DRIVING, TAXES AND OTHER LEGAL ISSUES

SSN

To apply for a SSN you must:

• Secure an on-campus employment.You are only eligible for a social security number if you have secured authorized employment.
• Obtain a letter from the department verifying your employment (sample of employment letter).
• Fill out Request Form Online. Be sure to check other and write Social Security letter. You will need to provide the ISSO the original letter of employment. Please note: The ISSO will only process requests for a social security letter for employment that begins no more than four weeks from the day of request.
• Download SSN information, SSN Application (Form SS-5), and SSN office location from here (SSN info).
• Take the original letter of employment and letter from the ISSO, the SSN application, visa, passport, I-94, and I-20 to the SSN office in person to apply.


OR


• Fill out the Request Form at the ISSO. Be sure to provide the original letter of employment. Please note: The ISSO will only process requests for a social security letter for employment that begins no more than four weeks from the day of request
• Download SSN information, SSN Application (Form SS-5), and SSN office location from here (SSN info).
• Take the original letter of employment and letter from the ISSO, the SSN application, visa, passport, I-94, and I-20 to the SSN office in person to apply.

Taxes

The American tax system is very complex. ISSO advisers are not professionally qualified to provide tax advice. The following information is provided only as general information regarding student tax responsibilities. For assistance with the preparation of tax forms, students should seek professional assistance from the Internal Revenue Service (IRS), tax accountants, tax attorneys or a licensed tax preparation service.

• General
  Taxes are levied in a variety of categories. International students studying in Texas are most often affected by US federal income tax (national tax on wages and investment dividends), Social Security tax (retirement fund for US residents), state/city sales tax (retail purchases) and county property taxes (houses, land and vehicles).
  Each spring all workers in the US must report their tax status to the IRS. All F/J/M visa students are also required to file a report, even those who have not worked while in the US. The annual report (referred to as a “tax return”) is a summary of taxes due/paid from the previous calendar year (January-December). For international students who have not worked, it is also the time to report that they are exempt from resident taxes, such as Social Security.



• How It Works
  When an F/J/M visa student is hired, his/her employer will have the student complete a Form W-4 to declare their tax status and provide information that will help the employer determine how much to money should be set aside to pay taxes. Throughout the student’s employment, deductions will be taken from each paycheck to equal the estimated amount of taxes that will be due the next spring. To complete the annual tax return, the employer will send each worker a report (Form W-2) of the wages earned and taxes paid on those earnings. When completing the tax return the worker will compare the amount of taxes due and the amount of taxes paid. If the worker followed standard procedures in completing the original W-4, he/she may find that they have paid more taxes than necessary and can receive a tax refund for the overage. If the worker chose to have smaller paycheck deductions over the year, then he/she will likely owe more taxes when the return is filed. The remaining tax balance is due at that time.



• Tax Calendar
  • Jan-Dec: Secure employment, provide employer with a completed W-4, commence work
  • Jan/Feb: Receive statements (W-2s) from all employers in the previous calendar year and statements from financial institutions showing any accrued interest on checking, savings, and investment accounts
  • Jan-April: All F/J/M/Q students who have received wages must complete and mail 1040NR or 1040NR-EZ and Form 8843 to IRS by April 15th. The information used on the forms comes from wages accrued before Dec 31st of previous year. If the worker has not paid sufficient taxes over the working year, he/she must include payment of the remaining tax balance with the return.
  • Jan-June 15: All F/J/M/Q students who did not receive wages must complete and mail a Form 8843 by June 15th.
  • May-July: Any F/J/M/Q student who files a 1040NR or 1040NR-EZ return showing an overpayment of taxes should receive a tax refund in the overpayment amount, unless the worker chose for the refund to be applied to the next year's taxes.



• IRS Forms
  Form W-4 Employee's Withholding Allowance Certificate: When you are hired, your employer will require you to fill out this form regarding your tax status.
  Form W-2 Wage and Tax Statement: Sent by an employer to the student worker after the calendar year is over. There will be multiple copies of the information so that you can attach copies to any tax returns and keep a copy for your records.
  
  Form 1040 Tax Returns: A variety is offered for various users. "EZ" refers to the version that is the easiest to complete but also offers the fewest allowances for special circumstances.
  
  • US citizens and permanent residents use: 1040, 1040A or 1040EZ
  • F/J/M/Q visa students use: 1040NR (non-resident) or 1040NR-EZ
  
  
  Form 8843 Statement for Exempt Individuals and Individuals with a Medical Condition: F/J/M/Q students are generally exempt from resident taxes, such as Social Security. To document this exemption, you must file this form even if you have not received wages. If you are already filing a tax return, attach Form 8843 to your income tax return and mail it to the address indicated on your tax return. If you are not required to file an income tax return, you should mail Form 8843 to Internal Revenue Service Center, Philadelphia PA, 19255.
  
  Form W–9 Request for Taxpayer Identification Number and Certification: Students who are not eligible for a Social Security Number must use an Taxpayer Identification Number (TIN) in order to file any forms with the IRS.
  
  Form 843 Claim for Refund and Request for Abatement: If Social Security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to get a full refund of the amount from your employer, file a claim for refund with the Internal Revenue Service on Form 843.



• Contact Information:
  
  • IRS information for international students online
  • IRS forms and information online
  • IRS personnel available for specific tax questions by phone: 1-800-829-1040
  
  
  The University of Texas at Austin has created a Tax Guide web site for International Students, Scholars, and Researchers. This site is endorsed and recommended as a resource to other universities by the Internal Revenue Service. We appreciate their generosity for allowing us to use this information. You can go to this web site and follow the step-by-step instruction to prepare your income tax report.
  
  Click here: http://www.utexas.edu/international/taxes

Legal Counsel

The university provides free legal counsel to currently enrolled students. The attorney will evaluate and advise students of their rights regarding landlord/tenant law, criminal law, family law (marriage, divorce, child custody/support), contract law, employment law or consumer protection law (service/repair issues) Immigration matters and complex cases requiring court appearances or the drafting of lengthy legal documents will be referred to local attorneys for further assistance. The Legal Advisor is available by appointment only through the Counseling Center.

Driving

To drive a car in the state of Texas, you must have a valid driver's license, a properly inspected and registered vehicle and sufficient auto insurance. The Texas Department of Public Safety (DPS) enforces driving laws and issues licenses. You can drive legally with a valid international driver's license for up to one year IF your home country is on the US reciprocity list. To obtain a Texas driver's license, you will need to take a written and a driving test, show proof of identity and pay a fee. For driving manuals, license bureau locations, FAQs and identity documents required to obtain a license (including alternative documents for persons who do not have a Social Security card), see the Texas Department of Public Safety website.

To own a car, you must pay for the annual inspection and registration of the vehicle and maintain its condition to meet DPS standards. Annual inspections cost less that $20 and can be obtained at car repair shops, gas stations and other car service businesses that display the Texas State Inspection insignia. However, if your vehicle does not pass inspection, you will be required to make any repairs and pass a follow-up examination before the car will be legal to drive. Car registrations are handled through county tax offices. In Texas car registration is a form of property tax. The cost of the registration varies according to the county assessment rates and the value of the vehicle. Valid registration is demonstrated by current license plates and by paper documentation confirming your ownership of the vehicle. If you are ever stopped by law enforcement while driving the vehicle, you will be asked to show a valid driver's license, vehicle registration and auto insurance card.

When purchasing a new vehicle, your registration may or may not be included in the selling price. If you purchase a used vehicle you will have to arrange to transfer the title of ownership. Contact the local county tax office for how to transfer a vehicle title. Be warned, buying a vehicle can be risky. It is recommended that you be aware of reasonable market prices before you shop and have the sale vehicle checked by a mechanic before purchasing. Campus police department personnel can give you other tips for protecting yourself against fraud.

Each US state has different minimum requirements regarding auto insurance. To purchase auto insurance you will have to select a private insurance agency and sign up for a policy. In that process you will be required to make several decisions about how much coverage you wish to buy, so you should research Texas minimum requirements and decide how much coverage is appropriate for your circumstances. You will have to provide information about your vehicle and your driving history.