Savanna Hoffman
International students in the US are required to file a tax return, and in most cases, they are also required to pay federal and state income taxes. Students on F-1 visas are considered non-resident aliens for tax purposes and must pay tax on any income, including taxable scholarships or fellowship grants. Students on M-1 visas are not required to pay taxes as they are not permitted to accept employment, and J-1 visa holders pay taxes like US citizens. Some countries have tax treaties with the US, which may exempt international students from paying taxes or reduce the tax rate. Students must file Form 8843 and, in most cases, Form 1040-NR or 1040-NR-EZ, to report their income and calculate their federal and state tax obligations.
| Characteristics | Values |
|---|---|
| Who should file taxes? | All international students and their spouses and dependents, regardless of income, must complete Form 8843. |
| F-1 visa holders | Must pay federal and state income taxes. |
| M-1 visa holders | Are not allowed to accept employment and hence are not required to file income tax. |
| J-1 visa holders | Must pay taxes like US citizens. |
| F-1 visa exemption | F-1 visa holders are exempt from social security and Medicare taxes. |
| F-1 visa deadline | F-1 visa holders must file Form 8843 with the IRS by 15 April 2025. |
| F-1 visa tax rate | F-1 visa holders are subject to 30% taxation on their capital gains. |
| F-1 visa form | F-1 visa holders must file Form 1040NR. |
| M-1 visa form | M-1 visa holders must file Form 1040NR-EZ. |
| J-1 visa form | J-1 visa holders must file Form 1040NR. |
| No income | International students who did not earn any income must file the Non-Employed 8843 Form. |
| State tax | International students may have to file a state tax return and pay state income tax. |
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What You'll Learn
International students on F-1 visas
It is important for international students on F-1 visas to understand their tax obligations and file their tax returns by the deadline, which is usually April 15 or the following Monday if it falls on a weekend. Failure to do so could result in complications with their visa status or future visa applications, as well as possible ineligibility for a green card.
To fulfil their tax obligations, international students on F-1 visas must complete Form 8843, which is an informational form that lets the Internal Revenue Service (IRS) know how long they have been in the United States. This form must be filed regardless of whether the student had any income during their stay. Additionally, if the student earned income, they will likely need to file Form 1040-NR or 1040-NR-EZ to report their taxable income and calculate their federal income tax liability.
It is important to note that tax treaties between the United States and some countries may exempt international students from certain taxes or provide them with reduced tax rates. Therefore, it is advisable for international students on F-1 visas to consult with a professional tax advisor or their school's international student centre to navigate their specific tax obligations and ensure they are compliant with the tax laws in the United States.
Furthermore, international students on F-1 visas who intend to reside in the United States for longer than one year may be subject to a 30% taxation on their capital gains during any tax year in which they are present in the country for 183 days or more, unless a tax treaty provides for a lesser rate. This applies to capital gains that are not effectively connected with a US trade or business and must be reported separately on Form 1040-NR.
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State-level filing requirements
International students on F-1 visas are considered nonresident aliens for tax purposes and are generally subject to different rules than US residents. These students must file federal income tax returns and may also be required to file state tax returns, depending on the state they reside in and their income sources. Nine states do not have any tax-filing requirements, while others may require additional forms such as Form W-2, 1042-S, or 1099.
Students with F-1 visas who intend to reside in the US for longer than a year are subject to 30% taxation on their capital gains during any tax year in which they are present in the US for 183 days or more, unless a tax treaty provides for a lesser rate. This taxation is reported on Form 1040NR. Additionally, F-1 visa holders are exempt from paying Social Security and Medicare taxes for up to five years from their arrival in the US.
It is important for international students to understand their tax obligations and consult their school's international student center or a professional tax advisor for guidance. They can also call the IRS directly for specific questions. The deadline for filing tax returns is usually April 15 or the following Monday if it falls on a weekend.
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Non-employed federal form
International students in the US are required to file a tax return, even if they have not earned any income. Students on F-1 visas are considered nonresident aliens for tax purposes and are exempt from paying Social Security and Medicare taxes. However, they are required to pay federal and state income taxes on their earnings.
If you are an international student in the US and have not earned any income, you will need to file Form 8843 with the IRS by the deadline of April 15, 2025. This form is informational and lets the IRS know how long you have been in the US. You will need to provide your name, current address, and social security number (SSN) or Individual Taxpayer Identification Number (ITIN), as well as other general personal information. Form 8843 must be mailed in a separate envelope for each filer (student, spouse, and dependents).
If you have earned income during your time in the US, you will need to file Form 1040NR or 1040NR-EZ (the easy version of 1040NR) to report your federal income and taxes. You will also need to file Form 8843. These forms can be filed electronically on the IRS website, except for Form 1040NR-EZ, which cannot be e-filed. You will need your W-2 form ("Wage and Tax Statement") to file your tax return, which will be provided by your employer at the end of January. It will state your previous year's earnings and tax withheld. If you received a taxable scholarship, you will receive a 1042-S form from your school or institution. You may also receive a 1099 form if you earned rental income, investment income, or worked as an independent contractor.
It is important to note that tax rates and deductions differ for each state in the US, so the amount of tax you pay will depend on where you are. Nine states do not have any tax-filing requirements. Additionally, some countries have a tax treaty with the US, and international students from those countries may be exempt or have a reduced tax rate.
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Tax treaties with the USA
International students in the USA are required to file a tax return. This is mandatory and not doing so by the deadline could result in problems with their visa or even its revocation. Most F-1 students are considered nonresident aliens by the IRS and are required to file a US tax return (Form 1040-NR) for income from US sources.
The United States has tax treaties with several foreign countries. These treaties provide foreign residents with reduced tax rates or exemptions on their worldwide income. The specific terms of these treaties vary among countries and types of income. For example, the tax treaty between the United States and Canada includes provisions for the taxation of dividends, corporate reorganizations, and charitable contributions.
Under these treaties, residents of foreign countries may be eligible for reduced tax rates or exemptions on certain types of income they receive from sources within the United States. These treaties also benefit US citizens and residents, who can receive reduced tax rates or exemptions on certain types of income they receive from sources within the treaty countries.
It is important to note that tax treaties do not always cover all types of income, and some income may be taxed at regular rates even when a treaty exists. Additionally, most US states collect state income tax in addition to federal income tax, and international students may need to file a state tax return as well.
International students should consult official sources, such as the IRS website or a professional tax advisor, to understand their specific tax obligations, including any applicable tax treaties.
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Tax identification numbers
International students in the US are required to file a tax return. The Internal Revenue Service (IRS) is the US government agency that collects taxes. The IRS has a deadline of April 15 (or the following Monday if it falls on a weekend) for filing tax returns for the previous calendar year.
International students on F-1 visas are considered nonresident aliens for tax purposes. As a nonresident alien, you will need to file Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you did not earn money during your time in the US, you will still need to file Form 8843 with the IRS by the deadline. If you received US-sourced income during the calendar year, you will need to file Form 8843 and most likely Form 1040NR to complete your tax return.
International students may need to use a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for tax-related documents. An SSN is issued by the Social Security Administration to nonresident aliens who are employed. An ITIN is issued by the IRS, which is the US tax collection agency. An ITIN is for nonresidents who need to file a tax return due to taxable income but are not eligible for an SSN.
If you are employed or intend to start working soon, you should apply for an SSN. If you received a scholarship or fellowship stipend directly paid to you, you should apply for an ITIN. Non-employment income, including scholarships, fellowships, grants, or non-employment stipend payments, may also require an ITIN for reporting purposes.
If you are a J-1 student or scholar, you should not apply for an ITIN but rather an SSN. If you are unsure about your tax residency, you can use Glacier Tax Prep (GTP) to prepare your US federal income tax form. GTP will determine if an ITIN is needed and will prepare the ITIN application form if necessary.
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Frequently asked questions
Yes, international students are required to submit state tax returns if they earned income in the previous calendar year. However, the requirements and tax rates differ from state to state, and nine states don't have any tax-filing requirements.
All international students are required to complete Form 8843, which informs the IRS of how long they have been in the USA. If an international student earned income in the previous calendar year, they will likely also need to file Form 1040-NR or 1040-NR-EZ.
International students on F-1 visas are exempt from paying employment taxes, such as Social Security and Medicare (FICA). Additionally, nonimmigrant students on F-1 visas are exempt from Social Security and Medicare taxes for up to five years from their arrival in the US.
