Savanna Hoffman
International students in the US are required to file tax returns, even if they have no US-source income. They are taxed in the same way as non-resident aliens and are liable for taxation on any income earned in the US, including salary, scholarships, and money earned from US bank accounts. To file a tax return, international students need to obtain an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN). While an ITIN is issued by the IRS to individuals who are not eligible for an SSN, international students who work off-campus or for other employers are required to apply for an SSN.
| Characteristics | Values |
|---|---|
| Who needs to file a tax return? | All international students and scholars are required to file a tax return if they were in the US during the previous calendar year and earned income. |
| Who is exempt from filing a tax return? | International students and scholars who have income only from a US savings and loan institution or a US credit union. |
| What is the deadline for filing? | Tax returns are due in April of each year. |
| What forms need to be filed? | International students and scholars need to file federal form 8843 and Statement of Non-Residence every tax season, even if no income was earned. They may also need to file a state tax return, depending on the state. |
| What information is required for filing? | Name, current address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), as well as other general personal information. |
| What documents are required for filing? | W-2 form ("Wage and Tax Statement"), 1042-S, and 1099. |
| Where should the forms be sent? | Internal Revenue Service Center, Austin, TX 73301-0215, USA. |
| Is there a cost to submit taxes? | There is no cost to submit taxes to the IRS, but there may be a cost if you use a service or the help of a certified public accountant (CPA). |
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What You'll Learn
- International students are liable for US taxes on any income earned in the US
- International students are considered non-resident aliens for tax purposes
- International students must file a federal tax return, and may also need to file a state tax return
- International students can get help with their taxes from the IRS
- International students can apply for an Individual Tax Identification Number (ITIN) if they don't have an SSN
International students are liable for US taxes on any income earned in the US
International students are liable to pay US taxes on any income earned in the US. This includes salaries, scholarships, fellowships, and money earned from US mutual funds or US bank accounts. Taxes for each calendar year are reported in the spring of the following year, and are filed with both the US federal government (through the Internal Revenue Service, or IRS) and the US state where the income was earned.
International students are typically considered non-residents for tax purposes for their first five years in the US, and are therefore exempt from paying Social Security and Medicare Taxes. However, once an international student becomes a Resident Alien under the residency rules of the IRC, they become liable for self-employment taxes under the same conditions as a US citizen.
To file a tax return, international students who are non-resident aliens will need to obtain an Individual Taxpayer Identification Number (ITIN). This is a nine-digit number issued by the IRS to individuals who are not eligible for a Social Security Number (SSN).
It is important to note that there is no minimum income amount that triggers a filing requirement for non-resident aliens. However, filing is required for non-resident alien students who have a taxable scholarship or fellowship grant, income partially or totally exempt from tax under the terms of a tax treaty, or any other income that is taxable under the Internal Revenue Code. Filing is not required if the only source of income is from a US savings and loan institution or a US credit union.
Additionally, some countries have tax treaties with the US that can reduce or eliminate federal income taxes. In such cases, the only obligation is to file, and any mistakes in filing will not impact immigration status.
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International students are considered non-resident aliens for tax purposes
International students on F-1, J-1, or M-1 visas are typically considered non-resident aliens for tax purposes during their first five calendar years in the US. This classification means they are exempt from Social Security and Medicare taxes on wages earned for services performed within the US. However, they are still liable for taxes on any income earned in the US, including salary, scholarships, and fellowships.
To be considered a resident alien for tax purposes, an individual must be a US citizen or a foreign national who meets the "substantial presence" test. This test considers the number of days an individual has been physically present in the US over a three-year period, including the current calendar year and the two preceding years. Specifically, an individual must be present in the US for at least 183 days during this three-year period to meet the "substantial presence" test. There are exceptions to the day count for students and scholars in F-1 and J-1 status, with J-1 professors or researchers not counting days for their first two calendar years.
International students classified as non-resident aliens for tax purposes have specific filing requirements. They must file federal form 8843 and a Statement of Non-Residence every tax season, even if they have not earned any income. Additionally, they may be required to file federal form 1040NR (long form) or 1040NR-EZ (short form) if they have taxable income. Non-resident alien students and scholars with taxable scholarships, fellowship grants, income under tax treaties, or other taxable income under the Internal Revenue Code must file tax returns. However, those with income only from US savings and loan institutions or US credit unions are not required to file tax returns.
It is important to note that tax residency status can change over time, and international students should stay informed about their status to ensure they are complying with the correct tax filing requirements. While some resources are available to help determine tax residency status, consulting a tax professional is advisable for specific guidance.
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International students must file a federal tax return, and may also need to file a state tax return
International students in the US are required to file a federal tax return, even if they do not have any US-source income. This is a condition of their visa. However, not all international students will pay taxes to the American government, as they are entitled to a number of benefits and exemptions.
International students are considered nonresident aliens for US federal income tax purposes and are taxed only on US-source income. This includes salary, scholarships, fellowships, money earned from US mutual funds or bank accounts, and interest on money in an American bank account. They are exempt from Social Security Tax and Medicare Tax if they have been in the US for less than five calendar years, are in F-1, J-1, or M-1 nonimmigrant status, and if the services they perform are allowed by USCIS for these nonimmigrant statuses.
To file a federal tax return, international students will need to obtain an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN). The ITIN is used for tax filing purposes and is obtained from the Internal Revenue Service (IRS).
In addition to filing a federal return, international students may also need to file a state tax return, depending on the state. Nine states do not have any tax-filing requirements, but most states collect state income tax, and the tax rates and deductions will differ for each state.
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International students can get help with their taxes from the IRS
International students in the United States are required to file tax returns if they were in the country during the previous calendar year and earned income. F-1 and J-1 students are usually considered non-residents for tax purposes for their first five calendar years in the US. However, if they stay longer than five years, they may become resident aliens for tax purposes and be liable for Social Security and Medicare taxes.
International students on F-1 visas, who are considered non-resident aliens for tax purposes, must pay US taxes on certain types of income, including salary, scholarships, fellowships, and money earned from US mutual funds or bank accounts. They may also be eligible for tax exemptions or refunds under certain conditions.
The Internal Revenue Service (IRS) provides several resources to help international students with their taxes:
- GLACIER Tax Prep: This is a web-based tax return preparation system designed specifically for foreign students, scholars, teachers, researchers, trainees, and their dependents. It aids in preparing federal income tax forms 1040-NR and 8843. Access to GLACIER Tax Prep is typically provided in February, and it expires in June.
- IRS Website and Telephone Assistance: The IRS website offers a wealth of information for international students, including tax forms, publications, and instructions. Additionally, students can call the IRS at 1-800-829-1040 for telephone assistance.
- IRS Taxpayer Assistance Centers: If students cannot find the answers to their questions online or by phone, they can visit IRS Taxpayer Assistance Centers for face-to-face help. These centers provide assistance with preparing individual income tax returns for those with incomes of $49,000 or less.
- Sprintax: This service helps international students prepare the required forms for claiming their FICA tax refund from the IRS.
- International Tax Workshops: Some universities, such as the University of the Incarnate Word, host international tax workshops where tax experts provide free guidance on filing taxes as an international student.
- Individual Taxpayer Identification Number (ITIN): The IRS issues ITINs, which are nine-digit numbers used for tax filing purposes by individuals who are not eligible for a Social Security Number (SSN). Non-resident aliens who receive payments from certain sources, such as scholarships or stipends, but are not eligible for an SSN, are required to obtain an ITIN.
It is important for international students to understand their tax obligations and stay informed about the applicable tax laws, as US tax laws can be complex and differ from those in their home countries. While some resources and services are available to assist them, students should carefully choose any tax agents or accountants they consider enlisting to help with their tax returns.
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International students can apply for an Individual Tax Identification Number (ITIN) if they don't have an SSN
International students who are not eligible for a Social Security Number (SSN) can apply for an Individual Taxpayer Identification Number (ITIN). An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) for tax filing purposes. It is a nine-digit number that is only available for certain nonresident and resident aliens, their spouses, and dependents who cannot obtain an SSN.
International students in F-1, J-1, or M-1 nonimmigrant status who have been in the United States for less than five calendar years are generally considered nonresident aliens. These students are exempt from Social Security and Medicare taxes on wages earned in the United States. However, they may still have income that is taxable, such as salary, scholarships, fellowships, or income from U.S. mutual funds or bank accounts.
To apply for an ITIN, international students can use the IRS's Interactive Tax Assistant tool to determine their eligibility. They can then follow the instructions provided by the IRS to apply for an ITIN by mail or in person at an IRS Taxpayer Assistance Center. The application process typically requires providing proof of identity and foreign status documents, such as a passport, visa stamp, and letter of non-approved work authorization.
It is important to note that J-1 students and scholars are eligible for SSNs and should apply for an SSN instead of an ITIN. Additionally, individuals who receive an ITIN and later become eligible for an SSN due to employment must apply for an SSN and notify the IRS.
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Frequently asked questions
Yes, all international students and scholars are required to file a tax return if they were in the US during the previous calendar year and earned income.
All international students and scholars have a federal tax filing requirement, even if you have no income or US-sourced income.
Yes, you can file a tax return without an SSN by applying for an Individual Tax Identification Number (ITIN) or an IRS Individual Taxpayer Identification Number (ITIN).
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