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Banking & Taxes

You will encounter some expenses when you first arrive in the U.S. Some likely costs include transportation from the airport, a hotel stay while you search for more permanent housing, meals out, a deposit on a rental unit, first and last month's rent, furnishings, etc.

U.S. Currency

U.S. paper currency is the same size and color for all values. Cash is available in denominations, $1, $5, $10, $20, $50 and $100 bills. U.S. currency is based on the decimal systems, with 100 cents per dollar. Coin currency is available in $.01, $.05, $.10, $.25 and $1.

You should arrive with some U.S. currency for any immediate needs upon arrival. There are currency exchange services available in most international airports, but not in Merced (you may be able to exchange some currency at a local bank). 

Bringing large amounts of cash is not ideal, some safe options include:
 
  • Traveler's Checks - have them issued in U.S. dollars, large denominations are harder to use. 
  • ATM/Debit Card - make sure you are aware of your bank's fees/charges and restrictions on using your card in U.S. ATMs; alert your bank as to your travel plans.
  • Credit Card - check for fees and restrictions, be sure to alert your credit card company of when and where you will be traveling. 
  • Bank Check/Draft - useful for transferring a large sum of money, but can take up to a few weeks to become available. 
  • Wire transfer - safe and available quickly, but a U.S. bank account must be opened first. 

Banking

Opening a bank account in the U.S. is recommended for several reasons. It is a safe place to keep your money. Banks and credit unions are government regulated and FDIC insured. In the U.S., you can use a combination of check writing, Debit/ATM, and Visa/MasterCard to make purchases and pay bills. Once you open an account, you will receive an ATM/Debit card that also can be used as a Visa/MasterCard. A bank account also allows for you to receive wire transfers. You will want to do your research to determine the financial institution that best suits your needs. Each bank or credit union will have different products and services, with differing requirements and fees. Some of these banks will require a Social Security number or an ITIN, while others may open accounts for students and scholars without a social security number. When opening a new account,  students and scholars will generally be required to submit documentation that proves their identity and residence in the local area, such as a lease agreement or telephone bill. 

Find a list of local banks

Taxes

Everyone in the U.S. is required by law to file a tax return, but not everyone will have to pay taxes. Frequently, international students and scholars filing a tax return are eligible for exemptions and may receive a tax refund for overpaid tax. It’s worth checking to see if you have a refund coming to you.

Things To Know:

  • Tax return must be filed by April 15.
  • You must file a tax return if you earn any taxable income by working in the U.S.
  • If you did not earn any taxable income in the U.S., you will still have to submit Form 8843 to the IRS.
  • You cannot deduct miscellaneous expenses such as tax preparation fees, investment expenses, moving expenses, deposit boxes, etc.

What Do I Need to File My Tax Return?

  1. Passport or another government-issued photo ID
  2. Form 8843
  3. US entry and exit dates for current and all past visits to the US (form I-94)
  4. All tax forms, including W-2, 1042-S and/or 1099 – if you received them
  5. Visa/Immigration Status information, including Form DS-2019 or I-20
  6. Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

The tax filing process can be very complicated and if completed incorrectly may result in overpaying or fines due to underpaying. You may want to consider using a tax filing service. We do not endorse any specific tax service, but wanted to make you aware of options. 

The UC Merced International Students and Scholars office does not answer any U.S. tax questions. We are NOT permitted to assist students or scholars with tax preparation or tax related questions. There are; however, general handouts on U.S. taxes, and UC Merced's Business and Financial Services office does offer tax workshops at least once a year. For questions about tax questions and other tax treaties, the International Student/Scholar should contact UC Merced's Tax Services. You can email the tax services department tax@ucmerced.edu.

 

Tax Resources

Although Office of International Affairs does not advise on individuals' tax matters, we want to help you find the resources you need. Listed below are some resources to assist you:

Internal Revenue Service

California Franchise Tax Board

UC Merced Tax Services

 

Additional Tax Services for Nonresidents:

 

Beware of Tax-Related Scams

The IRS does not initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords or similar information for credit cards, banks or other financial accounts.

 

 

DISCLAIMER: THE UC MERCED OFFICE OF INTERNATIONAL AFFAIRS AND THE UC MERCED TAX SERVICES UNIT DO NOT ASSIST IN TAX PREPARATION, ACT AS TAX CONSULTANTS FOR INDIVIDUALS OR ENTITIES, PROVIDE TAX ADVICE, AND CANNOT ANSWER YOUR TAX QUESTIONS. PLEASE CONSULT A TAX PROFESSIONAL, THE IRS, OR A FINANCIAL PLANNER WHO IS PROFICIENT WITH INTERNATIONAL TAXATION WITH YOUR TAX QUESTIONS. WHILE THE UNIVERSITY HAS MADE EVERY EFFORT TO USE THE MOST CURRENT AND ACCURATE DATA, TAX LAWS CHANGE FREQUENTLY, AND IT IS POSSIBLE THAT SOME OF THE INFORMATION MAY NO LONGER BE ACCURATE. THE UNIVERSITY DISCLAIMS ALL LIABILITY FOR THE MISTREATMENT OF INFORMATION AND MATERIALS CONTAINED IN THIS DOCUMENT. INFORMATION REGARDING IMMIGRATION, EMPLOYMENT, AND TAX FILING SUBSTANTIAL AUTHORITY ARE THE RESPONSIBILITY OF EACH INDIVIDUAL. PLEASE KEEP IN MIND THAT NO ONE IN THEIR OFFICIAL ROLE AT THE UNIVERSITY CAN ACT AS A TAX CONSULTANT, GIVE PERSONAL, LEGAL, OR TAX ADVICE, OR REPRESENT AN INDIVIDUAL DEALING WITH THE INTERNAL REVENUE SERVICE (IRS). THUS, ANY ASSISTANCE THE FOLLOWING INFORMATION MAY PROVIDE IS GIVEN AS A COURTESY TO YOU. AS SUCH, IT SHOULD NOT BE CONSTRUED IN ANY WAY AS THE RENDERING OF LEGAL OR TAX ADVICE PER IRS CIRCULAR 230.