Are US educated foreigners who are currently living and working abroad but who are paying their US student loans, eligible for an interest/tax refund?
What taxes are you expecting a refund of?A person whose only connection to the United States is having previously been admitted to the United States as a nonimmigrant student has, once they’ve left the United States, no ongoing tax obligations to the United States. Furthermore, since you live and work abroad, you will not have any of your income subject to US withholding, and so there are no excess withholdings from your income to be refunded.Since a nonresident alien is not entitled to apply for or receive US federally-subsidized student loans, any student loans you may have obtained while you were a nonresident alien studying in the US are purely private loans. You are not entitled to any benefit from the United States in exchange for paying your private debts.Honestly, I do not understand this question. Why would anyone think they’re entitled to free money from the US government simply because they’re paying off a private debt?The OQ has clarified the question in details added since I first answered. Apparently, the OQ is being confused by receiving a Form 1098-E from her loan provider, and misunderstood the explanatory materials that accompany this form.This is IRS Form 1098-E. Every US entity that receives $600 or more in interest payments from a person on a qualified student loan in a given calendar year is required to send this form (or an IRS-acceptable substitute) to the person who made those payments.The form that is sent to the payer must also includes instructions for the recipient that must include this language:A person (including a financial institution, a governmental unit, and an educational institution) that receives interest payments of $600 or more during the year on one or more qualified student loans must furnish this statement to you. You may be able to deduct student loan interest that you actually paid in 2021 on your income tax return. However, you may not be able to deduct the full amount of interest reported on this statement. Do not contact the recipient/lender for explanations of the requirements for (and how to figure) any allowable deduction for the interest paid. Instead, for more information, see Pub. 970, and the Student Loan Interest Deduction Worksheet in your Form 1040 or 1040A instructions.US federal income tax law allows, in most situations, for individuals who pay interest on a “qualified student loan” to exclude some or all of their income that was used to pay that interest from their taxable income; basically, the income used to pay the interest on the loan is not subject to taxation. This will generally reduce one’s tax liability. There is, however, no provision for refunding any of the interest.The law requires these notices to be sent to every person who pays interests to a US entity, whether or not that person is a US taxpayer. Obviously, someone who is not a US taxpayer will be unable to gain any tax benefit from this provision (the US taxable income of someone who is not a US taxpayer is obviously zero), but the loan holder is still required to send the notice.It generally pays to read the instructions that comes with such forms closely, with full attention to detail.
I want to create my own tax software with almost no programming background. What tools/language should I learn?
There is one major problem nobody mentioned so far in their answers. This problem is multiple level of abstraction required to create software application. The programmer role covers usually lowest level details up to overall system design. However what the application should do for the customer is normally tracked by people doing their jobs on higher levels including details of the tax law (in this particular case). I'm talking about system engineers, product owners and whole bunch of other experts who can cover details of matters so complex like tax law is.I'm not saying is not possible, because:There are geniuses in the societyEverything is possible if you have enough time or/and money.Taking into account above two and my experience as software engineering I'm estimating you need about 35 years to get some useful application and you can succeed only if you never make any design mistake in your code. If you tangle yourself by maintainability problems, multiply above estimate by 2. If we take into account changing technology, you application when it's finally ready would like 20 years behind current trends. You would need to very large corporation with well recognizable brand and long term contract to monetize that beast.In short: it's not worth even thinking about and you can utilise your time and will power in much better ways.
I filed 1040A instead of 1040nr, through turbotax. what should I do?
You need to file a 1040X form along with a 1040NR. On the 1040X complete the top section including items A and B. Do not complete lines 1 -30, but do complete Part II and III and sign the form. Then complete form 1040NR and at the top write "AS AMENDED". Sign the 1040NR. Finally get a copy of the original 1040A that you filed and write at the top "AS ORIGINALLY FILED".Send all of that to the IRS at the address in the form 1040X instructions.
What's the easiest way to get a taxpayer's number (ITIN) for a non-resident alien?
Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original proof of identity or copies certified by issuing agency and foreign status documents.Because you are filing your tax return as an attachment to your ITIN application, you should not mail your return to the address listed in the Form 1040, 1040A or 1040EZ instructions. Instead, send your return, Form W-7 and proof of identity and foreign status documents to:Internal Revenue Service Austin Service Center ITIN Operation P.O. Box 149342 Austin, TX 78714-9342You may also apply using the services of an IRS-authorized Acceptance Agent or visit some key IRS Taxpayer Assistance Center in lieu of mailing your information to the IRS in Austin. Taxpayer Assistance Centers (TACs) in the United States provide in-person help with ITIN applications on a walk-in or appointment basis. The IRS's ITIN Unit in Austin issues all numbers through the mail.
I’m an international student studying at UW-Madison, WI. For my 2021 tax returns, I filed an 1040A instead of a 1040NR form! What is the procedure to amend the tax returns? Do I need to amend both the federal and state return?
Assuming you actually do qualify to file Form 1040NR, rather than a 1040, you will need to prepare a 1040NR as it should have originally been filed and mail that along with a copy of your 1040A that you did file and a letter explaining the error and asking the IRS to delete the 1040A and process the 1040NR in place of it.You are going to have an actual human at the IRS look at your return, so check the qualifications to file About Form 1040NR, U.S. Nonresident Alien Income Tax Return. Pay especially close attention to the instructions about Visa types and how your visa impacts your residency and also to the instructions about length of time present in the US to still qualify as a non-resident.
Is there any sort of tax break for people with student loan payments?
Here is a quick summary on the student loan interest tax deduction:Who is eligible?People that paid interest on their student loans in the last year.Who is the ideal candidate for this credit?People with large student loan debts that take a standard deduction.Eligible Expenses: Tuition, books, course materials, room and board, and suppliesDeduction/Credit: Above the line deductionAmount: up to $2,500Number of years you can claim it: 5 yearsIncome Maximum: $60k single, $120k marriedPhases out: $60-75k single, $120-150k marriedFor more informationPublication 970 (2021), Tax Benefits for EducationFor more information visit:Tax Breaks for Students and People with Student Loans
Is it worth paying TurboTax to file my taxes?
TurboTax AKA Intuit Software provides programs you can run on your Windows or Mac computer, or online, to help create and file your tax return. You are doing the work, and taking the responsibility. If your tax situation is very simple, it is free.copied from their web site Turbotax.com:“50 million hard-working taxpayers can file their simple federal and state taxes for free. You can file with TurboTax Free Edition if you only have the following situations:W-2 incomeLimited interest and dividend income reported on a 1099-INT or 1099-DIVClaim the standard deductionEarned Income Tax Credit (EIC)Child tax creditsSituations not covered in TurboTax Free Edition include:Itemized deductions (Schedule A)Business or 1099-MISC income (Schedule C)Stock sales (Schedule D)Rental property income (Schedule E)Credits, deductions and income reported on schedules 1-6, such as the Student Loan Interest Deduction”Using such a program like Turbotax or Taxcut (HR Block) is definitely worth it, and usually costs less than having a tax accountant do it.