Lana Oconnell
International students are subject to US taxation for money made while in the United States. Generally, aliens may apply for either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. An ITIN is required for international students who do not have an SSN but are receiving grants, fellowships, or scholarships. Students on F, J, M, or Q visas are considered exempt individuals and are excused from the Substantial Presence Test for the first five years they are in the US. After this period, they will be subject to the test, which is used to determine if someone was in the US long enough to be considered a resident.
| Characteristics | Values |
|---|---|
| Who needs an Individual Taxpayer Identification Number (ITIN) | International students, scholars, faculty, or staff who are not eligible for a Social Security Number (SSN) |
| When to apply for an ITIN | During the same year that you received your fellowship income |
| Where to apply for an ITIN | At the Payroll Office |
| Documents required | Passport and visa stamp, a copy of your fellowship or scholarship letter, your I-94 printed from the CBP I-94 website, and your I-20 or DS-2019 form |
| Deadline for application | November 30, 2025 |
| Who can use GLACIER Tax Prep | F and J students and scholars who are non-residents for U.S. tax purposes |
| Who are exempt individuals | International students on F, J, M, or Q visas for the first 5 years in the US |
| Who are considered non-resident aliens | International students and scholars |
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What You'll Learn
International students and tax residency
International students may need to obtain an Individual Taxpayer Identification Number (ITIN) if they are not eligible for a Social Security Number (SSN). An ITIN is necessary if an international student has non-wage income to report on their taxes, such as taxable scholarships, grants, or fellowships. To apply for an ITIN, international students typically work with their international student office to submit the required documentation, including their passport and visa. They may also need to include a copy of their fellowship or scholarship letter, their I-94 printed from the CBP I-94 website, and their I-20 or DS-2019 form.
The process of determining tax residency status for international students can vary depending on the country. In the United States, international students on F-1 visas are generally considered nonresidents for tax purposes for their first five calendar years. After the fifth year, they become residents for tax purposes. J-1 scholars are typically considered nonresidents for their first two calendar years, becoming residents in the third year.
To confirm their tax residency status, international students can use resources like Sprintax or refer to IRS publications. Their residency status will determine their income tax return filing requirements. For example, in Canada, international students must determine if they have established significant residential ties to the country, which will impact their tax obligations. By understanding the specific rules and regulations of their host country, international students can ensure they comply with the necessary tax requirements.
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Getting an Individual Taxpayer Identification Number (ITIN)
International students, scholars, faculty, or staff may need an Individual Taxpayer Identification Number (ITIN) for themselves or their spouses and children. This is particularly relevant for those who have received ""non-service" scholarships or fellowships (no work required) and are therefore not eligible for a Social Security Number (SSN).
The Internal Revenue Service (IRS) will not issue an ITIN unless it is required for a tax return form. If you have U.S.-source income but are not eligible for an SSN, you will need an ITIN to fill out IRS and U-M Payroll forms. This is most common for students who receive non-service fellowships that include money for living expenses.
If you are an international student who is not working yet but still has non-wage income to report on your taxes, you will need to apply for an ITIN. Common examples of taxable non-wage income for international students include taxable scholarships, grants, or fellowships. However, if a scholarship, grant, or fellowship is applied directly against tuition or is received from a foreign entity, there is no need to apply for an ITIN to report taxes on it.
There are three ways to apply for an ITIN:
- Fill out Form W-7, Application for IRS Individual Taxpayer Identification Number (ITIN), and submit it with your tax return.
- Contact an IRS-authorized Certifying Acceptance Agent.
- Make an appointment with the IRS Taxpayer Assistance Center.
You can apply by mail or in person. If you apply by mail, allow 7 weeks for the IRS to notify you about your ITIN application status. It can take 9-11 weeks if it's tax season (January 15 to April 30) or if you applied from overseas. You can check the status of your ITIN number application by calling the IRS toll-free at 1-800-829-1040.
If you apply for an ITIN during the same year that you received your fellowship income, you can apply at the Payroll Office. You will need your passport and visa stamp, a copy of your fellowship or scholarship letter, your I-94 printed from the CBP I-94 website, and your I-20 or DS-2019 form.
F and J students and scholars who are nonresidents for U.S. tax purposes can use GLACIER Tax Prep (GTP), which is web-based tax preparation software. GTP will determine if an ITIN is needed and will prepare the ITIN application form if necessary.
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Social Security Number (SSN)
International students can apply for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) for use on tax-related documents. However, there are certain eligibility requirements that must be met to apply for an SSN.
F-1 students must provide evidence of lawful F-1 employment, such as an on-campus job or authorization for curricular practical training (CPT) or optional practical training (OPT). If an F-1 student does not have lawful F-1 employment, they are ineligible to apply for an SSN, including replacement SSN cards. J-1 students are required to show evidence of employment and must be in valid J-1 status and be registered for a full course of study. J-1 students under the sponsorship of an external organization should obtain a Social Security letter from their sponsor.
To apply for an SSN, students must first obtain valid employment authorization. Once the application is submitted, it will be reviewed by a Social Security Administration (SSA) examiner. After acceptance, students can expect to receive their SSN within 4-6 weeks, though processing times may vary. Students can request an application receipt to show their employer that they have applied for an SSN. The Social Security Administration will mail the student's number and card as soon as all immigration information has been verified, which can take 2-4 weeks or more.
If an international student does not have an SSN, they will need to apply for an ITIN to pay taxes on non-wage income. Students who have received "non-service" scholarships or fellowships (no work required) and are not eligible for an SSN should apply for an ITIN as soon as possible. F and J students and scholars who are non-residents for US tax purposes can use GLACIER Tax Prep (GTP), web-based tax preparation software, to determine if an ITIN is needed.
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Tax treaties and benefits
International students in the US may need to apply for an Individual Taxpayer Identification Number (ITIN) to pay taxes on non-wage income if they do not have a Social Security Number (SSN). An ITIN is required to file tax forms with the Internal Revenue Service (IRS).
Some countries have tax treaty agreements with the US, where certain types of income may be exempt from federal taxes. The exact type of tax relief that can be claimed will depend on the treaty that the US has signed with the home country of the international student. For example, Indian nationals in the US on a student visa are likely exempt from paying tax on grants, scholarships, or remuneration from employment. Meanwhile, Korean international students are exempt from tax on any grant, allowance, award, or income (less than $2000) from personal services performed. French citizens are exempt from US tax on any income earned from gifts from abroad for the purpose of maintenance, education, study, research, or training, as well as income (less than $5000) from personal services performed.
To claim a tax treaty benefit on income from personal services, compensatory scholarships, or grant-receiving, international students need to complete a Form 8233 and submit it to their university. This form should include personal information, a description of the services provided and the total amount of income earned, the exact treaty on which the claim for tax exemption is based, and details of the US visa type.
International students can use GLACIER Tax Prep (GTP), a web-based tax preparation software, to determine if an ITIN is needed and prepare their US federal income tax form. GTP will also print an ITIN application form (Form W-7) if needed.
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Filing a tax return
As an international student, you will need to file tax forms each year with the Internal Revenue Service (IRS), the US agency that collects federal taxes. The US tax system is a pay-as-you-go system, meaning there are usually automatic tax withholdings from your paycheck, stipend, or financial aid. This amount is estimated based on the information you provided in your tax documents and your residency.
At the start of each year, you must file an income tax return for the previous calendar year to ensure the correct amount of taxes was withheld. If too much tax was withheld, you could receive a refund. If too little was withheld, you will need to pay the remaining balance to the IRS. Every international student has an obligation to file taxes once per year for their first five years in the US.
Before filing your taxes, you should collect the necessary documentation, such as Form W-2 Wage and Tax Statement, which shows your earnings for the year and how much was taken out for taxes. You will only receive this form if you have been employed. Another form you may need is Form 1042-S, which shows scholarship or fellowship funds exceeding tuition and related fee charges. Form 1099 is another tax form that documents miscellaneous income, such as earnings from working as an independent contractor.
If you are filing as a nonresident alien student with income only from certain sources, such as a US savings and loan institution, US credit union, or US insurance company, you may not be required to file a tax return. Similarly, if you are receiving a Tax-Free Scholarship or Fellowship Grant, you may not need to file a tax return. However, it is important to carefully review the guidelines and determine your tax filing status before proceeding.
Additionally, some international students must file a state tax return, such as the CT State Income Tax Return, depending on their location and income sources. It is recommended to consult with a qualified tax accountant or the IRS directly if you have any specific questions or concerns about your tax obligations as an international student.
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Frequently asked questions
Yes, international students need to file tax returns as a condition of their visa. If they don't have a Social Security Number (SSN), they will need an Individual Taxpayer Identification Number (ITIN).
An ITIN is a unique number used to identify individuals with tax-filing requirements for non-wage income, who are not eligible for an SSN.
You can apply for an ITIN through the Payroll Office, with your passport and visa stamp, a copy of your fellowship or scholarship letter, your I-94, and your I-20 or DS-2019 form. You can also use GLACIER Tax Prep, which is web-based tax preparation software, to determine if you need an ITIN and to prepare the application form.
An ITIN is for individuals who are not eligible for an SSN, which is usually obtained through work. An ITIN can be used to access certain U.S. financial products like bank accounts and credit cards.
