Ibrahim Gardner
International students in the US may be eligible for a state tax refund, depending on their income and the tax treaties their home country has with the US. The US has income tax treaties with 65 countries, which can often reduce or eliminate US taxes on income such as pensions, interest, dividends, royalties, and capital gains. International students on F-1, J-1, M-1, and Q visas are considered exempt individuals, meaning they are excused from the Substantial Presence Test for the first five years they are in the US. Most F-1 visa students are also exempt from FICA taxes on wages for services performed in the US. To file their taxes, international students can use services like Sprintax, which is the nonresident partner of choice for TurboTax, or they can file their taxes themselves for free.
| Characteristics | Values |
|---|---|
| Who can get a state tax refund? | International students and scholars |
| Who provides the service? | Sprintax, TurboTax, Internal Revenue Service (IRS) |
| Who is eligible? | F-1, J-1, M-1, Q visa holders |
| What is the eligibility criteria? | Nonresident for tax purposes, receiving US source of income from salary and/or scholarship, resident of specific countries prior to coming to the US |
| What is the process? | Create an account on Sprintax, prepare non-resident tax forms, mail the forms to the IRS |
| What is the deadline? | On or before April 18, 2023 |
| What is the average refund? | $927 |
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What You'll Learn
- International students on F-1 visas can be exempt from FICA taxes
- International students must file Form 8843
- International students can benefit from tax treaties with their home country
- International students are considered nonresidents for tax purposes
- International students can use Sprintax to file their tax returns
International students on F-1 visas can be exempt from FICA taxes
International students on F-1 visas can be exempt from paying FICA taxes. FICA taxes are a type of US federal tax that includes Social Security and Medicare taxes. FICA taxes are typically deducted from the wages of US workers. However, international students on F-1 visas who are considered non-resident aliens for tax purposes may be exempt from paying these taxes.
To be exempt from FICA taxes, F-1 visa holders must meet certain criteria. Firstly, they must be classified as non-resident aliens for tax purposes. This classification typically applies to international students who have been physically present in the US for less than five calendar years. After this five-year period, international students are generally considered resident aliens for tax purposes and become subject to FICA tax withholding. However, if they remain enrolled as students, they may still be eligible for the FICA exemption.
The FICA exemption also depends on the nature of the student's employment. On-campus student employment, such as working for the school, college, or university where the student is enrolled, is typically exempt from FICA taxes. Off-campus jobs or employment unrelated to the student's course of study may not qualify for the exemption. Additionally, the employment must be allowed by the United States Citizenship and Immigration Services (USCIS) and closely connected to the purpose for which the visa was issued.
It's important to note that international students on F-1 visas may still have other tax obligations, such as federal income tax. Each state in the US has its own tax system and regulations, so it's crucial for international students to understand their specific tax obligations and entitlements. Seeking guidance from tax professionals or specialised software, such as Sprintax or TurboTax, can help international students navigate the complexities of US tax filing and maximise their tax refunds.
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International students must file Form 8843
International students in the US on F-1 visas are typically considered nonresident aliens for tax purposes and are therefore exempt from paying FICA taxes on wages earned for services performed in the country. However, they are still required to file tax returns. While TurboTax is the biggest online tax preparation service in the US, it is only for US residents. If international students use TurboTax, they will be filing as residents, which is inaccurate and may lead to fines and penalties.
Sprintax, on the other hand, is the nonresident partner of choice for TurboTax and the only online federal and state self-prep tax software for nonresidents in the US. By creating an account, international students can easily prepare a fully compliant 1040NR (nonresident tax return) and Form 8843.
Form 8843 is an informational statement required by the IRS for nonresidents for tax purposes. It is not a US income tax return. It should be submitted for every nonresident taxpayer present in the US at any point during the previous calendar year, including spouses, partners, and children.
International students must complete the top portion of Form 8843 with their name as it appears on their passport and their addresses. If they have a Social Security Number (SSN) or Individual Tax Identification Number (ITIN), they can write it in the top right box. However, an SSN or ITIN is not required if the student is only filing Form 8843, so this box can be left blank.
The deadline for filing Form 8843 in 2025 is 15 April 2025 if filing alongside any tax returns. If the student had no US income and is only filing Form 8843, the deadline is 15 June 2025. It is important to file before the deadline to avoid potential fines and penalties.
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International students can benefit from tax treaties with their home country
International students can benefit from tax treaties between their home country and the United States. The US has tax treaties with 65 countries, and these treaties can help students avoid double taxation and save money.
Under these tax treaties, residents of foreign countries (including international students) may be eligible for reduced tax rates or exemptions on certain types of income earned within the United States. These reduced rates and exemptions vary among countries and specific items of income. For example, Indian students can use the standard deduction and claim certain tax credits, while the US-China tax treaty deals with the double taxation of income types such as wages, dividends, and capital gains.
To claim a tax treaty benefit, international students must complete and submit Form 8233 to their university. This form requires personal information, a description of the services provided and income earned, the specific treaty being claimed, and details of the student's US visa. It's important to note that tax treaties do not eliminate the need to file a US income tax return, even if no income tax is due.
International students should also be aware of their tax obligations and entitlements in the specific state they are residing in within the US, as each state has its own tax system and regulations. F-1 visa students, for instance, are generally exempt from FICA taxes on wages earned in the US, but this exemption only applies for up to five years from their date of arrival.
Navigating the US tax system as an international student can be complex, and services like Sprintax offer specific support for non-residents, including help with determining eligibility for tax refunds and preparing the necessary tax documents.
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International students are considered nonresidents for tax purposes
International students in the US on an F-1 visa are considered nonresidents for tax purposes for the first five calendar years of their stay. This means that they will only be taxed on US-sourced income. The year that an international student enters the US counts as their first year, even if they were in the country for only part of that year. After five calendar years in the US, F-1 visa holders become residents for tax purposes.
International students who are considered nonresidents for tax purposes must file a US tax return (Form 1040-NR) for income from US sources. They are also required to fill in a W-4 tax form with their employer when they start work. Nonresident alien students and scholars with a taxable scholarship or fellowship grant must file taxes, as must those with income that is partially or totally exempt from tax under the terms of a tax treaty. Filing is also required if the nonresident alien student or scholar has any other income that is taxable under the Internal Revenue Code.
However, nonresident alien students and scholars are not required to file taxes if their income comes only from a US savings and loan institution, US credit union, US insurance company, or an investment that generates portfolio interest. They are also not required to file if their income comes from a scholarship or fellowship grant that is entirely tax-free.
International students can benefit from tax treaties between the US and their home country. The US has income tax treaties with 65 countries, under which residents of foreign countries may be eligible for reduced or exempt US tax on certain sources of income. These reduced rates and exemptions vary among countries and specific items of income.
Sprintax is a popular resource for international students, scholars, and nonresidents navigating the complexities of US tax filing. The software helps users prepare a fully compliant 1040-NR (nonresident tax return) and form 8843 tax documents.
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International students can use Sprintax to file their tax returns
International students in the US can use Sprintax to file their tax returns. Sprintax is a nonresident tax form preparation software that helps international students and scholars to file their IRS-compliant US nonresident tax returns. It is the nonresident partner of choice for TurboTax, the biggest online tax preparation service in the US.
Sprintax offers a simple step-by-step process to help international students prepare their tax documents and claim their maximum legal tax refund. The software collects data on allowed expenses, tax treaty benefits, deductions, and exemptions to prepare a compliant tax return and reduce income tax liability.
International students on F-1 visas are generally exempt from FICA taxes on wages for services performed in the US. However, they may still need to file a state tax return and pay state income tax, depending on the state's tax regulations. Sprintax can help determine if a state tax return is necessary and assist with the preparation of the required tax forms.
It is important for international students to comply with tax requirements as missing deadlines or making errors can result in fines and penalties. Sprintax provides 24-hour support and resources to help students navigate the complex US tax system and ensure accurate and timely filing.
By creating a Sprintax account, international students can answer questions about their time spent in the US, and Sprintax will determine their tax status. If a student is classified as a "nonresident alien" (NRA), they can continue using Sprintax to file their federal and state tax returns.
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