Lana Oconnell
International students in the US have to file their taxes differently from US citizens and residents. The type of form they need to fill out depends on their visa status, income, and other factors. One of the most common forms for international students is Form 1040NR, which is a federal tax return used to assess federal income and taxes. In this article, we will explore the topic of Form 1040 for international students, including when it needs to be filed, how to file it, and other important considerations for international students when it comes to US taxes.
| Characteristics | Values |
|---|---|
| Who needs to file Form 1040-NR? | Nonresident alien students and scholars with taxable scholarships or fellowships, income taxable under the Internal Revenue Code, or income exempt from tax under a tax treaty. |
| Who does not need to file Form 1040-NR? | Nonresident alien students and scholars with income only from U.S. savings and loan institutions, U.S. credit unions, U.S. insurance companies, investments that generate portfolio interest, or tax-free scholarships or fellowships. |
| What is Form 1040-NR used for? | Assessing federal income and taxes for nonresident aliens. |
| When is Form 1040-NR due? | April 15, 2025 |
| What is Form 1040-X? | Amended tax return form |
| Who needs to file Form 1040-X? | Individuals amending their original tax return |
| What is Form 8843? | An informational statement required by the IRS for nonresident taxpayers, including international students and scholars, to remain legal under F, J, M, and Q visas. |
| When is Form 8843 due? | April 15, 2025 |
| Who needs to file Form 8843? | Nonresident taxpayers, including international students and scholars, who were present in the U.S. during the previous calendar year, regardless of income. |
| Can international students get tax refunds? | Yes, international students may be eligible for tax refunds, such as on their scholarships if covered by a tax treaty. |
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What You'll Learn
International students and nonresident aliens
International students on F-1 visas are typically considered nonresident aliens by the IRS. As a nonresident alien, you must file Form 1040NR (federal tax return) to determine your federal income and taxes. Even if you didn't earn any money while in the US, you must still submit Form 8843 to the IRS by the deadline, which is usually April 15. Depending on the state, you might also be required to file a state tax return. If you earned income in the US, you will likely need to file Form 1040NR in addition to Form 8843 to complete your tax return.
Form 8843 is an informational statement required by the IRS for nonresidents for tax purposes. It must be submitted for every nonresident taxpayer who was present in the US during the previous calendar year, including spouses, partners, and children. If you are preparing your 1040NR form yourself, you must also include Form 8843. However, if you are using tax software like Sprintax, your Form 8843 will be automatically generated and included in the forms prepared for your filing.
International students with F-1 visas are exempt from social security and Medicare taxes. This exemption lasts for five years from the date of their arrival in the US. Additionally, most F-1 students are not required to pay FICA tax. You will only need to pay this tax if you have been in the US for more than five years. If social security or Medicare taxes were withheld in error, you can contact your employer for a refund.
It is important to note that nonresident alien students with taxable scholarships or fellowship grants, as described in Chapter 1 of Publication 970, "Tax Benefits for Education," must file taxes. This also applies to those with income partially or totally exempt from tax under tax treaty terms and any other income taxable under the Internal Revenue Code. However, nonresident alien students without such income sources are not required to file taxes.
If you are an international student and your visa status has changed in the past year, or you believe your tax situation is complicated, it is recommended to consult the IRS or a qualified tax accountant for specific advice regarding your tax obligations and the forms you need to file.
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Form 1040-NR and tax returns
International students, classified as nonresident aliens, are required to file tax returns in the US. They must use Form 1040-NR (federal tax return) to assess their federal income and taxes. This form is used to calculate tax on income not connected to a US trade or business and to figure out capital gains and losses from property sales or exchanges not linked to a US business.
Form 1040-NR is due on April 15, 2025, for those who were employees and received wages subject to US income tax withholding. It is important to note that nonresident alien students must file taxes if they 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 a tax treaty.
- Any other income taxable under the Internal Revenue Code.
International students who did not earn any money during their stay in the US are still required to file Form 8843 with the IRS by the deadline. Form 8843 is an informational statement, not a tax return, and it is required for all nonresident taxpayers who were present in the US during the previous calendar year.
Additionally, international students can claim tax refunds from the US. They may be eligible for a refund on their scholarship if it is covered by a tax treaty. F-1 students, in particular, are exempt from social security and Medicare taxes and are not required to pay FICA tax unless they have been in the US for more than five years.
To complete an amended tax return, international students will need Form 1040X, their original tax return, and any new required documents. They must mail this form to the IRS along with all supporting documents.
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Form 8843 and exemptions
Form 8843 is an informational statement required by the IRS for nonresident taxpayers for tax purposes. It should be submitted for every nonresident taxpayer present in the US at any point during the previous calendar year, including spouses, partners, and children. If you are a nonresident tax filer with US-source income and are using Sprintax to file your tax return, your Form 8843 will be automatically generated and included in the forms that Sprintax prepares for your filing.
If you are preparing your 1040NR form yourself without using a tax software, you must also include a Form 8843. If you are considered a resident for tax purposes, you are not required to file Form 8843. If you are a nonresident tax filer and had no US-source income in 2024, you only need to complete Form 8843 to fulfill your federal tax filing obligation.
You only need to fill out certain parts of Form 8843, depending on your visa status. If you are using Sprintax to file your tax return (i.e. 1040NR), your Form 8843 will be included in the forms generated for filing, so you do not need to file this form separately. When filling out the form, use the instructions to determine which sections you must fill out and which you can leave blank. Complete the top portion of the form with your name (as it appears on your passport) and addresses. If you have a Social Security Number (SSN) or Individual Tax Identification Number (ITIN), you can write it in the top right box (your US taxpayer identification number, if any). However, you do not need an SSN or ITIN if you are only filing Form 8843.
If you were an F-1 or J-1 student in the US and are considered exempt from filing resident taxes (meaning you did not meet the requirements of the Substantial Presence Test), you must submit a Form 8843.
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F-1 visa and tax refunds
The F-1 visa is a non-immigrant visa for those wishing to study in the US. It is the most popular visa choice for foreign students in America. An international student will be taxed in the same way as a nonresident alien for US federal income tax purposes, which means that they will be taxed only on US-source income.
International students on an F-1 visa are considered nonresident aliens for tax purposes and must pay tax in the US on the following types of income: wages, tips, scholarship and fellowship grants, and dividends. They are exempt from social security and Medicare taxes. This exemption lasts for five years from the date of their arrival in the US.
To file their tax returns, F-1 visa students will need to use Form 1040-NR (federal tax return) to assess their federal income and taxes. They will also need to file Form 8843 with the IRS, even if they did not earn an income. This form is an informational statement required by the IRS for nonresidents for tax purposes. If an F-1 visa student has received US-sourced income during the calendar year, they will likely need to file Form 1040NR to complete their tax return.
F-1 visa students can also claim tax refunds from the US. They may be able to claim a tax refund on their scholarship if it is covered by a tax treaty. They will not be required to pay FICA tax unless they have been in the US for more than five years. If social security or Medicare taxes were withheld in error, the student should contact their employer for a refund. To apply for a FICA tax refund, students will need to file Form 843 (Claim for Refund and Request for Abatement), along with a copy of their Form W-2, and a copy of the page from their passport showing the visa stamp.
It is important to comply with tax requirements, as missing the deadline may lead to fines and penalties, and could jeopardize future US visa or Green Card applications.
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State and Local Taxes (SALT) deduction
International students on an F-1 visa are classified as nonresident aliens by the IRS. 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 did not earn any income during your stay in the US, you will still need to file Form 8843 with the IRS. This form is an informational statement required by the IRS for nonresidents for tax purposes. It should be submitted for every nonresident taxpayer present in the US at any point during the previous calendar year.
The State and Local Taxes (SALT) deduction allows taxpayers who itemize their deductions to reduce their federally taxable income. This deduction can be especially beneficial for taxpayers in high-tax states and high-income filers as it avoids double taxation. Taxpayers can deduct up to $10,000 of property, sales, or income taxes they have already paid to state and local governments when electing the SALT deduction. This limit, known as the SALT "cap," applies to tax years 2018 to 2025 and is set to expire after 2025.
Most nonresidents, including students and other exchange visitors, can only use SALT as an itemized deduction on their Schedule A, 1040NR form. It is important to note that there are certain taxes and fees that taxpayers cannot claim as SALT deductions. For example, taxes assessed by state or municipal governments for special benefits for a particular district, such as new sewers or better sidewalks, are not deductible. However, taxes levied on personal property, such as a boat or a car, are generally deductible.
The SALT deduction can be particularly advantageous for international students in high-tax states, as it can help offset some of the federal taxpayer liability. By excluding income already taxed by state and local governments, the SALT deduction ensures that individuals are not taxed twice on the same income.
To illustrate the benefit of the SALT deduction, consider the following example: a taxpayer decides to itemize their deductions instead of claiming a standard deduction when filing their 2023 tax return. They paid $10,000 in annual property taxes and $6,000 in state income taxes, resulting in a total of $16,000 in eligible state and local taxes. With the maximum SALT deduction of $10,000 and an income tax rate of 24%, the taxpayer's deduction would reduce their 2023 income tax liability by $2,400 ($10,000 deduction x 24% tax rate).
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Frequently asked questions
Form 1040-NR is a federal tax return form for nonresident aliens. It is used to assess federal income and taxes.
Nonresident alien students and scholars with taxable scholarships, fellowships, or income need to file Form 1040-NR. Nonresident aliens with no U.S. source income do not need to file this form.
International students on F, J, M, and Q visas must file at least Form 8843, which is an informational statement for nonresident taxpayers. They may also need to file a state tax return, depending on the state.
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