How to File Taxes as a U.S. Graduate Student (Based on University of Michigan)
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B. Step 1. Federal Tax: Collect Documents
C. Step 2. Federal Tax: Glacier Tax Prep (GTP)
D. Step 3. Federal Tax: Print W-7 Related Documents
E. Step 4. Federal Tax: Send Mail to IRS
A. Federal Tax: Overview
⑴ Overview
① There are up to 4 tax filing periods in a year: Many schools including the University of Michigan only file once by April 15
② Must file regardless of income: Typically about 14% tax withheld
③ Schools usually provide free codes for Sprintax or other agencies
④ Unlike international students, domestic students use TurboTax, Cash App, etc.
⑤ F-1, J-1 visa holders may be exempt from or receive refunds on FICA tax
⑥ 2023 tax return (@ May 2024)
⑦ In the first year, a refund of about $2,000 may be received, but from the next year, due to TA or RA roles, taxes may increase
⑧ The university is legally prohibited from providing tax-related consulting to students.
⑵ Resources
③ https://internationalcenter.umich.edu/resources/tax/tax-software
④ https://www.internationalcenter.umich.edu/glacier-tax-prep-software
⑤ https://internationalcenter.umich.edu/resources/tax/current-year#overview
⑥ https://internationalcenter.umich.edu/resources/tax/laws-and-filing-requirements#resources
⑶ Contact: tax.payroll@umich.edu
B. Step 1. Federal Tax: Collect Documents
⑴ Document Types: W-2, 1042-S, 1099-B, 1099-DIV, 1099-G, 1099-INT, 1099-MISC, 1090-NEC, 1099-R
⑵ How to Receive 1042-S Form
① 1-1. Email subject: “Your Form 1042-s is Available”
② 1-2. Log into FNIS website and request Form 1042-S
③ 1-3. You will receive the 1042-S form by mail from the school
C. Step 2. Federal Tax: Glacier Tax Prep (GTP)
⑴ Overview
① Glacier Tax Prep (GTP): Free. For federal tax only.
② FreeTx USA: Paid. For both federal tax and state tax.
③ OLT(Online Tax): Paid. Cheaper than FreeTx USA. For both federal tax and state tax.
④ SprintTax: Paid. For both federal tax and state tax.
⑵ 2-1. Visit https://internationalcenter.umich.edu/glacier-tax-prep-software
⑶ 2-2. Click Access GLACIER Tax Prep Software
⑷ 2-3. Upload Form 1042-S under “What Income Statements Did You Receive in 2024?”
① If your U.S. income is only a stipend, generally only Form 1042-S is needed
② 1042-S is a form for reporting scholarship, fellowship, or other tax-exempt income received by nonresident aliens
③ Since stipend is considered fellowship income and not earned income, it is reported via 1042-S rather than W-2 or 1099-MISC
④ If the stipend is compensation for work (e.g., research or TA), it may be reported via W-2
⑤ If you also received earned income (W-2), dividends (1099-DIV), bank interest (1099-INT), etc., those forms must also be included
⑸ 2-4. U.S.-Korea Tax Treaty Exemption Application
① According to the U.S.-Korea tax treaty, scholarship or fellowship income may be exempt from tax. If your stipend qualifies, it is advantageous to select “Yes” to receive the maximum exemption
② Even if the scholarship is purely non-compensatory, a stipend received in the U.S. can still be exempt under the U.S.-Korea treaty, so “Yes” is appropriate
③ Even if this is your first year receiving the scholarship, the IRS judges based on the tax year, so treaty benefits apply from this year
⑹ 2-5. Taxation in Korea
① If the scholarship is purely non-compensatory, select “No”
② If it resembles compensation or tax was withheld, select “Yes”
③ If the scholarship is not taxable in Korea, reporting is unnecessary; “No” is correct
⑺ 2-6. Visa Number
① Red-marked letter or number at the bottom right of the F-1 visa section in the passport
② Must be 8 characters
D. Step 3. Federal Tax: Print W-7 Related Documents
⑴ Overview: ITIN application documents. More documents required since the Trump administration
⑵ Certified copy of the picture page from your passport
① Passport and visa info not needed if no special income
⑶ Copy of I-20 (if F-1 status) or copy of DS-2019 (if J-1 Status)
① Passport and visa info not needed if no special income
⑷ No Employment Letter: How to Request
① Not required if no special income
⑸ Notes
① If you applied for an ITIN when filing your U.S. income tax return, the U.S. government will notify you whether your ITIN has been issued or your application has been rejected.
② You do not need to pay anyone to get an ITIN: such websites are scam websites (confirmed by the University of Michigan).
③ If you do not have an ITIN, you can write “Applied For” on your Michigan state income tax return, and you can file it using Sprintax through the University of Michigan International Center website.
E. Step 4. Federal Tax: Send Mail to IRS
⑴ 4-1. Print and sign the relevant documents
① W-7: Signature required in the Signature of Applicant section
② Form 1040-NR: Signature required
③ Form 8843
④ Non-service Scholarship or Fellowship Grant Statement: Signature and date required
⑵ 4-2. Visit the post office
① Obtain an envelope: Any envelope is acceptable
② Can be obtained at the post office
③ Post office options: Blake Transit Center US Post Service, North Campus US Post Service
④ Post offices are closed on weekends
⑤ USPS Priority Mail: Trackable, fast delivery. While regular mail is free, priority mail costs $10.10
⑶ 4-3. Enclose documents in the following order
① Form W-7
② Certified copy of the picture page from your passport
③ Copy of I-20 (if F-1 status) or copy of DS-2019 (if J-1 Status)
④ No Employment Letter
⑤ Form 1042-S
⑥ Form 1040-NR
⑦ Schedule OI
⑧ Form 8843
⑨ Grant Statement
⑷ 4-4. Mailing Address: Stated on the Glacier Tax Prep result page
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
USA
F. State Tax: Overview
⑴ Overview
① State tax refunds may be possible.
② If total stipend is under 5600 USD, no state tax needs to be paid.
③ Send the relevant documents to East Lansing or file them via e-filing.
④ If you use Sprintax, you can file without an ITIN.
⑤ Michigan has a relatively low tax rate of around 4%, while California has one of the highest rates, ranging up to 12–13%.
⑥ When state tax is applied
⑦ For doctoral students, it is classified as a fellowship, so filing Michigan taxes is not required; however, it is recommended to file taxes.”
⑵ Method: You can e-file for free using Sprintax (Note that federal tax filing through Sprintax is not free).
⑶ Resources
③ https://internationalcenter.umich.edu/resources/tax/non-residents#state
⑷ Contact: tax.payroll@umich.edu
Input: 2025.03.18 23:58