International Students: Illinois Non-Resident Status Explained

Illinois is home to many prestigious universities, including the University of Chicago, Northwestern University, and Loyola University. The state offers a wide range of educational opportunities for international students, from law and science to the humanities and English as a Second Language (ESL) programs. With a diverse and multicultural society, Illinois, and particularly Chicago, provides an ideal environment for international students to immerse themselves in American culture and practice their English skills. However, when it comes to residency status, the criteria for international students in Illinois can be complex. While living in Illinois to attend school does not automatically grant residency, there are specific requirements and exceptions that determine whether an international student is considered a resident or non-resident for tax and tuition purposes.

International students in Illinois are non-residents for tax purposes

International students in Illinois are considered non-residents for tax purposes. This means that they are exempt from FICA (Social Security and Medicare) taxes on wages earned from legal employment in the United States. However, they are still required to file at least one tax form for every year they are present in the US.

F-1 and J-1 students are considered non-residents for tax purposes for five calendar years, regardless of their date of entry. For example, if an F-1 student enters the US on August 6, 2016, they will remain in Non-Resident Alien Tax Status until December 31, 2020. This period is shortened to two calendar years for J-1 Research Scholars and Professors.

It is important to note that tax status is separate from immigration status. An individual may be a resident for tax purposes while still being a non-resident for immigration purposes. To determine residency status for tax purposes, foreign students can use GLACIER Tax Prep, a web-based tax return preparation system designed exclusively for foreign students, scholars, and others.

The Internal Revenue Service (IRS) will only contact individuals by mail, not by email, text, or social media. If an individual receives a $1,400 check from the IRS in 2025, it is an error and should be returned, as the IRS is erroneously issuing these rebate checks to non-resident aliens who are ineligible for these payments.

F-1 and J-1 students are non-residents for five calendar years

International students in the United States on an F-1 or J-1 visa are typically considered non-residents for tax purposes for five calendar years, regardless of their date of entry. This means that they are classified as non-resident alien taxpayers.

For instance, if an international student entered the US on an F-1 visa on August 6, 2016, they would remain in this non-resident tax status until December 31, 2020. Notably, this classification is separate from one's immigration status, and an individual may be considered a resident for immigration purposes while being a non-resident for tax purposes.

As non-resident aliens, F-1 and J-1 students are exempt from FICA (Social Security and Medicare) taxes on wages earned from legal employment in the United States. However, if FICA taxes are withheld in error, a refund can be requested from the employer, or a claim can be filed with the Internal Revenue Service (IRS) using Form 843.

After five calendar years in the US, F-1 and J-1 visa holders may become resident aliens for tax purposes if they meet the "Substantial Presence Test." At this point, they would become liable for Social Security and Medicare taxes on their worldwide income, similar to US citizens. The "Substantial Presence Test" considers an individual a US resident if they are present in the country for at least 183 days during the calendar year.

It is important to note that the IRS will only communicate via mail and will never contact individuals by email, text, or social media.

International students can study English as a Second Language in Chicago

The Kaplan International English School, located on the Magnificent Mile, offers a range of flexible programs for international students, including English as a Second Language (ESL) courses. The school's location, just across from the Tribune Tower, provides a convenient setting for students to improve their English skills. The programs at Kaplan are designed to ease the transition to life in a new country and a busy city like Chicago.

The School of the Art Institute of Chicago (SAIC) also offers English for International Students (EIS) classes, which focus on developing academic English proficiency and fluency, particularly in relation to the arts. SAIC's EIS program includes critique classes, where students strengthen their ability to discuss artwork confidently and clearly. International students with a TOEFL score below 85 (iBT) or an IELTS score below 6.5 are encouraged to join the summer session to get a head start on their language requirements.

Additionally, Chicago is home to renowned universities such as the University of Chicago, which offers a wide range of undergraduate and graduate programs, including English language programs. The University of Chicago has a strong academic reputation and has produced Rhodes Scholars and notable athletes.

It is important to note that international students on F-1 and J-1 visas are typically considered non-residents for tax purposes for five calendar years from their date of entry. However, this does not prevent them from pursuing educational opportunities, including English language studies, in Chicago, Illinois.

International students can access tax information via GLACIER Tax Prep

International students in the U.S. are generally considered non-residents for tax purposes for five calendar years, regardless of their date of entry. This period is shortened to two calendar years for J-1 Research Scholars and Professors. However, your tax status (non-resident or resident) is separate from your immigration status.

GLACIER Tax Prep (GTP) is a web-based tax return preparation system designed exclusively for international students, scholars, teachers, researchers, trainees, and their dependents who are non-resident aliens for tax purposes in the U.S. It is an online federal income tax filing program that helps users file their taxes correctly and efficiently.

GLACIER Tax Prep will automatically determine your residency status for tax purposes. Foreign Nationals who are considered residents for tax purposes should not use GLACIER Tax Prep. Before accessing GLACIER Tax Prep, ensure that you have all the required information, including W-2 or 1042-S forms from institutions where you worked or received honorariums, stipends, or fellowships.

GLACIER Tax Prep offers several benefits, such as an extensive FAQ section, Live Q&A sessions with tax professionals, tutorial videos, and a Help form to connect with a non-resident tax expert. It is important to note that the Internal Revenue Service (IRS) will never contact you by email, text, or social media. If they require any information, they will contact you by mail.

International students in Illinois are exempt from FICA taxes

International students in Illinois are required to file at least one tax form for each year they are present in the US, even if they did not earn an income. However, they are exempt from paying FICA taxes on their wages. FICA, or the Federal Insurance Contributions Act, is a federal payroll tax that funds Social Security and Medicare.

International students in F-1, J-1, M-1, Q-1, or Q-2 nonimmigrant status are exempt from FICA taxes for up to five calendar years of physical presence in the US. This is because they are considered nonresident aliens for tax purposes during this time. After five years, international students are classified as residents for tax purposes and are subject to FICA tax withholding. However, if they remain enrolled as students for half-time or more, they may still be exempt from FICA taxes.

The FICA exemption applies to students employed by a school, college, or university where they are enrolled and pursuing a course of study. This employment must be closely connected to the purpose for which the visa was issued and allowed by the United States Citizenship and Immigration Services (USCIS). It also applies to any period in which the international student is in "practical training" allowed by USCIS.

It is important to note that international students in Illinois should be cautious of scams. The Internal Revenue Service (IRS) will never contact individuals by email, text, or social media. They will only contact individuals by mail.

Frequently asked questions