Does my D need to file US Income Tax

[percussiondad]

<p>We come from Canada and my D is in College in the US. She does not work part time on Campus or anywhere else while at school. We have received mixed responses when asking if she has to file a US Tax Return. If anyone knows for sure it would really be appreciated.</p>

[bookiemom]

<p>If you do not have any income, then you do not need to file a return.</p>

[percussiondad]

<p>Thanks Bookiemom that is what I would have thought but I talked to an accountant in the US and he says that since she is there for more than 180 days a year she has to file a claim anyway even if she has no income. I am wondering if he is just trying to get my business regardless. I have tried contacting the IRS but that is virtually impossible.</p>

[happymomof1]

<p>taxguy should know the answer to this. </p>

<p>Yes, it is incredibly hard to get hold of the IRS by phone, but just about any question you can think of should be answered at [Internal</a> Revenue Service](<a href=“http://www.irs.gov%5DInternal”>http://www.irs.gov)</p>

[swimcatsmom]

<p>I would say she does not have to file a return if she has no income (unless she has taxable scholarships/grants).</p>

<p>From
<a href=“http://www.irs.gov/businesses/small/international/article/0,,id=129239,00.html[/url]”>http://www.irs.gov/businesses/small/international/article/0,,id=129239,00.html&lt;/a&gt;&lt;/p&gt;

<p>

</p>

<p>Foreign students and foreign scholars have special filing requirements for U.S. federal income tax returns.</p>

<ol>
<li>There is no minimum dollar amount of income, which triggers a filing requirement for a nonresident alien, including foreign students or foreign scholars. The dollar limit thresholds which trigger a filing requirement for a U.S. citizen or a resident alien do not apply to nonresident aliens. However, Notice 2005-77 provides that a nonresident alien whose only U.S. source income is wages is not required to file a U.S. federal income tax return unless his U.S. source wages exceed the personal exemption amount. Please refer to Publication 501 to determine the personal exemption amount.
2. Filing IS required by nonresident alien students and scholars who have:
1. A taxable scholarship or fellowship, as described in Chapter 1 of Publication 970, Tax Benefits for Education;
2. Income partially or totally exempt from tax under the terms of a tax treaty; and/or
3. Any other income, which is taxable under the Internal Revenue Code.</li>
<li>Filing IS NOT required by nonresident alien students and scholars who have income ONLY from:
1. Foreign sources,
2. Interest Income from:
1. a U.S. bank
2. a U.S. savings & loan institution
3. a U.S. credit union
4. a U.S. insurance company
5. an investment, which generates Portfolio Interest (Described in Chapter 3 “Exclusions From Gross Income” - “Interest Income” – “Portfolio interest” of Publication 519, U.S. Tax Guide for Aliens)
3. A scholarship or fellowship, which is entirely a Tax Free Scholarship or Fellowship as described in Chapter 1 of Publication 970, Tax Benefits for Education; and/or
4. Any other income, which is nontaxable under the Internal Revenue Code. However, income, which is not taxable because of an income tax treaty must be reported on a U.S. income tax return even though no income tax is due on the U.S. income tax return.

</li>
</ol>

[ellemenope]

<p>So, PD–is your D on scholarship? If not, it seems that you can stop right there.</p>

[percussiondad]

<p>She has an International Initiative Grant that the college says is Tax Free at this time, so I think she is safe at not filing this year at least.
Thanks everyone</p>

[fordiscussion]

<p>

Thanks Bookiemom that is what I would have thought but I talked to an accountant in the US and he says that since she is there for more than 180 days a year she has to file a claim anyway even if she has no income.

Get a new accountant.</p>