International Students: Claiming State Tax Refunds

International students in the United States are required to file a tax return each year. This is a condition of their visa, and the process can be complex, especially for non-residents. International students are considered non-residents for tax purposes, and they must file a tax return even if they have no US source of income. While some students are exempt from FICA taxes, many will be eligible for a state tax refund if they have overpaid.

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

To be considered exempt, international students must not have been present in the United States for more than five calendar years and must not intend to reside permanently in the country. They must also comply with the requirements of their nonimmigrant status, which includes not engaging in prohibited activities that could result in the loss of their status.

International students with F, J, M, or Q visas who are temporarily present in the United States are typically exempt from paying Social Security and Medicare taxes on their U.S. income. This exemption is known as the ""student FICA exemption." However, it is important to note that this exemption only applies for up to five years from the date of their arrival in the United States. After this period, they may become liable for these taxes.

Additionally, international students on F, J, M, or Q visas may be eligible for tax treaty benefits with their home country. The United States has income tax treaties with 65 countries, and these treaties can reduce or eliminate taxes on various types of income, such as pensions, interest, dividends, royalties, and capital gains. To claim these benefits, students must report their income and file a tax return, even if no tax is due.

To claim their tax refund, international students with F, J, M, or Q visas must file Form 8843, "Statement for Exempt Individuals and Individuals with a Medical Condition," with the IRS. This form is required for all international students, even if they did not earn any income in the United States. It is important to comply with tax requirements and deadlines to avoid fines and penalties and to maintain legal status under their visas.

International students must file a tax return as a condition of their visa

International students in the United States must file a tax return each year if they were in the country during the previous calendar year and earned income. This is to remain compliant with US law and to fulfil their visa obligations.

Filling Tax Returns as an International Student

International students on F-1 visas are considered nonresident aliens for tax purposes and must pay US taxes on certain types of income. The amount of tax they have to pay depends on their income, the tax rates of each state, and their entitlement to tax treaty benefits. The US has income tax treaties with 65 countries, and residents of these countries may be eligible for reduced tax rates or exemptions from US taxes on certain types of income.

How to File Tax Returns

International students can use services like Sprintax to prepare their tax returns. Sprintax is the nonresident partner of TurboTax, the biggest online tax preparation service in the US. By creating a Sprintax account, international students can prepare a fully compliant 1040NR (nonresident tax return) and Form 8843. Form 8843 is required for individuals on F, J, M, and Q visas, even if they did not earn any income in the US. This form must be filed before the deadline, which is usually in April or June.

Tax Refunds for International Students

International students may be eligible for tax refunds if they have overpaid their taxes. This can occur due to tax treaties and a lack of significant income. To claim a refund, individuals must complete and mail an amended tax return (Form 1040X) along with their original tax return and any new required documents to the Internal Revenue Service (IRS).

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. This means that they only pay tax on income earned in the US. The amount of tax payable will depend on the tax rates of each state and the student's entitlement to tax treaty benefits.

The US has income tax treaties with 65 countries. Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible for a reduced tax rate or exemption from US income taxes on certain types of income. These reduced rates and exemptions vary among countries and specific items of income.

If an international student's home country has signed a tax treaty with the US, they may be partially or completely exempt from tax. In such cases, the overpaid amount will be refunded to the student. For example, most F-1 students are exempt from FICA taxes on wages for services performed in the US, and they can also claim a tax refund on their scholarship if it is completely or partially covered by a tax treaty.

To claim the benefits of a tax treaty, the payee should notify the payor of their income (the withholding agent) of their foreign status. This can be done by filing Form W-8 BEN, W-8 BEN-E, or Form 8233 with the withholding agent. If the payee receives payments or income items totaling more than $100,000, they must also file Form 8833.

It is important to note that while some tax software and services in the US, such as TurboTax, are popular choices for tax returns, they are designed for US residents. International students should instead use software like Sprintax, which is designed for nonresidents.

International students can use Sprintax to prepare their state tax return

International students in the US are required to file their tax returns each year. This can be a complex process, with each state having its own income tax regulations, forms, and definitions of tax status. For example, you may be a non-resident alien for federal tax purposes but a resident for state tax purposes.

Sprintax helps you determine your federal tax status and guides you through your ITIN application if you are not eligible for a Social Security Number. It also helps you prepare a fully compliant 1040NR (non-resident tax return) and Form 8843 tax documents. This form is required for international students to remain legal under F, J, M, and Q visas, even if they didn't earn any money in the US.

Sprintax is user-friendly and has helpful customer care representatives. It is also partnered with major universities to let students fill out their federal returns free of cost. The software simplifies tax determination and withholding for organizations with international employees and vendors.

International students must file Form 8843 and possibly Form 1040-NR

International students in the US are required to file their tax returns each year. This is to be done on or before the 18th of April. To do this, international students must file Form 8843 and possibly Form 1040-NR.

Form 8843 is a statement that must be filed for the US government if you are a certain type of nonresident alien for tax purposes. This includes spouses and dependents of certain nonresident aliens. All nonresident aliens who are in the US on F-1, J-1, F-2, or J-2 visas are required to file a Form 8843. This form is not a US income tax return. It is an informational statement required by the IRS for nonresidents for tax purposes. It should be submitted for every nonresident taxpayer present in the US at any point during the previous calendar year.

If you are using Sprintax to file your tax return (i.e. 1040NR), your Form 8843 will be included in the forms generated for filing, so you do not need to file this form separately. However, if you are preparing your 1040NR form yourself without using tax software, you must also include a Form 8843. If you have no income and are only filing Form 8843, you should print and mail it to the Department of the Treasury, Internal Revenue Service Centre, Austin, TX 73301-0215, by the due date (including extensions) for filing Form 1040-NR.

If you have received income in the last calendar year, you will need to file Form 8843 and most likely Form 1040-NR as well. If you earned income in the US, you must file a tax return – Form 1040-NR – as well as Form 8843.

Frequently asked questions