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Publication 4011 (Rev. 8-2021) Catalog Number 34182T Department of the Treasury Internal Revenue Service CONTACTS

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Publication 4011 (Rev. 8-2021) Catalog Number 34182T Department of the Treasury Internal Revenue Service CONTACTS VITA/TCE Foreign Student and Scholar Resource Guide Volunteer Income Tax Assistance (VITA) / Tax Counseling for the Elderly (TCE) 2021 RETURNS Take your VITA/TCE training online at https://www.irs.gov/(key word: Link & Learn Taxes). Take the Foreign Student and Scholar and other certification tests Publication 4011 (Rev. 8-2021) Catalog Number 34182T Department of the Treasury Internal Revenue Service www.irs.gov CONTACTS Common Phone Numbers/ Web Addresses/ etc. IRS-SPEC Relationship Manager: TaxSlayer : Site Coordinator: Site Leader(s): IRS Forms, Instructions & Publications: https://www.irs.gov/forms-pubs U.S. Income Tax Treaties: https://www.irs.gov/individuals/international-taxpayers/tax-treaties Tax Treaty Tables: https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables State Government Websites: https://www.irs.gov/businesses/small-businesses-self-em- ployed/state-government-websites State Contact(s): Other Contacts EFiling Form 1040NR through TaxSlayer - The latest information on the preparation of Forms 1040NR through TaxSlayer can be found by going to the VITA/TCE Springboard at https://vita.taxslayerpro.com and accessing the Pro Online Knowledgebase or Pro Desktop Knowledgebase where you will find the applicable lesson for completing the Form 1040NR using either version. (Search using key word “1040NR”.) Important Changes for 2021 Tax Form Changes ITINS • ITINs not used in the last three consecutive tax years: If an ITIN was not included on a U.S. federal tax return at least once for tax years 2017, 2018, or 2019, the ITIN will expire on December 31, 2020. Affected taxpayers need to take action to renew if it will be included on a U.S. federal tax return. • ITINs with the middle digits 88 will expire. Additionally, ITINS with middle digits 90-92 and 94-99 will expire if assigned before 2013. These affected taxpayers who expect to file a tax return in 2021, must submit a renewal application as soon as possible. Exemptions/ Dependents • The deduction for all personal exemptions is suspended (reduced to zero), effective for tax years 2018 through 2025. • For 2021, the gross income limitation for a qualifying relative remains at $4,300. Important Changes for 2020 i i Standard Deduction The standard deduction for qualifying residents of India who may choose not to itemize deductions on Schedule A (Form 1040-NR) has increased. The standard deduction amounts for 2021 are: • $25,100 – Married Filing Jointly or Qualifying Widow(er) (increase of $300) • $12,550 – Single or Married Filing Separately (increase of $150) Student loan interest deduction begins to phase out for taxpayers with MAGI in excess of $70,000 ($140,000 for joint returns) and is completely phased out for taxpayers with MAGI of $85,000 or more ($170,000 or more for joint returns). Foreign Earned Income Exclusion For 2021, the maximum foreign earned income exclusion is $108,700. Congress may enact additional legislation that will affect taxpayers after this publication goes to print. Any changes will be reflected in Publication 4491-X, VITA/TCE Training Supplement, available in mid-January on https://www.irs.gov/. 2ii Nonresident Alien or Resident Alien? - Decision Tree If you are temporarily present in the United States on an F, J, M, or Q visa, use this chart to determine Residency if you are an exempt individual for the Substantial Presence Test (SPT). Exempt Individual/ Exempt Student Teacher or Trainee F, J, M, or Q Visa J Visa Are you a full-time student? Are you a student? No Yes Yes No Are you in substantial Are you in substantial compliance with your visa? compliance with your visa? No Yes Yes No Have you been in the U.S. for You are Have you been in the U.S. for any part of more than 5 calendar an exempt any part of 2 of the preceding 6 years? individual for the calendar years? Yes No Substantial No Yes Presence Test Were you exempt as a teacher, Do you choose to claim a Closer trainee, or student for any part of 3 Connection exception to the (or fewer) of the 6 preceding years, Substantial Presence Test? AND Did a foreign employer pay all your compensation during the tax year No Yes in question, AND Were you present in the U.S. as a teacher or trainee in In order to claim the exception, all the any of the preceding 6 years, AND following must apply: Did a foreign employer pay all your A. You do not intend to reside permanently in the US compensation during each of the B. You must have complied with your Visa. preceding 6 years you were present in C. You must not have taken steps to become a Resident Alien. the U.S. as a teacher or trainee? D. You must have a closer connection to a foreign country. Yes No No Yes * You must apply the Substantial Presence Test * Substantial Presence Test (SPT) - You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for calendar year calendar year 2021. To meet this test, you must be physically present in the United States on at least: 1. 31 days during 2021 and 2. 183 days during the 3-year period that includes 2021, 2020, and 2019, counting: a. all the days you were present in 2021 and b. 1/3 of the days you were present in 2020, and c. 1/6 of the days you were present in 2019. NOTE: If additional days of presence due to COVID-19 travel restrictions cause the taxpayer to become a “resi- dent” using the physical presence test rules, see possible exceptions allowed in Revenue Procedure 2020-20. 1 n e t d n i Nonresident Alien or Resident Alien? - Decision e s d e i r s Tree n e o r R o N Nonresident Alien or Resident Alien? - Decision Tree Start here to determine your residency status for federal income tax purposes Resident or Resident Nonresident? Were you a lawful permanent resident of the United States (had “green a card”) at any time during the current tax year? Were you physically present in the United States on at least 31 days during 3 the current tax year? YES Were you physically present in the United States on at least 183 days during the 3-­‐year period consisting of the current tax year and the preceding 2-­‐years, counting all days of presence in the current tax year, 1/3 of the days of presence in the first preceding year, and 3 1/6 of the days of presence in the second preceding year? YES 4 NO Were you physically present in the United States on at least 183 days during 3 the current tax year? YES Can you show that for the current tax year you have tax a home in a foreign country and have a closer connection to that country than to the United States? (*Out-­‐of-­‐Scope, Form 8840 required) YES* 1. If this is your first or last year of residency, you may have a dual status for the year. See Dual-Status Aliens in Publication 519, 1 If this is your first year of residency, you may have dual a status for the year. U.S. Tax Guide for Aliens. (Out-of-Scope) See Dual-­‐Status Aliens in Pub 519. Out-­‐of-­‐Scope ( ) 2. 2In someIn some circumstances circumstances you you may may still still be be considered considered a nonresident nonresident a alien alien and and eligible eligible for for benefits benefits under an an incomeincome tax treaty betweenbetween the the U.S. U.S. and and your your country country. Check Check the the provision provision of of the the treaty treaty carefully. carefully. (Out-of-Scope Out-­‐of-­‐Scope ( ) ) 3 See Days of Presence in the United States in Pub 519 for days that do not count as days of presence in the U.S. (Exempt 3. Seeindividuals Days of Presence such as students, in the United scholars, Statesand in others Pub 519 temporarily for days thatin the do U.S. not under count an as F, days J, M, of or presence visa’s Q immigration in the U.S. (Exempt status do individualsnot count such their as days students, of presence scholars,in the and U.S. others for specified temporarily periods in the of U.S. time.) under an F, J, M, or Q immigration status do not count 4their If you days meet of presence the substantial in the U.S. presence for specifiedtest for the periods following of time.) year, you may be able to choose treatment as U.S. a resident alien for part of the current tax year. See Substantial Presence Test under Resident Aliens and First-­‐Year Choice under Dual 4. If youStatus meet Aliens the substantialin Pub. 519. presence Out-­‐of-­‐Scope ( test for) the following year, you may be able to choose treatment as a U.S. resident alien for 5part Nonresident of the current students tax year from. See Barbados, Substantial Hungary, Presence and Test Jamaica, under as Resident well as traineesAliens and from First-Year Jamaica, Choice may qualify under forDual-Status an election Aliens in Publication.to be treated 519. as (Out-of-Scope a U.S. Resident ) for tax purposes under their tax treaty provisions with the U.S. A formal, signed, election statement must be attached to the Form 1040 (preparation of the statement is Out-­‐of-­‐Scope). (It continues until formally 5. Nonresidentrevoked.) students from Barbados, Hungary, and Jamaica, as well as trainees from Jamaica, may qualify for an election to be treated as a U.S.
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