Under the U.S. Hungary, Barbados and Jamaica tax treaties, students from these countries may choose to be treated as a "resident alien for tax purposes" and file either Form 1040EZ, 1040A, or 1040,,,,,,,,, Note: Visiting scholars and researchers are not eligible. | Advantages: - You can claim tax credits normally not available to nonresident aliens
- You can claim the "standard deduction"
- You can claim exemptions for your spouse and dependent children.
Disadvantages: - You will be taxed on your worldwide income including grants from abroad
- You may be subject to Social Security and Medicare withholding on your wages
How to make the choice: Attach a signed statement to your tax return for the first tax year for which the choice applies: - A declaration that you are a citizen and resident of Hungary, Barbados or Jamaica and that you choose to be treated as a U.S. resident for the entire tax year.
- Include your name, address, and Social Security number.
- Sign and date the statement.
| Example Statement Date To Whom It May Concern:
I am an (insert F-1 or J-1) student in the U.S. attending (insert the name of your university). Beginning with the tax year 2007, I choose to be treated as a U.S. resident for the entire tax year. This right is granted to me under the U.S/(insert Hungary, Barbados or Jamaica) income tax treaty Article (Hungary=18, Barbados=20 or Jamaica=21). Your Signature
Your Printed Name
Address
SSN or ITIN | Note: You should visit your Payroll Office and complete Form W-9. Mailing instructions: Only the first year that you make the election, your return and your statement must be mailed to: Internal Revenue Service Center Austin, TX 73301. (Note: save copies of both your tax return and your statement for your records). Future tax returns should be mailed following instructions for Form 1040EZ, 1040A, or 1040. | |
