Lana Oconnell
International students in the US, along with their dependents, are required to file their tax returns annually. This is usually done by April 18. If you are an international student who is married to a non-US citizen, there are a few things to keep in mind. The IRS considers F-1 students who have been in the US for 5 years or less as non-residents for tax purposes. In general, when a US citizen or resident alien is married to a nonresident alien, their federal tax filing status is married filing separately. However, you can choose to treat your nonresident spouse as a US resident for tax purposes, which allows you to file jointly and take advantage of lower tax rates and deductions. Alternatively, you may qualify for the head of household filing status if you meet certain requirements.
How should married international students file taxes?
| Characteristics | Values |
|---|---|
| Deadline for filing tax returns | April 18, 2023 |
| Forms to be filled | Form 8843, Form 1040-NR, Form 1040-NR EZ |
| Filing status options | Married filing separately, Married filing jointly, Head of Household, Qualifying Surviving Spouse |
| Tax deductions | Student loan interest deduction, Nontaxable scholarship and fellowship grants, Qualified business income deduction |
| Tax exemptions | Students and business apprentices from India may be eligible to claim the standard deduction under Article 21 of the U.S.A.-India Income Tax Treaty |
| Tax treaties | May qualify for a refund due to tax treaties and a lack of serious income |
| F-1 students | Non-residents for taxes if they have been in the US for 5 years or less |
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What You'll Learn
Filing as a non-resident
If you are an international student in the US, you will be taxed in the same way as a nonresident alien. This means you will only be taxed on US-source income. If you are married and are both nonresident aliens, your filing status should be 'married filing separate'.
As a nonresident alien, you will need to file a US tax return (Form 1040-NR) if you have income that is subject to US tax, such as wages, tips, scholarship and fellowship grants, and dividends. You must also file a tax return if you want to claim a refund of overpaid tax.
There is no minimum dollar amount of income that triggers a filing requirement for a nonresident alien. However, filing is required if you have:
- A taxable scholarship or fellowship grant, as described in Chapter 1 of Publication 970, Tax Benefits for Education
- Income partially or totally exempt from tax under the terms of a tax treaty
- Any other income that is taxable under the Internal Revenue Code
You do not need to file if your only income is from a US savings and loan institution or a US credit union.
As a nonresident alien, your income that is subject to US income tax must be divided into two categories:
- Income that is effectively connected with a trade or business in the US
- US-source income that is fixed, determinable, annual, or periodical (FDAP)
Effectively Connected Income should be reported on page one of Form 1040-NR, and is taxed at the same graduated rates that apply to US citizens and residents. FDAP income is taxed at a flat rate of 30% (or a lower treaty rate, if you qualify) and no deductions are allowed against this income.
If you are filing as a nonresident, you must file by the 15th day of the 6th month after your tax year ends. For a person filing using a calendar year, this is usually June 15. If you cannot file your return by the due date, you can file Form 4868 to request an automatic extension of time to file.
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Choosing the right filing status
When it comes to choosing the right filing status, there are a few options for married international students. Firstly, it's important to understand that international students in the US, including those who are married, are typically considered non-residents for tax purposes, at least during their first five years in the country. This means that they generally cannot file taxes as residents would, and there are specific forms and considerations they must keep in mind.
If you are an international student with an F-1 visa, you are considered a non-resident for tax purposes for up to five years, according to the IRS. During this time, you will likely need to file a non-resident tax return using Form 1040NR or 1040NR-EZ. Non-resident tax returns can be more complicated, especially if there are scholarships, stipends, or international tax treaties involved. Additionally, non-resident tax filers cannot claim certain exemptions or deductions that residents can, and they cannot use popular tax preparation software like TurboTax or TaxAct.
Now, for married international students, the filing status options can vary depending on the circumstances. Here are the possible scenarios:
- Married Filing Separately (MFS): If one spouse is a non-resident alien (NRA) or a foreign spouse, the default filing status is usually married filing separately. This means that each spouse files their own tax return separately, and their tax liability is calculated separately as well. This option may be beneficial if one spouse has income or investments that could result in negative tax consequences for the other spouse.
- Married Filing Jointly (MFJ): In some cases, married international students can choose to treat the non-resident spouse as a US resident for tax purposes. This allows them to file taxes jointly as a married couple. This option may provide advantages, such as lower tax rates and deductions that are not available to those filing separately. However, it also subjects the non-resident spouse's worldwide income to US taxation and requires additional informational reporting, such as obtaining an Individual Taxpayer Identification Number (ITIN) if they don't have a Social Security number.
- Head of Household: If you meet certain requirements, you may be able to file as Head of Household, even if your spouse is a non-resident alien. To qualify, you must have paid more than half of the costs of maintaining your home for the year, and a qualifying person must have lived with you in your home for more than half of the year. A qualifying person is typically a dependent, such as a child or relative, who meets certain criteria.
It's important to carefully consider your specific situation and consult with a tax advisor to determine the best filing status for your taxes. The right choice depends on factors such as income levels, investments, and the presence of dependents. Additionally, tax treaties between the US and the international student's home country may also impact the filing status and tax obligations.
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Claiming deductions
The process of filing taxes can be daunting, especially for married international students. While it is essential to understand your tax filing status, it is equally important to know about claiming deductions. Here is a comprehensive guide to help you navigate this aspect of your tax filing journey.
Firstly, it is important to distinguish between resident and nonresident tax filers. Your tax filing status is determined by your residency, which is assessed through the IRS's substantial presence test. If you meet the criteria of this test, you are considered a U.S. resident for tax purposes, even if you hold a nonimmigrant visa. This status impacts the deductions you can claim.
For married international students, the tax filing status options may vary. If you are a U.S. citizen or resident alien married to a nonresident alien, your federal tax filing status is typically "married filing separately." However, you have the option to treat your nonresident spouse as a U.S. resident for tax purposes, which allows you to file as "married filing jointly." This option may be advantageous if your spouse has no income or investments that could result in negative U.S. tax consequences.
Alternatively, if you choose not to treat your nonresident spouse as a tax resident, you may be able to file as "head of household." To qualify for this status, you must have paid more than half of the household expenses for the year, and a qualifying person must have lived with you for more than half of the year.
It is worth noting that while nonresident alien students cannot claim the standard deduction, certain nonresident aliens from India can claim it under the US-India Income Tax Treaty. Additionally, some international students may be eligible for tax refunds due to tax treaties and a lack of significant income earned in the U.S.
To ensure you are claiming deductions correctly, it is recommended to consult a qualified tax advisor or seek guidance from the IRS directly. They can provide you with accurate and up-to-date information regarding your specific circumstances.
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Deadlines for submission
Deadlines are crucial when it comes to filing taxes, and international students must ensure they submit their tax returns on time to avoid any potential fines or penalties. Here is a detailed overview of the deadlines for submission for international students:
Form 8843:
All international students in the United States, regardless of their income, must file Form 8843 separately. This form is not an income tax return but a statement required by the US government for certain nonresident aliens. The deadline for submitting Form 8843 is April 15, 2025. It is important to prioritize this deadline, as failing to file a tax return can have negative consequences, including fines and jeopardizing future US visa applications.
Form 1040-NR:
If an international student has received US-sourced income during the calendar year, they will likely need to file Form 1040-NR, a federal tax return, in addition to Form 8843. The deadline for submitting Form 1040-NR is the same as Form 8843, April 15, 2025. It is important to note that the IRS grants an exemption from social security and Medicare taxes to nonimmigrant students with F-1 status, with an exemption period of five years from their arrival in the US.
State Tax Returns:
In addition to federal tax requirements, international students may also need to file state tax returns, depending on the specific state they reside in. Not all US states require state tax returns, but it is essential to check the website of your state to understand your obligations and their respective deadlines. Deadlines for state tax returns will differ from the federal deadline and vary by state.
Federal Tax Returns:
International students who are considered nonresident aliens and have certain types of income, such as taxable scholarships or income taxable under the Internal Revenue Code, must file federal tax returns. The deadline for federal tax returns is generally aligned with the deadline for Form 8843 and Form 1040-NR, which is April 15, 2025. However, it's important to refer to the IRS website for the most up-to-date information on federal tax deadlines.
It is always recommended to seek expert tax advice if you are unsure about your specific circumstances or filing status. Additionally, staying informed about any updates to tax laws and deadlines is crucial to ensure timely and accurate submissions.
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Fulfilling visa obligations
As an international student in the US, you must file at least Form 8843 to remain legal under F, J, M, and Q visas, even if you didn't earn any money in the country. This form essentially proves that you are a non-resident. Most international students on F, J, M, or Q visas are considered non-resident aliens for tax purposes.
If you are an international student with US-based income, you will need to file Form 8843 and most likely Form 1040-NR to complete your tax return. Form 1040-NR is the federal tax return form for non-resident aliens. It is used to declare US-source income and determine how much tax you owe on that income. You will be required to enter 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 an international student on an F-1 visa with no US-based income, you may only need to fill out Form 8843. However, if you are an F-1 visa holder with US-based income, you will need to file Form 1040-NR in addition to Form 8843. F-1 students are considered non-resident tax filers for their first five calendar years in the US. After five years, they usually become resident tax filers.
In addition to Form 8843 and Form 1040-NR, you may also need to fill out other forms, such as Form W-4, Form 1099, or Form W-7, depending on your specific circumstances. It is important to carefully review the requirements and seek professional advice if needed to ensure compliance with tax laws and visa obligations.
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Frequently asked questions
The IRS deadline to file tax returns on the federal level is April 18, 2023. However, state deadlines will differ.
Every international student, along with their dependents, will need to file Form 8843 separately. If you have received income in the last calendar year, you will also need to file Form 1040-NR.
F-1 students who have been in the US for 5 years or less are nonresidents for taxes because the IRS code exempts students from the Substantial Presence Test for the first 5 years. F-1 students will generally need to file a nonresident tax return using the 1040NR form or the 1040NR EZ form.
If your spouse is a nonresident alien, your federal tax filing status is generally married filing separately. However, you can choose to treat your nonresident spouse as a US resident for tax purposes, which allows you to file jointly and take advantage of lower tax rates and deductions.
You cannot claim your spouse who lives overseas as a dependent.
