Savanna Hoffman
International students in the US may need to file taxes each year they are in the country, regardless of whether they earned an income or not. This can be a daunting process, especially for those who are new to the country. H&R Block provides a range of services to help international students with their taxes. The company has international tax experts who can assist with filing tax returns and FBARs, as well as with ITIN applications. H&R Block also offers remote assistance and provides resources for students to learn about tax filing, benefits, and financial aid taxes.
| Characteristics | Values |
|---|---|
| Can international students use H&R Block | Yes |
| Services offered | Help with taxes, ITIN application, and FBARs |
| Requirements | SSN, TIN, or ITIN |
| Tax status | Nonresident alien |
| Tax form | Form 1040-NR |
| Other forms | IRS Form W-7, W-8 BEN |
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What You'll Learn
International students as nonresident aliens
International students on F or J visas are generally 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. However, their immigration status does not change, and they are still considered non-immigrants with F-1, J-1, or M-1 visas.
Nonresident aliens are generally liable for Social Security and Medicare Taxes on wages earned for services performed in the United States, but certain exceptions apply to nonimmigrant students. International students with F-1, J-1, or M-1 visas who have been in the US for less than five years are exempt from Social Security and Medicare Taxes. Additionally, students employed by their school, college, or university where they are enrolled at least half-time are exempt from these taxes, regardless of their US tax residency status.
If international students have not earned any income, they are still obligated to file IRS Form 8843. If they have earned taxable US-source income, they must file a federal and state tax return with the IRS. This is a legal requirement to maintain their visa status. International students can use resources like Sprintax or seek help from trained volunteers through the IRS's Volunteer Income Tax Assistance (VITA) program to complete their tax forms.
H&R Block provides tax services for immigrants and expats, including guidance on the substantial presence test and the ITIN application process. They offer remote assistance and can help with state taxes, tax deductions, and claiming dependents. While H&R Block does not specifically mention services for international students, their expertise in taxes for immigrants suggests they may be able to assist nonresident alien students with their tax needs.
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Determining tax residency
If you are an international student in the US, your tax residency status depends on your current immigration status and how long you have been in the country.
In general, students in F or J status are considered nonresident aliens for tax purposes for the first five calendar years of their stay in the US. Scholars in J status are considered nonresident aliens for tax purposes for the first two calendar years of their stay.
If you have been in the US for longer than these periods, you will need to take the Substantial Presence Test to determine your tax residency. This test will look at:
- The number of days you have been physically present in the US over the last 3-4 years.
- The number of days you have been in the US in the current year.
- The number of days you were in the US during each of the previous two years.
- The date you first arrived in the US.
- The type of visa status you have.
- The type of visas your spouse and dependents have.
Your visa status can help determine your filing status because certain visa categories must be treated as nonresident aliens for a specific period of time. For example, a teacher or trainee with a "J" visa will not count days present in the US for the first two years they are on that visa.
You can also use the GLACIER Tax Prep program to determine your residency status for federal tax filing purposes. This program will ask you a series of questions to determine your residency status.
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Obtaining an ITIN
International students in the US are generally considered nonresidents for tax purposes. F-1 and J-1 students are automatically considered nonresidents for their first five calendar years in the US. If you are physically present in the US and have not earned any income, you are still obligated to file IRS Form 8843 with the Internal Revenue Service (IRS). If you have earned income, you will need to file a federal and state tax return with the IRS.
If you don't have a Social Security Number (SSN) or are not eligible for one, you will need to apply for an Individual Taxpayer Identification Number (ITIN). An ITIN is a nine-digit number issued by the IRS to individuals who are not eligible to obtain an SSN. The ITIN is used primarily for tax filing purposes and does not change your immigration status or right to work in the US. If you are able to claim a spousal exemption or have dependents, they will also need ITINs.
There are two methods to apply for an ITIN:
- Complete an IRS W-7 form and attach it to the tax return for which the ITIN is needed.
- Have the required original documents certified by a Certified Acceptance Agent (CAA) and attach the certified identification documents to the W-7 application.
To apply for an ITIN, you will need to submit the following items to the IRS:
- Form I-94 printed from the US Customs and Border Protection website.
- Passport personal information page and passport validity page showing the expiration date (if separate).
- Grant, Fellowship, or Scholarship Award Letter indicating the amount and details.
- Copies of your immigration documents, attaching the DSO Certification Letter from ISSP, and the completed IRS forms.
The anticipated wait time for an ITIN is 6-8 weeks.
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Tax deductions
H&R Block provides tax services for immigrants and expats, including international students. While the website does not specifically mention international students, it does provide information on tax deductions and adjustments for non-citizens and those without a green card.
If you are an international student in the US, your tax residency status will depend on your visa type and the length of your stay. F-1 and J-1 students are automatically considered non-residents for their first five calendar years in the US. After this period, the Substantial Presence Test will determine your tax residency status.
As a non-resident for tax purposes, you will only be taxed on US-source income, including wages earned for work performed in the US or proceeds from the sale of real property located in the US. You will need to file a federal and state tax return with the IRS if you have earned any taxable US income.
H&R Block offers guidance on tax deductions and adjustments for non-residents, helping you to determine what you qualify for. They also provide assistance with the ITIN application process, which is required for individuals without a Social Security Number (SSN) who need to file tax returns.
- Tax Residency Status: Understanding your tax residency status is crucial for determining which tax deductions you may qualify for. As mentioned, F-1 and J-1 students are typically considered non-residents for their first five years in the US.
- US-Source Income: As a non-resident, you are only taxed on income earned from US sources. This includes wages from employment in the US and certain types of property sales within the country.
- Tax Deductions and Adjustments: H&R Block can help you identify specific tax deductions and adjustments available to international students. These may include deductions for certain educational expenses, dependent care, or other eligible expenses.
- ITIN Application: If you do not have an SSN, H&R Block can assist with applying for an Individual Taxpayer Identification Number (ITIN). This number allows you to file tax returns and claim certain tax benefits.
- Filing Requirements: Familiarize yourself with the filing requirements for non-residents. You will typically need to file IRS Form 8843 if you did not earn any US income during the year. If you have earned US income, you must file a federal and state tax return.
- Deadlines and Extensions: Be mindful of tax filing deadlines. For the 2024 tax year, the last day for non-residents to file federal tax returns is April 15, 2025. Extensions are available if needed.
- Professional Assistance: Consider seeking professional assistance from organizations like H&R Block, which can provide tailored advice and ensure you are claiming all the deductions you are entitled to as an international student.
Remember that tax laws and regulations can be complex and may change over time. Always consult the latest official guidance from the IRS or seek professional tax advice to ensure you are complying with the most current requirements.
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Financial aid and tax
H&R Block offers a range of services to help students with their taxes and financial aid applications. The company provides tips and guides on its website, covering topics such as budgeting, saving, investing, and financial planning.
Tax Filing for Students
For college students, filing taxes can be daunting, especially if it is their first time. H&R Block offers free online tax filing for students, covering the most common tax forms. The company also provides guidance on student tax credits and deductions, such as the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LLC), which can help make higher education more affordable.
H&R Block assists students in understanding how financial aid, including student loans, scholarships, and other forms of aid, can impact their tax returns. The company provides information on which forms to use for reporting different types of income and financial aid. For example, students may need to use Form 1040EZ, 1040, or 1040A to report taxable scholarship amounts. Additionally, H&R Block offers guidance on Form 4506, which is used to request a copy of a tax return from the IRS when applying for financial aid.
Taxes for Immigrants and Expats
H&R Block also provides resources for immigrants and expats, helping them navigate the complex process of filing taxes in the U.S. for the first time. They guide individuals in determining their tax filing status, which can vary based on factors such as visa status, green card possession, and the number of days spent in the U.S. The company also offers assistance with obtaining an identifying number, such as an ITIN, which may be required for tax filing.
While H&R Block provides these services and resources, it is important to note that there have been instances where the company has made mistakes in filing taxes for foreign students, resulting in financial stress for their clients. Therefore, it is always advisable to seek multiple sources of information and, if needed, consult professional tax advisors to ensure accurate and compliant tax filings.
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Frequently asked questions
Yes, H&R Block has international tax experts who can help international students file their 1040-NR or other tax forms.
A nonresident alien is a foreign individual who is not a U.S. citizen or resident alien of the U.S. A person is considered a nonresident alien if they have not passed the green card test or the substantial presence test.
A resident alien is someone who has a green card. If you don't have a green card, you will need to use the substantial presence test to determine your tax filing status.
The first step in filing taxes as an international student is to take a Substantial Presence Test or Residency Test. Then, you will need to determine your filing status and obtain an identifying number. If you are a nonresident alien, you will need to use Form 1040-NR to file your tax returns.
The deadline for residents and nonresidents who earned U.S. income to file federal tax returns for the 2024 tax year is April 15, 2025. If you need more time, you can file for an extension.
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