E-Filing Taxes: International Students' Guide To The Process

International students in the US are required to file a tax return, even if they have not earned any income. While international students are not permitted to e-file their tax returns, they can still benefit from a tax treaty with their home country, which may exempt them from paying US taxes.

International students on F, J, M, or Q visas are considered exempt individuals

International students on F, J, M, or Q visas are considered "exempt individuals" by the Internal Revenue Service (IRS). This means that these students are excused from the Substantial Presence Test during their first five years in the US if they are international students or the first two years if they are scholars. The Substantial Presence Test is used to determine if someone has been in the US long enough to be considered a resident for tax purposes.

International students on these visas are considered to have "substantially complied" with the visa requirements if they have not engaged in activities prohibited by US immigration laws that could result in the loss of their nonimmigrant status. To maintain their status as exempt individuals, they must also establish to the satisfaction of the IRS that they do not intend to reside permanently in the United States. This can be demonstrated by maintaining a closer connection to a foreign country and not taking steps to change their status from nonimmigrant to a lawful permanent resident.

As exempt individuals, international students on F, J, M, or Q visas are not required to pay Social Security Tax and Medicare Tax on wages earned from on-campus employment or other services performed to carry out the purposes of their visas. They may also be eligible for tax treaty benefits with their home country, which could result in reduced or exempt tax rates on certain income sources.

It is important to note that international students on F, J, M, or Q visas are still required to file a tax return as a condition of their visa. They must complete Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition, and submit it to the IRS. Additionally, if they have earned income during their stay, they may need to file a tax return and may even be eligible for a tax refund.

International students must file a tax return, but not everyone will pay taxes

International students in the USA are required to file a tax return as a condition of their visa. However, not all international students will pay taxes to the American government. This is because international students are entitled to a number of benefits and exemptions. For example, students on F-1 visas are not required to pay employment taxes such as Social Security and Medicare (also known as FICA).

International students who earned no income during their time in the US still have a filing requirement. They must file a Form 8843 with the IRS before the deadline. This form is not an income tax return but a statement required by the US government for certain nonresident aliens in the US on specific visas. The deadline for all F-1 students to file their tax documents is usually April 15 or the following Monday if that falls on the weekend.

International students who have earned income in the US must pay taxes on it. This includes salaries, specific gifts, and awards. Taxes are paid to the federal government's Internal Revenue Service (IRS) and the department of revenue for the state in which the income was earned. International students on F, J, M, or Q visas are considered "exempt individuals" and are excused from the Substantial Presence Test for the first 5 years they are in the US. After this period, they will be subject to the test, which is used to determine whether someone was in the US long enough to be considered a resident.

The US has income tax treaties with 65 countries. Under these treaties, residents of foreign countries may be eligible to be taxed at a reduced rate or be exempt from US taxes on certain types of income.

International students can benefit from a tax treaty with their home country

International students in the US on an F-1 visa are considered nonresident aliens for tax purposes for the first five calendar years of their stay. However, some can be considered 'residents' or 'resident aliens', which is a tax filing status. If an international student passes the Substantial Presence Test, they will be considered a resident for tax purposes. This test checks if someone has been in the US long enough to be considered a resident.

To claim a tax treaty benefit on income from personal services, compensatory scholarship, or grant-receiving, international students will need to complete a Form 8233 and submit it to their university. This form must include personal information, a description of the services provided and the total amount of income earned, and the exact treaty on which the claim for tax exemption is based. Students must also attach the appropriate statement shown in Appendix A (found in Publication 519, US Tax Guide for Aliens) to the Form 8233 and give it to the withholding agent.

It is important to note that the IRS does not allow electronic filing (e-file) for nonresident aliens, so all international students will need to send in their tax returns by mail.

International students must apply for an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN)

International students on F, J, M, or Q visas are categorised as "exempt individuals", meaning they are exempt from the Substantial Presence Test during their first five years in the US. However, it is mandatory for international students to file a tax return as a condition of their visa. To do so, they will need an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN).

An ITIN is issued by the Internal Revenue Service (IRS) to individuals who need to report income but are ineligible to obtain an SSN. International students who are ineligible for an SSN must apply for an ITIN by submitting a Form W-7, "Application for IRS Individual Taxpayer Identification Number", with their US tax return.

On the other hand, international students who are employed in the US are eligible to apply for an SSN. An SSN is used by employers and employees to report individual employee earnings for tax purposes. The SSN is valid for life and only needs to be applied for once. International students can apply for an SSN by submitting a Form SS-5, "Application for a Social Security Card".

It is important to note that the IRS does not allow electronic filing (e-filing) for non-resident aliens, so international students will need to submit their tax returns by mail.

International students must file Form 8843 with the IRS

International students in the US are required to file a tax return as a condition of their visa. This is true even if they have not earned any income during their stay. International students are considered "exempt individuals", which means they are excused from the Substantial Presence Test for the first 5 years they are in the US. After this period, they will be subject to the test, which is used to determine if they have been in the US long enough to be considered a resident.

Form 8843, "Statement for Exempt Individuals and Individuals with a Medical Condition", is a form that must be filed by international students in the US with the IRS. This form is not a US income tax return but an informational statement required by the IRS for non-residents for tax purposes. It should be submitted for every non-resident taxpayer present in the US at any point during the previous calendar year, including spouses, partners, and children. The form can be downloaded from the IRS website, and instructions for completing it can be found on pages 3 and 4 of the form. The top portion of the form should be completed with the filer's name (as it appears on their passport) and addresses. If the filer has a Social Security Number (SSN) or Individual Tax Identification Number (ITIN), they can write it in the top right box. However, an SSN or ITIN is not required if the filer is only filing Form 8843.

The deadline for filing Form 8843 is 15 April for those who have earned US income and 15 June for those who have not. It is important to file by the deadline to avoid potential fines and penalties. If the form is not filed on time, the filer may be considered a US resident under the Substantial Presence Test. The only way to submit Form 8843 is to mail it to the IRS, and it is recommended to choose tracking and receipt confirmation as the IRS will not send any confirmation of receipt. Each individual must mail their own Form 8843 in a separate envelope, and no other forms should be included in the envelope. The form should be mailed to:

Internal Revenue Service Center

Austin, TX 73301-0215

United States of America

Frequently asked questions