Janice Lozano
International students in California are required to comply with taxing regulations and file their taxes with the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB). F-1 and J-1 visa students are considered non-residents for tax purposes and must file Form 8843, with additional forms depending on their income and sources. Students can either file their tax forms themselves or use a tax preparation company or software, such as Sprintax, which is specifically designed for international students. It is important to meet the tax deadlines and comply with regulations to avoid fines and potential impacts on future travel and immigration benefits.
| Characteristics | Values |
|---|---|
| Who needs to file taxes? | All international students present in the US for at least one day during the tax year 2024 (January 1, 2024 - December 31, 2024) |
| What form do they need to file? | Form 8843 |
| When is the deadline to file? | April 15, 2025 |
| What if they missed the deadline? | Submit forms as soon as possible to avoid further delays or penalties |
| What if they didn't earn any income? | California does not require an annual tax report from those who made less than the minimum filing requirement or had no income at all |
| What if they earned income in another state? | They will need to submit a tax return to that state |
| What if taxes were withheld from income? | File a California tax return to receive a refund |
| What if they are considered a resident for tax purposes? | Use Form 1040 to file taxes |
| What if they are considered a non-resident for tax purposes? | Use Form 1040NR or 1040NR-EZ |
| What if they are an F-1 student? | Exempt from applying the Substantial Presence Test for 5 years and classified as non-residents; must file Form 8843 |
| What if they are a J scholar? | Seek advising services from the Berkeley International Office |
| What if they need help filing taxes? | Use tax preparation software like Sprintax or pay a tax preparation company; tax preparation resources are also available through VITA |
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What You'll Learn
F-1 and J-1 visa students
The deadline for F-1 students to file their tax documents is usually on or around April 15. It is important to comply with the deadline, as missing it may lead to unwanted fines and penalties and may jeopardize your chances of securing a US visa or Green Card in the future. 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.
To complete your California state tax return, you will need to provide information on your income and any taxes withheld. You can find this information on your W-2 form from your employer. If you had state taxes withheld from your income but do not have a filing requirement, you will still need to file a California tax return in order to receive a refund.
There are several resources available to help F-1 and J-1 visa students with their tax filing. Sprintax is an online tax software specifically designed for international students, and there are also tax preparation services, professional tax accountants, and tax attorneys who specialize in nonresident tax law. Additionally, the IRS provides information and resources on their website, and the California Franchise Tax Board offers a webinar on how to file California state income taxes.
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Non-resident tax forms
As an international student in California, you are likely considered a non-resident for tax purposes. This means that you will need to file a non-resident tax return. The specific form you need to fill out depends on whether you earned an income in the US during the tax year.
Form 8843
If you did not earn any income in the US during the tax year, you still need to file at least one tax form: Form 8843. This form is for international students who are considered exempt individuals. It is important to note that you must file this form even if you did not earn any income. The deadline to file your 2024 tax return, including Form 8843, is April 15, 2025.
Form 1040NR
If you earned an income in the US during the tax year, you may need to file a federal or state tax return, or both, in addition to Form 8843. If you are considered a non-resident for tax purposes, you will need to use Form 1040NR (U.S. Nonresident Alien Income Tax Return) to file your federal taxes. This form is used to report income earned in the US by non-residents. You will also need to submit Form 8843 with your Form 1040NR.
Form 540NR
If you are considered a non-resident for California state tax purposes, you will need to file Form 540NR (California Nonresident or Part-Year Resident Income Tax Return). This form is used to report income earned in California by non-residents. Even if you did not earn any income in California, you may still have California-sourced income if you had "deferred" or equity-based compensation. You can calculate the portion of your income that is California-sourced by multiplying your total income for the year by a ratio of the number of days you worked in California to the total number of days you worked worldwide.
Tax Preparation Resources
Filing taxes can be complicated, especially for international students. If you are unsure about your tax status or which forms to file, it is recommended that you consult a tax professional or use a tax preparation company or software. Resources such as Sprintax, TurboTax, and the IRS website offer information and assistance specifically for international students and non-residents. Additionally, the California Franchise Tax Board provides information on filing requirements for non-residents.
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Income from US sources
If you have received any income from US sources while studying in the US, that income could be subject to both federal and state income tax. Here are some common types of taxable income:
- Financial Aid: Any financial aid that exceeds the cost of tuition and required classroom expenses is taxable income. This information is reported on a 1042-S form, which is typically sent by mail in February.
- On-Campus Employment: If you have an on-campus job and receive a paycheck, this is taxable income. This income is reported on a W-2 form, which you can access through Workday after January 30th each year.
- Funding or Stipend: If you receive funding or a stipend from your university's Career Development Office (CDO) while participating in an unpaid internship to assist with travel, housing, or food expenses, this is also taxable income.
It is important to note that most international students are considered non-residents for tax purposes. If you are unsure about your tax residency status, you can review the Substantial Presence Test or consult a tax professional. As a non-resident, you may need to file Form 1040NR (Non-resident U.S. Income Tax Return) or Form 540NR (California Non-resident Income Tax Return). These forms are used to report income earned in the US and ensure compliance with tax regulations.
To assist with tax preparation, you can use software like Sprintax, which is specifically designed for international students. Alternatively, you can seek help from tax preparation companies or IRS VITA Sites, where volunteers assist with tax returns. Remember to keep records of your tax returns, as they may be needed for future immigration benefits or to prove compliance with US tax laws.
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Tax treaties between countries
The United States has tax treaties with several foreign countries. These treaties provide reduced tax rates or exemptions from US taxes on certain types of income for residents of these foreign countries. Similarly, US residents benefit from reduced tax rates or exemptions from foreign taxes on certain types of income earned in the respective treaty countries.
The specific terms of these treaties vary across nations and income types. For example, Indian and Korean students in the US on student visas are often exempt from paying taxes on scholarships, grants, or employment income. Additionally, Indian students can claim a standard deduction, which was $14,600 for the 2024 tax year, while Korean students are exempt from taxes on income from personal services of $2,000 or less. On the other hand, French citizens in the US for educational purposes are exempt from US taxes on income from gifts received from abroad for their maintenance, education, study, research, or training, as well as income from personal services of $5,000 or less.
To claim tax treaty benefits as an international student, you may need to complete and submit Form 8233 to your university. This form requires personal information, a description of the services provided and the associated income, details of the specific treaty under which you are claiming exemption, and information about your US visa. It is important to note that most income tax treaties contain a "saving clause" that prevents US citizens or residents from using the treaty to avoid taxation on US-sourced income.
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Tax preparation services
The tax system in the US can be complicated, and California's tax requirements involve filing both a Federal Tax Return and a California State Tax Return each year by April 15. Many Americans use tax-preparation software or pay a tax-preparation company to help them file accurate returns.
Online Software
There are several online tax software options specifically designed for international students. These include:
- Sprintax — an online tax software that offers a discount code for CCA international students for the 2024 tax year. They also offer Nonresident Tax Webinars for international students.
- Glacier Tax Prep — an online tax software that helps with federal tax returns.
- TurboTax — a popular online tax preparation software that has partnered with Sprintax to offer federal and state tax preparation for international students.
Tax Preparation Companies
- Gary R. Engler & Company — an accounting and tax preparation company that specializes in helping international students.
- Tax-Aid — a non-profit charity organization that provides free tax services to the San Francisco Bay Area community. They offer virtual and in-person assistance in multiple languages.
IRS Services
The IRS (Internal Revenue Service) has sites where volunteers can help prepare tax returns. The IRS also has information dedicated to tax information for foreign students and scholars on their website.
Important Considerations
If you are a non-resident for tax purposes, be sure to ask any tax preparation service if they have a specialist in non-resident taxes, as some professionals are unfamiliar with non-resident taxes.
If you are unsure if you are considered a resident or non-resident for tax purposes, you can review the Substantial Presence Test or consult a professional tax resource.
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Frequently asked questions
International students in California are subject to two taxing authorities: the Internal Revenue Service (IRS) and the California Franchise Tax Board (FTB). All international students in the US for at least one day during the tax year must file at least one tax form, even if they had no income.
F-1 and J-1 visa students are required to file Form 8843. If you earned income, you may also need to file Form 1040 NR or 1040 NR-EZ, and Form 540 NR for California state taxes.
The deadline to file your tax return is usually around April 15 for income received during the previous calendar year.
Yes, there are several options available. You can use a tax preparation company or tax software, such as Sprintax, which specializes in international student tax filing. You can also seek advice from your college or university, which may have resources or advisors to assist international students with tax filing.
