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OLT Guide ​

OLT.com, short for OnLine Taxes, is an IRS-authorized e-file provider offering tax preparation software.

As a non-resident alien (NRA) navigating U.S. taxes, I've found OLT.com to be an invaluable resource. OLT.com offers IRS-authorized e-filing options tailored for NRAs like myself. While I initially hoped for a completely electronic filing process, I discovered I still needed to mail in my tax forms, a minor hiccup in an otherwise smooth experience.

Choosing the Right Form ​

Nonresident alien individuals, estates, and trusts should turn to Form 1040-NR for U.S. income tax filings. This form accommodates the unique aspects of our tax obligations.

Key Considerations for NRAs ​

Do you want to file Form 8840 ​

You are not eligible for the closer connection exception if any of the following apply.

  • You were present in the United States 183 days or more in the current year.
  • You are a lawful permanent resident of the United States (that is, you are a green card holder).
  • You have applied for, or taken other affirmative steps to apply for, a green card; or have an application pending to change your status to that of a lawful permanent resident of the United States.

Do you want to file Form 8843 ​

If you're here on an type F, J, M, or Q visa, filing Form 8843 is crucial. It exempts you from the Substantial Presence Test, potentially altering your tax status.

As a student stayed most of the time at US, I filled 8843.

Enter the number of days in 2023 you claim you can exclude for purposes of the substantial presence test ​

As an F-1 student, you'll likely exclude all days present in the U.S. during the year from the Substantial Presence Test.

Reporting Income ​

W-2 Forms ​

Your university will provide a W-2 form. Remember to apply treaty article 20(c) to your wages. The process changes slightly depending on whether you received only a W-2 or also a 1042-S.

  1. You only received a W-2 (that's what NC State University did)
  2. After done with W-2, Choose exempt under treaty. First, fill Schedule OI. Then, choose No for "Do you have wages on W-2 box 1 that is already reduced by the tax treaty exemption"

Press "Click Here"

  1. You got W-2 (without a withhold of $5000) and a 1040-S
  2. Complete your W-2 as normal, but for the 1042-S should be completed with a statement of exempt under treaty, followed by a statement of $5,000 in 1040NR OI, with an article code of 20(c).

Dividends and Interest ​

For dividends (reported on Form 1099-DIV) and interest, nonresident aliens face a default 30% tax rate, subject to reductions under tax treaties.

1099DIV ​

  • SSN can be used for TIN (Tax Identification Number)
  • A flat tax of 30 percent (or lower treaty) rate is imposed on U.S.

  • Reminder this, Fidelity's SPAXX investment has about 30% is for the US government investment.
  • Remember to put the same amount in the state tax section as well (except for CA and NY)

1099INT and 1042S ​

If you submit Form W-8BEN that indicate that you are a NRA, to your bank or investment institution, you should receive Form 1042-S. (I received it from Chase.) Or, you will get 1099-INT. (I got it from Fidelity).

1099INT ​

Attach it at the end.

1042S ​

Choose Code 10 (Interest) for SCHEDULE OI.

1040NR SCHEDULE OI ​

Choose YES for "Were you subject to tax in foreign country on any of the income show above"

Tesla Clean Vehicle Credit ​

For those interested in clean vehicle credits.

  1. go to https://www.tesla.com/support/ira-clean-vehicle-report/2023 to generate IRS form 15400
  2. Search form 8936 and Start
  3. fill form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit|

Final Reminder ​

Don't play with it

Individuals may be fined up to $100,000 for filing a false return in addition to being sentenced to prison for up to three years

Contributor ​

The avatar of contributor named as Canarypwn Canarypwn
The avatar of contributor named as Neko Ayaka Neko Ayaka

Changelog ​

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