International Students And State Taxes: Who Pays?

International students in the US are required to file a tax return, and in most cases, they are also required to pay federal and state income taxes. The US Internal Revenue Service (IRS) considers international students and scholars on F or J visas as nonresident aliens for tax purposes. However, they are still required to file Form 8843, which is a statement that informs the IRS of the duration of their stay in the US. While F-1 visa holders are generally exempt from paying employment taxes, they are required to pay federal and state income taxes on their earned income. Additionally, some international students may be exempt or receive reduced tax rates if their country of origin has a tax treaty with the US.

Do international students pay state taxes?

F-1 visa holders and state taxes

International students in the US on an F-1 visa are generally considered nonresident aliens for tax purposes for the first five calendar years of their stay. This means that they are exempt from paying Social Security and Medicare taxes on wages earned for services performed within the US. However, they are still required to pay both federal and state income taxes on their US-sourced income.

F-1 visa holders who are considered nonresidents for tax purposes and are married should file their returns as 'Married Filing Separate'. Additionally, they must complete Form 8843, which is an informational form that lets the Internal Revenue Service (IRS) know how long they have been in the US. The deadline for F-1 students to file their tax documents is usually April 15 or the following Monday if it falls on a weekend.

F-1 students who intend to reside in the US for longer than one year are subject to a 30% taxation rate on their capital gains during any tax year in which they are present in the US for 183 days or more, unless a tax treaty provides for a lesser rate. These capital gains are reported on page 4 of Form 1040NR.

It is important to note that the tax code is complex, and F-1 visa holders should carefully review the relevant tax laws and consult with a tax professional or their school's international student center if they have any questions or concerns about their specific situation.

J-1 visa holders and state taxes

International students in the US are required to file a tax return, and most J-1 visa holders are considered nonresident aliens for tax purposes. As nonresident aliens, J-1 visa holders must pay federal, state, and local taxes on any US-sourced income they receive during their stay in the US. This includes any income from scholarships, grants, and stipends.

J-1 visa holders are exempt from certain taxes, such as Social Security and Medicare (FICA tax). However, they must file annual income tax reports with the Internal Revenue Service (IRS), the US government agency responsible for collecting federal taxes. The IRS provides resources to help individuals understand their tax obligations, such as the comprehensive U.S. Tax Guide for Aliens.

To determine the amount of tax to be paid, J-1 visa holders can consider factors such as their income, the rate of tax in their state, and whether their country of residence has a tax treaty with the US. Additionally, J-1 visa holders may be entitled to a state tax refund, depending on the state in which they lived and worked.

It is important to comply with tax obligations and meet deadlines to avoid penalties and potential complications with future US visa applications.

Deadlines for state tax returns

International students in the US on F-1 visas are generally considered nonresident aliens for tax purposes for the first five calendar years of their stay. However, some can be considered 'residents' or 'resident aliens' if they pass the substantial presence test.

Now, onto the deadlines for state tax returns. The Internal Revenue Service (IRS) has a strict deadline of April 15 (or the following Monday if that falls on a weekend) to file tax returns for the previous calendar year of January 1 to December 31. This deadline is the same for international students, who are required to file a tax return. The deadline for all F-1 students to file their tax documents is April 15, 2025. If you are unable to file your federal income tax return by the deadline, you may be able to get an automatic 6-month extension by submitting Form 4868 by the original deadline. However, this is only an extension for filing your tax return, not for paying any money due.

Additionally, all international students and their spouses and dependents must complete Form 8843, which is a statement that informs the IRS of how long you have been in the US. The deadline for this form is April 15, 2025, if you have US income, and June 15, 2025, if you have no US income.

It is important to note that not all US states require the filing of a state tax return. However, many do, and the deadlines for these state-level filings may differ from the federal deadline. You will need to check your state's website to determine if you have state tax filing obligations and the deadline for submitting your state tax return.

Finally, it is crucial to comply with the tax filing requirements and deadlines. Missing the deadline may result in fines and penalties, and it could jeopardize your chances of securing a US visa or Green Card in the future.

Non-resident status and state taxes

International students in the US on F-1 visas are generally considered nonresident aliens for tax purposes for the first five calendar years of their stay. However, they may be considered residents for tax purposes if they pass the substantial presence test. Nonresident aliens for tax purposes only pay taxes on income earned in the US, and the amount of tax they pay depends on their income, the tax rates of each state, and their entitlement to tax treaty benefits. The US has income tax treaties with 65 countries.

International students on F-1 visas are not required to pay employment taxes, such as Social Security and Medicare (FICA), but they are required to pay federal and state income taxes. These taxes are typically withheld from their pay, and they must file a tax return as part of this process. The deadline for F-1 students to file their tax documents is usually April 15 or the following Monday if it falls on a weekend.

In addition to federal taxes, some international students must also pay state and/or local taxes. For example, students in Connecticut and Massachusetts may need to file a state tax return in addition to their federal return. The requirements for state tax returns vary by state, and some states, like Massachusetts, base tax treatment on residency status rather than visa type. In Massachusetts, nonresidents must file a state tax return if their income exceeds certain thresholds, and they may qualify for certain personal income tax credits or deductions.

It is important for international students to comply with their tax obligations, as missing deadlines or failing to file tax returns can result in fines and penalties, as well as complications with securing a US visa or Green Card in the future. To navigate the complex tax code, international students can seek help from their school's international student center or consult a tax professional.

State tax returns and tax treaties

International students in the US are required to file a tax return. The US has income tax treaties with 65 countries, and these treaties can often reduce or eliminate US tax on various types of income, such as pensions, interest, dividends, royalties, and capital gains.

Non-resident tax filers

International students on F and J visas are generally considered non-residents for tax purposes. Non-resident tax filers can use tax preparation software like Sprintax to help complete their federal tax returns.

Resident tax filers

Students who meet the IRS's substantial presence test are considered US residents for tax purposes. Resident tax filers have many options for filing their tax returns.

Deadlines

The deadline for filing tax returns is April 15 (or the following Monday if that falls on a weekend). If you are unable to file your federal income tax return by the deadline, you may be able to get an automatic 6-month extension by filing Form 4868 by the original deadline. However, this is only an extension of the deadline to file your tax return, not an extension of the time to pay any money due.

State tax returns

In addition to filing a federal return, some students and scholars must also file a state tax return, depending on the state. For example, some students and scholars at Yale University must file a CT state income tax return. For an additional fee, Sprintax can assist with preparing your state income tax return.

Frequently asked questions