Lana Oconnell
International students in the USA are required to file a tax return, and not doing so can lead to problems with their visas and potential ineligibility for a green card. The process of filing taxes as an international student depends on their visa status, income, and the state they live in. Generally, international students on F and J visas are considered non-residents for tax purposes for their first five years in the US, while those with an F, J, or M visa who have been in the country for more than five years are considered resident aliens. International students need to determine their federal tax filing status as either non-resident or resident tax filers, which will impact the forms they need to fill out and how they are taxed.
| Characteristics | Values |
|---|---|
| Who needs to file taxes? | All international students and scholars in the US for any period of time during the calendar year. |
| What do they need to file? | Form 8843, even if they did not earn any income. |
| When is the deadline? | 15 April 2025 for the 2024 tax year. |
| What if there was no US income? | The deadline is 15 June 2025. |
| What if they had US income? | Form 8843 and most likely Form 1040NR to complete the tax return. |
| What if they have a complicated tax issue? | Consult the IRS or a qualified tax accountant. |
| What software can be used? | Sprintax, Glacier Tax Prep, or other online tax programs. |
| What if they are considered a resident for tax purposes? | They may be liable for Social Security (FICA) taxes. |
| What if they have a taxable scholarship or fellowship grant? | They may need to file Form 1042-S. |
| What if they worked as an independent contractor? | They may receive Form 1099 instead of Form W-2. |
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What You'll Learn
Non-resident tax filers
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. Nonresident alien students and scholars who have a taxable scholarship or fellowship grant, income partially or totally exempt from tax under a tax treaty, or any other income that is taxable under the Internal Revenue Code are required to file taxes.
If you are a nonresident alien, you will need to file Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you didn't earn any money during your time in the US, you will still need to file Form 8843 with the IRS by the deadline. This form is 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 purposes of the substantial presence test. The deadline for all F-1 students to file their tax documents is usually April 15, but it was extended to April 18 in 2023. If you are not able to file your federal income tax return by the deadline, you may be able to get an automatic 6-month extension.
Your income as a nonresident alien is subject to US income tax and must generally be divided into two categories: Income that is effectively connected with a trade or business in the United States, and US source income that is fixed, determinable, annual, or periodical (FDAP). Effectively Connected Income should be reported on page one of Form 1040-NR, while FDAP income is taxed at a flat 30% (or lower treaty rate if you qualify) and should be reported on Schedule NEC (Form 1040-NR).
Additionally, some international students and scholars will also need to file a state tax return, depending on the state they are in. Nine states don't have any tax-filing requirements, while some states, like Connecticut, require a state tax return to be filed.
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Tax treaties
The United States has tax treaties with several foreign countries. These treaties enable foreign nationals who are temporarily in the US as students or scholars to be taxed at a reduced rate or exempt from US taxes on certain sources of income.
The exact nature of these tax benefits varies between countries. For example, Indian nationals in the US on a student visa are likely exempt from paying taxes on any grants, scholarships, or remuneration from employment. They can also avail of the standard deduction ($14,600 for the 2024 tax year) on their income tax returns. Meanwhile, Korean international students are exempt from tax on any grants, allowances, awards, or income ($2,000 or less) from personal services performed. French citizens are exempt from US tax on any income earned from gifts from abroad for the purpose of maintenance, education, study, research, or training, as well as income ($5,000 or less) from personal services performed.
To claim a tax treaty benefit on a non-compensatory scholarship or grant, international students must fill out a W-8BEN form. To fill out this form, students will need to know their personal information, such as their name, TIN, and address in their country of residence. To claim a tax treaty benefit on income from personal services, compensatory scholarships, or grant receipts, students will need to complete a Form 8233 and submit it to their university. This form requires personal information, a description of the services provided and the total amount of income earned, the exact treaty on which the claim is based, and details of the US visa type, including entry and expiry dates.
It is important to note that some states in the US do not honor the provisions of tax treaties, and tax rates and deductions differ between states. Therefore, international students should consult the tax authorities of the state in which they derive income to determine whether any state tax applies to their income.
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Taxable scholarships
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 will only be taxed on US-sourced income.
If you are an international student and you receive a scholarship, it may be considered taxable income. Taxable scholarships are generally those that exceed the amount of qualified educational expenses. Qualified educational expenses typically include tuition and course materials, while non-qualified expenses may include things like student activity fees, insurance expenses, and room and board.
If your scholarship is considered taxable income, you will need to file a tax return and pay taxes on the amount that exceeds your qualified expenses. The withholding tax rate for nonresident aliens is generally 30%, but this may be reduced to 14% if you are a student who is temporarily present in the US on an "F," "J," "M," or "Q" visa. Additionally, if your country of residence has signed a tax treaty with the US, you may be eligible for a reduced tax rate or complete exemption from tax.
To claim any treaty benefits, you will need to have a US taxpayer ID number or a Social Security Number, and you may need to fill out specific forms, such as IRS Form W-8BEN or Form 8233. It is important to carefully review the guidelines and consult official sources or a qualified tax professional to ensure you are complying with your tax obligations.
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State tax returns
The requirements for state tax returns vary by state. In most states, nonresident aliens are required to file state tax returns if they have earned any income that was sourced from that state. Some states, however, do not impose an income tax, so nonresident aliens would
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Tax refunds
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 only taxed on US-sourced income. However, some international students can be considered 'resident' or 'resident aliens' for tax purposes, which does not equate to being a resident for immigration or other purposes.
International students are required to file a federal tax return each year they are in the US, even if they did not earn any income. This is usually Form 8843, which is due by April 15. If you had US-sourced income during the calendar year, you will likely also need to file Form 1040NR. Additionally, depending on the state, international students may need to file a state tax return and pay state income tax even when no federal return is due.
If you had taxes withheld from your paychecks in error, you can get a refund by filing a US and state tax return. Many F-1 international students can claim tax refunds from the US. For example, if social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, 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 with the IRS or use Sprintax.
If your country of residence has signed a tax treaty with the US, you may be partially or completely exempt from tax. In such cases, the overpaid amount will be refunded to you. You can use Sprintax to prepare your nonresident tax return and help you prepare a compliant tax return to reduce your income tax liability as much as legally possible.
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Frequently asked questions
Yes, international students are required to file a tax return in the USA.
International students file their tax returns in April of the following year.
International students may need to use an SSN (Social Security Number) to file their taxes. They will also need to fill out Form 8843 with the IRS.
Federal tax returns are required for international students who earn income, while non-employed federal forms are for those who did not earn income. Nine states do not have any tax-filing requirements, but state tax returns differ for each state.
Most international students on F and J visas are considered non-residents for tax purposes for their first five calendar years in the US.
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