STUDENT TAX AND FISCAL SEMINAR

1. STUDENT TAX AND FISCAL SEMINAR WSU Payroll Services Shirley Cornelius, Asst Payroll Director

2. Taxes and Money

3. Objectives of Seminar • Where to find tax information • Who to contact • How to read tax forms • Do I need to file? • Additional resources

4. Where to find YOUR tax information • WSU W2's are available on-line through zzusis under employee info as long as you have an active appointment and a network user id and password. • A copy from zzusis will substitute for a printed copy and is available up to a week before the printed copy is sent to your current mailing address • W2's and Form 1098-T's are required to be mailed to you by 1/31/12

5. Where to find YOUR Tax Info (cont) • If you have not received your 1098 T by 2/15/12 contact Student Accounts, 335-9651 • If you have not received your W2 by 2/15/12 contact Payroll Services, 335-9475, or re-print a form at zzusis

6. Helpful Resources to Utilize • Shirley Cornelius, Payroll, shirleyc@wsu.edu • FREE Taxpayer Advocate Service, 1-877-777-4778 • Office of International Students, 335-4508 • FREE VITA local tax help: U of I, 711 Rayburn Room 107 Menard Law Bldg, Tues & Wed evenings 7:00-9:00 PM, and Sat from 12:00-4:00. No appt necessary start 2/28 and running through 4/14

7. WSU Form 1098-T Tuition Statement • WSU reports tuition payments in Box 1 of the form • Box 5 – total of scholarship or financial aid grants. When you compare box 1 to box 5: • If box 1 total is greater than box 5 total, you or whoever claims you as a dependent, could qualify for a tax credit. • If box 5 total is greater than the box 1 total, you will have to report the difference in the amount as income.

8. Scholarships and Fellowships • Scholarship is generally an amount paid or allowed to a student at an educational institution for the purpose of study. A fellowship is generally an amount paid to an individual for the purpose of research. • If you receive a scholarship or fellowship grant, all or part of the amounts you receive may be tax-free as long as you use the amount for tuition, fees, books, or supplies required for the courses. Room, board, travel, and other incidental expenses are included as income. • Taxable scholarships/fellowships are reported on line 1 of your Form 1040A where the W2 line is and you write “SCH” on line.

9. IRS Filing Requirements • Do you have any Federal income tax withheld? Even if you do not meet the requirements to file, you will probably want to file to receive your income tax withheld. • Did you earn more than $400.00 in self-employment income? • If you do not meet the earnings requirements to file and you have a refund coming to you, you may want to revise your W4 and show that you are exempt from taxes.

10. Dependent claimed by Someone else • Is your unearned income > $950.00? Unearned income includes interest, dividends, taxable scholarships & grants. If so, you WILL need to file a tax return. • Is your earned income > $5,800.00? You WILL need to file a tax return. • If you answer no to the above two questions, but the total of the two types of income is > $950.00 and your earned income is up to $5,800.00, you WILL need to file a tax return.

11. Why do your parents claim you as a dependent? • The only way that your parents can claim your tuition and fees paid by them on their tax return is to claim you as a dependent. • Always check with your parents on how they are going to file.

12. Not claimed by Someone else • Is your gross income > $9,500? You WILL need to file a tax return. This will ensure you get a refund of any Federal Income Tax Withheld. • Is your gross income < $9,500? • And your unearned income (interest, dividends, taxable scholarships & grants) is less than $300? • If you answer yes to the above two questions, … (exemption) … (next tax year – new W4 - exempt)

13. How to fill out Your tax form • 1040 • 1040A • 1040EZ • 1040NR and 1040NR EZ

14. Form 1040 EZ • Filing status single or married filing jointly. • Nonresident alien anytime in 2011, you must be filing married filing jointly • Claiming no dependents • No adjustment to income • Only credit is Earned Income Credit • Under age 65 and not blind. • Taxable income < $100,000 • Wages, salaries, tips, taxable scholarship or fellowship grants, unemployment, interest income less than $1,500 • Tips included in box 5 and 7 of W2

15. Form 1040 NR and 104NR-EZ • Must use if you are a non-resident alien • Engaged in a trade or business • Have any other US source of income where the tax due was not fully paid by the amount with held.

16. Free File • Free file with the IRS is available for a significant number of taxpayers that have an AGI of less than $57,000 • 15 different companies available at this time. • Not all companies have the same eligibility requirements. Be sure to check each company’s requirements • Website: http://apps.irs.gov/app/freeFile/jsp/index.jsp?ck

17. Resources • International Tax Assistance: http://ip.wsu.edu/oiss/tax-info.html • IRS Publication 970-Tax Benefits of Education: http://www.irs.gov/pub/irs-pdf/p970.pdf • IRS Student Web Site: http://www.irs.gov/individuals/students/article/0,,id=177662,00.html • Payroll Services 2011 W2 Fast Facts: http://www.wsu.edu/payroll/deptpay/2011w2fastfacts.htm