Publication 4011 (Rev. 8-2021) - IRS tax forms

VITA/TCE Foreign Student and Scholar Resource Guide 2021 RETURNS

Volunteer Income Tax Assistance (VITA) / Tax Counseling for the Elderly (TCE)

Take your VITA/TCE training online at (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

CONTACTS Common Phone Numbers/ Web Addresses/ etc.

IRS-SPEC Relationship Manager: TaxSlayer : Site Coordinator: Site Leader(s): IRS Forms, Instructions & Publications: U.S. Income Tax Treaties: Tax Treaty Tables: State Government Websites:

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 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

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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 .

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Exempt Individual/ Residency

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 if you are an exempt individual for the Substantial Presence Test (SPT).

Student F, J, M, or Q Visa

Teacher or Trainee J Visa

Are you a full-time student?

No

Yes

Are you a student?

Yes

No

Are you in substantial compliance with your visa?

No

Yes

Have you been in the U.S. for any part of more than 5 calendar

years?

You are an exempt individual for the

Are you in substantial compliance with your visa?

Yes

No

Have you been in the U.S. for any part of 2 of the preceding 6

calendar years?

Yes

No

Do you choose to claim a Closer Connection exception to the Substantial Presence Test?

No

Yes

Substantial Presence

Test

In order to claim the exception, all the following must apply:

A. You do not intend to reside permanently in the US B. You must have complied with your Visa. C. You must not have taken steps to become a

Resident Alien. D. You must have a closer connection to a foreign

country.

No

Yes

No

Yes

Were you exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding years, AND Did a foreign employer pay all your compensation during the tax year in question, AND Were you present in the U.S. as a teacher or trainee in any of the preceding 6 years, AND Did a foreign employer pay all your compensation during each of the preceding 6 years you were present in the U.S. as a teacher or trainee?

Yes

No

* 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 "resident" using the physical presence test rules, see possible exceptions allowed in Revenue Procedure 2020-20.

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NRoensriedseindtenootrrR?e s i d e n Nonresid

Nonresident Alien or Resident Alien? - Decision Tree

Nonresident Alien or Resident Alien? - Decision Tree

Start here to determine your residency status for federal income tax purposes

Were you a lawful permanent resident of the United States (had a "green card") at any time during the current tax year?

Were you physically present in the United States on at least 31 days during the current tax year? 3

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 1/6 of the days of presence in the second preceding year? 3

YES

NO4

Were you physically present in the United States on at least 183 days during the current tax year? 3

YES

Can you show that for the current tax year you have a tax hom e 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, 1U.SIf. tThaisx iGs yuoiduer ffoirrsAt ylieeanrs . o(fO reusti-doef-nSccy,o ypoeu) may have a dual status for the year.

See Dual--Status Aliens in Pub 519. (Out--of--Scope)

2. 2In sIno m soemceir c ciurmcusmtasntacensceyso yuomu amyasyt siltliblle beco cnosnisdiedreerdeda an noonnrerseisdideennt ta alielienna anndde elilgigibiblelef o forrb beenneefiftistsu unnddeer ra anni n inccoommeet a taxxt rtereaatyty betbweetewneethne tUhe.S U. .aS.n adnydo yuor ucro cuonutrnyt.rCy.h Cehcekctkh e thper opvroisvioisnioonf othf e thtere taretyatcya creafruelflyu.ll(yO. (uOt-uotf---oSf-c-Socpoep)e)

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. SeeindDiavyidsuoaflsP sruecshe nasc e stiundtehnetsU, n scitheodlaSrtsa,t aensdin oPthuebrs5 t1e9mfoprordaaryilsy t ihna tthdeo Un.So.t ucnoduenrt aans Fd, a J,y Ms o, of rp rQe s veisnac'se iminmthiegrUat.iSo.n( Estxaetumsp dt o indnivoidt u caolusnstu tchheiars dasytusd oefn ptsre, ssecnhcoela inrs t,haen Ud .oSt.h feorrs spteemcipfioerda rpileyriiondths e ofU t.iSm.eu.)n der an F, J, M, or Q immigration status do not count 4theIifr ydoauy s moefeptr tehsee snucbesitnanthtiealU p.rSe.sfeonrcsep teecsitfi feodr p theeri o fodlsloowf itnimg e ye.)ar, you may be able to choose treatment as a U.S. resident

alien for part of the current tax year. See Substantial Presence Test under Resident Aliens and First--Year Choice under Dual

4. If ySotuatmues e Atlitehnes s inu b Psutba.n 5ti1a9l .p (rOesuet-n-ocfe--Stceospt efo) r the following year, you may be able to choose treatment as a U.S. resident alien for 5parNt oonf rtheesidceunrrte snttutdaexnytes a frr.oSme BeaSrbuabdstoasn, t HiaulnPgraersye,n acnedT Jeasmt auincdae, rasR weseildl e anst tAraliiennesesa nfrdomFir Jsat-mYeaiacraC, mhoaiyc e quuanldifeyr fDoru aaln-S etlaetcutsioAnl i ens in Ptou b bleic atrteioant.e5d1 a9s. a(O Uu.St-.o Rfe-Ssicdoepnet ) 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. Nornerveoskideedn.)t students from Barbados, Hungary, and Jamaica, as well as trainees from Jamaica, may qualify for an election to be

treated as 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 revoked.)

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Form 13614-NR

Form 13614-NR

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