International Students: File Taxes Easily With Credit Karma

International students in the US are required to file their tax returns annually. While some universities offer free software to help with this, others may opt for online tax filing platforms such as Credit Karma Tax, which has now become Cash App Taxes. Credit Karma members have two options for filing their taxes: Cash App Taxes for previous CKT users, and TurboTax for new filers or those who used a different platform previously. TurboTax is typically a paid service, but some Credit Karma members may be able to file their taxes for free.

International students required to file a tax return

International students in the US are required to file a tax return annually. This includes the federal and state tax returns for those earning an income, and a non-employed federal form for those who did not earn an income.

Even if you did not earn any income as an international student in the US, you are still required to file a Form 8843 with the Internal Revenue Service (IRS) by the deadline. This form is not an income tax return but a statement required by the US government for certain nonresident aliens who are in the US on F-1, J-1, F-2, or J-2 visas. The deadline for filing Form 8843 is usually 15 April, but if you had no US income and are only filing this form, the deadline is 15 June.

If you have received income in the last calendar year, you will need to file Form 8843 and most likely Form 1040-NR. You may also be required to file a state tax return, depending on the state. Nine states don't have any tax-filing requirements.

It's important to note that nonresident alien students and scholars with income only from specific sources, such as US savings and loan institutions, US credit unions, US insurance companies, or certain tax-free scholarships, are generally exempt from filing tax returns. However, income that is not taxable due to an income tax treaty must still be reported on a US income tax return, even if no tax is due.

Free tax filing software for students

There are several free tax filing software options available for students. However, it's important to note that most companies restrict who can file for free, and there may be limitations in terms of the types of credits and deductions supported.

H&R Block Online Free

H&R Block offers a free tier for students with a simple and easy-to-use interface. The free version supports student loan interest and other educational credits, as well as tuition deductions. However, it's important to note that there are limits to the free tier, and filers may need to upgrade for certain credits and deductions.

TurboTax Free Edition

TurboTax Free Edition is another option for students with simple tax situations. It supports education credits and deductions, including student loan interest. However, it is only suitable for those filing a simple Form 1040 return with no additional forms or schedules.

Cash App Taxes

Cash App Taxes offers completely free federal and state filing for all supported filers, including students. It is a good option for those with W-2 income and a few 1099s. However, it may not be the best choice for active investors, business owners, or multi-state filers.

TaxHawk

TaxHawk offers free federal tax filing, but charges for state returns. It is a solid choice for students with simple tax situations, but it may not support all types of credits and deductions.

In addition to these student-specific options, there are also other free tax filing software programs available, such as Credit Karma Tax. However, it's important to note that Credit Karma Tax does not support the filing of non-resident (NR) tax returns, which may be relevant for international students.

When choosing a free tax filing software, it's important to carefully review the features and limitations of each option to ensure it meets your specific needs. Additionally, keep in mind that your school may offer free tax filing software or assistance from trained law students for Federal and State Tax returns.

Filing taxes for the first time

Filing taxes can be daunting, especially for first-timers. Here's a step-by-step guide to help you get started:

Step 1: Determine Your Filing Status

First, you need to determine your filing status. This is typically based on your marital status and household expenses. Common filing statuses include Single, Married Filing Jointly, Married Filing Separately, and Head of Household. Your filing status impacts your tax bracket and the deductions or credits you may be eligible for.

Step 2: Gather Your Income Documents

Next, you'll need to gather all the necessary documents to report your income. This includes W-2 forms from employers, 1099 forms for independent contractors or freelancers, interest and dividend statements, and any other documents showing income earned during the tax year.

Step 3: Identify Tax Deductions and Credits

Look for opportunities to reduce your taxable income by claiming deductions and credits. Common deductions include charitable donations, mortgage interest, state and local taxes, medical expenses, and business expenses. Credits, such as the Foreign Tax Credit or the Child Tax Credit, can directly reduce the amount of tax you owe.

Step 4: Choose Your Filing Method

You can choose to file your taxes electronically or by paper mail. The Internal Revenue Service (IRS) recommends electronic filing, as it's faster, safer, and more convenient. You can use tax preparation software or online platforms, like Credit Karma Tax, to file your taxes. These platforms often offer step-by-step guidance and can help you maximize your refund.

Step 5: Stay Organized and Meet Deadlines

Keep all your tax-related documents organized and easily accessible. Make sure to file your taxes by the specified deadline, which is usually in mid-April for individual tax returns. If you're expecting a refund, filing early can help you receive it sooner.

International Students and Taxes:

International students in the US are typically required to file tax returns. While Credit Karma Tax is a popular option for free tax filing, it may not support non-resident (NR) tax returns. International students should consult their schools, as many offer free software for federal tax filing, and some even have law students trained to assist with state tax filings. Additionally, e-filing through the IRS Free File program may be an option if your adjusted gross income falls within certain limits.

Filing taxes through TurboTax

International students in the US are required to file their tax returns if they earned income in the previous calendar year. This can be done through Credit Karma Tax, which is free, or Sprintax, which is a non-resident partner of TurboTax but requires payment.

TurboTax is a popular online tax preparation software that offers a step-by-step guide to filing taxes. It is highly recommended by users for its ease of use and helpful support. TurboTax Live offers unlimited access to TurboTax Live experts, who are available on nights and weekends during tax season (January to April) and the weeks leading up to tax extension deadlines. TurboTax Full Service experts can also prepare and file your taxes for you.

If you use TurboTax to file your business tax return, you will be covered by their 100% accurate calculations, maximum savings, and audit support guarantees. If you pay an IRS or state penalty due to a TurboTax error, they will pay the penalty and interest. If you receive an audit letter, they will provide one-on-one support with a tax professional through their Audit Support Center. However, they will not represent you before the IRS or state tax authority, and their fee-based Audit Defense service must be purchased separately.

In addition, certain TurboTax Live customers who are also Credit Karma members may be eligible for a loan issued by WebBank, based on their anticipated federal refund, with a maximum loan amount of $10,000.

Foreign Tax Credit

International students with an F-1 visa in the US are required to file their tax returns if they were in the country during the previous calendar year and earned an income. While Credit Karma Tax is a free option for filing taxes, it does not support the filing of NR (Non-Resident) tax returns.

The foreign tax credit is a US tax break that offsets income tax paid to other countries. To qualify for the foreign tax credit, the tax must be:

• Imposed on you by a foreign country or US possession
• Paid or accrued to a foreign country or US possession
• The legal and actual foreign tax liability you paid or accrued during the year
• An income tax (or a tax in lieu of income tax)

The amount of foreign tax that qualifies as a foreign tax credit may not be the amount of tax withheld by the foreign country. If you are entitled to a reduced rate of foreign tax based on an income tax treaty between the US and a foreign country, only that reduced tax qualifies for the credit.

To claim the foreign tax credit, individuals, estates, or trusts must file Form 1116, Foreign Tax Credit, and attach it to their Form 1040, Form 1040-SR, or Form 1040-NR. Corporations must file Form 1118.

It is important to note that the foreign tax credit laws are complex, and there are specific requirements and restrictions that must be considered. For example, you cannot take a foreign tax credit for taxes on income that you exclude from US gross income, and there is a limit on the amount of credit you can claim. Additionally, the foreign tax credit is generally non-refundable, meaning it will only reduce your tax owed to zero, and any remaining credit amount is forfeited.

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