Ibrahim Gardner
International students in the United States have specific tax filing requirements that they must adhere to. These requirements vary depending on factors such as income, residency status, and the state in which they are studying. All international students, regardless of income, are required to file an annual federal tax return with the Internal Revenue Service (IRS). Additionally, those who earn income may also need to file state tax returns, depending on the state they are in. International students on F and J visas are typically considered nonresidents for tax purposes, but those who meet the IRS's substantial presence test are classified as residents. To complete their tax filings, students must gather necessary documentation, such as Form W-2 for employment income or Form 1099 for independent contractor work. Understanding and complying with these tax obligations are crucial for international students to maintain their legal status and avoid complications with future visa applications.
| Characteristics | Values |
|---|---|
| Who needs to file taxes? | All international students and scholars in the US, even if they have no income. |
| What forms do they need to fill? | Form 8843, Form 1040-NR (nonresident tax return), Form 1042-S (if applicable), Form 1099 (if applicable), Form 1098-T or Form 1095 (if applicable). |
| When is the deadline? | 15 April 2025. |
| What if they had no income? | They must still file a Non-Employed 8843 Form. |
| Can international students get tax refunds? | Yes, many F-1 international students can claim tax refunds from the US. |
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What You'll Learn
International students with taxable scholarships
International students in the United States are required to file a tax return with the Internal Revenue Service (IRS) each year they are present in the country. This includes federal and state tax returns for those who earn an income, and a non-employed federal form for those without an income.
For international students with taxable scholarships, grants, or stipends, there are several factors to consider. Firstly, scholarships that cover tuition, fees, books, supplies, and equipment required for courses are generally tax-free. On the other hand, amounts used for room and board, travel, research, or other non-qualified expenses are typically taxable. It is important to separate these qualified and non-qualified expenses when reporting the taxable portion of your scholarship.
The tax rate for scholarships, fellowships, and grants is generally 30%. However, this rate may be reduced to 14% or a lower treaty rate if the student is temporarily present in the United States with an "F," "J," "M," or "Q" visa. Additionally, tax treaties between the US and the student's home country may provide exemptions or lower tax rates, so it is essential to research the terms of any applicable treaties.
To report a scholarship on your tax return, you will need to collect all relevant forms and documents, including Form 1042-S (Foreign Person's US Source Income Subject to Withholding). You will then need to report the taxable portion on Form 1040 or 1040-NR. If you received a Form W-2 for part of the scholarship, be sure to include that information as well.
It is important to accurately report any taxable scholarships to avoid potential consequences, such as penalties and interest on unpaid taxes, loss of future financial aid, and legal issues that may affect your visa status and future applications.
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Non-employed international students
International students in the US who are not employed are still required to file a tax return each year they are in the United States. This is the case for all international students, regardless of whether they earned an income or not. Non-employed students must file a non-employed federal form.
International students on an F-1 visa with no US-based income may only need to fill out Form 8843. This form requires your name, current address, and social security number (SSN) or IRS individual taxpayer identification number (ITIN), as well as other general personal information. If you are not eligible for an SSN, you can apply for an ITIN from the IRS.
If you are eligible for tax reduction, credit, or exemption under tax treaty regulations, you must fill out a Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) and submit it to your employer.
It is important to note that not filing your taxes by the deadline could result in problems with your visa or potential ineligibility for a green card.
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International students with F, J, or M visas
Form 8843 is a statement that must be filed with the Internal Revenue Service (IRS) by certain nonresident aliens who are in the US on F, J, or M visas. This form is required even if the student did not earn any income in the US. The deadline for filing Form 8843 is usually June 15, but it was April 15, 2025. It's important to meet this deadline, as missing it can result in penalties and potentially impact future US visa or Green Card applications.
In addition to Form 8843, international students with F, J, or M visas may also need to file a federal and/or state tax return if they have earned income in the US. The federal tax return is required for those who have taxable income, such as a taxable scholarship or fellowship grant, income that is exempt under a tax treaty, or other income taxable under the Internal Revenue Code. State tax returns may also be required, depending on the student's location and income. Tax rates and deductions vary by state, so it's important to check the specific requirements for the state where the student resides.
It's worth noting that international students on F, J, or M visas can claim a refund for Social Security Tax withheld on their wages by filing Form 8316 and Form 843 with the IRS. Additionally, students employed by a school, college, or university where they are enrolled may be exempt from Social Security and Medicare taxes under Section 3121(b)(10) of the Internal Revenue Code.
Overall, while international students with F, J, or M visas may have some exemptions from certain taxes, they are generally required to comply with tax filing requirements, even if they did not earn any income during their time in the United States. It is always advisable to consult official sources or seek professional advice for the most accurate and up-to-date information regarding tax obligations.
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State tax requirements for international students
International students in the US are required to file a tax return. The Internal Revenue Service (IRS) is the US government agency that collects taxes. The IRS has a strict deadline of April 15 (or the following Monday if it falls on a weekend) to file tax returns covering the previous calendar year of January 1 to December 31.
International students on F-1 visas are considered nonresident aliens for tax purposes and must pay tax in the US on certain types of income. Students with F-1 visas are exempt from paying employment taxes (i.e. Social Security and Medicare, also known as FICA). However, they are required to pay both federal and state income taxes. These taxes are withheld from their pay, and they must file a tax return as part of the process.
Students with F-1 visas may apply for OPT (Optional Practical Training) after each level of education is completed, allowing them to work in the US and gain practical experience. If an income is earned from OPT, students will be required to pay tax and fill in a W-4 tax form with their new employer.
The tax rates and deductions will differ for each individual state in the US, so the amount of tax an international student will pay depends on where they are. Nine states don't have any tax-filing requirements. Additionally, some international students will need to file a CT state tax return.
To prepare their federal tax returns, international students can use Sprintax, which is tax preparation software provided by many universities. For an additional fee, Sprintax can also assist with state income tax returns.
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Tax refunds for international students
International students in the US are required to file their tax returns if they were in the country during the previous calendar year and earned income. This applies to international students on F-1, J-1, M-1, and Q visas who engage in practical training and earn an income.
Which Forms to File
International students on F-1 visas are considered nonresident aliens by the IRS and are only taxed on US-source income. Even if an F-1 student did not earn any income, they must still file Form 8843 with the IRS before the deadline, which is usually April 15. This form is not an income tax return but a statement required by the US government for certain nonresident aliens. If you received income from US sources, you will likely need to file Form 1040NR as well.
Tax Treaties
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 US taxes on certain types of income. If you are an F-1 student and your income is completely or partially covered by a tax treaty, you may be able to claim a tax refund.
FICA Tax Refunds
Most F-1 students are not required to pay FICA tax. You will only be obligated to pay this tax if you were in the US for more than five years. If social security or Medicare taxes were withheld in error from your pay, you can contact your employer for a refund. If you are unable to get a full refund from your employer, you can file a claim for a refund.
Tools to Help with Tax Filing
Sprintax is a popular resource for international students to navigate the complexities of US tax filing. It is the nonresident partner of TurboTax and helps international students prepare a fully compliant 1040NR (nonresident tax return) and Form 8843. Sprintax also helps students claim their maximum legal tax refund.
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Frequently asked questions
Yes, international students have to file taxes in the US.
Even if you didn't earn any income, you are still required to fill out Form 8843.
If you were not present in the US for the entire tax year, you are not required to file a tax return for that year.
You will need to fill out Form 8843 if you didn't earn any income. If you did earn income, you will need to fill out Form 1040NR, the Federal Tax Return for Nonresidents.
The deadline for filing taxes is April 15 if you have earned income, and June 15 if you have not.
