International Students: Claiming Tax Returns In The Usa

can international students get tax return in usa

International students in the US are required to file a tax return each year they are in the country, regardless of whether they earned an income or not. Those who did not earn an income must file a non-employed federal form, while those who did must file federal and state tax returns. Many international students can claim tax refunds from the US, especially if they've earned income in the country due to tax treaties and a lack of serious income.

Characteristics Values
Who needs to file a tax return? All international students in the US during the previous calendar year, regardless of whether they earned income or not.
What form do international students need to file? Form 8843.
When is the deadline for filing the tax return? 15 April 2025.
What happens if the deadline is missed? It may lead to penalties and jeopardize future US visa applications.
Can international students get a tax refund? Yes, international students may be eligible for a tax refund.
What is the process for getting a tax refund? The tax return form is used to report all sources of income, what has already been paid, and what is still owed. It can also be used to claim deductions or exemptions. At the end of the process, the total amount owed is calculated, and if more was paid than owed, a refund is given.
What software can be used to help with tax returns? Sprintax and IN DOR online resources.

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International students with F-1 visas can get tax refunds

Non-resident tax filers

International students on F-1 visas are generally considered non-residents for tax purposes. Non-resident alien students and scholars with income from US savings, loan institutions, credit unions, insurance companies, or investments that generate portfolio interest, may not be required to file tax returns. However, they must report this income on a US tax return, even if no tax is due.

Tax treaties

International students can get tax refunds due to tax treaties and a lack of serious income. For instance, an F-1 student may be able to claim a tax refund on their scholarship if it is covered by a tax treaty.

Deadlines

The deadline for international students to file their tax documents is usually April 15. However, if you had no US income and are only filing IRS Form 8843, the deadline is June 15. This form 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.

Extensions

If you are unable to file your federal income tax return by the deadline, you may be able to get an automatic six-month extension. However, missing the deadline may lead to penalties and jeopardize your chances of securing a US visa or Green Card in the future.

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Nonresident alien students don't have to file tax returns

International students in the US on an F-1 visa are considered nonresident aliens for US federal income tax purposes. This means that they are taxed only on US-source income.

Nonresident alien students and scholars are not required to file tax returns if their income comes only from:

  • A US savings or loan institution
  • A US credit union
  • A US insurance company
  • An investment that generates portfolio interest
  • A scholarship or fellowship grant that is entirely tax-free
  • Any other income that is nontaxable under the Internal Revenue Code

However, income that is not taxable because of an income tax treaty must be reported on a US income tax return, even though no income tax is due. Nonresident alien students must file a tax return if they are engaged or considered to be engaged in a trade or business in the United States during the year, or if they have US income on which the tax liability was not satisfied by the withholding of tax at the source.

It is important to note that even if an international student did not earn any income during their time as an F-1 student in the US, they still have a filing requirement. They must file a Form 8843 with the IRS before the deadline, which is usually June 15 or April 15. This form is not an income tax return but a statement required by the US government for certain nonresident aliens. Filling this form is crucial for fulfilling visa obligations and maintaining legal status under F, J, M, and Q visas.

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International students with income must file federal and state tax returns

International students in the US with income must file federal and state tax returns. This applies to students on F-1 visas, who are considered nonresidents for tax purposes and are taxed only on US-source income. The Internal Revenue Service (IRS) requires that international students with income file a tax return each year they are in the United States. This includes federal and state tax returns.

To file your tax return, you will need to determine your federal tax filing status: nonresident tax filer or resident tax filer. This status determines how you are taxed and which forms you need to fill out. You can use tax preparation software, such as Sprintax, to help you complete your federal and state tax returns. Sprintax is provided by some universities, such as Yale University and the University of Southern Indiana, to help international students with their tax filing obligations.

It is important to note that even if you did not earn any income during your time as an international student in the US, you still have a filing requirement. You must file a Form 8843 with the IRS before the deadline, which is usually in April of the following year. This form is a statement required by the US government for certain nonresident aliens who are in the US on specific visa types, including F-1 and J-1 visas.

When filing your tax return, you will need to report all your sources of income to the government, what you have already paid, and what you still owe. This includes income from internships or Curricular Practical Training (CPT) positions. You may also be able to claim deductions or exemptions that you qualify for. At the end of the process, you will calculate your total tax liability for the year and compare it to the amount you have already paid. If you have paid more than what you owe, you may be eligible for a tax refund.

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International students without income must file a non-employed federal form

International students in the US are required to file their tax returns if they were in the country during the previous calendar year. This is true even if they did not earn any income during their stay. 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.

It is important to note that there is no minimum dollar amount of income that triggers a filing requirement for a nonresident alien, including a foreign student. However, nonresident alien students with certain types of income, such as taxable scholarships or fellowships, income covered by a tax treaty, or income taxable under the Internal Revenue Code, are required to file. On the other hand, nonresident alien students with income only from sources like US savings and loan institutions, US credit unions, US insurance companies, or certain tax-free scholarships, are not required to file.

International students on F-1 visas are taxed as nonresident aliens, which means they are taxed only on US-source income. Additionally, under Section 3121(b)(10) of the Internal Revenue Code, students are exempt from Social Security and Medicare taxes (FICA) on on-campus employment of up to 20 hours a week (40 hours during summer vacations) as long as the work is related to their course of study.

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Tax treaties can impact international students' tax returns

International students in the US on an F-1 visa are usually considered nonresident aliens for tax purposes for the first five calendar years of their stay. This means that they are only taxed on US-source income. However, their tax filing status may change over time, so it is important to review the guidelines each time they complete their taxes.

The US has income tax treaties with 65 countries. Under these treaties, residents of foreign countries may be eligible for reduced tax rates or exemptions from certain types of taxes. For example, under the US-India Income Tax Treaty, certain nonresident aliens from India can claim the standard deduction provided they do not claim itemized deductions. Similarly, international students can benefit from a tax treaty with their home country, which may result in reduced or exempt taxes on various types of income, such as pensions, interest, dividends, royalties, and capital gains.

If an international student's country of residence has signed a tax treaty with the US, they may be partially or completely exempt from paying taxes on their scholarship or fellowship grant. In such cases, they must still report this income on a US income tax return, even if no income tax is due.

It is important to note that even if an international student did not earn any income during their time in the US, they may still have a filing requirement. All international students must file at least Form 8843 with the IRS before the deadline to remain legal under their visa obligations.

Frequently asked questions

Yes, all international students are required to file a tax return with the Internal Revenue Service (IRS) each year they are in the United States. This applies to both federal and state tax returns for those who earned income, and a non-employed federal form for those who did not.

International students can use tax preparation software like Sprintax to help complete their state and federal tax returns. This software is provided by many universities to their international students.

Yes, many international students can claim tax refunds from the US. This is because international students are taxed only on US-source income, and they may qualify for a refund due to tax treaties and a lack of serious income.

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