Douglas Olsen
International students in the US are required to file their tax returns annually. This is done with the Internal Revenue Service (IRS) and is applicable to students who were in the US during the previous calendar year and earned income. International students on F-1 visas are considered non-resident aliens for tax purposes and are only taxed on US-source income. While some universities offer access to tax software like Sprintax and Taxslayer Pro, it is important to note that Taxslayer Pro does not accommodate individuals with tax treaties that impact their tax returns. Therefore, while international students can use Taxslayer Pro to file their taxes, they should be mindful of their specific circumstances and requirements.
| Characteristics | Values |
|---|---|
| Who can use TaxSlayer Pro? | International students and scholars at the University of South Carolina |
| Cost | Free for federal tax filing, $40 for state tax filing |
| Who cannot use TaxSlayer Pro? | Individuals with tax treaties that impact their tax returns |
| Alternatives | Sprintax (free for USC students), TurboTax (not suitable for nonresident aliens) |
| Tax forms | 1040NR or 1040NR-EZ for nonresident aliens with taxable income, 1099 for independent contractors, W-4 for OPT students |
| Tax treaties | May partially or completely exempt nonresident aliens from tax |
| Nonresident alien definition | F, J, M, or Q visa holder |
| Resident alien definition | Passing the substantial presence test |
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What You'll Learn
International students as nonresident aliens
International students on F-1, J-1, or M-1 visas are considered nonresident aliens for tax purposes for the first five calendar years of their stay in the US. After five years, they may become resident aliens for tax purposes. Nonresident aliens are generally liable for Social Security and Medicare Taxes on wages paid for services performed in the US, with certain exceptions based on their nonimmigrant status.
International students who are nonresident aliens and have taxable income, such as wages, tips, scholarships, fellowship grants, or dividends, must file a 1040NR or 1040NR-EZ return. They may use Taxslayer Pro to file their federal tax return, but Taxslayer does not support non-resident returns or accommodate individuals with tax treaties that impact their tax returns. There is usually a fee for filing state tax returns.
International students who are nonresident aliens and have received scholarship or fellowship money that exceeds tuition and related fees will be given a 1042-S form. Most international students do not receive a Form 1099, which documents miscellaneous income.
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$68.11 $283.95
Tax treaties and exemptions
International students with an F, J, M, or Q visa who have income from wages, tips, scholarships, fellowship grants, or dividends are required to file a 1040NR or 1040NR-EZ return. However, TaxSlayer Pro does not currently support non-resident returns.
International students can use Sprintax to file their federal tax returns for free. They can also use Sprintax to file their state tax returns for a fee. Alternatively, they can use TaxSlayer Pro, which is offered for free by some universities. However, TaxSlayer Pro does not accommodate individuals with tax treaties that impact their tax returns.
International students who are residents of a country with which the US has entered into a tax treaty containing an exemption for scholarship and fellowship grants may claim a tax treaty withholding exemption by submitting Form W-8 BEN to the payer of the grant. They can also claim a treaty exemption on both kinds of income on Form 8233. Additionally, students must complete a country-specific statement that details the terms of the treaty.
Income covered by the tax treaty is taxed at 0%, and all other income is taxed at the graduate rate for federal tax purposes. For example, Korean international students in the US to study, train, or research at university are exempt from tax on any grant, allowance, award, or income ($2,000 or less) from personal services performed. French citizens in the US for study, training, or research will not be subject to US tax on any income earned from gifts from abroad for the purpose of maintenance, education, study, research, or training.
Non-resident alien students who receive payments that are not completely exempt from income tax withholding under a tax treaty will receive a Form W-2, Wage and Tax Statement, from Payroll Services. Students from countries with a tax treaty with the US that includes a wage article may claim exemption or a reduction of income tax withholding if the payment meets the requirements of the treaty and the student completes the required forms with the university's Tax Department.
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State tax returns
International students with an F, J, M, or Q visa who have taxable income such as wages, tips, scholarships, fellowship grants, or dividends must file a 1040NR or 1040NR-EZ return. However, TaxSlayer does not currently support non-resident returns.
International students at the University of South Carolina can use Sprintax or TaxSlayer Pro to file their federal tax returns. While Sprintax is free, TaxSlayer Pro charges a fee of around $40 for state tax returns.
TaxSlayer Simply Free includes one free state tax return. Each additional state tax return is $44.95. The actual prices are determined at the time of print or e-file.
State tax forms and instructions can be downloaded from each state's website.
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Tax software and preparation
International students in the US are required to file a tax return with the Internal Revenue Service (IRS) each year they are in the country. This includes both federal and state tax returns for those who earned income, and a non-employed federal form for those who did not.
Tax Preparation Software
There are several tax preparation software options available to international students, including Sprintax and Taxslayer Pro. These software programs can guide you through the process of filing your federal and state tax returns.
Sprintax
Sprintax is offered free of charge to international students at certain universities, such as the University of South Carolina and Yale University. It provides assistance in filing federal tax returns and can also be used to file state tax returns for a fee.
Taxslayer Pro
Taxslayer Pro is another option for international students to file their taxes. While it does not accommodate individuals with tax treaties that impact their returns, it can be accessed for free by requesting a link from the appropriate department at your university.
Manual Filing
If you do not wish to use tax preparation software, you can manually file your state tax return by printing out the "1040" form (for South Carolina State Taxes only) or the relevant form for your state. You can find instructions for filing your state return on your state's website.
Tax Forms
The specific tax forms you need to file will depend on your income sources and visa status. Here are some common forms that may be relevant to international students:
- Form 1040-NR: This is the nonresident alien tax return form, which is used to report taxable income such as wages, tips, scholarships, and fellowship grants.
- Form 1042-S: This form is typically given to nonresident alien students who received scholarship or fellowship money exceeding tuition and related fee charges.
- Form 1099: This form documents miscellaneous income, such as earnings from independent contractor work.
- Form W-4: International students must fill out this form when starting work with a new employer.
Tax Treaties
If your country of residence has signed a tax treaty with the US, you may be partially or completely exempt from paying taxes on certain types of income. However, you must still report this income on a US income tax return, even if no tax is due.
Deadlines
The US tax year runs from January 1 to December 31, and tax returns are typically due in April of the following year. It's important to stay on top of your tax obligations to avoid complications with future visa applications.
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Tax forms and documentation
International students on F and J visas are required to file taxes once per year for their first five years in the US. This includes federal and state tax returns for those who earned income, and a non-employed federal form for those who did not.
If you are a nonresident alien with an F, J, M, or Q visa, and you have taxable income such as wages, tips, scholarships, fellowship grants, or dividends, you must file a 1040NR or 1040NR-EZ return. This can be done through Sprintax or Taxslayer Pro. However, Taxslayer Pro does not accommodate individuals with tax treaties that impact their tax returns.
If you are an international student filing as a nonresident alien, you should not use TurboTax as this is a service for residents. Instead, you should use Form 1040-NR.
If you received Form W-2, this shows how much you earned last year and how much was taken out for taxes. If you had CPT authorization to work as an independent contractor, you might receive Form 1099 instead of Form W-2 to document your earnings. Most international students do not receive a Form 1099.
If you are a nonresident alien for tax purposes and received wages or taxable scholarships from US sources, you must file Form 8843 and 1040NR by April 15. If you had no US income and are only filing Form 8843, the deadline is June 15. Form 8843 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 the purposes of the substantial presence test.
If you need to file an amended tax return, you will need a Form 1040X, your original tax return, and any new required documents. This must be mailed to the IRS along with all required supporting documents.
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Frequently asked questions
Yes, all international students are required to file a return with the Internal Revenue Service (IRS) each year they are in the United States.
International students can file their taxes using software such as Sprintax or Taxslayer Pro.
International students need to file a federal tax return and, depending on the state, a state tax return. International students on F-1 visas are considered nonresident aliens for tax purposes and will be taxed only on US-source income.
