University Tax and Income Reporting
Below is a listing of University Tax Documents and issuing departments:
Issuing UChicago Department
|W-2 Wage and Tax||1/31 – Annually||Statement of Wages and Tax Withholding for Tax Year to file income.||
Students who received wages/compensation from the University.
|1042-S Foreign US Income Subject to Withholding||3/15-Annually||Statement of Income and Tax Withholding for Non-Resident Aliens to file income.||International students who had US income subject to subject to withholding.||Shared Services|
|1099 – Miscellaneous Income||1/31-Annually||Statement of payments, not considered to be wages (i.e. rent, royalties, prizes and awards, independent contractor work) to file income.||
Students who had income not considered to be wages.
|1098-T – Tuition Statement||1/31 – Annually||To claim an eligible Tax Credit or Deduction under the AOTC or Lifetime Learning Credit.||These are issued to students who have a TIN/SSN on file in myUChicago Portal.||Bursar|
|1098-E –Student Loan Interest Statement||1/31- Annually||To claim an eligible Tax Deduction.||Issued to students who have paid more than $600 in interest on an educational loan.||
Bursar for Institutional and Perkins Loans
Federal Loan Servicer for Guaranteed Student Loans
1095-B Health Coverage
|1/31-Annually||To document Heath Insurance Coverage.||These are issued to students who carry USHIP coverage.||United Health Care/On-Campus Advocates|
Non-Resident Alien Tax Filing Information
Helpful Links and Resources
Frequently Asked Questions
- Estimated Tax Payments
- International Students (Foreign Nationals)
- State Filing
- Taxable Income
- Tax Forms
What is an “estimated tax payment” and how do I know if I have to make a payment?
- If you have income that is not subject to federal or state income tax withholding at the time you receive it (for example, non-qualified scholarships, stipends, University-paid student health premiums, and fellowship payments), you may be required to make quarterly estimated income tax payments to the IRS and State of Illinois. These are payments of the estimated income tax you owe on these sources of income, paid quarterly in advance of the date you file your personal income tax return.
- Federal: You can make these determinations by completing the IRS 1040-ES form. In general, if you are a domestic student or foreign resident alien for tax purposes and estimate that you will owe more than $1,000 in federal tax, you will need to make an estimated payment. Foreign nonresident aliens already have a federal withholding of 14% and should not be required to submit a federal estimated tax payment.
- Illinois State: You can make these determinations by completing the Illinois IL-1040-ES form. In general, if you are a domestic or foreign student and estimate that you will owe more than $500 in Illinois state income tax, you need to make an estimated payment.
Are we required to pay quarterly estimated tax payments?
- You are required by federal and/or Illinois state regulations to pay if you will have a liability of over $1000 (Federal) or $500 (Illinois state) when filing your tax return. If your annual liability is below these thresholds, you may elect to pay liabilities at the time of tax filing.
I failed to submit estimated quarterly tax payments during a calendar year to the IRS and Illinois State Revenue Office for my living stipend payments, what form(s) should be filled out to pay the tax on this stipend income now?
- You will need to report this income when filing your annual tax return and pay any liabilities at that time. If your liability is more than $1000 (Federal) and/or $500 (Illinois state), you will be subject to penalties and interest. It is recommended that when submitting your tax return, you request that any penalty or interest be waived by submitting a memo.
What is an ITIN? How to get one?
- ITIN stands for Individual Taxpayer Identification Number. The Internal Revenue Service (IRS) created the ITIN for use by anyone who is not eligible to apply for a Social Security Number (SSN) and who receives taxable money, such as scholarships, stipends, or awards from the University.
- UChicago students can apply through the Office of International Affairs: https://internationalaffairs.uchicago.edu/itin#whatisanitin
How do international students go about filing taxes?
- Please visit the OIA website for a comprehensive explanation of tax filing for a foreign national – https://internationalaffairs.uchicago.edu/page/tax-responsibilities-international-students-and-scholars I have claimed a tax treaty.
Where does this information appear?
- Tax treaty benefits are reported on IRS form 1042-S. This form is mailed to your home address by March 15 each calendar year. Wages/compensation that were excluded from tax due to the tax treaty will not appear on your W2 statement.
- How do I file a tax return while claiming tax treaty benefits?
- It is highly encouraged that you use nonresident software to prepare your tax return. This software will properly report and calculate any tax treaty benefits using IRS form 1042S, or by allowing you to claim eligible tax treaty benefits (if not previously claimed for the calendar year) at that time. If you are a resident for tax, specific instructions are provided within the foreign tax presentation.
I am an international graduate student who did not have any earnings in the USA (neither wages nor scholarship). Do I have a filing requirement?
- If you are a nonresident for tax and did not have any income in the US, you are still required to submit IRS form 8843. This form is a statement indicating your status in the US and that you did not have any reportable income. The software provided by OIA will produce this document. The deadline for submission to the IRS is June 15.
- If you only submit IRS form 8843 due to no US income, you do not have an Illinois State filing requirement. If you are a resident for tax, you are subject to the same regulations as a US Citizen. https://www.irs.gov/newsroom/do-i-have-to-file-a-tax-return
What documentation should an international student prepare for doing their taxes?
- International Students should review the Office of International Affairs website to determine the correct tax filing method. We highly encourage students to use the software provided by OIA to prepare taxes (Sprintax).
Do I need to file a partial-year resident state tax return if I am only in Illinois for college (I am from another state)?
Maybe. Earnings are typically reported in the state in which they are earned. If you are receiving reportable income from The University of Chicago, you may have a reporting requirement in Illinois (after reviewing minimum filing requirements).
- If you also earned income in another state, you are encouraged to review the filing requirements for that state. Please note the following states do not have a state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington & Wyoming. Tennessee and New Hampshire only tax dividend and interest income, not earned income.
Do I need to report tuition scholarship?
- A scholarship or fellowship is excludable from gross income only if: You are a candidate for a degree at an eligible educational institution; It doesn’t exceed your qualified education expenses; It isn’t designated or earmarked for other purposes (such as room and board), and doesn’t require (by its terms) that it can’t be used for qualified education expenses; It doesn’t represent payment for teaching, research, or other services required as a condition for receiving the scholarship.
Does fellowship/scholarship stipend count as taxable income?
- Yes, unless it is issued to pay qualified tuition expenses.
What am I required to do as a first-year student who had a full-time job prior to entering graduate school?
- Each tax filing is based on calendar year (January 1 – December 31). You are required to report and remit taxes on any taxable income received in a calendar year, regardless of your student status. You must ensure you receive any required tax documents from any previous employers or sources of income.
Does Federal work/study count as taxable income?
- Yes. This income will be reported on IRS form W2.
How do we file our stipends in comparison to our TA remuneration?
- Stipends are considered taxable income. Funds used to pay qualified expenses or the giving of tuition discounts/benefits would not be considered reportable income.
Are CAAP students taxed on their stipend?
- Yes, a CAAP scholarship is not different than any other scholarship.
- A scholarship or fellowship is excludable from gross income only if:
- You are a candidate for a degree at an eligible educational institution;
- It doesn’t exceed your qualified education expenses;
- It isn’t designated or earmarked for other purposes (such as room and board), and doesn’t require (by its terms) that it can’t be used for qualified education expenses;
- It doesn’t represent payment for teaching, research, or other services required as a condition for receiving the scholarship.
Expenses that are considered reportable income include:
- Room and board Insurance Medical expenses (including student health fees) Transportation Similar personal, living or family expenses.
How do scholarships (both university-given and not) affect taxes?
- Any non-qualified scholarship (University or third-party given) are considered reportable income. You should treat both types of scholarship income the same.
I received a tax form in error. How does this affect my filing?
- If you are certain you received a tax document that is not correct for your situation (i.e. as a nonresident for tax you received a 1099 form), you should contact the issuer of the document and provide statements/evidence of your tax situation. The issuer may not be able to correct the document for a variety of reasons. However, you are still required to report this income on your tax return (tax declaration).
What is a 1098-T Tuition Statement and what do I use it for?
- A 1098-T Tuition Statement is a an IRS statement the University is required to issue to all eligible tax filers who paid qualified educational expenses in the tax year.
- The 1098-T Statement is used ONLY for claiming and Education Tax Benefits for qualified educational expenses.
- It is NOT intended nor should be used to determine taxability of scholarships, fellowships, stipends or grants received and does not include this information nor any stipend disbursements.
How do you fill out a 1098-T Statement?
- A 1098-T statement is not a document that you are required to complete.
- You will receive this document from the University if you are an eligible tax filers who paid qualified educational expenses in the tax year.
Do I file as separately or jointly with my spouse?
- Married couples have the option to file jointly or separately on their federal income tax returns.
- In the vast majority of cases, it’s best for married couples to file jointly, but there may be a few instances when it’s better to submit separate returns. https://turbotax.intuit.com/tax-tips/marriage/should-you-and-your-spouse-file-taxes-jointly-or-separately/L7gyjnqyM
Is there a tax filing software available for UChicago students?
- Nonresident for Tax Students: The Office of International Affairs (OIA) has contracted with software provider: Sprintax. Sprintax allows students to create both federal and state tax returns. OIA has covered the fee for the federal filing, but students/scholars who use Sprintax to file state returns, are required to pay the state filing fee.
- You are not required to use the software if you do not want to. Domestic Students/Residents for Tax Students: The University does not provide specific software for this population.
- However, there are many free options for filing: https://bursar.uchicago.edu/page/domestic-filing-assistance-and-workshops
Can I itemize art supplies that I’ve purchased to produce work for school/class?
- Required classroom supplies may be considered qualified expenses.
- However, you must determine if itemizing or taking educational credit(s) is more beneficial to your personal tax situation.
Do I have to file taxes?
- Domestic Students/Residents for Tax: Maybe.
- The requirement to file depends on many factors including type of income, amount of income and if a tax return is due.
- To see if you need to file a federal return: https://www.irs.gov/help/ita/do-i-need-to-file-a-tax-return;
- Illinois State: http://www.revenue.state.il.us/Individuals/FilingRequirements/
- Foreign Students/Nonresidents for Tax: Yes. If you had reportable income, you have a federal filing requirement to either complete a full tax return (1040NR or 1040NR-EZ or an 8843 to report no reportable income: https://internationalaffairs.uchicago.edu/page/tax-responsibilities-international-students-and-scholars#requirement;
- Generally speaking if you had reportable income, you would also have a reporting requirement for Illinois State: Illinois State: http://www.revenue.state.il.us/Individuals/FilingRequirements/
What if I don’t have the money to pay for the money I have to return?
If you cannot pay the full amount of tax liability (taxes owed) by the deadline (April 17, 2018), then you should pay as much as you can and then set up a repayment plan: https://www.irs.gov/payments/payment-plans-installment-agreements.
Illinois State Revenue also has repayment options: http://www.revenue.state.il.us/Individuals/FilingRequirements/paymentplan.htm.
How to correctly report scholarship used to cover tuition and room and board.
- Form 1040EZ. If you file Form 1040EZ, include the taxable amount in the total on line 1. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 1.
- Form 1040A. If you file Form 1040A, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount in the space to the left of line 7.
- Form 1040. If you file Form 1040, include the taxable amount in the total on line 7. If the taxable amount was not reported on Form W-2, also enter “SCH” and the taxable amount on the dotted line next to line 7.
- Form 1040NR. If you file Form 1040NR, report the taxable amount on line 12. Generally, you must report the amount shown on Form(s) 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, box 2. See the Instructions for Form 1040NR for more information.
- Form 1040NR-EZ. If you file Form 1040NR-EZ, report the taxable amount on line 5. Generally, you must report the amount shown on Form(s) 1042-S, box 2. See the Instructions for Form 1040NR-EZ for more information.
How often should I submit tax forms?
- Federal and state tax returns are submitted once a year. This represents the calendar year (January 1 – December 31) and the filing deadline is April 15 of the next calendar year (e.g. 2017 tax returns represent January 1, 2017 – December 31, 2017 and are due to the proper revenue offices by April 17, 2018 (this is due to a holiday).
What is the minimum taxable amount?
Generally speaking, the below amounts represent minimum reportable income for 2017:
- Single: $10,350
- Married filing jointly: $20,700
- Married filing separately: $4,050
- Head of Household: $13,350
- Detailed filing information found at: https://www.irs.gov/pub/irs-pdf/p501.pdf
When should I have all my taxes paid and how do I estimate how much I owe so I can save up?
- The best practice for determining the amount of taxes owed, is to complete the 1040-ES (federal) and IL-1040-ES (Illinois State) each January to estimate the amount of taxes you will owe in a calendar year.
- You can then make quarterly payments (if needed), or save funds, or have additional amounts withheld from wage income.
- Any taxes owed should be paid by the deadline – generally April 15 each year.
What should one consider when choosing to file separate or with parents (as a dependent)?
- The decision of how a family decides to file is one that should be evaluated within the family unit and their unique tax situations.
- No matter if you are claimed as a dependent or not you will still need to evaluate on whether or not you have a filing requirement. These differ if you are filing single or as a dependent.