number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B—To Be Filed With Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

b

c

d

e

f

W-2 Wage and Tax

Statement 20 70

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS website

at www.irs.gov/efile.

Suff.

a Employee’s social security number

xxx-xx-xxxx OMB No. 1545-0008

xx-xxxxxxx

STATE UNIVERSITY 

122 MAIN ST

TOWN, NY 14200

MELISSA BRIGHAM

233 MAIN STREET

TOWN, NY 14200 

$3,380 $316

NY XX-XXXXXXX $3,380 $7914200

T-6 Test
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

9876 WEST ROAD, ANYCITY MALASIA 

Test T-7
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Form 1040NR-EZ (2007)

T-8 Test
Use the following information to prepare Form 1040NR-EZ. 

Record the requested answers on the answer sheet.

Raji Ratnaker, a permanent resident of India (visa number 

88779914), came to the United States on an F-1 visa on August 3, 

2006. He has remained in the country since then and is a full-time 

student at the local university. Raji, born October 17, 1985, is 

single. He filed the proper treaty and withholding forms with the 

university payroll office before beginning to work in the school 

cafeteria in 2007. Raji is a citizen of India; his address in India is 

900 Dali Road, Anywhere, India. If he is entitled to a refund, he 

wants it mailed to him. He doesn’t want to designate anyone else 

to discuss this return with the IRS. He did not take any affirmative 

steps to apply for permanent residence in the United States. He 

will not be taxed in his home country on the income he has from 

the United States. Using the following Form W-2, prepare Raji’s 

federal income tax return. (He has already completed Form 8843.)

11. Enter the amount from line 3, Form 1040NR-EZ.

12. Enter the amount from line 11, Form 1040NR-EZ.

13. Enter the amount from line 15, Form 1040NR-EZ.

14. Enter the amount from line 22, Form 1040NR-EZ.

15. Does Raji have an overpayment tax?

1

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number (EIN)

Medicare wages and tips

Social security tips

13

5

Control number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B—To Be Filed With Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

b

c

d

e

f

W-2 Wage and Tax

Statement 20 70

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS website

at www.irs.gov/efile.

Suff.

a Employee’s social security number

xxx-xx-xxxx OMB No. 1545-0008

xx-xxxxxxx

FIRST UNIVERSITY 

459 MAIN STREET

TOWN, NY 14200

RAJI RATNAKER

23 INDIA BLVD

TOWN, NY 14200

$5,968 $412

NY XX-XXXXXXX $5,968 $58

Test T-9
Draft as of

06/19/2007

OMB No. 1545-0074 U.S. Income Tax Return for Certain

Nonresident Aliens With No Dependents

Form

Department of the Treasury

Internal Revenue Service

Your first name and initial Last name Identifying number (see page 4)

Present home address (number, street, and apt. no., or rural route). If a P.O. box, see page 4.

City, town or post office, state, and ZIP code. If a foreign address, see page 4.

Country 

Of what country were you a citizen or national during 2007? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing status (see page 4). Check only one box.

1 Single nonresident alien

2 Married nonresident alien

Attach Form(s) W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

3 Wages, salaries, tips, etc. Attach Form(s) W-2 (see page 4) 3

Taxable refunds, credits, or offsets of state and local income taxes (see page 5)

12

Scholarship and fellowship grants. Attach explanation (see page 5)

13

Add lines 3, 4, and 5

1040NR-EZ

Cat. No. 21534N Form 1040NR-EZ (2007)

Total wages and scholarships exempt by a treaty from page 2, Item J 6

4

5

6

7

4

5

9

8

9

Scholarship and fellowship grants excluded (see page 5)

Adjusted gross income. Subtract the sum of line 8 and line 9 from line 7

11 Itemized deductions (see page 6)

14

15

18

20

21

Subtract line 11 from line 10

Exemption deduction (see page 6)

Taxable income. Subtract line 13 from line 12

Tax. Find your tax in the Tax Table on pages 12–20

Federal income tax withheld (from Form W-2, 1042-S, and 1099-R)

2007 estimated tax payments and amount applied from 2006 return

Credit for amount paid with Form 1040-C

11

12

13

14

15

18

Sign

Here

Keep a copy of

this return for

your records.

Paid

Preparer’s

Use Only

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge 

and belief, they are true, correct, and accurately list all amounts and sources of U.S. source income I received during the tax year. Declaration of

preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Your signature Your occupation in the United States

Preparer’s

signature



Check if

self-employed

Preparer’s SSN or PTIN

Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Date 



10 10

Unreported social security and Medicare tax from:

Add lines 15 and 16. This is your total tax 

19 19

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 11 of instructions.

Add lines 18 through 20. These are your total payments 21

22

23a

25

16 16

Student loan interest deduction (see page 5)

17

20

8

7

17

Date

Phone no. ( )

23a

24 24

If line 21 is more than line 17, subtract line 17 from line 21. This is the amount you overpaid

25

Amount of line 22 you want refunded to you. 

If Form 8888 is attached, check here 

Refund

26

Amount of line 22 you want applied to your 2008 estimated tax 

26 Estimated tax penalty (see page 9). Also include on line 25

Amount

You Owe Amount you owe. Subtract line 21 from line 17. For details on how to pay, see page 8 

Direct deposit?

See page 7. Routing number

Account number

c Type: Checking Savings b

d

22

Designee’s

name 

Third Do you want to allow another person to discuss this return with the IRS (see page 9)?

Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

a Form 4137 Form 8919 b

2007

9876 WEST ROAD, ANYCITY MALASIA 

T-10 Test
Draft as of

06/19/2007

Form 1040NR-EZ (2007) Page 2

Other Information (If an item does not apply to you, enter “N/A.”)

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

Type of entry visa 

and current nonimmigrant status and date of change 

D

E

Did you give up your permanent residence as an immigrant in the United States this year?

● Country 

Dates you entered and left the United States during the year. Residents of Canada or Mexico entering and

leaving the United States at frequent intervals, give name of country only. 

F

● Type and amount of income exempt from tax and the applicable tax treaty article. Enter treaty-exempt

income for 2007 below and on line 6; not on line 3 or 5.

Give number of days (including vacation and nonworkdays) you were present in the United States during

2005 , 2006 , and 2007 .

G

● Were you subject to tax in that country on any of the income that you claim is entitled to the treaty

benefits?

I Did you file a U.S. income tax return for any year before 2007?

If “Yes,” give the latest year and form number 

Yes No

Yes No

For 2007 

Yes No

If you are claiming the benefits of a U.S. income tax treaty with a foreign country, give the following

information. See page 9 for additional information.

For 2006 

Date you entered the United States (see page 9) 

H

J

K During 2007, did you apply for, or take any affirmative steps to apply for, lawful permanent resident status 

in the United States or have an application pending to adjust your status to that of a lawful permanent

resident of the United States?

If “Yes,” explain 

Yes No

Printed on recycled paper

Form 1040NR-EZ (2007)

Test T-11
Carefully read the following questions and record your 

answers on the answer sheet.

1. Eduard, an international student from Peru, has a W-2 that 

shows amounts withheld for social security and Medicare taxes. 

Eduard is an F-1 nonresident alien for tax purposes. Which form 

should he file to receive a refund of these taxes?

2. Carmela is the spouse of a J-1 scholar. She obtained work 

authorization in 2007 and started working at the local library. 

Her W-2 form shows social security and Medicare witholding. 

Can she get a refund of these taxes?

3. Hortensia, an international student from Italy, received 

dividend income in 2007. What type of federal income tax return 

does she need to file?

Use the following information to prepare a Form 1040NR. 

Record the requested answers on the answer sheet.

Igor Pulaski is an F-1 student from Poland. His wife, Katinka is 

also an F-1 student from Poland. They have come to your VITA site 

to get assistance with their 2007 tax return. They both worked on 

campus (starting in 2007) and they have a son, who was born in the 

United States in December 2006. Igor came to the United States 

on August 9, 2005. Katinka came to the United States on January 

1, 2006. Igor and Katinka are citizens of Poland. Their address in 

Poland is 1000 Main Ave, Anytown, Poland. If he is entitled to a 

refund, he wants it mailed to him. He doesn’t want to designate 

anyone else to discuss this return with the IRS. He did not take any 

affirmative steps to apply for permanent residence in the United 

States. He will not be taxed in his home country on the income he 

has from the United States. In addition to their wage income, Igor 

earned $1,319 in dividends in the U.S. stock market. Poland has a 

treaty with the United States that allows the dividends to be taxed 

at 15 percent instead of 30 percent (Treaty Article 11). Prepare 

Igor’s tax return using the following information.

4. Can Igor and Katinka file a joint return?

5. Can Igor claim their son as a dependent?

6. What amount is on line 8 of Igor’s 1040NR?

7. What amount is on line 35 of Igor’s 1040NR?

8. What is the amount on line 58 of Igor’s 1040NR?

9. What is the amount on line 88 of Igor’s 1040NR?

T-12 Test

PART 3 ADVANCED TOPICS

FORM 1040NR FORM 843
Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy B

for Recipient Department of the Treasury

Internal Revenue Service

U.S. Federal

tax withheld

Exemption

code

Withholding Net income

allowances

Tax

rate

Income

code

Amount repaid

to recipient

WITHHOLDING AGENT’S name

Recipient’s U.S. TIN, if any 

RECIPIENT’S name

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19a

Payer’s state tax no.

1

12

2

Form 1042-S (2007)

20

Name of state

21

AMENDED

Gross income 3 4 5 6 7 8

24

10a

22

13a

Country code

23

NQI’s/Flow-through entity’s address (number and street)

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

10b Address (number and street)

10c Additional address line (room or suite no.)

10d City or town, province or state, and country 10e ZIP code or foreign postal code

13b Address (number and street)

13c Additional address line (room or suite no.)

13e ZIP code or foreign postal code

19b Additional address line (room or suite no.)

19c City or town, province or state, and country 19d ZIP code or foreign postal code

13d City or town, province or state, and country

2007

19 1,143.00 04

XX-XXXXXXX

✔

MIDDLE UNIVERSITY

9046 MAIN ST

TOWN, NY 14200

KATINKA PULASKI

16 STUDENT PARKWAY 

TOWN, NY 14200

XXX-XX-XXXX

✔

POLAND

Test T-13
Foreign Person’s U.S. Source Income OMB No. 1545-0096

Subject to Withholding Form 1042-S

Copy B

for Recipient Department of the Treasury

Internal Revenue Service

U.S. Federal

tax withheld

Exemption

code

Withholding Net income

allowances

Tax

rate

Income

code

Amount repaid

to recipient

WITHHOLDING AGENT’S name

Recipient’s U.S. TIN, if any 

RECIPIENT’S name

Withholding agent’s EIN 

NONQUALIFIED INTERMEDIARY’S (NQI’s)/

FLOW-THROUGH ENTITY’S name

9

16

State income tax withheld

Recipient’s country of residence for tax purposes

19a

Payer’s state tax no.

1

12

2

Form 1042-S (2007)

20

Name of state

21

AMENDED

Gross income 3 4 5 6 7 8

24

10a

22

13a

Country code

23

NQI’s/Flow-through entity’s address (number and street)

14

Country code

15

18

PAYER’S name and TIN (if different from withholding agent’s)

EIN QI-EIN SSN or ITIN EIN QI-EIN

11 Recipient’s account number (optional)

PRO-RATA BASIS REPORTING

17

NQI’s/Flow-through entity’s TIN, if any 

Recipient code

10b Address (number and street)

10c Additional address line (room or suite no.)

10d City or town, province or state, and country 10e ZIP code or foreign postal code

13b Address (number and street)

13c Additional address line (room or suite no.)

13e ZIP code or foreign postal code

19b Additional address line (room or suite no.)

19c City or town, province or state, and country 19d ZIP code or foreign postal code

13d City or town, province or state, and country

2007

19 2,000 04

XX-XXXXXXX

✔

MIDDLE UNIVERSITY

9046 MAIN ST

TOWN, NY 14200

IGOR PULASKI

16 STUDENT PARKWAY 

TOWN, NY 14200

XXX-XX-XXXX

✔

POLAND

1

Retirement

plan

Third-party

sick pay

Statutory

employee

6

2

Employer’s name, address, and ZIP code

7 Allocated tips

Advance EIC payment

8

9 10

Wages, tips, other compensation Federal income tax withheld

Social security wages Social security tax withheld

11 12a

Employer’s state ID number

3 4

Employer identification number (EIN)

Medicare wages and tips

Social security tips

13

5

Control number

Employee’s first name and initial Nonqualified plans

Medicare tax withheld

15

14

16 17

Other

18

Employee’s address and ZIP code

State State wages, tips, etc. State income tax Locality name

Copy B—To Be Filed With Employee’s FEDERAL Tax Return.

This information is being furnished to the Internal Revenue Service.

Department of the Treasury—Internal Revenue Service

Form

Dependent care benefits

See instructions for box 12

b

c

d

e

f

W-2 Wage and Tax

Statement 20 70

Last name C

o

d

e

12b

C

o

d

e

12c

C

o

d

e

Local wages, tips, etc. 19 Local income tax 20

12d

C

o

d

e

Safe, accurate,

FAST! Use

Visit the IRS website

at www.irs.gov/efile.

Suff.

a Employee’s social security number

xxx-xx-xxxx OMB No. 1545-0008

xx-xxxxxxx

MIDDLE UNIVERSITY

9046 MAIN STREET

TOWN, NY 14200

IGOR PULASKI

16 STUDENT PARKWAY

TOWN, NY 14200

$7,896 $1,943

NY XX-XXXXXXX $7,896 $696

T-14 Test
Draft as of

07/26/2007

OMB No. 1545-0074 U.S. Nonresident Alien Income Tax Return

Form For the year January 1–December 31, 2007, or other tax year Department of the Treasury

Internal Revenue Service beginning , 2007, and ending , 20

Your first name and initial Last name Identifying number (see page 8)

Present home address (number, street, and apt. no., or rural route). If you have a P.O. box, see page 8. Check if:

Estate or Trust

Individual

City, town or post office, state, and ZIP code. If you have a foreign address, see page 8. Type of entry visa (see page 8)



Country Of what country were you a citizen or national during the tax year? 

Please print or type.

Give address in the country where you are a permanent resident.

If same as above, write “Same.”

Give address outside the United States to which you want any

refund check mailed. If same as above, write “Same.”

Filing Status and Exemptions for Individuals (see page 8) 7a 7b

Filing status. Check only one box (1–6 below). Yourself Spouse

1 Single resident of Canada or Mexico, or a single U.S. national

2 Other single nonresident alien

3 Married resident of Canada or Mexico, or a married U.S. national If you check box 7b, enter your spouse’s

4 Married resident of the Republic of Korea (South Korea) identifying number 

5 Other married nonresident alien

6 Qualifying widow(er) with dependent child (see page 9) No. of boxes checked Caution: Do not check box 7a if your parent (or someone else) can claim you as a dependent. on 7a and 7b

Do not check box 7b if your spouse had any U.S. gross income.

(3) Dependent’s

relationship

to you

7c Dependents: (see page 9)

No. of children on

7c who: (2) Dependent’s

identifying number ● lived with you

● did not live with

you due to divorce 

or separation

Dependents on 7c

not entered above

Add numbers entered

on lines above

Attach Forms W-2 here.

Also attach Form(s) 1099-R if tax was withheld.

d Total number of exemptions claimed

8 Wages, salaries, tips, etc. Attach Form(s) W-2 8

9a Taxable interest 9a

b Tax-exempt interest. Do not include on line 9a 9b

10a Ordinary dividends 10a

11 Taxable refunds, credits, or offsets of state and local income taxes (see page 11) 11

12 Scholarship and fellowship grants. Attach Form(s) 1042-S or required statement (see page 12) 12

13 Business income or (loss). Attach Schedule C or C-EZ (Form 1040) 13

14 Capital gain or (loss). Attach Schedule D (Form 1040) if required. If not required, check here

15 Other gains or (losses). Attach Form 4797 15

16a IRA distributions 16a 16b Taxable amount (see page 12) 16b

17a Pensions and annuities 17a 17b Taxable amount (see page 13) 17b

Rental real estate, royalties, partnerships, trusts, etc. Attach Schedule E (Form 1040) 18

19 Farm income or (loss). Attach Schedule F (Form 1040) 19

20 Unemployment compensation 20

21 Other income. List type and amount (see page 15)

22

21

Income Effectively Connected With U.S. Trade/Business

23 Add lines 8, 9a, 10a, 11–15, 16b, and 17b–21. This is your total effectively connected income 23

32

Health savings account deduction. Attach Form 8889

33

26

25

Self-employed health insurance deduction (see page 15) 

Self-employed SEP, SIMPLE, and qualified plans

26

28

Penalty on early withdrawal of savings

Enclose, but do not attach, any payment.

Scholarship and fellowship grants excluded 30

27

Adjusted Gross Income

IRA deduction (see page 16)

28

33

Student loan interest deduction (see page 16)

30

34

1040NR











.

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

. .

.

.

Cat. No. 11364D



(1) First name

Form 1040NR (2007)

Total income exempt by a treaty from page 5, Item M 22

29

Moving expenses. Attach Form 3903

25

18

Last name

29

31

32

31

(4) if qualifying

child for child tax

credit (see page 9)

24 Educator expenses (see page 15) 24

b Qualified dividends (see page 11) 10b

14

27

34

Domestic production activities deduction. Attach Form 8903

Add lines 24 through 33

35 Subtract line 34 from line 23. Enter here and on line 36. This is your adjusted gross income 35

2007

For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see page 31.

Test T-15
Draft as of

07/26/2007

Form 1040NR (2007) Page 2

Amount from line 35 (adjusted gross income)

Itemized deductions from page 3, Schedule A, line 17

43

39

Subtract line 37 from line 36

36

38

Taxable income. Subtract line 39 from line 38. If line 39 is more than line 38, enter -0-

39

36

37

Credit for child and dependent care expenses. Attach Form 2441

43

44

Other credits. Check applicable box(es):

44

Form 8801

Tax and Credits

45

Add lines 44 through 50. These are your total credits

Subtract line 51 from line 43. If line 51 is more than line 43, enter -0- 

46

51

47

Tax on income not effectively connected with a U.S. trade or business from page 4, line 89

52

Unreported social security and Medicare tax from:

53

51

Additional tax on IRAs, other qualified retirement plans, etc. Attach Form 5329 if required 

Other Taxes

52

Transportation tax (see page 22)

Add lines 52 through 57. This is your total tax 

54

Federal income tax withheld from Forms W-2, 1099, 1042-S, etc.

55

56

2007 estimated tax payments and amount applied from 2006 return

57

Amount paid with Form 4868 (request for extension)

Excess social security and tier 1 RRTA tax withheld (see page 23)

59

60

Credit for amount paid with Form 1040-C

U.S. tax withheld at source from page 4, line 86

Payments

67b

67a

U.S. tax withheld at source by partnerships under section 1446:

a From Form(s) 8805

68a

b From Form(s) 1042-S

Refundable credit for prior year minimum tax from Form 8801, line 27

Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and

belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Sign

Here

Date Your signature

Preparer’s Date Preparer’s SSN or PTIN

signature Check if

self-employed Paid

Preparer’s

Use Only Firm’s name (or

yours if self-employed),

address, and ZIP code

EIN

Exemptions (see page 17)

Other payments from:







37

Keep a copy of

this return for

your records.

Form 3800

Form

53

Household employment taxes. Attach Schedule H (Form 1040)

Tax (see page 18). Check if any tax is from: a b Form(s) 8814 Form 4972

55

54

69

38

48

a

b c

a b Form 2439 Form 4136

Credits from:

61

63

40

59

60

Retirement savings contributions credit. Attach Form 8880

58

Additional child tax credit. Attach Form 8812

64

65

66

56

61

62

64

Form 1040NR (2007)

42 Alternative minimum tax (see page 19). Attach Form 6251

41

40

57

62

63

41

42

Your occupation in the United States

Phone no. ( )

71

72a 72a

73 73

If line 70 is more than line 58, subtract line 58 from line 70. This is the amount you overpaid

74 74

Refund Amount of line 71 you want refunded to you. If Form 8888 is attached, check here 

75

Amount of line 71 you want applied to your 2008 estimated tax 

75 Estimated tax penalty. Also include on line 74

Amount

You Owe Amount you owe. Subtract line 70 from line 58. For details on how to pay, see page 24 

Direct

deposit? See

page 23.

Routing number

Account number

b c Type: Checking Savings

d

71



Designee’s

name 

Do you want to allow another person to discuss this return with the IRS (see page 25)? Third Party

Designee Phone

no. ( )

Yes. Complete the following. No

Personal identification

number (PIN) 

Child tax credit (see page 20). Attach Form 8901 if required

Residential energy credits. Attach Form 5695 45

49

50

58

68

65

U.S. tax withheld on dispositions of U.S. real property interests:

a From Form(s) 8288-A

b From Form(s) 1042-S

67

68b

66

c Form 8885

Add lines 41 and 42 

Foreign tax credit. Attach Form 1116 if required 46

47

48

49

50

a Form 8396 c Form 8839

69

b Form 8859

70 Add lines 59 through 69. These are your total payments 70

a b Form 4137 Form 8919

c Form(s) 8889

T-16 Test
Draft as of

07/26/2007

Form 1040NR (2007) Page 3

Schedule A—Itemized Deductions (See pages 25, 26, 27, and 28.) 07

State and

Local

Income

Taxes

1 State income taxes 1

2 Local income taxes 2

3 Add lines 1 and 2 3

Total Gifts

to U.S.

Charities

Caution: If you made a gift and received a benefit in

return, see page 26.

4

Gifts by cash or check. If you made any gift of $250 or 

more, see page 26

4

5

Other than by cash or check. If you made any gift of $250 or

more, see page 26. You must attach Form 8283 if “the amount 

of your deduction” (see definition on page 27) is more than $500

5

6 Carryover from prior year 6

7 Add lines 4 through 6 7

8 Casualty or theft loss(es). Attach Form 4684. See page 27 8

Job

Expenses

and Certain

Miscellaneous

Deductions

Unreimbursed employee expenses—job travel, union

dues, job education, etc. You must attach Form 2106

or Form 2106-EZ if required. See page 27 

9

9

Other expenses. See page 28 for expenses to deduct

here. List type and amount 

11

11

12 Add lines 9 through 11 12

13

Enter the amount from Form

1040NR, line 36

13

14 Multiply line 13 by 2% (.02) 14

15 Subtract line 14 from line 12. If line 14 is more than line 12, enter -0- 15

Other

Miscellaneous

Deductions

Other—see page 28 for expenses to deduct here. List type and amount 

16

Total 17

Itemized

Deductions

17

Is Form 1040NR, line 36, over $156,400 (over $78,200 if you checked filing status 

box 3, 4, or 5 on page 1 of Form 1040NR)?

Yes. Your deduction may be limited. See page 28 for the amount to

enter here and on Form 1040NR, line 37.



No. Your deduction is not limited. Add the amounts in the far right column 

for lines 3 through 16. Also enter this amount on Form 1040NR, line 37. 

Casualty and

Theft Losses

10 Tax preparation fees 10

16

Form 1040NR (2007)

Test T-17
Draft as of 07/26/2007 Total U.S. tax withheld at source. Add column (a) of 

lines 76a through 85. Enter the total here and on Form 1040NR, line 66 Dividends paid by:Other (specify) 

Industrial royalties (patents, trademarks, etc.) 

Motion picture or T.V. copyright royalties Other royalties (copyrights, recording, publishing, etc.) 

Real property income and natural resources royalties 

Pensions and annuities Social security benefits 

Gains (include capital gain from line 92 below) 

Form 1040NR (2007)

U.S. corporations 

Foreign corporations 

Mortgage

Paid by foreign corporations 

Report property sales or

exchanges that are effectivelyconnected with a U.S.business on Schedule D (Form1040), Form 4797, or both.

Enter only the capital gains

and losses from property salesor exchanges that are fromsources within the UnitedStates and not effectivelyconnected with a U.S.business. Do not include a gainor loss on disposing of a U.S.real property interest; reportthese gains and losses onSchedule D (Form 1040).

Multiply line 87 by rate of tax at top of each column 

Nature of income

Tax on income not effectively connected with a U.S. trade or business. Add columns (b)–(e) of line 88. Enter the total here and on Form1040NR, line 53 

91 Add columns (f) and (g) of line 90 

Capital gain. Combine columns (f) and (g) of line 91. Enter the net gain here and on line 84 above (if a loss, enter -0-) 

90

Attach Forms 1042-S, SSA-1042S, RRB-1042S, or similar form.

Capital Gains and Losses From Sales or Exchanges of Property

(a) U.S. tax

withheld

at source

(b) Date

acquired

(mo., day, yr.)

Enter amount of income under the appropriate rate of tax (see page 28)

(c) Date

sold

(mo., day, yr.)

(b) 10%

(d) Sales price

(c) 15%

(e) Cost or other

basis

(d) 30%

(f) LOSS

If (e) is more

than (d), subtract (d)

from (e)

(e) Other (specify)

%

(g) GAIN

If (d) is more

than (e), subtract (e)

from (d)

Page 4

Tax on Income Not Effectively Connected With a U.S. Trade or Business

a

b

a

b

c

777879808289

Add lines 76a through 85 in columns (b)–(e) 

76a

76b

77a

77b

77c

787980818283

88

89

92

91

92

Other

%

Interest:

( )

7684

(a) Kind of property and description

(if necessary, attach statement of

descriptive details not shown below)

81

87

86

8385

8485

868788

Form 1040NR (2007)

T-18 Test
Draft as of

07/26/2007

Form 1040NR (2007) Page 5

Other Information (If an item does not apply to you, enter “N/A.”)

To which Internal Revenue office did you pay any amounts 

claimed on Form 1040NR, lines 60, 63, and 65?

K

A What country issued your passport?

B Were you ever a U.S. citizen? Yes No

C Give the purpose of your visit to the United States 

L Have you excluded any gross income other

than foreign source income not effectively

connected with a U.S. trade or business? 

If “Yes,” show the amount, nature, and source of the

excluded income. Also, give the reason it was excluded.

(Do not include amounts shown in item M.) 

Current nonimmigrant status and date of change (see

page 29) 

D

M

F Did you give up your permanent

residence as an immigrant in the United

States this year?

● Country 

Dates you entered and left the United States during the

year. Residents of Canada or Mexico entering and leaving

the United States at frequent intervals, give name of country 

only. 

G

● Type and amount of effectively connected income exempt 

from tax. Also, identify the applicable tax treaty article. Do 

not enter exempt income on lines 8, 9a, 10a, 11-15, 16b,

or 17b-21 of Form 1040NR. 

Give number of days (including vacation and For 2006 

nonworkdays) you were present in the United States

during:

2005 , 2006 , and 2007 .

H

● Were you subject to tax in that country

on any of the income you claim is entitled 

to the treaty benefits? If you are a resident of Canada, Mexico, or 

the Republic of Korea (South Korea), or a

U.S. national, did your spouse contribute

to the support of any child claimed on

Form 1040NR, line 7c?

I

● Did you have a permanent establishment

or fixed base (as defined by the tax treaty) in 

the United States at any time during 2007?

If “Yes,” enter amount $

If you were a resident of the Republic of Korea (South Korea) 

for any part of the tax year, enter in the space below your

total foreign source income not effectively connected with a 

U.S. trade or business. This information is needed so that

the exemption for your spouse and dependents residing in

the United States (if applicable) may be allowed in

accordance with Article 4 of the income tax treaty between

the United States and the Republic of Korea (South Korea).

If you file this return to report community income, give your

spouse’s name, address, and identifying number.

N

Total foreign source income not effectively connected with 

a U.S. trade or business $

Did you file a U.S. income tax return for

any year before 2007?

J

If you file this return for a trust, does the

trust have a U.S. business?

O

If “Yes,” give name and address 

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

Yes No

If you are claiming the benefits of a U.S. income tax treaty 

with a foreign country, give the following information. See

page 29 for additional information.

● Type and amount of income not effectively connected that 

is exempt from or subject to a reduced rate of tax. Also,

identify the applicable tax treaty article.

For 2006 

Date you entered the United States (see page 29)



E

For 2007 

For 2007 (also, include this exempt income on line

22 of Form 1040NR) 

Is this an “expatriation return” (see 

page 30)?

P

Yes No

If “Yes,” you must attach an annual

information statement.

During 2007, did you apply for, or take

other affirmative steps to apply for, lawful 

permanent resident status in the United

States or have an application pending to

adjust your status to that of a lawful

permanent resident of the United States? 

Q

If “Yes,” explain 

Yes No

If “Yes,” give the latest year and form number 

Form 1040NR (2007)

Printed on Recycled Paper

Check this box if you have received

compensation income of $250,000 or

more and you are using an alternative

basis to determine the source of this

compensation income (see page 30) 

R

Test T-19
STUDENT NOTES

T-20 Test
Publication 678 FS Student Training Feedback 

We would like feedback on how satisfied you were with the training you had today. Please complete this form and 

hand in to the instructor before leaving or give to your site manager. By providing this feedback, you will be helping

us improve our next course material. Thank you for your time!

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Please rate your satisfaction with the training you

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4. Opportunity to ask questions to help you learn

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If more space is needed, please use the back of this form. Thank you for your time and feedback. 

Form 6317(FS) (Rev. 7-2007) Catalog Number 39113E publish.no.irs.gov Department of the Treasury–Internal Revenue Service

Test T-21
STUDENT NOTES

T-22 Test
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