Lori Meadows
International students in the US on F-1 visas are required to file tax returns, even if they do not earn an income while studying. This is because international students are taxed in the same way as nonresident aliens for US federal income tax purposes, meaning they are only taxed on US-source income. Students who hold employment or internships will likely need to fill out a W-4 form and will need to file a tax return at the end of the year. There are a number of ways to submit tax returns, and there are online resources available to help international students with their tax filing obligations.
| Characteristics | Values |
|---|---|
| Who needs to file a tax return? | All international students and scholars on F or J visas must file Form 8843, even if they do not earn an income while studying in the United States. |
| Who is exempt from filing a tax return? | Nonresident alien students and scholars who have income only from: U.S. savings and loan institutions, U.S. credit unions, U.S. insurance companies, certain investments that generate portfolio interest, tax-free scholarships or fellowship grants, and/or any other income that is nontaxable under the Internal Revenue Code. |
| What forms do international students need to file? | Form 8843, Form 1040-NR (federal tax return), W-4, 1042-S, 1099, and possibly ITIN. |
| When is the deadline for filing tax returns? | The federal deadline is April 15 or April 18, depending on the year. State deadlines differ. |
| What are the benefits of filing a tax return? | International students may be eligible for a refund due to tax treaties and lack of serious income. It also helps fulfill visa obligations and protects against future complications when applying for U.S. visas. |
| What is the purpose of filing a tax return? | To report all sources of income, what has already been paid, and what is still owed. It is also an opportunity to claim deductions or exemptions. |
| What is the U.S. tax system like? | It is a pay-as-you-go system, with automatic tax withholdings from paychecks, stipends, or financial aid. Taxes are paid to both the federal government and the state government of the state in which the individual resides. |
| What is considered taxable income? | Salaries, specific gifts, awards, rental income, investment income, and income from self-employment or independent contracting. |
| Are there any state-specific considerations? | Yes, some states do not have any tax-filing requirements, while others require both federal and state tax returns. It is important to check the specific requirements of the state in which the student resides. |
| Are there any visa-specific considerations? | Yes, F-1 visa holders are considered nonresident aliens for tax purposes and are granted an exemption from social security and Medicare taxes for up to five years from their arrival in the U.S. |
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What You'll Learn
F-1 visa holders
International students in the US on an F-1 visa are typically considered nonresident aliens for tax purposes. This means that they are only taxed on US-sourced income.
If you are an F-1 visa holder and you earn income from an Optional Practical Training (OPT) program, you will need to pay taxes on this income and fill in the W-4 Form (Employee's Withholding Certificate). You will also need an SSN (Social Security Number) or ITIN (Individual Taxpayer Identification Number).
In certain cases, F-1 visa holders may be able to claim a tax treaty, which can reduce or fully exempt their income from taxes. If you are married to another F-1 visa holder and you are both nonresidents for tax purposes, your filing status should be 'Married Filing Separate'.
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Non-resident alien status
International students on F-1 visas are considered nonresident aliens for tax purposes in the United States. This means that they are taxed only on US-source income and are generally exempt from Social Security and Medicare taxes.
To be considered a nonresident alien, an international student must not meet the criteria for being a resident alien. The criteria for resident aliens are either having a green card (lawful permanent residence in the US) or passing the substantial presence test for the calendar year. This test determines whether an individual has been physically present in the US for a sufficient number of days over a period of time to be considered a resident for tax purposes. The specific criteria are outlined in the IRS "Introduction to Residency Under US Tax Law" and IRS Publication 519.
F-1 students are generally considered nonresident aliens for the first five calendar years of their stay in the US. During this time, they are required to file Form 1040-NR (federal tax return) to assess their federal income and taxes. They may also be required to file a state tax return, depending on the state. Even if they do not earn any income while in the US, they must still file Form 8843 with the IRS, which serves as a declaration of the time spent studying and not working in the country. This form is due by April 15 for the previous calendar year.
It is important to note that the rules and requirements for tax filing may change depending on individual circumstances, and international students should refer to the IRS website or seek professional tax advice for specific guidance.
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State and federal tax returns
International students in the US on F-1 visas are considered nonresident aliens for tax purposes. This means that they are taxed only on US-source income. International students must file their tax returns annually if they were in the US during the previous calendar year. The Internal Revenue Service (IRS) deadline to file tax returns on the federal level is usually in April.
The US tax system is a pay-as-you-go system, where a portion of your income is automatically deducted and sent directly to the government. This is estimated based on information provided in your W-4 or other tax documents. When you file your federal tax return, you will use tax software to calculate the exact amount of your tax liability for that calendar year based on your total income and other personal circumstances.
Federal income tax is levied by the IRS on the annual earnings of individuals, corporations, trusts, and other legal entities. It applies to all forms of a taxpayer's income, such as employment earnings. In addition to federal income tax, most states in the US will collect state income tax. Tax rates and deductions will differ for each state, so the amount you will pay will depend on where you live. Because of this, international students may have to file a state tax return and pay state income tax even when no federal return is due.
To determine your federal tax filing status, you must establish whether you are a nonresident tax filer or a resident tax filer. This status determines how you are taxed and which forms you need to fill out. It is important to note that your tax filing status may change over time, so it is recommended to review these guidelines each time you complete your taxes.
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Deadlines
United States
In the United States, the Internal Revenue Service (IRS) sets deadlines for tax returns. For international students, the specific forms and deadlines depend on their income and visa status.
Form 8843:
Form 8843 is a requirement for nonresident aliens in the US on specific visas, including F-1, J-1, F-2, and J-2. This form is not an income tax return but a statement for the US government. The deadline for submitting Form 8843 is usually April 15 or April 18, depending on the year. Even if an international student had no US income, they must file this form.
Form 1040-NR (Federal Tax Return):
International students who earned income in the US may need to file Form 1040-NR to assess their federal income and taxes. The deadline for this form is typically aligned with the federal tax return deadline, which is usually around April 15 or April 18.
State Tax Returns:
Some states in the US have their own income tax filing requirements and deadlines. These deadlines vary by state, and not all states require state-level tax returns. It is important for international students to check their specific state's requirements and deadlines, as they may need to file state tax returns in addition to federal ones.
Canada
In Canada, the Canada Revenue Agency (CRA) sets the deadlines for tax returns. The annual tax filing date is typically April 30, but it can vary depending on the year. For example, in 2023, the deadline was moved to May 1 as April 30 fell on a Sunday.
International students in Canada should determine their residency status, as it impacts their tax filing requirements. Those who establish significant residential ties with Canada are considered residents for income tax purposes. Non-residents and deemed residents have different filing requirements and deadlines. It is important for international students in Canada to refer to the CRA's guidelines for the specific deadlines applicable to their situation.
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Tax treaties
International students on F or J visas are generally considered "nonresident alien [s]" for tax purposes. Tax treaties between the US and certain countries may exempt students from federal (but not state) taxes on certain types of income.
To claim a tax treaty exemption for remittances from abroad (including scholarships and fellowship grants) for study and maintenance in the United States, the payee must be a nonresident alien student, apprentice, or trainee. If the payee entered the United States as a nonresident alien but is now a resident alien for tax purposes, the treaty exemption will continue to apply if the tax treaty has an exception to the treaty's saving clause. If the payee qualifies under an exception to the treaty's saving clause and the payor intends to withhold US income tax on the scholarship, fellowship, or other remittances, the payee can avoid income tax withholding by giving the payor a Form W-9, Request for Taxpayer Identification Number and Certification.
If the payee is not a student, trainee, teacher, or researcher, but performs services as an employee and the pay is exempt from US income tax under a tax treaty, the payee may be able to eliminate or reduce the amount of tax withheld from the payee's wages. The payee must provide the payor with a properly completed Form 8233 for the tax year. The Form 8233 must report the payee's Taxpayer Identification Number (TIN), generally the payee's US Social Security Number or Individual Taxpayer Identification Number (ITIN). If the payee claims treaty benefits that override or modify any provision of the Internal Revenue Code, and by claiming these benefits the payee's tax is, or might be, reduced, the payee must attach a fully completed Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b), to the payee's tax return.
Alien students, trainees, teachers, and researchers who perform dependent personal services (as employees) can also use Form 8233 to claim exemption from withholding of tax on compensation for services that are exempt from US tax under a US tax treaty. Students, trainees, teachers, and researchers must attach the appropriate statement shown in Appendix A (for students) or Appendix B (for teachers and researchers) at the end of Publication 519, US Tax Guide for Aliens, to the Form 8233 and give it to the withholding agent. For treaties not listed in the appendices, attach a statement in a format similar to those for other treaties.
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Frequently asked questions
Yes, international students and their dependents in the US must file tax returns each year, even if they have no income. This is a federal requirement.
The purpose of filing a tax return is to report all your sources of income to the government, what you have already paid, and what you still owe. It is also an opportunity to claim deductions or exemptions.
All international students must file Form 8843. If you have received income in the last calendar year, you will likely also need to file Form 1040-NR.
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