Fliling taxes

[Dexter_Morgan 0]

Hi All,

I became a conditional permanent resident during 2012 tax year. Before that I was on an F1 visa, and throughout 2012 I received a stipend from my school. While I was on an F1 this stipend was taxes as a non resident, and once I became a permanent resident payroll stopped withholding federal tax. Since they withheld tax for part of 2012, I got a 1042S from them, with the amount they withheld.

Now I intend to file a joint resident tax return for 2012 with my spouse, but the form I have from my school is a non resident form.

I noticed this thing on the USCIS website"You may be found to have abandoned your permanent resident status if you: Declare yourself a “nonimmigrant” on your tax returns". Is using the 1042S (with a RESIDENT tax return, simply as evidence that I have payed some tax for 2012) going to be a problem?

One other thing is that when I talked with payroll the told me that there were 2 things that they could do: (1) refund all the tax they withheld, and in this case I would have had to do estimated tax returns or (2) leave it as is, issue a 1042S and then I could use this form with a resident tax return. I opted for option 2 because it was simpler for me (I don't know how to fill out estimated tax returns). But then, at the end of 2012 they simply refunded everything to me, and I had to talk to them and send them a check for the amount they refunded me so they could issue me the 1042S...

The whole thing is very confusing. I insisted on the 1042S simply because otherwise I would not have payed federal taxes throughout 2012, and in this case we might have owed the IRS money...

Thanks!

[Dave&Roza 748]

Hi All,

I became a conditional permanent resident during 2012 tax year. Before that I was on an F1 visa, and throughout 2012 I received a stipend from my school. While I was on an F1 this stipend was taxes as a non resident, and once I became a permanent resident payroll stopped withholding federal tax. Since they withheld tax for part of 2012, I got a 1042S from them, with the amount they withheld.

Now I intend to file a joint resident tax return for 2012 with my spouse, but the form I have from my school is a non resident form.

I noticed this thing on the USCIS website"You may be found to have abandoned your permanent resident status if you: Declare yourself a "nonimmigrant" on your tax returns". Is using the 1042S (with a RESIDENT tax return, simply as evidence that I have payed some tax for 2012) going to be a problem?

One other thing is that when I talked with payroll the told me that there were 2 things that they could do: (1) refund all the tax they withheld, and in this case I would have had to do estimated tax returns or (2) leave it as is, issue a 1042S and then I could use this form with a resident tax return. I opted for option 2 because it was simpler for me (I don't know how to fill out estimated tax returns). But then, at the end of 2012 they simply refunded everything to me, and I had to talk to them and send them a check for the amount they refunded me so they could issue me the 1042S...

The whole thing is very confusing. I insisted on the 1042S simply because otherwise I would not have payed federal taxes throughout 2012, and in this case we might have owed the IRS money...

Thanks!

What ever you do do not have them refund you and then have to pay taxes on the money as you will get hit with an under with holding penalty. Just fill out the tax return and claim the amount on the 1042S as the amount of federal withholdings you are claiming to have paid. This is out of your control. Claiming you are a non-resident for tax purposes is more involved than some payroll department completing the wrong form.

Have you asked if they could do an ammended form 1042S and then issue you a 1099-MISC. Not only is the problem on your end, but they are not claiming the correct with holdings to the IRS on their side of the fence which could lead to more problems if they do not correct this. It sounds like someone does not want to do the correct paper work, but it would be better if they did it now rather than during an audit.

Good luck,

Dave

[Dexter_Morgan 0]

What ever you do do not have them refund you and then have to pay taxes on the money as you will get hit with an under with holding penalty. Just fill out the tax return and claim the amount on the 1042S as the amount of federal withholdings you are claiming to have paid. This is out of your control. Claiming you are a non-resident for tax purposes is more involved than some payroll department completing the wrong form.

Have you asked if they could do an ammended form 1042S and then issue you a 1099-MISC. Not only is the problem on your end, but they are not claiming the correct with holdings to the IRS on their side of the fence which could lead to more problems if they do not correct this. It sounds like someone does not want to do the correct paper work, but it would be better if they did it now rather than during an audit.

Good luck,

Dave

Hi Dave,

the thing is that my school simply does not issue any paperwork for non service fellowships unless you are foreign, leaving you to deal with quarterly estimated tax payments (which I don't know how to do, and therefore didn't!). Therefore refunding me or issuing the 1042S were the only 2 options. I already have the 1042S. We also hired a professional tax preparer to help us with our taxes, so we should be paying the right amount (assuming they know what they are doing), but the thing I am worried about is using the 1042S on my return...

[Dave&Roza 748]

Hi Dave,

the thing is that my school simply does not issue any paperwork for non service fellowships unless you are foreign, leaving you to deal with quarterly estimated tax payments (which I don't know how to do, and therefore didn't!). Therefore refunding me or issuing the 1042S were the only 2 options. I already have the 1042S. We also hired a professional tax preparer to help us with our taxes, so we should be paying the right amount (assuming they know what they are doing), but the thing I am worried about is using the 1042S on my return...

Why? Just because it is for a non-resident does not mean you have or are claiming yourself as a non-resident for tax purposes and thus have nothing to worry about regarding the USCIS. You must actually claim the non-resident status for it to have any effect. It has to be a conscious effort on your part and not someone issuing an incorrect form because they completed the wrong form. They have Federal withholdings on a LPR

and are reporting that the the IRS on an 1042S. They can get in trouble for doing that. That is one reason they refunded the money to you. I would get the money from them in that case as this is a really big tax issue that can bit you and them in the A$$. They need to report that money withheld on a 1099-MISC form and the income you received. How are they reporting the income? The IRS has very different reporting requirements for USC and LPR verses non-residents. The first two have to file income tax returns and the last does not. I would make them aware that THEY have a problem with the IRS because the did not file the correct income reporting form to you by the deadline as outlined by the IRS. You can do this yourself by not using the 1042S and just report the income and tax withholdings and you make a statement about them not supplying you with the proper forms and then they can deal with the IRS. This is completely a tax issue and not an immigration issue.

Good luck,

Dave