International Students: Tax Returns And You

International students in the US are required to file a tax return each year, even if they do not have US-sourced income. The process is completed through the Internal Revenue Service (IRS) and the deadline is usually in April. International students on F-1 visas are not required to pay employment taxes but are required to pay federal and state income taxes. They are also required to fill in a W-4 tax form with their employer when they start work. Many F-1 international students can claim tax refunds from the US, for example, on their scholarship if it is covered by a tax treaty.

F-1 visa students and tax returns

International students on an F-1 visa in the US are considered nonresident aliens for tax purposes and are required to file a US tax return. This means that they will only be taxed on US-source income. It is important to note that the tax filing status of an individual is separate from their immigration status.

Tax Returns

Every international student is required to file a tax return as a condition of their visa, but not everyone will have to pay taxes. There are a number of benefits and exemptions that international students can take advantage of, and if too much tax has been paid throughout the year, they may be entitled to a refund. The US has income tax treaties with 65 countries, and under these treaties, residents of foreign countries may be eligible for reduced tax rates or exemptions from US taxes.

Forms

There are several forms that international students may need to fill out, depending on their situation. Form 8843 must be filed by all international students, even if they didn't earn any money in the US. This form is used to report any income that is exempt from tax due to a tax treaty. Additionally, if an international student has received income in the US, they will likely need to file Form 1040-NR as well. If an international student is employed, they will also need to fill out a W-4 tax form with their employer.

Deadlines

The tax year in the US is from January 1 to December 31, and tax returns are due by April 18 of the following year. However, it is important to note that there may be different deadlines for state tax returns and Form 8843.

Social Security and Medicare Taxes

International students on F-1 visas are generally exempt from Social Security and Medicare taxes on wages earned for services performed within the US. However, this exemption does not apply to spouses and children in F-2 status. Additionally, students who have been in the US for more than 5 calendar years may become resident aliens for tax purposes and may be liable for these taxes.

Non-F-1 visa students and tax returns

International students on non-F-1 visas, such as J-1, M-1, or Q visas, are considered nonresident aliens for tax purposes in the US. This means they are generally exempt from paying Social Security and Medicare taxes on wages earned within the United States. However, they are still required to pay federal and state income taxes on their US-sourced income, which may include wages, tips, scholarships, and fellowship grants.

To comply with US tax laws, non-F-1 visa students must determine their federal tax filing status as either a nonresident or resident tax filer. This status determines the applicable tax rates and deductions and forms to be completed. It is important to note that tax filing status is distinct from immigration status, and an individual can be a nonresident alien for tax purposes while holding a different visa status.

Non-F-1 visa students must file their tax returns annually, usually by April 18, using tax software or tools like Sprintax. They will need to use Form 1040-NR (US Nonresident Alien Income Tax Return) to calculate and file their federal income taxes. Additionally, they may need to file Form 8843, which is required for all international students with F, J, M, and Q visas, regardless of their income.

It is crucial for non-F-1 visa students to accurately complete and submit the necessary tax forms. Failure to comply with tax obligations can lead to complications in future US visa applications. Furthermore, while tax treaties between the US and an individual's home country may provide reduced tax rates or exemptions, non-F-1 visa students should consult the IRS or a qualified tax accountant for personalized advice, especially in cases of complex tax issues or changes in visa status.

In summary, non-F-1 visa students in the US are subject to federal and state income taxes on their US-sourced income. They must determine their tax filing status, complete the appropriate forms, and meet annual tax return deadlines to remain compliant with US tax laws and avoid future visa-related issues.

Tax refunds for international students

International students in the US are required to file a tax return each year, even if they do not have any US income. This applies to all international students and their spouses and dependents. The purpose of filing a tax return is to report all sources of income to the government, what you have paid, and what you still owe. If you have paid more than what you owe for the year, you will get a refund.

F-1 Visas

Most international students in the US are on F-1 visas and are considered nonresidents for tax purposes. F-1 students are taxed in the same way as nonresident aliens and are only taxed on income from US sources. F-1 students are exempt from paying FICA (Social Security and Medicare) taxes for the first five calendar years of their time in the US. However, they are required to pay both federal and state income taxes on any income they earn in the US.

Tax Forms

All international students and their dependents must complete Form 8843, which is informational and lets the IRS know how long you have been in the US. This form must be mailed directly to the IRS in separate envelopes for each family member. If you have received income in the last calendar year, you will also need to file Form 1040-NR. You can electronically file Form 1040NR on the IRS website.

Social Security Numbers

To file your taxes, you may need a Social Security Number (SSN). If you worked in the US and received taxable compensation, you must apply for an SSN. If you are not eligible for an SSN, you must apply for an Individual Taxpayer Identification Number (ITIN) from the IRS to use on tax forms.

Getting Help

The process of filing taxes as an international student can be complicated. To ensure you are completing the correct forms and following the correct procedures, you can reach out to a tax professional or speak to advisors at your university who can provide additional resources and guidance.

Tax exemptions for international students

International students in the US on an F-1 visa are typically considered nonresident aliens for tax purposes for the first five calendar years of their stay. This means that they are taxed only on US-sourced income. If an international student's country of residence has signed a tax treaty with the US, they may be partially or completely exempt from tax. The US has income tax treaties with 65 countries.

International students with F-1 visas are exempt from FICA taxes on wages paid to them for services performed within the US. The exemption period for the F-1 visa is five years from the date of arrival in the US. Students with F-1 visas may apply for 12 months of OPT after each level of education is completed. If an income is earned from an OPT, the student will be required to pay tax.

International students must fill in a W-4 tax form with their new employer when they start work. Most F-1 students are required to file a US tax return (form 1040-NR) for income from US sources. Additionally, every international student, along with their dependents, will need to file Form 8843 separately. If an international student has received income in the last calendar year, they will need to file Form 8843 and most likely Form 1040-NR also.

There are some cases where international students are not required to file a US tax return. Nonresident alien students and scholars who have income only from a US savings and loan institution, US credit union, US insurance company, or an investment that generates portfolio interest are not required to file a tax return. Additionally, nonresident alien students and scholars with a tax-free scholarship or fellowship grant are also not required to file a tax return.

Tax software for international students

International students in the US, particularly those on F-1 visas, are required to file tax returns each year, even if they did not earn any income. While this process can be completed by yourself, it can be made easier by using tax software.

Sprintax

Sprintax is a cloud-based software that is specifically designed to help international students with their US tax returns. The software is user-friendly and has helpful customer care representatives who can answer any queries. It is partnered with major universities to let students fill out their federal returns free of cost. The software can help international students determine which forms they are required to file, such as Form 8843 and Form 1040-NR. It also helps students with their ITIN applications, which are needed if they are not eligible for a Social Security Number.

TurboTax or H&R Block At Home™

These are other examples of commercial tax software or web services that can be used to help with tax preparation.

Frequently asked questions