Lana Oconnell
International students in the US are subject to taxation for money made while in the country. The IRS requires international students to file a tax return as a condition of their visa, but not all students will pay taxes to the American government. To determine whether you owe the IRS money, you must first establish your residency status and whether you have any US-sourced income. If you have US-sourced income, you will need to file Form 8843 and most likely Form 1040NR to complete your tax return. You will also need to gather the required documents, such as W-2 forms, and determine whether you owe additional taxes.
| Characteristics | Values |
|---|---|
| Who needs to file a tax return? | International students who earned money in the US, including F-1 students, and those on F or J visas. |
| What forms do international students need to file? | Form 8843, Form 1040-NR, Form 1042-S, Form W-7, Form W8-BEN, Form 8233, and Form 4868. |
| What is the deadline for filing? | 15 April 2025. |
| Where should the forms be sent? | The Department of the Treasury Internal Revenue Service in the state where the student stayed during their visit. |
| What are the consequences of missing the deadline? | Unwanted fines and penalties, and possibly jeopardizing future chances of securing a US visa or Green Card. |
| What if an international student has paid too much tax? | They are eligible for a refund. |
| What if an international student hasn't paid enough tax? | They are responsible for paying the difference. |
| What if an international student doesn't have a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)? | They will need to apply for one by filling out a Form W-7. |
| What is considered taxable income for international students? | Salaries, wages, specific gifts, awards, scholarship money, interest on money in a US bank account, and grants. |
| Are there any tax benefits or exemptions for international students? | Yes, international students are entitled to benefits and exemptions, and may also be able to claim tax treaty benefits. |
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What You'll Learn
International students and tax residency
International students in the United States are subject to taxation on any money made while in the country. This includes wages from a job, scholarship money from an American organisation, or interest on money in an American bank account. However, not all international students will pay taxes to the American government, as they are entitled to various benefits and exemptions.
To determine tax residency status, international students must refer to their visa type. F-1 and J-1 visa students are generally considered nonresidents for tax purposes for their first five calendar years in the US. After the fifth year, they become residents for tax purposes. For J-1 visa scholars, the period is two calendar years.
Students on an H-1B visa are not exempt and will be considered residents for tax purposes if they stay in the US for more than 183 days in a year. They will need to file the resident 1040 form. F-1 visa holders who intend to reside in the US for longer than a year are subject to a 30% taxation on their capital gains during any tax year in which they are present in the country for 183 days or more, unless a tax treaty provides for a lesser rate.
International students who are considered nonresident aliens for tax purposes only pay tax on income earned in the US. The amount of tax depends on the student's income, the tax rates of each state, and their entitlement to tax treaty benefits. The US has income tax treaties with 65 countries, which can often reduce or eliminate US tax on various types of income, such as pensions, interest, and royalties.
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Income sources that require tax filing
International students in the US are required to file a federal tax return each year they are in the country. This is the same whether they have earned an income or not.
International students are generally considered nonresident aliens for tax purposes and are therefore taxed only on US-source income. This includes:
- Income from employment
- Taxable scholarship or fellowship grant
- Income that is partially or totally exempt from tax under the terms of a tax treaty
- Any other income that is taxable under the Internal Revenue Code
If you are a nonresident alien, you will need to file Form 1040-NR (federal tax return) to assess your federal income and taxes. You will also need to file Form 8843 with the IRS.
If you are a resident alien, you will be taxed on your worldwide income, and you will need to file Form 1040.
Tax Treaties
Some countries have tax treaties with the US that can reduce or eliminate federal income taxes. If your country has a tax treaty with the US, you may need to file Form 1042-S.
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Tax treaties and benefits
As an international student in the US, you are subject to taxation for any money made while in the country. However, international students are entitled to a number of benefits and exemptions, and many will not owe anything.
The US has income tax treaties with 65 countries. These treaties can often reduce or eliminate US tax on various types of income, such as pensions, interest, dividends, royalties, and capital gains. The exact type of tax relief that can be claimed will depend on the treaty that the US has signed with your home country.
For instance, if you are an international student from India in the US on a student visa (e.g. an F-1 or J-1 visa), you will likely not have to pay tax on any grants, scholarships, or remuneration from employment. Article 21 of the US-India Income Tax Treaty also enables Indian students to avail of the standard deduction ($14,600 for the 2024 tax year) on their income tax return.
Similarly, Korean international students in the US for study or research purposes will be exempt from tax on any grant, allowance, award, or income ($2,000 or less) from personal services performed. French citizens in the US for study or research purposes will not be subject to US tax on any income earned from gifts from abroad for the purpose of maintenance, education, study, research, or training, or income ($5,000 or less) from personal services performed.
To claim a tax treaty benefit, you must be a nonresident for tax purposes. This is different from your immigration status. If you do not pass the substantial presence test, you will be classified as a nonresident alien for tax purposes, and you will only be taxed on US-sourced income. Most F-1 visa international students are considered nonresident aliens for tax purposes for the first five calendar years of their stay in the US.
If your country of residence has signed a tax treaty with the US, you may be partially or completely exempt from tax. These reduced rates and exemptions vary among countries and specific items of income.
To claim a tax treaty benefit on income from personal services, compensatory scholarships, or grants, you will need to complete a Form 8233 and submit it to your university. You will also need to provide an IRS Form 8233 and a tax treaty statement to the IRS.
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Tax preparation services
International students in the US are subject to taxation for money made while in the United States. While it is possible to file your tax return yourself directly with the IRS, many international students feel daunted by the process and choose to enlist the help of a tax agent or accountant. It is important to be careful when choosing who to assist you with your taxes, as some services are only for US residents.
Sprintax
Sprintax is a popular choice for international students, specialising in preparing fast and low-cost tax returns for non-residents. They offer software that simplifies the process of preparing tax returns, and their knowledgeable support staff are quick to answer any queries. They also host webinars and workshops to help international students prepare for tax season.
TurboTax
TurboTax is the biggest online tax preparation service in the US, but their offering is only available to US residents. If you are an international student and use TurboTax, you will be filing as a resident, which means your tax return will be inaccurate and you may be subject to fines and penalties.
University Resources
Many universities partner with tax preparation services to provide resources and support for international students. These partnerships often include free access to federal return software and webinars to help students with their tax returns. Check with your university to see if they offer any resources or support for international students during tax season.
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Tax forms and deadlines
The tax forms and deadlines for international students in the US depend on their residency status and whether they have made any US source income in the previous calendar year.
International students on F, J, M, or Q visas are considered "exempt individuals", meaning they are exempt from the Substantial Presence Test for the first 5 years in the US. After this period, they will be subject to the test, which determines whether they have been in the US long enough to be considered a resident.
Forms
If you are a nonresident alien for tax purposes, you will need to file 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 Form 8843 with the IRS by the deadline. You may also be required to file a state tax return, depending on the state.
If you received US-sourced income during the calendar year, you will need to file Form 8843 and most likely Form 1040NR to complete your tax return. 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.
Depending on your income sources, you may also need W-2’s, 1042-S’s, and 1099’s, which will be mailed to you from your university and employer.
Deadlines
The deadline for F-1 students to file their tax documents is April 15, 2025. If you had no US income and are only filing IRS Form 8843, the deadline is June 15, 2025.
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: Application for Automatic Extension of Time to File US Individual Income Tax Return. However, this is not an extension of time to pay any money due, and you must still estimate your tax liability and pay any amount due by the original deadline.
It is important to comply with the deadlines, as missing them may lead to unwanted fines and penalties, and jeopardize your chances of securing a US visa or Green Card in the future.
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Frequently asked questions
If you are an international student in the US, you are required to file a tax return as a condition of your visa. However, not all international students will pay taxes to the American government. You can use the IRS website or Sprintax's blog page to determine your federal tax filing status.
You will need to file a tax return and compare your actual tax liability to the amount you have paid so far. If you have paid less than you owe, you will need to pay the difference.
If you owe the IRS money, you will need to write a check for the exact amount and mail it to the IRS along with your tax forms and copies of your W-2s, 1099s, and 1042-Ss.
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