{"666766":{"#nid":"666766","#data":{"type":"news","title":"Taxes 101 for Graduate Students","body":[{"value":"\u003Cp\u003E\u201cIs my fellowship taxed?\u201d \u201cHow do I determine my residency for tax purposes?\u201d These are just a couple of the important questions answered in Taxes 101 for Graduate Students.\u003C\/p\u003E\r\n\r\n\u003Cp\u003EResident tax gurus James Black, senior academic professional in the Office of Graduate Education; Jessica Dunn, international tax compliance specialist in Global Human Resources; Rob Sullivan, business analyst in the Bursar\u2019s Office, teamed up to answer graduate students\u2019 most commonly asked questions when it comes to doing taxes.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cem\u003EStaff are not professional tax accountants or preparers. The following is for informational use only.\u0026nbsp;\u003C\/em\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat are income taxes?\u003C\/strong\u003E \u201cEssentially, when you earn income, the government (both the state and federal government) is generally owed a tax on that income. It\u2019s called income tax,\u201d said James Black, senior academic professional in the Office of Graduate Education. \u201cBasically, if taxes withheld are greater than the taxes you owe, you\u2019re going to get a refund back. If your taxes withheld are less than your taxes owed, then you\u2019re going to have a tax bill, and you will have to pay some money through that tax return process.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EIn general, how does it work? \u003C\/strong\u003E\u201cAs you get a paycheck, there\u2019s a portion of your paycheck that\u2019s held back and prepaid to the state and federal government, in terms of your income tax,\u201d said Black. \u201cThat\u2019s really important when it comes time to file your tax return when you\u2019re reporting how much income you have and how much tax you may have had withheld.\u201d\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat is the process? \u003C\/strong\u003E\u201cYour income can be reported in a number of ways based on the type of income that it is,\u201d said Black. \u201cAfter that calendar year concludes is when you would prepare and file your income tax return. You collect all of that paperwork; you report all of your income to the government and any other relevant financial information that may affect how much money you owe in taxes. Then, there\u2019s a math problem that determines whether you\u2019re going to get a refund through that tax return process, or you may have a tax bill where you need to pay some money to finish paying your taxes that are owed on that money throughout the year.\u201d\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat are common tax forms for graduate students?\u0026nbsp;\u003C\/strong\u003E\u003C\/p\u003E\r\n\r\n\u003Cul\u003E\r\n\t\u003Cli\u003E\r\n\t\u003Cp\u003EW-2: \u201cFor W-2 pay, that\u2019s where payroll is going to report your income that taxes may have been withheld on,\u201d said Black. \u201cIf you\u2019re hired as a GRA or GTA and you\u2019re employed on campus, you will generally be paid through payroll, and you will be issued a W-2.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\t\u003C\/li\u003E\r\n\t\u003Cli\u003E\r\n\t\u003Cp\u003E099: \u201cInterest income, or other types of income you may make, will generally be reported on a 1099 form, and there are many different flavors of a 1099 based on the type of income that it is,\u201d said Black. \u201cIn general, on a 1099, no tax is withheld. If that is taxable income, you need to keep track of that. Keep in mind that when you go to file your tax return, you will be required to pay that tax at that time.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\t\u003C\/li\u003E\r\n\t\u003Cli\u003E\r\n\t\u003Cp\u003E1042-S: \u201cFor scholarship and fellowship income for our international students, generally, there is going to be a 1042-S that is produced for you to report that income,\u201d said Black.\u0026nbsp;\u003C\/p\u003E\r\n\t\u003C\/li\u003E\r\n\u003C\/ul\u003E\r\n\r\n\u003Cp\u003EIn addition, Dunn explained that people who are paid through payroll for a job but have a tax treaty will also get a 1042-S. \u201cThat [form] can also be necessary if you received money back from the bursar, meaning all of your tuition was paid and there was still some money left over, so they gave you a check or they deposited it into your account,\u201d said Dunn. \u201cAlso, if you received any prizes or awards that didn\u2019t go directly toward your tuition, but you just got the money to do with as you wanted, you would receive a 1042-S.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EHow do I determine my residency status for tax purposes? \u003C\/strong\u003E\u201cIf you are international, meaning you have a foreign passport, the first thing you are going to want to do is figure out whether you are considered a resident or nonresident for tax purposes, and that will determine how you complete your taxes,\u201d said Dunn.\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EAccording to Dunn, \u201cThe easiest way to determine [if you are a resident or nonresident] is to use GLACIER. If you are earning income from Georgia Tech, you have likely already done this, and you have put in your immigration information and determined whether you are a resident or nonresident,\u201d said Dunn. \u201cThe thing to keep in mind is this can change based on how long you have been here, so if you have been at Tech for a while, you may want to go back and double-check that before you do anything.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EDo I need to file income taxes if I made less than a certain amount? \u003C\/strong\u003E\u201cThe process is different if you earned money or if you didn\u2019t,\u201d said Dunn. \u201cFor U.S. citizens, you really don\u2019t have to do anything if you didn\u2019t earn money.\u201d\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u201cThe same is not true for nonresidents. Even if you earned nothing in the U.S. in 2022, there\u2019s still one form that you\u2019re supposed to do, and that is the 8843,\u201d said Dunn. \u201cIt\u2019s very simple; it doesn\u2019t have anything to do with numbers. It\u2019s really just to say, \u2018Hi, I\u2019m here in the U.S., and I\u2019m a nonresident. Please don\u2019t tax my worldwide income.\u2019 Meaning, if you have any kind of income in another country, it will keep the U.S. from bothering that income. That\u2019s important to do.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003EBlack explained that U.S.-based taxpayers who made less than $12,950 (single return) or $25,900 (joint return) don\u2019t have to file a tax return. \u201cWe always recommend that you do file a tax return because if you did make income, and you had taxes withheld, more than likely you\u2019re going to get a refund,\u201d said Black. \u201cIf you don\u2019t want to bother with your tax return, that\u2019s fine, but you may be leaving some money out there in the government\u2019s checking account that you may be entitled to, so make sure that you file your taxes if you made any income.\u201d\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat are tax deductions and credits? \u003C\/strong\u003E\u201cYou may have heard of \u2018income tax reductions,\u2019\u201d said Black. \u201cEssentially, that will reduce your taxable income. A tax credit results in a dollar-for-dollar reduction in the taxes that you pay. If you owe $2,000 and you got a $1,000 tax credit, then you would end up owing $1,000. The Bursar\u2019s website has some information about common tax credits for educational-related tax credits at \u003Ca href=\u0022https:\/\/www.bursar.gatech.edu\/tax-credits\u0022\u003Ewww.bursar.gatech.edu\/content\/tax-credits\u003C\/a\u003E.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWill my fellowship be taxed? \u003C\/strong\u003E\u201cMany fellowships are going to be providing you with income that is going to be taxed,\u201d said Black. \u201cThere can also be deductions to offset a lot of that income. I will refer you to the website: \u003Ca href=\u0022http:\/\/www.pfforphds.com\u0022\u003Ehttp:\/\/www.pfforphds.com\u003C\/a\u003E. There\u2019s information there about some tax situations related to fellowships where you will want to dig into that because you could potentially have a pretty big tax bill if you weren\u2019t planning for that while you were receiving your fellowship income. If you had a stipend paid through the Bursar\u2019s office because you\u2019re on a fellowship, that could be taxed, and you might have a big tax bill to pay.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EHow do I file my tax return (U.S. citizens and residents)?\u003C\/strong\u003E \u201cThere are many different versions of tax prep software out there that will walk you through all of the different deductions and credits,\u201d said Black. \u201cIn general, the advice we give to U.S. citizens and residents for tax purposes is to trust the software. Be an intelligent consumer of the tax prep software. Make sure you trust the folks that are going to be preparing your taxes. They\u2019re going to get a lot of sensitive information, like your social security number, and you will want to make sure that you\u2019re working with somebody that is not trying to scam you. Be an intelligent consumer and trust the software that\u2019s out there to help you file your taxes.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EHow do I file my tax return (nonresidents)? \u003C\/strong\u003E\u201cWe provide nonresident alien students a program called Sprintax,\u201d said Dunn. \u201cYou will probably see ads for tax preparation software, but the important thing to remember is that if you\u2019re a nonresident, most of those that you see advertised will not work for you. They\u2019re not designed for nonresidents. They will do your taxes incorrectly. I see a lot of people using them because it gives you a bigger refund, and that seems really great. The IRS may come back later and request that you pay that. It\u2019s really important to use the correct program. Georgia Tech does provide Sprintax. There is an e-form in iStart, and you can go in and request that.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EDo I have to pay a fee to file my taxes? \u003C\/strong\u003E\u201cIf your income is below a certain threshold, you should be able to file your taxes for free,\u201d said Black. \u201cHere\u2019s a URL for the IRS website: www.irs.gov\/filing\/free-file-do-your-federal-taxes-for-free. There\u2019s more information on the IRS website about how to access those free filing taxes for your federal income taxes. When you file your state taxes, generally, there\u2019s going to be some charges associated with filing it with the state.\u201d\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat is the deadline? \u003C\/strong\u003E\u201cThe deadline to file your 2022 tax return is the 18th of April,\u201d said Black. \u201cIf you find that you need more time to prepare your income tax return, it is possible to file and request an extension with the IRS. One really important thing to know about this is if you owe money to the IRS to pay taxes, you can\u2019t get an extension to pay that bill. You need to pay that bill by that deadline of the 18th of April.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWho can I ask for help? \u003C\/strong\u003E\u201cFor questions, I am always available,\u201d said Dunn. \u201cGo to asc.gatech.edu and submit a ticket. That\u2019s the best and quickest way to go.\u201d\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u0026nbsp;\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u003Cstrong\u003EWhat are some resources I can use to help me?\u0026nbsp;\u003C\/strong\u003E\u003C\/p\u003E\r\n\r\n\u003Cp\u003E\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Educational-Related Tax Credits: \u003Ca href=\u0022https:\/\/www.bursar.gatech.edu\/tax-credits\u0022\u003Ewww.bursar.gatech.edu\/content\/tax-credits\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Personal Finance for Ph.D.\u2019s: \u003Ca href=\u0022http:\/\/www.pfforphds.com\u0022\u003Ehttp:\/\/www.pfforphds.com\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;IRS Free File: \u003Ca href=\u0022https:\/\/www.irs.gov\/filing\/free-file-do-your-federal-taxes-for-free\u0022\u003Ewww.irs.gov\/filing\/free-file-do-your-federal-taxes-for-free\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Tax Treaty Benefits: \u003Ca href=\u0022https:\/\/www.irs.gov\/individuals\/international-taxpayers\/tax-treaties\u0022\u003Ewww.irs.gov\/individuals\/international-taxpayers\/tax-treaties\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;LinkedIn Learning: \u003Ca href=\u0022https:\/\/www.linkedin.com\/learning\/finance-foundations-income-taxes-2\u0022\u003Ewww.linkedin.com\/learning\/finance-foundations-income-taxes-2\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Taxes 101 recording: \u003Ca href=\u0022https:\/\/grad.gatech.edu\/taxes101\u0022\u003Ewww.grad.gatech.edu\/taxes101\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Submit a Help Ticket: \u003Ca href=\u0022https:\/\/gatech.service-now.com\/asc\u0022\u003Ewww.asc.gatech.edu\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp; Tax Resources for International Students and Scholars: \u003Ca href=\u0022https:\/\/isss.oie.gatech.edu\/content\/tax-resources\u0022\u003Ewww.isss.oie.gatech.edu\/content\/tax-resources\u003C\/a\u003E\u003Cbr \/\u003E\r\n\u2022\u0026nbsp;\u0026nbsp; \u0026nbsp;Publication 970: Tax Benefits for Education (for use in preparing 2022 returns): \u003Ca href=\u0022https:\/\/www.irs.gov\/pub\/irs-pdf\/p970.pdf\u0022\u003Ewww.irs.gov\/pub\/irs-pdf\/p970.pdf\u003C\/a\u003E\u003C\/p\u003E\r\n","summary":"","format":"basic_html"}],"field_subtitle":"","field_summary":[{"value":"\u003Cp\u003EResident tax gurus James Black, senior academic professional in the Office of Graduate Education; Jessica Dunn, international tax compliance specialist in Global Human Resources; Rob Sullivan, business analyst in the Bursar\u2019s Office, teamed up to answer graduate students\u2019 most commonly asked questions when it comes to doing taxes.\u0026nbsp;\u003C\/p\u003E\r\n","format":"basic_html"}],"field_summary_sentence":[{"value":"\u201cIs my fellowship taxed?\u201d \u201cHow do I determine my residency for tax purposes?\u201d These are just a couple of the important questions answered in Taxes 101 for Graduate Students."}],"uid":"36249","created_gmt":"2023-03-23 13:37:59","changed_gmt":"2023-03-23 17:47:19","author":"Sara Franc","boilerplate_text":"","field_publication":"","field_article_url":"","dateline":{"date":"2023-03-23T00:00:00-04:00","iso_date":"2023-03-23T00:00:00-04:00","tz":"America\/New_York"},"extras":[],"related_links":[{"url":"https:\/\/grad.gatech.edu\/taxes101","title":"Taxes 101 Recording"}],"groups":[{"id":"221981","name":"Graduate Studies"}],"categories":[{"id":"129","name":"Institute and Campus"}],"keywords":[{"id":"1808","name":"graduate students"}],"core_research_areas":[],"news_room_topics":[],"event_categories":[],"invited_audience":[],"affiliations":[],"classification":[],"areas_of_expertise":[],"news_and_recent_appearances":[],"phone":[],"contact":[{"value":"\u003Cp\u003E\u003Ca href=\u0022mailto:sara.franc@gatech.edu\u0022\u003ESara Franc\u003C\/a\u003E\u003Cbr \/\u003E\r\nCommunications Officer\u003Cbr \/\u003E\r\nGraduate and Postdoctoral Education\u003C\/p\u003E\r\n","format":"basic_html"}],"email":[],"slides":[],"orientation":[],"userdata":""}}}