
International students in the US are required to file a tax return as a condition of their visa, but not all will pay taxes to the American government. To file a tax return, international students need to provide their name, current address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are not eligible to obtain an SSN. International students on F, J, M, or Q visas are considered exempt individuals and are excused from the Substantial Presence Test for their first five years in the US.
What You'll Learn
- International students with F-1 visas are considered non-resident aliens for tax purposes
- International students are taxed only on US-source income
- International students may need to file a state tax return
- Foreign students are exempt from Social Security and Medicare Taxes for up to five years
- International students must file a tax return as a condition of their visa
International students with F-1 visas are considered non-resident aliens for tax purposes
To file a tax return, international students with F-1 visas will need to complete Form 8843 and most likely Form 1040NR. They will need to provide their name, current address, and either their Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), along with other general personal information. The ITIN is a nine-digit number issued by the Internal Revenue Service (IRS) to individuals who are not eligible to obtain an SSN. It is primarily used for tax filing purposes and is required for non-resident aliens who receive payments from certain institutions in the form of a paycheck, stipend, scholarship, or other sources but are not eligible for an SSN.
International students on F-1 visas are generally exempt from Social Security and Medicare taxes for up to five calendar years, as they are considered non-resident aliens during this period. However, once they become resident aliens for tax purposes, they may become liable for these taxes. To qualify for the exemption, the services performed must be allowed for their nonimmigrant status and must align with the purposes for which their visas were issued.
It is important to note that international students with F-1 visas are still required to file a tax return even if they do not have US-source income. Additionally, depending on the state, they may also be required to file a state tax return and pay state income tax. Nine states have no tax-filing requirements, while other states may have different tax rates and deductions. International students can seek assistance from organisations like Sprintax, which specialises in preparing tax returns for international students, or from the IRS directly.
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International students are taxed only on US-source income
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 in the US. This means that they are taxed only on US-source income.
International students are required to file a US tax return (Form 1040-NR) for income from US sources. They will need to enter their name, current address, and social security number (SSN) or IRS individual taxpayer identification number (ITIN), as well as other general personal information. If an international student does not have an SSN, they should apply for an ITIN.
If an international student has been in the US for more than five calendar years, they become resident aliens for US tax purposes and are liable for Social Security and Medicare taxes. However, if they are employed by a school, college, or university where they are enrolled at least half-time, they are exempt from Social Security and Medicare taxes.
It is important to note that tax rates and deductions differ for each state in the US, so the amount of tax an international student will pay depends on where they are located. Therefore, they may have to file a state tax return and pay state income tax even when no federal return is due.
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International students may 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 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 benefits and exemptions.
International students are taxed in the same way as nonresident aliens for US federal income tax purposes. This means that they are only taxed on US-source income. This includes salary, scholarships, fellowships, money earned from US mutual funds or US bank accounts, and interest on money in an American bank account.
In addition to federal tax, some states also collect state income tax. Nine states have no tax-filing requirements, but the remaining states have their own tax rates and deductions. Therefore, international students may need to file a state tax return and pay state income tax, even if they do not need to file a federal return.
International students who have been in the US for more than five calendar years may become resident aliens for tax purposes and be liable for Social Security and Medicare taxes. However, there are some exemptions to this, including for students employed by their school, college, or university.
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Foreign students are exempt from Social Security and Medicare Taxes for up to five years
Foreign students in the US on F-1, J-1, or M-1 visas are generally considered nonresident aliens for tax purposes. These students are exempt from Social Security and Medicare taxes if they have been in the US for less than five calendar years. This is outlined in IRC section 7701(b) of the residency rules.
Foreign students with F-1 visas are taxed only on US-source income. They are required to file a tax return if they were in the US during the previous calendar year and earned income. This includes income from on-campus employment, which must be for no more than 20 hours a week (or 40 hours during summer vacations) and must be incidental to and for the purpose of pursuing a course of study.
To file a tax return, foreign students will need to fill out Form 8843 and most likely Form 1040NR. They will need to provide their name, current address, and social security number (SSN) or IRS individual taxpayer identification number (ITIN), as well as other general personal information. They will also need to submit their W-2 form, or "Wage and Tax Statement," which will be provided by their employer at the end of January and will state the previous year's earnings and tax withheld.
It is important to note that the rules regarding Social Security and Medicare taxes for foreign students can be complex, and there may be additional considerations or exceptions. For example, foreign students who become resident aliens may be eligible for exemption if qualified. Additionally, there are Totalization Agreements in place with several nations to avoid double taxation of income with respect to Social Security taxes, and these must be considered when determining an individual's tax liability.
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International students must file a tax return as a condition of their visa
International students in the US on an F-1 visa are considered nonresident aliens for tax purposes. This means that they will be taxed only on US-source income. Every international student is required to file their tax return if they were in the US during the previous calendar year and earned income.
The F-1 visa is a non-immigrant visa for those wishing to study in the US. International students on this type of visa must file a tax return each year, and they must also meet state tax filing requirements, depending on the state. Nine states don't have any tax-filing requirements.
International students with an F-1 visa who earn an income from an OPT (a program that allows international students to work in the US after graduation) are required to pay tax. They must fill in a W-4 tax form with their new employer when they start work.
The IRS deadline to file tax returns on the federal level is April 18, 2023. However, the deadline for all F-1 students to file their tax documents is Monday 15 April 2025. It's very important to comply with the deadline, as missing it may lead to unwanted fines and penalties, and jeopardize your chances of securing a US visa or Green Card in the future.
International students and their dependents (including spouses and children of all ages) must file Form 8843 with the IRS before the deadline. This is a statement required by the US government for certain nonresident aliens who are in the US on F-1, J-1, F-2 or J-2 visas for purposes of the substantial presence test. If you had no US income and are only filing IRS Form 8843, the deadline is 15 June 2025. If you have received income in the last calendar year, you will also need to file Form 1040-NR.
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Frequently asked questions
No, you can use an Individual Taxpayer Identification Number (ITIN) instead. This is a nine-digit number issued by the IRS to individuals who are not eligible for an SSN.
You can apply for one in conjunction with filing your tax return by filling out a W-7.
You will need to file Form 8843 and most likely Form 1040NR. You will be required to enter your name, current address, and ITIN or SSN, as well as other general personal information. You will also need your W-2 form, which will be provided by your employer at the end of January.