Ibrahim Gardner
International students in the US are required to file a tax return each year, even if they did not earn any money during their time in the country. This is a condition of their visa, and while not all international students will pay taxes to the American government, they must still file a federal tax return. In addition, some students may also need to file a state tax return, depending on the state they are in. The process is completed through the Internal Revenue Service (IRS), and the federal deadline for filing is April 18.
| Characteristics | Values |
|---|---|
| Who needs to file tax returns? | All international students inside the United States must file their tax return each year. |
| Who is exempt from filing tax returns? | Nonresident alien students and scholars who have income only from specific sources, such as U.S. savings and loan institutions, U.S. credit unions, U.S. insurance companies, certain investment income, or tax-free scholarships/fellowship grants. |
| What forms are required? | Form 8843, Form 1040-NR, W-4, W-2, 1042-S, 1099, W-7. |
| When is the deadline? | Federal tax returns are typically due on April 15 or April 18, while state tax returns may have different deadlines. |
| Where to send the forms? | Internal Revenue Service Center, Austin, TX 73301-0215, USA. |
| Any software or tools recommended for filing? | Sprintax (offered by some universities), other tax software. |
| Are there any tax exemptions for non-resident students? | F-1 visa students are exempt from social security and Medicare taxes for up to five years from their arrival in the US. |
| What are the benefits of filing tax returns? | Compliance with visa obligations, potential tax refunds, protection of worldwide income taxation. |
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What You'll Learn
Non-resident tax filer status
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. Nonresident alien students must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, if they have income that is subject to tax, such as wages, tips, scholarship and fellowship grants, and dividends.
There is no specific international student tax – the amount of tax you will have to pay will depend on your personal circumstances. Federal income tax is levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. It applies to all forms of a taxpayer’s income, such as employment earnings. Most states in the US will collect state income tax in addition to federal income tax, and tax rates and deductions will differ for each individual state.
Nonresident alien students and scholars who have income from a U.S. savings and loan institution, U.S. credit union, U.S. insurance company, or an investment that generates portfolio interest are not required to file taxes. Additionally, if a student's income comes from a scholarship or fellowship grant that is entirely tax-free, they do not need to file taxes. However, income that is not taxable because of an income tax treaty must be reported on a U.S. income tax return, even though no income tax is due.
To accurately determine your federal tax filing status, you can refer to the IRS website or Sprintax's blog page. Yale University also provides access to Sprintax, a tax preparation software that can help nonresident tax filers complete their tax returns.
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Deadlines for federal and state tax returns
Federal tax returns must be filed by mid-April of the following year. The exact date may vary, but it typically falls on the 15th or 18th of the month. For instance, the deadline for the 2025 tax year is April 15, 2026, while the deadline for the 2023 tax year was April 18, 2024.
The deadlines for state tax returns differ by state. Some states, such as Connecticut and Indiana, require international students to file state tax returns in addition to federal returns. Other states, such as Texas, do not have any tax-filing requirements for international students. It's important to check the specific requirements and deadlines for the state in which you are studying or residing.
It's worth noting that international students on F, J, M, or Q visas are considered "exempt individuals" for the first five years in the US. During this period, they are exempt from the Substantial Presence Test, which determines whether someone has been in the US long enough to be considered a resident for tax purposes. After this period, they may be subject to different rules and requirements.
To ensure compliance with tax obligations, international students can use resources like Sprintax, which offers expert tax advice and assistance for a fee. Additionally, universities often provide access to tax preparation software or other resources to help students navigate their tax responsibilities.
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Tax refunds
International students in the US may be entitled to a tax refund if they have overpaid their taxes. The purpose of filing a tax return is to report all sources of income, what you have paid, and what you owe. If you have paid more than what you owe, you will get a refund.
International students on F-1 visas are considered nonresident aliens for tax purposes and are exempt from social security and Medicare taxes. They must file Form 1040-NR (federal tax return) to assess federal income and taxes. Even if they have not earned money, they must still file Form 8843 with the IRS by the deadline. This form must be filed by all international students and their dependents. Additionally, they may need to file a state tax return, depending on the state.
To claim a refund for excess tax withheld, you will need to file a tax return. You will need your W-2 form, which will state your previous year's earnings and tax withheld. You will also need your Social Security Number or Individual Taxpayer Identification Number (ITIN). If you don't have one, you can apply for one by filling out a W-7 form.
If you are an international student, it is recommended to use a professional tax preparation service to properly prepare and file your tax return. Yale University, for example, provides its international students and scholars with access to Sprintax, a tax preparation software.
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Tax exemptions
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. Most F-1 students are considered nonresident aliens by the IRS, and they are exempt from paying taxes on certain income sources.
Nonresident alien students are exempt from filing taxes if their income comes only from the following sources:
- U.S. savings and loan institutions
- U.S. credit unions
- U.S. insurance companies
- Investments that generate portfolio interest
- Tax-free scholarships or fellowship grants
Social Security and Medicare Taxes
Nonimmigrant students on an F-1 visa are also exempt from paying Social Security and Medicare taxes for up to five years from their date of arrival in the US. This exemption applies to services performed by students employed by the school, college, or university where they are enrolled at least half-time. However, off-campus jobs or working for other employers do not qualify for this exemption.
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 complete tax exemption on certain types of income. International students can benefit from these tax treaties, which can reduce or eliminate their tax liability.
State Tax Exemptions
In addition to federal taxes, international students may also need to file state tax returns depending on the state they reside in. Nine states do not have any tax-filing requirements, while others may offer specific exemptions or deductions for nonresident aliens. For example, a special rule under the US-India Income Tax Treaty allows Indian students and business apprentices to claim the standard deduction if they do not claim itemized deductions.
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Required forms
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 an income. This applies to students on F, J, M, and Q visas, who are considered nonresidents for tax purposes. Students on F-1 visas, in particular, are considered nonresident aliens for tax purposes and must pay taxes on their US income.
- Form 8843: All international students and their dependents (including spouses and children) must file this form, even if they had no income in the US. This form is required to maintain legal status under F, J, M, and Q visas. The deadline for this form may differ from federal forms, which are usually due by April 15 or 18.
- Form 1040-NR: This is the federal tax return form that nonresident aliens must file to assess their federal income and taxes. It is required if you received income from US sources during the calendar year.
- W-4: International students must fill out this form with their employer when they start working. It helps determine the amount of tax withheld from your paycheck.
- W-2: You will need this form to file your tax return. Your employer should provide it by the end of January, stating your previous year's earnings and tax withheld.
- 1042-S: You will receive this form from your school or institution if you received a taxable scholarship, such as a stipend or housing allowance.
- 1099: This form is less common but may be received if you earned rental income, investment income, or worked as an independent contractor.
- W-7: If you don't have an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN), you'll need to apply for one by filling out this form in conjunction with your tax return.
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Frequently asked questions
Yes, international students are subject to taxation for money made while in the United States. Every international student is required to file a tax return as a condition of their visa, but not everyone will pay taxes to the American government.
The deadline to file federal tax returns is April 15 or April 18. State deadlines differ, so check your state's website for specific information.
International students will need to file Form 8843 and, if they have received income in the previous calendar year, likely Form 1040-NR as well. Students will also need an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN).
International students cannot file their tax returns electronically and must send them by mail to the Internal Revenue Service Center in Austin, Texas.
Yes, nonresident alien students and scholars with income only from US savings, loan institutions, credit unions, insurance companies, certain investments, or tax-free scholarships/fellowships do not need to file tax returns.
