Janice Lozano
International students in the US are required to file a tax return each year, even if they have not earned an income. The Internal Revenue Service (IRS) is the US government agency that collects taxes and has a strict deadline of April 15 (or the following Monday if that falls on a weekend) for filing tax returns. International students must file Form 8843, which is informational and lets the IRS know how long they have been in the US. Students with F-1 visas are considered nonresident aliens for tax purposes and must pay federal and state income taxes on their annual earnings. The amount of tax paid depends on the student's income, the tax rates of each state, and their entitlement to tax treaty benefits.
| 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 | Required to pay federal and state income taxes. |
| M-1 visa holders | Not required to pay taxes as they don't earn any income in the US. |
| J-1 visa holders | Required to pay income taxes on the income they earn. |
| Deadlines | The IRS deadline to file tax returns is April 15 (or the following Monday if it falls on a weekend). |
| Tax residency status | F and J visa holders are considered nonresidents for tax purposes. |
| Tax treaty eligibility | Some countries have a tax treaty with the USA, and international students from those countries may be exempt or have a reduced rate. |
| Social Security Number (SSN) | International students may need to use an SSN if they worked in the USA and received taxable employment compensation. |
| Individual Taxpayer Identification Number (ITIN) | If not eligible for an SSN, international students must apply for an ITIN from the IRS to use on forms. |
| Tax software | Sprintax is a tax preparation software that can help nonresident tax filers complete their tax returns. |
| State tax return | Some states don't have any tax-filing requirements. Check your state's website to find out if you need to file a state tax return. |
| OPT | International students can work in the US after graduation and will be required to pay tax on their income. |
| CPT | Students in CPT positions will likely have to declare their compensation on their tax return. |
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What You'll Learn
F-1 visa holders
International students in the US on an F-1 visa are considered nonresident aliens for tax purposes for the first five calendar years of their stay. This means that F-1 visa holders are exempt from paying Social Security and Medicare taxes. However, they are required to pay federal and state income taxes.
Even if an F-1 visa holder does not earn money during their time in the US, they will still need to file Form 8843 with the IRS by 15 April. If you receive any US-sourced income during the calendar year, you will need to file Form 8843 and most likely Form 1040-NR to complete your federal tax return.
State tax rates and deductions differ for each state in the US, so the amount of state tax you will pay will depend on where you are. Because of this, F-1 visa holders may have to file a state tax return and pay state income tax even when no federal return is due. For example, some F-1 visa holders may need to file a CT state tax return.
To file your federal tax return, you can use tax preparation software such as Sprintax, which is provided by some schools. This software will help you prepare your federal tax return, and for an additional fee, it can also assist with your state income tax return.
It is important to understand that filing tax returns is mandatory for international students, and not doing so by the deadline could result in problems with or a revocation of your visa, as well as possible ineligibility for a green card.
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Non-resident alien status
International students in the US on F-1 visas are typically considered nonresident aliens for tax purposes. Nonresident aliens are subject to different tax rules compared to resident aliens or US citizens.
Tax Requirements for Nonresident Aliens
Nonresident aliens must file a US tax return if they meet any of the following criteria:
- Engaged or considered to be engaged in a trade or business in the US during the year.
- Have US income on which the tax liability was not satisfied by the withholding of tax at the source.
- Want to claim a refund of excess withholding or deductions/credits.
- Have US-sourced income during the calendar year, requiring the filing of Form 8843 and likely Form 1040-NR.
- Have an employer in the US, requiring the completion of a W-4 tax form.
Tax Exemptions for Nonresident Aliens
Nonresident aliens may be exempt from certain taxes, such as FICA taxes on wages for services performed in the US. Additionally, income tax treaties between the US and other countries can reduce or eliminate US taxes on various types of income, including pensions, interest, dividends, royalties, and capital gains.
Determining Nonresident Alien Status
The IRS determines an individual's alien status using two tests: the green card test and the substantial presence test. If an individual satisfies either test, they are considered a resident alien for tax purposes. Otherwise, they are treated as a nonresident alien. The substantial presence test considers the number of days an individual is physically present in the US over a three-year period, with certain days excluded from the count.
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State-specific requirements
It is important to note that not all US states require international students to file a tax return at the state level. However, many do. It is recommended that you check your state's website to find out if you have state tax filing obligations and the deadline to file. Here are some state-specific requirements:
Connecticut (CT)
International students and scholars at Yale University may need to file a Connecticut state income tax return in addition to their federal return.
California (CA)
International students in California must file a nonresident tax return if they have California source income. This includes wages, salaries, tips, and other compensation for personal services performed in California.
Massachusetts (MA)
International students in Massachusetts who have earned income in the state must file a nonresident state tax return. This includes wages, salaries, tips, and other compensation for personal services performed in Massachusetts.
New York (NY)
International students in New York who have earned income in the state must file a nonresident state tax return. This includes wages, salaries, tips, and other compensation for personal services performed in New York.
Texas (TX)
International students in Texas who have earned income in the state may need to file a state tax return. Texas has no state income tax, but international students may need to file a return to claim a refund of any state taxes withheld from their income.
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Tax treaties
International students in the United States on F-1 visas are considered nonresident aliens for tax purposes and must pay US taxes on certain types of income. The US has income tax treaties with 65 countries, and these treaties can often reduce or eliminate US taxes on various types of income, such as pensions, interest, dividends, royalties, and capital gains.
To claim tax treaty benefits, international students may need to submit Form 8233 to each withholding agent from whom they will receive amounts. 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, U.S. Tax Guide for Aliens, to the Form 8233 and give it to the withholding agent. If the payee is not a student, trainee, teacher, or researcher, but their pay is exempt from US income tax under a tax treaty, they may be able to reduce the amount of tax withheld from their wages by providing a properly completed Form 8233 for the tax year. This form must report the payee's Taxpayer Identification Number (TIN), generally their 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 their tax return. However, the payee does not need to file Form 8833 if they can claim a reduced rate of withholding tax under a treaty on interest, dividends, rent, royalties, or other fixed or determinable annual or periodic income ordinarily subject to the 30% rate. Additionally, they do not need to file Form 8833 if they can claim a treaty exemption that reduces or modifies the taxation of income from dependent personal services, pensions, annuities, social security, and other public pensions, or income of artists, athletes, students, trainees, or teachers.
It is important to note that tax treaties generally allow individuals to exclude a specified amount of US-source income on their tax returns, which reduces their tax liability. International students and scholars who are nonresidents for tax purposes and intend to take advantage of a tax treaty benefit should provide IRS Form 8233 and a tax treaty statement to their US income provider to reduce or avoid tax withholding on income.
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Tax refunds
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 are required to file their tax returns if they were in the US during the previous calendar year and earned income.
The US has income tax treaties with 65 countries. Under these treaties, residents of foreign countries may be eligible for reduced tax rates or exemptions from US taxes on certain types of income. If an international student overpaid on their taxes due to a tax treaty with their country, they will be refunded the overpaid amount.
To file your tax return, you will need to determine your federal tax filing status: nonresident tax filer or resident tax filer. Nonresident tax filers are required to file Form 1040-NR (federal tax return) to assess their federal income and taxes. Even if you didn’t earn money, 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 earned an income, you will need to file Form 8843 and most likely Form 1040NR to complete your tax return. You will need to provide your name, current address, and Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), as well as other general personal information. You will also need your W-2 form, or "Wage and Tax Statement", which will state the previous year's earnings and tax withheld.
You can apply for your FICA tax refund with Sprintax, which offers nonresident tax form preparation online. Sprintax will help you prepare your tax documents and ensure you claim the maximum legal tax refund.
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Frequently asked questions
Yes, international students in the US are required to file a tax return. They must file at least Form 8843, which is informational and lets the IRS know how long they've been in the US.
Yes, international students on F-1 visas are considered nonresident aliens for tax purposes and must pay federal and state income taxes.
M-1 visa holders are not allowed to accept employment (except during practical training), so they are generally not required to file income tax.
J-1 visa holders pay taxes just like US citizens. They need to pay income taxes on the income they earn.
The deadline to file federal tax returns with the IRS is usually April 15 or the following Monday if it falls on a weekend. State deadlines may differ, so check your state's website.
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