Filing Tax Returns: A Guide For International Students In The Us

International students in the US are required to file a tax return each year they are in the country, even if they have no income. The type of tax return international students need to file depends on their residency status, which can be determined using the Substantial Presence Test. Nonresident aliens for tax purposes must file a federal tax return (Form 1040-NR) and may also need to file a state tax return, depending on the state.

F-1 visa and nonresident alien status

International students in the US on an F-1 visa are typically considered nonresident aliens for tax purposes for the first five calendar years of their stay. This is referred to as an exemption period. However, some F-1 visa holders can be considered 'residents' or 'resident aliens' for tax purposes. This does not mean that the student is a resident—it is only a tax filing status.

To be considered a resident for tax purposes, a non-immigrant visa holder must meet the "substantial presence" test for a calendar year (January 1 to December 31). To meet this test, the person must be physically present in the U.S. on at least 183 days during the three-year period, which includes the current calendar year and the two preceding years. There are exceptions to the time counted toward the substantial presence test for students and scholars in F-1 and J-1 status (and their dependents). For instance, a J-1 professor or researcher complying with the visa requirements does not count days for the first two calendar years.

As a nonresident alien, you will need to file Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you don't earn money during your time in the U.S., you will still need to file Form 8843 with the IRS by the deadline. Nine states don't have any tax-filing requirements, but you may have to file a state tax return and pay state income tax in other states, even when no federal return is due.

Federal and state tax returns

The federal income tax is levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. It is the largest source of revenue for the US government. To file federal tax returns, international students can use the Sprintax software, which is provided for free by some universities. This software will help prepare Form 1040-NR (federal tax return) and Form 8843, which are required for nonresident aliens. Even if an international student did not earn money, they are still required to file Form 8843. The deadline for filing federal tax returns is usually April 15, and the tax year is from January 1 to December 31 of the preceding year.

In addition to federal tax returns, international students may also need to file state tax returns, depending on the state they earned income in. Nine states do not have any tax-filing requirements, but most states collect state income tax. The state tax return is a separate document from the federal tax return, and the type of form and deadline differ from state to state. For example, the Missouri Department of Revenue provides resources to help file state tax returns, and the University of Southern Indiana offers a fee-based service to prepare Indiana State tax returns.

Tax software and tools

The US tax system is complex, and many Americans choose to hire a tax accountant or use tax software to help them file their returns. As an international student, you can also use a tax accountant or choose from a variety of tax software packages to help you file your federal and state income taxes.

One of the most popular software packages for international students is Sprintax. Sprintax is a cloud-based software that is user-friendly and has knowledgeable support staff. It is designed to guide you through your ITIN application and help you complete your W-7 form. It also helps you determine which forms you are required to file. Sprintax is free for students at partner universities and can be used to prepare your federal tax return. There is a fee for preparing state tax returns, which can be paid by credit card.

Another option is to use the software offered by SISS (Services for International Students and Scholars). This software is available to international students and scholars at the beginning of March each year. All international students and scholars who were in the US during the previous calendar year should receive an email from SISS explaining how to use the software. However, it's important to note that SISS cannot provide tax advice, and for those with complex financial situations, it may be necessary to seek assistance from a Certified Public Accountant (CPA) or Registered Tax Return Preparer.

You can also download forms directly from the IRS website and prepare your tax return yourself.

Income and employment

As an international student in the US, you are required to file a tax return with the Internal Revenue Service (IRS) each year you are in the country. This applies whether you earned an income or not. If you earned income, you must file federal and state tax returns. If you did not earn an income, you must file a non-employed federal form.

International students on F-1 visas are considered nonresident aliens for tax purposes. This means that you will need to file a Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you did not earn money during your time in the US, you will still need to file a Form 8843 with the IRS. The deadline for filing is usually 15 April.

If you received income from US sources, you will need to file Form 8843 and most likely Form 1040-NR to complete your tax return. You may also be required to file a state tax return, depending on the state. Nine states don't have any tax-filing requirements.

If you are employed, you will need to fill in a W-4 tax form with your employer when you start work. If you are an independent contractor, rather than an employee, you might receive a Form 1099 instead of a W-2 to document your earnings. Most international students do not receive a Form 1099.

F-1 students may accept on-campus employment during their first academic year, subject to certain conditions and restrictions. After the first academic year, F-1 students may engage in three types of off-campus employment:

• Curricular Practical Training (CPT)
• Optional Practical Training (OPT)
• Science, Technology, Engineering, and Mathematics (STEM) Optional Practical Training Extension (OPT)

For both F-1 and M-1 students, any off-campus training or employment must be related to their area of study and must be authorised by the Designated School Official and USCIS.

Deadlines and late filing

Firstly, it is important to note that international students in the US are generally required to file tax returns annually. This applies even if they did not earn any income during their stay. The purpose of filing a tax return is to report all sources of income, calculate what has been paid, and determine if additional tax is owed or if a refund is available.

For international students on an F-1 visa, who are considered nonresident aliens for tax purposes, the deadline to file Form 8843 with the Internal Revenue Service (IRS) is typically April 15. This form is mandatory, even for those who did not earn any income during their time in the US. The deadline for the 2024 tax year, for instance, is April 15, 2025. However, if an international student is filing only Form 8843 and has no US income, the deadline is extended to June 15 of the same year.

In addition to Form 8843, international students who earned US-sourced income during the calendar year will likely need to file Form 1040-NR (federal tax return) to assess their federal income and taxes. The deadline for this form is usually the same as Form 8843, which is April 15. It's important to note that state tax returns may also be required, depending on the state, and these deadlines can differ from federal deadlines.

Failing to meet the deadlines for tax filings can result in unwanted fines and penalties. Additionally, it may jeopardize future visa applications and Green Card prospects. To avoid these consequences, it is advisable to stay informed about the applicable deadlines and requirements for international students in the specific state of residence.

Frequently asked questions