International Students And Taxes At Georgetown University

International students at Georgetown University are required to file at least one federal tax form with the U.S. Internal Revenue Service (IRS) if they were physically present in the United States during the tax year, regardless of whether or not they earned an income. The university's Office of Global Services (OGS) assists F-1 and J-1 students and scholars in completing their tax forms by providing free access to the tax software Sprintax. This software helps students determine which federal tax forms they need to prepare and whether they need to file a state tax return. The university's Tax Department is the official source of information on tax issues and can provide general information on how taxes may affect scholarship and stipend awards.

F-1 visa students and taxes

International students on an F-1 visa are required to file their tax returns if they were in the US during the previous calendar year and earned income. This is a legal requirement. Even if they did not earn an income, they are still required to file a tax return. The F-1 visa is the most popular visa choice for foreign students in America.

Tax Residency Status

Students (and their spouses and dependents) are nonresidents for tax purposes for the first five calendar years they are in F-1 status due to being exempt from taking the IRS Substantial Presence Test. After five years, students will be considered residents for tax purposes if they surpass 183 days in the United States or if they satisfy the IRS Substantial Presence Test.

Tax Forms

F-1 visa students who are considered nonresident aliens for tax purposes must pay tax in the US on the following types of income:

• Wages and compensation
• Some scholarships/fellowship grants

All international students and scholars on F or J visas must file Form 8843, even if they do not earn an income while studying in the US. This form is a declaration of the time spent studying and not working in the US. Failure to complete this form may result in visa processing delays and other international documentation issues.

If students have earned an income, they will need to file Form 1040-NR. They will also need to fill out a W-4 tax form with their employer. They will also need an Individual Taxable Identification Number (ITIN) or a Social Security Number (SSN).

Tax Software

Georgetown University has purchased a license for Sprintax to help F-1 students and scholars complete their tax forms. This software can assist in determining which federal tax forms are needed and whether a state tax return is required.

J-1 visa students and taxes

J-1 visa holders are considered nonresident aliens for tax purposes and must pay federal, state, and local taxes on any US-sourced income they receive during their stay in the US. This includes income from wages and compensation, as well as some scholarships and fellowship grants.

Determining Tax Residency Status

To file a tax return, J-1 visa holders must first determine their residency status. This is done through the Substantial Presence Test, which is used by the IRS to decide whether an individual who is neither a US citizen nor a permanent resident should be taxed as a US citizen or a nonresident alien for a specific year. Most J-1 visa holders in the US are considered nonresident aliens.

Tax Forms for J-1 Visa Holders

J-1 visa holders who received US-sourced income during the year will likely need to file Form 8843 and Form 1040NR to complete their tax return. Form 8843 is a statement for exempt individuals and individuals with a medical condition, and Form 1040NR is the US tax return form for nonresident aliens. J-1 visa holders will also need to include a W-2 form or a 1042-S form with their tax return.

Tax Exemptions for J-1 Visa Holders

As nonresident aliens, J-1 visa holders are exempt from certain taxes, such as Social Security and Medicare (FICA tax). They may also be entitled to tax treaty benefits depending on their country of residence. It is important to note that J-1 visa holders cannot claim the American Opportunity Tax Credit (AOTC).

Tax Rates for J-1 Visa Holders

For the 2024 tax year, J-1 visa holders must pay 10% in income tax on up to $11,600. If they earn more than this amount, they must pay 12% in income tax on the amount between $11,601 and $47,150.

Filing Joint Tax Returns

Nonresident alien spouses cannot file joint tax returns, even if they have the right to claim dependents. Dependents may only be claimed on one of the spouses' returns.

Tax Refunds for J-1 Visa Holders

Many J-1 international students are entitled to claim refunds on federal and state taxes by filing a tax return. The average federal J-1 tax refund is $653, and state tax refunds may also be available depending on the state in which the J-1 visa holder lived and worked.

E-filing Tax Returns

J-1 visa holders may be eligible to e-file their federal tax returns. To find out, they can refer to the IRS website or check their eligibility with tax software such as Sprintax.

Tax Treaties for J-1 Visa Holders

The US has tax treaties with many countries, which may affect the tax filing of J-1 visa holders from those countries. These treaties can often reduce or eliminate US tax on various types of personal services and other income, such as pensions, interest, dividends, royalties, and capital gains. The benefits of these tax treaties are generally applicable for 4-5 years for students, apprentices, and trainees, and 2-3 years for teachers and professors.

Not Filing Tax Returns

If J-1 visa holders do not file their tax forms, they may be subject to penalties and interest. The late filing penalty is 5% of the additional taxes owed for every month the return is late, up to a maximum of 25%. Failure to comply with tax obligations may also result in being denied a US visa in the future.

Tax residency status

If you are not a US citizen, you are considered a nonresident of the United States for US tax purposes unless you meet the 'green card test' or the 'substantial presence test' for the calendar year.

The 'green card test' deems that if you are a lawful permanent resident of the United States at any time during the calendar year, you are treated as a resident from the date of your arrival in the country for that year and for subsequent years.

The 'substantial presence test' is a calculation used by the IRS to determine a non-US citizen's tax residency status. It counts the number of days of physical presence in the United States.

To meet the 'substantial presence test', an individual must be present in the US for:

• 31 days or more throughout the current year, and
• 183 days or more in the period of three years that includes both the current year and the two years before that.

This includes:

• All the days you were physically in the US within the current year, and
• 1/3 of the days you were physically present in the US within the first year before the current year, and
• 1/6 of the days you were physically present in the US within the second year before the current year.

If you are a nonresident for tax purposes, you will only be taxed on US-sourced income. If your country of residence has signed a tax treaty with the US, you may be partially or completely exempt from tax.

Students (and their spouses and dependents) are nonresidents for tax purposes for the first five calendar years they are in F-1, F-2, J-1 or J-2 status due to being exempt from taking the 'substantial presence test'. Scholars (and their spouses and dependents) are nonresidents for tax purposes for any two years within the past six calendar years they are in J-1 or J-2 status, for the same reason.

If you are a resident for tax purposes, you are taxed on your worldwide income (both US-source and foreign source). You will need to collect supporting foreign source income documents in addition to the applicable US-source income documents when preparing your federal and state tax returns.

If you are unsure of your US tax residency status, you can use Sprintax to determine your status.

Tax forms and deadlines

The tax forms and deadlines that apply to you will depend on your residency status for tax purposes, whether you earned any income in the tax year, and whether that income was from a US or foreign source.

Nonresident for Tax Purposes

If you are a nonresident for tax purposes, you will be taxed only on your US-source income. Nonresidents are taxed differently and have limited access to tax credits and deductions than US citizens and residents for tax purposes. However, nonresidents may be eligible for tax treaty benefits, which US citizens and residents cannot use.

Students (and their spouses and dependents) are nonresidents for tax purposes for the first five calendar years they are in F-1, F-2, J-1 or J-2 status due to being exempt from taking the IRS Substantial Presence Test.

If you earned US-source income in the tax year:

• You will need to file a Form 1040NR federal tax return.
• You may also need to file a state tax return.
• The deadline for filing is April 15 if you are in the US. If you are outside the US, the deadline is extended to June 15.

If you did not earn any income in the tax year:

• You will need to file a Form 8843.
• The deadline for filing is June 15.

Resident for Tax Purposes

If you are a resident for tax purposes, you will be taxed on your worldwide income (both US-source and foreign-source). Residents have the same tax filing obligations and access to tax credits and deductions as US citizens. However, residents will usually lose their eligibility for tax treaty benefits.

Students (and their spouses and dependents) may be considered residents for tax purposes after the first five calendar years they are in F-1, F-2, J-1 or J-2 status. During the sixth and future years, students will be considered residents for tax purposes if they surpass 183 days in the United States or if they satisfy the IRS Substantial Presence Test.

If you earned income in the tax year:

• You will need to file a Form 1040 federal tax return.
• You may also need to file a state tax return.
• The deadline for filing is April 15, whether you are in the US or outside the US.

If you did not earn any income in the tax year:

You do not need to file any tax forms.

Tax refunds and treaties

International students at Georgetown University who are physically present in the US and earned no income in 2023 are required to file Form 8843 by June 15, 2024.

If you earned income in 2023, you may be required to file a state tax return in addition to your federal tax return. The deadline for this is April 15, 2024.

If you are a nonresident for tax purposes, you can expect to receive your refund within 3-8 weeks of sending out your federal tax return. If you are a resident for tax purposes, you can expect to receive your refund within 3 weeks of e-filing your federal tax return.

To find out if you can benefit from a tax treaty, refer to the IRS Publication 901 – U.S. Tax Treaties and the IRS Tax Treaty Table. Nonresidents for tax purposes who receive payments from Georgetown University should be registered in the Glacier system, which will determine if that payment is eligible for any tax treaty benefits and produce the necessary forms.

If you believe you are eligible for tax treaty benefits but did not apply before receiving your Form W-2 and/or Form 1042-S, you can still apply for tax treaty benefits retroactively through Sprintax. Sprintax can determine your tax treaty eligibility, readjust your tax liability, and prepare a refund for excess tax withholding.

Frequently asked questions