Douglas Olsen
International students in the US are required to file a tax return with the Internal Revenue Service (IRS) each year they are in the country. This includes both federal and state tax returns for those earning an income, and a non-employed federal form for those who did not. The forms required vary depending on the student's residency status, visa type, and whether they received taxable income from US sources. Students with an F, J, or M visa who have been in the US for less than five years are considered non-resident aliens for tax purposes, while those who have been in the US for more than five years are considered resident aliens. All international students must complete Form 8843, which informs the IRS of the length of their stay in the US. Depending on their income, students may also need to file Form 1040NR, Form 1042-S, Form 1099, Form W-2, or Form W-7.
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What You'll Learn
Form 8843 for non-employed international students
Form 8843 is an informational statement required by the IRS for non-resident international students for tax purposes. It is not a U.S. income tax return and does not require an SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number).
All international students and their spouses and dependents, regardless of income, must complete Form 8843. This form lets the IRS know how long you have been in the U.S. and is due by April 15 each year.
To complete Form 8843, you will need to provide the following information:
- Your visa status for your most recent entry to the U.S. and the date of your most recent entry
- Your current non-immigrant visa status
- The actual number of days you were physically present in the U.S. for the years indicated
- Your U.S. taxpayer identification number (if any)
- Your academic institution or host sponsor information (name, address, phone number)
It is important to note that there is no explicit penalty for not filing Form 8843. However, failing to comply with tax obligations may encounter complications when applying for U.S. visas in the future. Therefore, it is recommended to consult with a professional tax advisor or the IRS directly for guidance on filing taxes as an international student.
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Form 1040NR for international students with taxable income
International students in the US with taxable income must file their taxes using Form 1040NR, U.S. Nonresident Alien Income Tax Return. This form is for nonresident aliens who have income that is subject to US tax, including wages, tips, scholarships, fellowship grants, and dividends. Even if you have left the US, you must still file this tax return annually.
If you are an international student using Sprintax to file your tax return (i.e., Form 1040NR), your Form 8843 will be included in the forms generated, so you do not need to file this form separately. Form 8843 is an informational statement required by the IRS for non-residents for tax purposes. It should be submitted for every non-resident taxpayer who was present in the US at any point during the previous calendar year, including spouses, partners, and children.
International students with taxable income must also report any income that is not taxable because of an income tax treaty on their US income tax return, even though no income tax is due. This includes any taxable scholarship or fellowship grant, as described in Chapter 1 of Publication 970, Tax Benefits for Education.
The deadline for filing Form 1040NR is generally the 15th day of the 6th month after your tax year ends, which is usually June 15 for those filing using a calendar year. If you cannot file your return by the due date, you should file Form 4868 to request an automatic extension of time to file.
It is important to note that international students may need to use a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN) on their tax forms. If you worked in the US and received taxable employment compensation, you must apply for an SSN. If you are not eligible for an SSN, you must apply for an ITIN from the IRS to use on your tax forms.
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State tax returns
The requirements for state tax returns vary depending on the state. While some states require international students to file a state tax return, others do not. Nine states have no tax-filing requirements.
International students on F-1 visas are usually considered 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 money during your time in the US, you will still need to file Form 8843 with the IRS by the deadline. This form is not an income tax return but a statement required by the US government for certain nonresident aliens. If you received US-sourced income during the calendar year, you will need to file Form 8843 and most likely Form 1040-NR to complete your tax return.
The amount of tax you'll have to pay depends on how much you earn, the tax rates of each state, and your 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.
To accurately determine your federal tax filing status, you can refer to the IRS website or Sprintax's blog page. Sprintax will ask you a series of questions based on the substantial presence test to determine your residence status for federal tax filing purposes.
Additionally, you can use the resources provided by the Indiana Department of Revenue (IN DOR) to complete your Indiana State tax return at no cost.
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Social Security Number or Individual Tax Identification Number
International students with an F, J, or M visa who have been in the US for less than five years are considered non-resident aliens for tax purposes. Those who have been in the US for more than five years are considered resident aliens for tax purposes.
International students with an F-1 visa are not required to pay employment taxes (Social Security and Medicare, also known as FICA). However, they are required to pay both federal and state income taxes. These taxes are withheld from their pay, and they must file a tax return as part of the process.
If you are an international student who received wages or taxable scholarships from US sources and you are a nonresident alien for tax purposes, you must file Form 8843 and 1040NR. You don't need a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) if you will only file Form 8843.
If you worked in the US and received taxable employment compensation, you must apply for an SSN with the Social Security Administration. An SSN is a taxpayer identification number used by employers and employees to report individual employee earnings for tax purposes. It is valid for life, so you only need to apply once.
If you are not eligible for an SSN, you must apply for an ITIN from the Internal Revenue Service (IRS) to use on forms. An ITIN is for international students who are not eligible for an SSN but need to file a 1040NR tax return.
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Tax treaties and exemptions
International students with an F, J, or M visa who have been in the USA for less than five calendar years are classified as non-resident aliens for tax purposes. Those who have been in the country for more than five years are considered resident aliens.
Non-resident alien students who receive payments that are not completely exempt from income tax withholding under a tax treaty will receive a Form W-2, Wage and Tax Statement, from their educational institution's payroll services. Form W-2 is also provided to the IRS. Students from countries that have a tax treaty with the US that includes a wage article may claim exemption or a reduction of income tax withholding if the payment meets the treaty's requirements and the student completes the required forms with the university's tax department. The taxes covered under a treaty exemption include federal, state, and local taxes. However, it is important to note that not all states recognize tax treaties. For example, Maryland does not recognize tax treaties, while Virginia and Washington, D.C. do.
If a tax treaty between the United States and the student's home country provides an exemption from or a reduced rate of withholding for certain items of income, the student should notify the payor of their foreign status to claim the benefits of the treaty. This can be done by submitting Form 8233, "Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual," to each withholding agent from whom amounts will be received. Students must also complete a country-specific statement that details the terms of the treaty. Additionally, students must attach the appropriate statement shown in Appendix A (for students) at the end of Publication 519, "U.S. Tax Guide for Aliens," to Form 8233 and provide it to the withholding agent. For treaties not listed in the appendices, a similar format statement should be attached.
Alien students who receive taxable scholarship or fellowship grants from US sources and are considered nonresident aliens for tax purposes may need to file Form 8233 to claim a tax treaty withholding exemption. They must also submit Form W-8 BEN, "Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting," to the payer of the grant. If a student receives both a scholarship and wages from the same institution, both of which are tax-exempt under a treaty, they can claim treaty exemptions on both types of income using Form 8233. However, if a student does not have a Taxpayer Identification Number (TIN) when claiming a tax treaty exemption on Form 8233, they must apply for one using Form W-7 or Form SS-5.
It is important to note that even if an income tax treaty allows an exemption from withholding, a Form W-4 should still be completed. This is because the treaty exemption is not claimed on Form W-4, and treaty provisions may have dollar limitations. Additionally, non-resident alien students who have taxable income, such as wages or taxable scholarships, must file Form 8843 and 1040NR by the specified deadline, usually April 15. They may also need to report treaty-exempt income on Form 1040-NR, Sch OI, and include the amount on Form 1040-NR. The university or educational institution typically reports treaty-exempt wage payments on Form 1042-S, "Foreign Person's U.S. Source Income Subject to Withholding," which is provided to the IRS.
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Frequently asked questions
The process of filing taxes involves preparing and sending tax returns and documentation to the Internal Revenue Service (IRS) and/or state or local department of revenue office. All international students are required to file a federal tax return each year they are in the US, and they may also need to file a state tax return, depending on the state.
International students with an F, J, or M visa who have been in the USA for less than five calendar years are considered non-resident aliens for tax purposes. Those who have been in the country for more than five years are considered resident aliens. This status is determined by the Substantial Presence Test (SPT) and dictates how you are taxed and which forms you need to fill out.
All international students, regardless of income, must complete Form 8843, which is an informational statement that lets the IRS know how long they have been in the US. If an international student has US-sourced income, they will likely need to file Form 1040NR (federal tax return) in addition to Form 8843. If an international student has received scholarship or fellowship money that exceeds tuition and related fees, they may also need to fill out Form 1042-S.
If an international student worked in the US and received taxable employment compensation, they must use an SSN to file their taxes. If they are not eligible for an SSN, they must apply for an ITIN from the IRS to use on tax forms. If an international student did not receive any income and only needs to file Form 8843, they do not need either an SSN or ITIN.
Yes, Sprintax is a user-friendly tax preparation software designed for international students and scholars. After creating an account and answering a series of questions, Sprintax will determine your tax residency status and help you prepare your federal and state tax returns.
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