International Student's Guide To Filing Taxes

International students in the US have certain tax obligations, and they must file their tax returns each year. The IRS has determined that F-1 students who have been in the US for five years or less are non-residents for tax purposes. International students can file federal income tax by completing Form 1040NR (or Form 1040NR-EZ) or Form 1040, depending on their residency status. Additionally, all international students must file Form 8843, which is an informational statement and not an income tax form. They may also need to submit Form W-2 and Form 1042-S, depending on their sources of income. While the process may seem daunting, international students can seek expert tax advice and assistance from services like Sprintax, or use tax preparation software.

How to file taxes as an international student

International students in the US must file Form 8843

The purpose of filing Form 8843 is to provide the IRS with information about your non-resident status and to ensure compliance with tax obligations. This form helps the IRS determine your tax residency status and identify which other tax forms you may need to complete. It is important to note that most international students are considered non-residents for tax purposes.

To complete Form 8843, you will need to provide your personal details, including your name as it appears on your passport, and your addresses. If you have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), you should include this in the top right box. However, an SSN or ITIN is not required if you are only filing Form 8843. You can leave this section blank if you do not have either of these identification numbers.

The deadline for filing Form 8843 is typically in mid-April, coinciding with the deadline for tax returns. It is important to meet this deadline to maintain compliance with your visa obligations and avoid any complications with future visa applications. If you are using tax preparation software like Sprintax, your Form 8843 will be included in the generated forms, and you can follow their instructions for mailing the completed form to the IRS.

F-1 students are non-resident aliens, so no Social Security tax

International students in the US are required to file their tax returns each year. This is done through an agency called the Internal Revenue Service (IRS). The IRS deadline to file tax returns on the federal level is April 18, 2023, while the state deadlines differ.

F-1 students are considered non-resident aliens by the IRS. As a non-resident alien, you are required to file Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you don't earn money during your stay in the US, you will still need to file Form 8843 with the IRS. This form is not an income tax form but is required by the IRS for tax purposes. If you have received income in the last calendar year, you will need to file Form 8843 and most likely Form 1040-NR as well.

As a non-resident alien, you are generally liable for Social Security and Medicare Taxes on wages paid to you for services performed in the United States. However, F-1 students are exempt from Social Security Tax and Medicare Tax on wages paid to them for services performed within the United States. This exemption is based on their nonimmigrant status and the purpose for which they were admitted into the country.

To qualify for the exemption, the services performed need to be allowed by the United States Citizenship and Immigration Services (USCIS) for these nonimmigrant statuses, and such services must be performed to carry out the purposes for which such visas were issued. It is important to note that this exemption does not apply to F-1 students who become resident aliens. Generally, foreign students in F-1 status who have been in the United States for more than five calendar years become resident aliens for tax purposes if they meet the "Substantial Presence Test" and are then liable for Social Security and Medicare taxes.

Deadlines for filing taxes: federal and state

As an international student in the US, you must file your tax returns with the Internal Revenue Service (IRS) annually. The IRS deadline for filing federal tax returns is usually April 15 or April 18. For the 2024 tax year, the deadline is April 15, 2025.

It's important to note that not all US states require you to file a state tax return. However, many do, so be sure to check your specific state's website for its requirements and deadlines. Each state has different tax rates and deductions, so the amount of tax you pay will depend on your location.

If you are an F-1 student, you are considered a nonresident alien for tax purposes and must file Form 1040-NR (federal tax return) to assess your federal income and taxes. Even if you didn't earn any income during your stay in the US, you are still required to file Form 8843 with the IRS by the annual deadline. This form is not an income tax return but a statement required by the US government for certain nonresident aliens.

If you are unable to file your federal income tax return by the deadline, you may be able to get an automatic six-month extension by submitting 'Form 4868: Application for Automatic Extension of Time to File US Individual Income Tax Return' by the original deadline. However, this extension only applies to filing the form and not to the payment of any money due.

Use a tax preparation company or file yourself

As an international student, you have the option to use a tax preparation company or file your taxes yourself.

Using a Tax Preparation Company

If you choose to use a tax preparation company, there are several options available. You can use an online tax software program, such as Sprintax, which is specifically designed for international students. Sprintax will guide you through the process and help you identify all the necessary forms to file. There are also other popular tax preparation software programs, such as TurboTax and TaxAct, but these may not have functionality for nonresident tax returns. Additionally, some universities offer free tax services, such as the UW Volunteer Income Tax Assistance program, which provides help with preparing non-resident returns.

Filing Yourself

If you prefer to file your taxes yourself, you can do so by obtaining the necessary forms from the IRS website. The specific forms you need to file will depend on your residency status for tax purposes. Most international students are considered non-residents for tax purposes and would typically use Form 1040NR or Form 1040NR-EZ. However, it's important to note that nonresident tax returns can be moderately complicated, especially if there are scholarships, stipends, or international tax treaties involved.

Additionally, as an international student, you are required to file Form 8843, which is an informational statement required by the U.S. government for certain nonresident aliens. This form must be filed separately from your other tax forms.

To file your taxes, you will need to gather the necessary documentation, such as your income information (e.g., Form W-2, if applicable) and any scholarship or fellowship funds (e.g., Form 1042-S, if applicable). You will also need to know your Social Security Number or Individual Tax Identification Number, address information, and U.S. entry and exit dates.

The deadline for filing your taxes as an international student is typically in mid-April, but it's important to check the specific deadline for the tax year you are filing for.

Get expert tax advice if needed

If you're an international student filing taxes in the US, you may want to seek expert tax advice if your situation is complex. For example, if you have income from sources other than wages, such as investments and capital gains, gambling winnings, or scholarship and fellowship grants.

• Use a tax preparation company or software: Many people in the US use tax preparation software or pay a company to prepare and file their taxes. Examples include Sprintax, TurboTax, and TaxAct. These can be helpful, especially if you have a more complicated tax return. However, note that popular tax preparation software products like TurboTax and TaxAct do not support nonresident tax returns.
• Consult a tax professional: If you have a complicated tax situation, you may consider consulting a professional tax accountant or tax attorney well-versed in nonresident tax law. They can guide you through the process and ensure you comply with all relevant laws and regulations.
• Seek free tax assistance: There are organizations that offer free tax help and preparation, such as the UW Volunteer Income Tax Assistance program and Tax-Aid, a non-profit charity organization serving the San Francisco Bay Area community.

Remember, tax laws and regulations can be complex, and it's essential to understand your rights and obligations as an international student. Seeking expert advice can help you navigate the process confidently and accurately.

Frequently asked questions