Individual Income Tax for International Students

University of Michigan – Webinar

March 21 & 22, 2023

Thank you for attending the webinars hosted by the University of Michigan on Individual Income Tax for

International Students. Below is a transcript of the questions addressed within the two events by

representatives from the Michigan Department of Treasury (Treasury). Please keep in mind that some questions

may have been altered for conciseness and clarity, or to minimize redundancy. For the slide deck and associated

presentation, which is designed to provide F-1 and J-1 international students and scholars with an overview of

the U.S tax filing process. Additionally, you can find information about Glacier Tax Prep, which is still the tax

software available free of charge to University of Michigan and Ann Arbor international students and scholars

for federal tax form preparation.

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Session I (3/21)

1. Can non-resident aliens use Spintax to file federal (and state) taxes? Is the waiting time shorter than when

filing taxes by mail?

a weekend and the next business day is a federal holiday. Therefore, for tax year 2022, the last day to file

and pay your state and federal returns without an extension is April 18, 2023.

3. For people that received a Substitute Form 1099-G for the previous tax year in the mail, does that need to

be reported on state taxes?

A: If you claimed itemized deductions on your 2021 federal income tax return and received a Michigan

individual income tax refund in 2022, you will be mailed a 2022 Michigan Substitute Form 1099-G. This is not

IRS, you do no need to report this information on your state taxes. Review the 1099-G explanation.

5. Does fellowship income (as opposed to wage income) need to be reported? Is fellowship income taxed?

A: Treasury cannot provide guidance on questions relating to federal taxation.

6. Is there any software which is free to file state taxes?

A: There are multiple software options available when it comes to e-filing your return in Michigan. You can

view both free and paid options on Treasury’s website.

7. What files are needed for a resident alien (resident for tax purpose)?

A: Nonresidents of Michigan are not eligible to claim the Homestead Property Tax Credit which is based on

rent or the Home Heating Credit.

You may claim a property tax credit if all of the following apply:

9. If my income comes from 2 states (Michigan and California). How should I file the state tax?

A: Since you earned income in another state in the 2022 tax year, you have to first identify whether that

state is reciprocal. In this instance, California is not reciprocal with Michigan. To file your state tax returns,

you will need to allocate your income between the two states. For more details on different sources of

income, please refer to RAB 2017-13. Also, example 2 in the presentation details this exact scenario. You

should have all pages of example 2 in your handouts available at the University of Michigan website.

10. I didn't understand the Michigan personal exemption allowance—does this mean that $5,000 of our income

11. Nonresidents can subtract fellowships; how should I file?

A: Treasury cannot provide guidance on questions relating to federal taxation. For Michigan taxation non-

residents are not taxed on scholarships received for tuition, fees, books, supplies and room and board, to the

extent they are included in AGI, may be subtracted from Michigan taxable income using the Michigan

Schedule NR and Michigan Schedule 1. See example 1 from the presentation for further guidance.

12. Where can we find the forms necessary (e.g. completed 1040; Schedule-NR; 1042-S; W-2; 1099) to file both

federal and state taxes? Are they available in some of the tax prep software suggested in the emails sent

prior this session?

A: The necessary state forms can be found on Treasury’s website. Federal tax forms are available on the IRS

website. Reference approved tax preparation software here. W-2 and 1099 forms are provided to you by

14. Is the federal income tax withheld field on W-2 a total sum for 2022?

A: Yes. Please check the general instructions for Forms W-2 and W-3 on the IRS website if you have further

questions.

15. Where can we get the 1040 empty form? I only received 1042 from the bank.

A: Michigan income tax forms are available for download on Treasury’s website. Take a look at our MI-1040

Forms and Instructions booklet for guidance on that form. The blank fillable form is available here on

17. What are the federal tax filing steps for international students considered as Resident Aliens?

A: This is a federal question, please visit the IRS website.

18. If I use the software the university provides to fill out the tax return forms, should I still fill these forms by

myself?

A: Whether you use your university’s software, other e-file software, or engage the services of a tax

professional to help you complete state tax returns, you should not complete and submit the tax forms again.

You should always retain a copy of what has been filed on your behalf, including any confirmation numbers.

19. If my Michigan income in 2022 is 0 (no MI on my W-2), is it is optional to file Michigan taxes?

20. If we owe state tax and have to pay, can we pay online for Michigan?

A: If you owe tax, payments can be made using Michigan’s e-Payments service. You may pay by direct debit

21. Is it better to e-file or paper file state taxes? What are the advantages/disadvantages?

A: E-file is generally preferred as it eliminates many of the simple errors that can lengthen processing times

and lead to unnecessary tax bills. If you e-file a return, allow 2 weeks from the date you received

confirmation that the state return was accepted before checking the return or refund status. If you paper-file

a return, allow 6 weeks before checking return or refund status.

22. If income has been received from another country, like Canada, will it have to be included in the federal tax

return?

A: Treasury cannot provide guidance on questions relating to federal taxation.

23. If I only have a grant from University of Michigan and am eligible for tax treaty exemption, how can I file the

residents of Michigan are taxed on wages earned while physically present in the state of Michigan. See

example 1 from the presentation for further guidance.

24. Just to confirm, I am a non-US citizen and a UK permanent resident, with a temporary, one-year J1

fellowship/contract in the USA. Can you confirm that I should fill the non-resident forms, and clarify if I am

exempted of taxes due to my UK permanent residency?

A: Treasury cannot provide guidance on questions relating to federal taxation. For information regarding

tax (MI-1040, line 14) is less than your personal exemption allowance (line 15) and Michigan income tax was

withheld from your earnings, you must file a return to claim a refund of the tax withheld. Please review the

“Who must file a return” section on page 3 of the 2022 MI-1040 Booklet.

26. If I have only a scholarship (Form 1042-S) and do not receive a wage from the United States (do not have a

W-2 form), should I still fill the Michigan taxes?

A: Although Michigan does not tax scholarship income, Treasury recommends filing a tax return in order to

avoid unnecessary inquiries from the state.

27. Does the Department of Treasury send a confirmation email when I mail return documents? Where can I

A: You would need to refer to your specific home country’s treaty with the United States.

29. So, if we are filling out the form for 2022, do we include the earnings up to now? (Jan 2022 - March 2023?)

A: You would only need to include earnings received during tax year 2022 on your 2022 tax return. (January

1, 2022 through December 31, 2022.) Your earnings are totaled on the W-2 issued to you by your employer

for each year. It is a source document to use when completing tax returns.

30. Who should we ask federal tax questions to?

A: You should direct federal tax questions to the IRS or a qualified tax professional.

31. Tax Treaties - I'm a citizen and live in a state having a treaty of "exempt from tax." Is it good for Michigan as

well?

A: Treasury cannot provide guidance on questions relating to federal taxation. If after review of the treaty

that applies to your income, you do not file a federal 1040NR, or you do not have any Adjusted Gross Income

from the federal return, you would not need to file a Michigan income tax return.

33. Is a stipend for research considered a wage?

A: Treasury cannot provide guidance on questions relating to federal taxation.

34. I am a resident for tax purposes. And I joined University of Michigan last December. I was in Illinois before.

Should I file state taxes in both places?

A: Treasury cannot provide guidance on questions relating to Illinois taxation; you should confer with Illinois

A: Treasury cannot provide guidance on the usage of software. A list of approved software for filing a

Michigan return can be found on Treasury’s website.

36. If my fellowship ends in August 2023, but I am returning to the UK to work remotely from there, will I have

to file another tax return in the future?

A: Treasury cannot provide guidance on whether you will have a filing requirement in the future.

37. When I mail returns, is it mandatory to mail it certified with a return receipt?

A: Certified mail is not a requirement.

1. If someone did not work in the United States the whole year but worked overseas remotely and brought

that as bank transfer in a United States/Michigan bank account, how would they report income and file for

tax?

A: Income taxable to Michigan is generally earned in Michigan, such as income reported on a W-2 or 1099.

Income reported on a federal form 1042-S is taxable in Michigan if it’s coded 19 or 20 in box 1. If you were

not physically located in the state of Michigan when the income was earned it would not be taxable to

Michigan in the scenario you described.

2. I recently became a resident alien, but I was a nonresident alien last year. Should I still file as a resident

alien? I have also received 1042-S for 2022. Do I need to include the 1042-S in my return if I file as a resident

16. All my income was reported in a 1042-S form under code 16, and it is less than 5,000 dollars (I did not

receive Form W-2); do I need to file state taxes?

A: While you do not have a filing requirement, since none of your income is taxable in Michigan as a non-

resident receiving scholarship income, it is advisable to file the MI-1040 to show Treasury that none of the

federal AGI is taxable in Michigan.

18. I didn’t file my state tax properly last year. I didn’t include the $5,000 exemption. I paid more than I should.

How can I reclaim my refund from last year?

A: To correct filed tax information on a current or prior year return, fill out a new Michigan form MI-1040

and check the “Amended Return” box. Include a completed Schedule AMD and supporting documentation.

Please refer to the MI-1040 Booklet for the appropriate tax year for more information. You can find past-year

forms on the Individual Income Tax page of Treasury’s website. You have 4 years from the due date of the tax

return to claim a refund.

20. Why in the first example, the $6,000 scholarship was listed as income in other states?

A: The title of column c on the Michigan Schedule NR uses “income in other states” to represent any income

that is not taxable in Michigan.

21. How much scholarship needs to be reported on Schedule 1 (Form 1040)? Where can I find the treaty

24. If tax is owed from the previous tax year (as I did not know I had to file), how is that resolved?

A: File the appropriate year’s MI-1040 and pay the tax due immediately. You may pay online on Treasury’s

website using the online payment portal. Or you may mail in a check or money order using the voucher form

found online at our website with the individual income tax forms. Including the payment voucher with your

entire social security number on it will ensure your payment is credited to your account against your tax due.

It may be beneficial to determine whether or not you are eligible for the voluntary disclosure program.

25. I am currently applying for an ITIN and filing my federal tax return. I have scholarship income. Should I wait

to get the ITIN to file state taxes? Would it be necessary to file an extension? As a follow up, I will file the tax

return and the ITIN application. My income is only from scholarships, so I still I need to file the extension

with an NRA where the SSN is necessary.

in Michigan. I do not receive any form from them. Should I calculate myself how much fellowship that is

taxable?

A: No.

27. If I have accidentally filed a return incorrectly (as a resident and not as a nonresident), how can I make the

amendments?

A: To correct filed tax return information fill out a new form and check the “Amended Return” box. Include a

completed Schedule AMD and supporting documentation. Please refer to the MI-1040 Booklet for the

appropriate tax year for more information. You can find past-year forms on the Individual Income Tax page

of Treasury’s website. You have 4 years from the due date of the tax return to claim a refund.

any questions.