Savanna Hoffman
International students in the US are required to file a tax return each year, even if they did not earn any income. The purpose of filing a tax return is to report all sources of income to the government, what has already been paid, and what is still owed. The Internal Revenue Service (IRS) is the US government agency that collects taxes, and they have a strict deadline of April 15 (or the following Monday if it falls on a weekend) to file tax returns. Students on F-1 visas are considered nonresident aliens for tax purposes and must pay tax on income earned in the US. While federal income tax is levied by the IRS on the annual earnings of individuals, most states in the US will collect state income tax in addition to federal income tax. Therefore, international students may have to file a state tax return and pay state income tax even when no federal return is due.
| Characteristics | Values |
|---|---|
| Who should file taxes? | All international students and their spouses and dependents, regardless of income, must complete Form 8843. |
| F-1 visa holders | Must pay federal and state income taxes. |
| M-1 visa holders | Are not allowed to accept employment (except during practical training) and are not required to file income tax. |
| J-1 visa holders | Must pay taxes like US citizens. |
| Deadlines | The IRS deadline to file tax returns is April 15 or the following Monday if it falls on the weekend. The deadline for 2023 was April 18. |
| Social Security Number (SSN) | If you worked in the US and received taxable employment compensation, you must apply for an SSN. |
| Individual Taxpayer Identification Number (ITIN) | If you are not eligible for an SSN, you must apply for an ITIN from the IRS to use on forms. |
| Tax treaties | Some countries have a tax treaty with the US, and international students from those countries may be exempt or have a reduced rate. |
| Taxable income | Salaries, gifts, and awards. |
| Non-taxable income | Income from a US savings and loan institution or a US credit union. |
| Tax software | Sprintax is a tax preparation software that can help nonresident tax filers complete their tax returns. |
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What You'll Learn
F-1 visa holders and state tax
International students in the US are required to file a tax return. F-1 visa holders are generally considered nonresident aliens for tax purposes for the first five calendar years of their time in the US. During this period, they are exempt from paying Social Security and Medicare taxes. However, they are required to pay federal and state income taxes.
F-1 students who intend to stay 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 US for 183 days or more. This can be reduced if a tax treaty between the US and the student's country of residence provides for a lesser rate of taxation.
If you are an F-1 visa holder and earned income in the US, you will need to file Form 1040NR or 1040NR-EZ to report your income and pay taxes. You will also need to fill out Form 8843, which is an informational form that lets the IRS know how long you have been in the US. If you did not earn any income, you still need to file Form 8843 but do not need to report income on this form.
It is important to note that tax rules and requirements can be complex and may vary depending on your individual circumstances. Therefore, it is recommended to consult official government sources or seek professional tax advice to ensure compliance with tax laws.
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Non-employed international students and state tax
International students in the US are required to file a tax return, regardless of income. This includes non-employed international students, who must file a non-employed federal form declaring that they did not earn an income.
International students on F-1 visas are considered nonresident aliens for tax purposes and are subject to special rules regarding the taxation of their income. There is no minimum dollar amount of income that triggers a filing requirement for nonresident aliens. However, nonresident alien students with certain types of income are required to file taxes. This includes students with:
- 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 the terms of a tax treaty.
- Any other income that is taxable under the Internal Revenue Code.
Non-employed international students who did not earn an income are still required to complete Form 8843, which is an informational form that lets the IRS know how long they have been in the USA. This form must be mailed in a separate envelope from those of a student's spouse or dependents. No Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) is required to file this form.
Additionally, income that is not taxable due to an income tax treaty must still be reported on a US income tax return, even if no income tax is due.
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International students with taxable scholarships and state tax
International students in the US are required to file a tax return. This includes reporting any income that is not taxable because of an income tax treaty. International students on F-1 visas are considered nonresident aliens for tax purposes and must pay tax in the US on their income, including taxable scholarships.
F-1 students who intend to reside in the US for longer than a year are subject to 30% taxation on their capital gains during any tax year in which they are present in the US for 183 days or more, unless a tax treaty provides for a lesser rate of taxation. The withholding tax rate for scholarships may be reduced to 14% if the student is temporarily present in the US with an "F," "J," "M," or "Q" visa.
All international students and their spouses and dependents, regardless of income, must complete Form 8843, which informs the IRS of how long they have been in the US. Students with taxable income will also need to file Form 1040NR or 1040NR-EZ. They will need to provide their name, current address, and social security number (SSN) or IRS individual taxpayer identification number (ITIN), as well as other general personal information.
Nine states do not have any tax-filing requirements, but most states will collect state income tax in addition to federal income tax. Tax rates and deductions will differ for each state, so the amount of state tax owed will depend on where the student is located.
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International students and state tax refunds
International students in the US are required to file a tax return each year, even if they did not earn any money in the US. This is to let the Internal Revenue Service (IRS) know how long they have been in the country. The IRS is the US government agency that collects taxes.
Students on F-1 visas are considered nonresident aliens for tax purposes and must pay tax on any US-sourced income. They are also required to pay both federal and state income taxes. These taxes are withheld from their pay and must be filed for in a tax return. F-1 students who intend to reside in the US for longer than a year are subject to 30% taxation on their capital gains during any tax year in which they are present in the US for 183 days or more, unless a tax treaty provides for a lesser rate of taxation.
There is no specific international student tax, and the amount of tax to be paid will depend on individual circumstances. While some US states do not require that a tax return is filed at the state level, many do. Students can check their state's website to find out if they have state tax filing obligations.
International students can get tax refunds if they have paid more tax than they owe. This can be the case if, for example, a tax treaty rule between the student's home country and the US applies.
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International students and state tax deadlines
International students in the US are required to file a tax return each year, even if they did not earn an income. The Internal Revenue Service (IRS) deadline for filing federal tax returns is typically April 15 or, if this falls on a weekend, the following Monday. The deadline for 2023 was April 18.
State deadlines differ, so international students should check their state's website to find out if they need to file a state tax return and what the deadline is. Nine states don't have any tax-filing requirements. However, even if no state tax return is due, international students may still have to file a state tax return and pay state income tax. This is because they are required to pay both federal and state income taxes.
International students on F-1 visas are considered nonresident aliens for tax purposes and must pay tax on the following types of income:
- Taxable scholarship or fellowship grant
- Income partially or totally exempt from tax under the terms of a tax treaty
- Any other income that is taxable under the Internal Revenue Code
F-1 students who intend to reside in the US for longer than a year are subject to 30% taxation on their capital gains during any tax year in which they are present in the US for 183 days or more, unless a tax treaty provides for a lesser rate of taxation.
All international students and their spouses and dependents, regardless of income, must complete Form 8843, which lets the IRS know how long they have been in the USA. This form must be mailed directly to the IRS in separate envelopes for each family member. If an international student has received income in the last calendar year, they will also need to file Form 1040-NR. This form can be e-filed on the IRS website.
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Frequently asked questions
Yes, international students are required to file state taxes if they earned income in the US during the previous calendar year.
Yes, even if you didn't earn any income, you are still required to file a non-employed federal form.
The deadline to file state taxes is April 15 (or the following Monday if it falls on a weekend).
All international students must file Form 8843. If you received income, you will likely also need to file Form 1040-NR.
If you received income, you will need an SSN or ITIN to file your state taxes. If you did not receive income, you do not need either.
