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Tax Info for U.S. Citizens and Immigrants February 24, 2014 Prepared by: Kiran Samran

Tax Info for U.S. Citizens and Immigrants February 24, 2014 Prepared by: Kiran Samran Manager of Tax Services 1715 Canal Street (Mondo Building) Merced, CA 95340. Agenda. Tax Update Who is a Resident for tax purposes? Income and withholding at U.C. Merced Who is required to file

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Tax Info for U.S. Citizens and Immigrants February 24, 2014 Prepared by: Kiran Samran

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  1. Tax Info for U.S. Citizens and Immigrants February 24, 2014 Prepared by: Kiran Samran Manager of Tax Services 1715 Canal Street (Mondo Building) Merced, CA 95340

  2. Agenda • Tax Update • Who is a Resident for tax purposes? • Income and withholding at U.C. Merced • Who is required to file • How, when, and where to file • Credits versus Deductions • Free Tax Preparation Resources • Resources

  3. Tax Update • Delayed filing (Beginning Jan. 31) • American Opportunity Credit (up to $2,500) • Lifetime Learning Credit (up to $2,000)

  4. What is Residency? • Residency for Immigration Purposes • Residency for Tuition Purposes • Residency for Tax Purposes • Substantial presence

  5. Why Should I Care About Residency for Tax Purposes? • Because application for Income Tax Law (Federal and State Level) begins with the residency for tax purposes.

  6. Determining Residency in California • Generally, the filing status that you file with Federal is the same as the filing status that you file for the State. • The California Taxing Authority a.k.a Franchise Tax Board (FTB), defines a resident for tax purposes to be an individual who is in California other than a transitory or temporary period.

  7. Income at U.C. Merced • Taxable Scholarship/Fellowship awards • Royalties • Wages for guest lecturer • Wages from employment • Other payments not exempted by IRS Code

  8. Taxes Withheld from Wages • Federal Income Tax (IRS) • California State Income Tax (FTB) • Employment Taxes (a.k.a. FICA, SDI)

  9. What is Taxable Income? • Taxable income includes but is not limited to: • Interest and Dividends • Capital Gains • Life insurance • Social Security Benefits • Alimony • Jury Duty • Bonus • Hobby Income • Rental Income • Business Income

  10. Year End Statements

  11. Understanding your W-2 2013

  12. Who Must File Income Tax? • In the United States, it is the individual’s responsibility to know what taxes must be filed with the government. • Everyone who receives a compensation while living in California may be required to file a California Income Tax Return. • The State of California sometimes does not conform with the Federal Government.

  13. 2013 Federal Filing Requirements (under age 65)

  14. 2013 CA Filing Requirements(under age 65)

  15. To File or Not to File • Even if you are not required to file, there are six reasons you might want to file. • Income tax withheld • Earned Income Tax Credit • Additional Child Tax Credit • Child and Dependent Care Credit • American Opportunity Credit • Health Coverage Tax Credit

  16. Refundable versus Non-Refundable Credits • A refundable credit not only reduces tax liability down to zero, but it is also paid out in the form of a refund. • A non-refundable credit reduces tax liability down to zero.

  17. Credit versus Deductions • Credits are dollar per dollar reductions of taxes. These can be refundable or non-refundable. • Deductions are reductions of total reportable income. Some deductions are taken above the line, but most are taken through itemized deductions.

  18. When and where to file? You must file a tax return by April 15, 2013. • Individual Federal Return must be mailed to: • Individual State (California) Return must be mailed to:

  19. Five Reasons to E-file • It’s easy • Accurate and complete • Safe and secure • Faster refunds • Payment options

  20. IRS Free Income Tax PreparationMerced County VITA

  21. Useful Telephone Numbers and Websites • Internal Revenue Service (IRS) - (800) 829-1040 • Franchise Tax Board (FTB) – 800-852-5711 • Social Security Administration (SSA) - (800) 772-1213 • Employment Development Dept. (EDD) - (800) 300-5616 Websites: • IRS: http://www.irs.gov/uac/Free-File:-Do-Your-Federal- Taxes-for-Free • FTB: https://ftb.ca.gov/online/calFile/about.shtml?WT.mc_ id=HP_Online_CalFile&WT.svl=HCF2

  22. Campus Resources • Tax Services tax@ucmerced.edu (209) 228-4075 • Student Business Services sbs@ucmerced.edu (209) 228-4114 • Graduate Division gradfunding@ucmerced.edu (209) 228-4622 • Financial Aid finaid@ucmerced.edu (209) 228-4243 • Human Resources hr@ucmerced.edu (209) 228-8586 • Accounting Services accounting@ucmerced.edu • Contracts and Grants Accounting cga@ucmerced.edu (209) 222-8043 • International Affairs Office international@ucmerced.edu (209) 228-4722 • Payroll Services payroll@ucmerced.edu (209) 228-2729

  23. Comments or Suggestions Please submit your comments and/or suggestions to: ksamran2@ucmerced.edu

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