Lori Meadows
International students in Massachusetts may be required to file state taxes if they meet certain requirements. These requirements include the duration of stay, income level, and residency status. Students living and working in Massachusetts for more than a year, with an annual income above $8,000, and those who consider Massachusetts their primary residence or domicile, are generally considered residents for tax purposes. Non-resident international students on specific visas or with income covered by tax treaties may be exempt from state taxes. To determine their tax status and necessary forms, international students can seek guidance from their educational institutions and utilize resources like Sprintax Returns and the IRS website.
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What You'll Learn
Determining residency status
In Massachusetts, your residency status for tax purposes is determined by whether you are a full-year resident, a part-year resident, or a non-resident.
You are a full-year resident if your legal residence is in Massachusetts and you spend more than 183 days in the state. If you are a full-year resident, you should file a Massachusetts Resident Income Tax Return, Form 1.
You are a part-year resident if you move to Massachusetts during the taxable year and become a resident, or if you terminate your Massachusetts residency during the taxable year to establish residency in another state. For the period of time that you are a resident of Massachusetts, all income earned during this time is subject to Massachusetts tax.
You are a non-resident if you are neither a full-year nor a part-year resident. If you are a non-resident, your Massachusetts source income may be excluded for Massachusetts tax purposes if it is excluded from federal gross income under an income tax treaty. However, you still need to report the income if it is greater than the tax return filing threshold.
To be considered a resident for tax purposes, you must meet certain criteria. Generally, if you have been in the state for longer than a year, do not live in college residence halls, and consider Massachusetts your "domicile" (your main home), then you can be considered a resident for tax purposes. Your domicile is the place where you maintain your most important family, social, economic, political, and religious ties. It is important to note that you cannot choose to make your home one place for general living purposes and another for tax purposes.
Additionally, if you have a gross income of more than $8,000 in Massachusetts during the previous year, you are required to file a Massachusetts state tax return. If your gross income was $8,000 or less, filing a return is optional, but you may want to do so if you had Massachusetts State Tax withheld to receive your state refund.
There are also specific considerations for international students. For example, if you are receiving a 1042-S form, you should wait until you have received this form before filing your taxes. Additionally, you must submit Form 8843 and a 1099-HC Form (proof of medical health insurance for Massachusetts) with your tax filing if you receive one.
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Income thresholds
As an international student in Massachusetts, your tax obligations depend on your residency status and income level.
Non-Resident Tax Status
If you are an international student in Massachusetts and do not meet the criteria for residency or part-year residency, you are considered a non-resident for tax purposes. Non-residents are generally taxed on income sourced in Massachusetts, subject to any tax treaties that the United States may have with your home country.
Resident Tax Status
To be considered a resident for tax purposes in Massachusetts, you must meet at least one of the following criteria:
- Your legal residence (not living on campus) is in Massachusetts, and you spend more than 183 days in the state during the taxable year.
- You consider Massachusetts your "domicile" or main home, you do not live in college residence halls, and you have been in the state for more than a year.
If you are a legal resident of Massachusetts and your gross income is more than $8,000, you are required to file a Massachusetts income tax return. If your gross income is $8,000 or less, filing a return is optional. However, if you had Massachusetts state tax withheld from your income, you may want to file a return to claim a refund.
Tax Forms
The tax forms you need to file depend on your individual circumstances. If you only need to file Form 8843, you must mail it to the IRS. If you are required to file a Massachusetts state tax return, you may also need to submit Form HC 1099 (proof of health insurance) and Form 1042-S (if applicable).
It is important to note that tax laws can be complex, and there may be additional considerations for international students. Therefore, it is recommended to seek specific guidance from a tax professional or utilise resources provided by your educational institution to ensure accurate compliance with tax requirements.
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Tax treaties
International students in Massachusetts are required to file state taxes if they have earned over $8,000 in the state during the previous year. This is true for both resident and non-resident students. If you are a non-resident alien for tax purposes, you must file Form 8843 with the Internal Revenue Service (IRS) annually, regardless of whether or not you have income in the US. This form helps the IRS determine your eligibility for tax treaty benefits.
If you are eligible for tax treaty benefits, you may need to file additional forms, such as Form 8233, which confirms your exemption from tax withholdings due to the tax treaty. You may also receive a Form 1042-S if you have scholarships or tax treaty-exempt wages that exceed your fees. This form is a statement of your income during the year.
It is important to note that tax treaties do not exempt you from filing tax returns. You are still required to file a Massachusetts state tax return if you had taxable income at the federal level, even if you claim a tax treaty exemption. Additionally, if you receive a W-2 form or a 1099-HC Form (proof of medical health insurance for Massachusetts), you must submit these with your tax filing.
To prepare your tax filings, you can use resources such as Sprintax Returns, which can help determine your Massachusetts tax status and prepare the necessary forms. Alternatively, you can seek assistance from student volunteers at the University of Massachusetts Amherst's School of Management, which offers tax return preparation under the Volunteer Income Tax Assistance program (VITA).
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Tax forms
The tax forms you need to file in Massachusetts depend on your residency status. Generally, if you have been in Massachusetts for longer than a year, do not live in college residence halls, and consider Massachusetts your "domicile" (your main "home"), then you are considered a resident for tax purposes.
Non-residents
If you are a non-resident for tax purposes, your Massachusetts source income may be excluded for Massachusetts tax purposes if the income is excluded from federal gross income under an income tax treaty or convention that the United States is a part of.
Residents
If you are a resident for tax purposes, you must file a Massachusetts income tax return if your gross income in the tax year is more than $8,000. If your gross income is $8,000 or less, filing a return is optional, but you may want to file one to receive a state refund if you had Massachusetts state tax withheld.
International students
If you are an international student, you are considered a permanent resident for tax purposes if you have lived in the US for five years or more. If you are not a permanent resident, you may still be required to file a state tax return if you earned over $8,000 in Massachusetts during the previous year. You may also be required to file a state tax return in each state you lived or worked in during the preceding calendar year.
The tax forms you need to file depend on your individual circumstances. However, some common tax forms for Massachusetts residents and non-residents include:
- Form 8843: This form must be filed with the IRS even if you did not receive a W-2 or 1042-S form.
- Form 1042-S: Foreign Person's U.S. Source Income Subject to Withholding, relative to any tax treaty provision (if applicable).
- Form HC 1099: Proof of medical health insurance for the state of Massachusetts, which must be submitted with your tax filing if you receive one.
- Form W-2: This form is usually mailed by the end of January and one copy is sent when you file your Massachusetts state tax return.
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Tax preparation resources
The first step in preparing your taxes is to determine your residency status. If you are a non-resident for tax purposes, you may not need to submit any state tax forms. If you are a resident, you will need to file a state tax return.
Determining Your Residency Status
The Massachusetts Department of Revenue defines a resident as someone who has been in the state for longer than a year, does not live in college residence halls, and considers Massachusetts their "domicile" (their main home). If you are an international student at Harvard, the International Payee Tax Compliance (IPTC) team can help you determine your tax residency status.
Tax Preparation Assistance
If you need assistance with your taxes, there are several resources available:
- The University of Massachusetts (UMass) offers access to Sprintax, a program that can guide you through the tax preparation process, arrange the necessary documents, and check if you're due a tax refund.
- The University of Massachusetts Amherst's School of Management has student volunteers who assist international students and scholars with tax return preparation under the Volunteer Income Tax Assistance (VITA) program.
- The Massachusetts Department of Revenue website can help you find a tax professional in the Boston area.
- The Worcester Polytechnic Institute provides information on state tax requirements for international students.
- The IRS offers the Volunteer Income Tax Assistance (VITA) program, which provides free tax preparation and access to tax credits for low-income taxpayers.
Important Forms
Depending on your situation, you may need to complete and submit various forms, including:
- Form 8843: This form is required for non-resident international students, even if you did not receive any income.
- Form 1042-S: If you are expecting to receive this form, wait until you have received it before filing your taxes.
- Form 1099-HC: If you receive this form in the mail, submit it with your tax filing as proof of medical health insurance for the state of Massachusetts.
- Form 1: If you are a full-year resident of Massachusetts, you should file this form as your resident income tax return.
Deadlines
The state of Massachusetts typically follows the same deadline as the federal filing deadline, which for the year 2024 is April 15, 2025.
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Frequently asked questions
International students may be required to file a Massachusetts state tax return if they have taxable income at the federal level. If you earned over $8,000 in Massachusetts during the previous year, you are required to file a state tax return.
If you are a permanent resident for tax purposes, the rules for filing state taxes are the same as for U.S. citizens. You must file a Massachusetts state tax return if you had taxable income at the federal level.
You are considered a permanent resident for tax purposes if you have lived in the U.S. for five years or more, or if you have been in Massachusetts for longer than a year, do not live in college residence halls, and consider Massachusetts your main home.
You can determine your Massachusetts status by using Sprintax Returns to prepare your federal tax return. You can also seek help from the Massachusetts Department of Revenue or a professional tax service.
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