What can you use to lower your taxes
The way to lower your taxes is by using tax deductions. As a nonresident, you can deduct the state and local income taxes on form W-2, property taxes, sales taxes on major purchases, student loan interest, and charitable donations if you paid or gave them in the tax year. It is important to maintain a proper record of the amounts you give throughout the year by storing up your receipts until you file your taxes.
State and local income taxes
The State and local income taxes are fully deductible in the year paid, no matter to which state they were paid in. These deduction amounts will normally be listed on your form W-2 or 1042-S.
If you have a residence in which you were required to pay property taxes, the amount you paid can be used as a deduction.
Sales tax on major purchases
Sales tax on major purchases such as cars, boats, or houses can be used as a deduction.
Student loan interest
If you have a student loan and you paid money on it within the year, the interest you paid can be used as a deduction.
Giving to charity
If you gave money or noncash items to a U.S. charity or nonprofit organization, you can use the total value as a deduction on your tax return. Charitable and nonprofit organizations generally include churches, charities, educational, scientific, literary organizations, and organizations that work to prevent cruelty to children or animals.
Please note that you cannot deduct a cash contribution greater than $250 unless you keep a receipt from your bank statement or a written receipt from the charity to prove it.