MSU Turfgrass Students
TAX INFORMATION FOR YOU!
HELP FOR YOU!
MSU LAW TAX CLINIC: We're here to help you! We operate a Tax Clinic that specializes in helping educate English-as-a-second-language taxpayers about their United States tax responsibilities. If you earn wages in the United States in 2011, you will have to file 2011 United States and state tax returns (unless you work in states that do not have an income tax, such as Texas and Florida) – these returns are due for filing in 2012. Today we are providing you with a Retainer Agreement and Intake Form that will allow us to prepare your tax returns for you in 2011. Please complete these forms and return them your program coordinator today; or you can PDF them to me at firstname.lastname@example.org. We do not charge you any fees to prepare your tax returns – this is a free service. The Tax Clinic will email you in mid-November 2011 to remind you about what documents we will need you to send us to have your tax returns prepared, and to touch base with you about the tax return preparation process. We look forward to working with you and making the "tax return" situation easier for you! Here's other contact information for us: 517-336-8088 (telephone); 517-336-8089 (fax).
What is Form 8233? It's a form you provide to your employer to show that the United States and the People's Republic of China have entered into an income tax treaty that exempts $5,000 of your wages from tax. This means that your employer will not "withhold" (that means take right now) taxes from your wages that relate to this exempt amount.
Do I Provide My Employer with Form 8233 Only Once? It depends. If you will only earn income in the U.S. during 2011, then you only need to provide your employer with Form 8233 in 2011. If you will earn income in the U.S. during both 2011 and 2012, you will need to give your employer one completed Form 8233 in 2011, and another completed Form in 2012.
Are There Other Documents or Statements That I Need to Give my Employer with Form 8233? Yes. You need to give your employer a Statement of Nonresident Alien Student (PDF) that you have completed and signed. See the end of these instructions for a sample of this Statement. You also need to show your employer your passport, DS-2019, and I-94.
How Do I Complete Form 8233? Enter the following information, as indicated:
Just above Part I (mid-way down on page 1 of Form 8233), fill in calendar year 2011.
Line 1: Your name
Line 2: Your social security number
Line 3: Leave blank
Line 4: Your address in the People's Republic of China
Line 5: Your address in the United States
Line 6: J-1
Line 7a: People's Republic of China
Line 7b: Your passport number
Line 8: Date you entered the United States on this visit
Line 9a: J-1
Line 9b: Date your J-1 status expires
Line 10: Check the box
Line 11a: Student employment as part of turfgrass education program
Line 11b: Write in the total compensation you expect to be paid in 2011 (do not include anything you expect to earn in 2012)
Line 12a: United States/People's Republic of China, Article 20
Line 12b: $5,000
Line 12c: People's Republic of China
Line 13: Only complete lines 13 a, b, and c if you received wages and a scholarship from the same withholding agent (an example of this is if you received wages from Michigan State and a scholarship from Michigan State).
Line 13a: Report the amount of scholarship or fellowship income you received in 2011
Line 13b: United States/People's Republic of China, Article 20
Line 13c: Report the entire amount of the scholarship or fellowship as exempt
Line 14: I first entered the United States on _________ on a J-1 student visa. Although, generally, a person who is in the United States for more than 183 days in a given year qualifies as a resident for tax purposes under the substantial presence test, J-1 student visa holders are exempt from day-counting for a five year period and are nonresident alien taxpayers during that period regardless of the number of days they are present in the U.S. during the year. 2011 is the first year of my J-1 student presence in the U.S. In 2011, I earned student compensation as part of my participation in a turfgrass education program; this employment was permitted under the terms of my J-1 student visa. I therefore am eligible to take advantage of the $5,000 treaty benefit allowed to J-1 students for student compensation under Article 20 of the income tax treaty between the United States and the People's Republic of China.
NOTE: IF THIS NOT YOUR FIRST VISIT TO THE U.S. ON AN F-1 OR J-1 VISA, PLEASE CONTACT PROFESSOR HALLORAN AT HALLOR11@MSU.EDU BECAUSE YOUR STATEMENT WILL READ DIFFERENTLY FROM THE ONE STATED ABOVE – SHE WILL PROVIDE YOU WITH A STATEMENT FOR YOUR SPECIFIC CIRCUMSTANCES.
Line 15 through 18: Leave blank.
This is an essential part of Form 8233. You MUST read this. Then sign and date it for Form 8233 to be effective.
You do not need to sign this – your employer will.