Lori Meadows
International students in the US have certain tax liabilities and requirements, which vary depending on their visa status, income, and residency. All international students and scholars have a federal tax filing requirement, even if they do not have US-sourced income. International students on F or J visas must file Form 8843, even if they do not earn an income. F-1 visa holders are generally considered non-resident aliens for tax purposes for the first five calendar years of their stay in the US and are exempt from certain taxes during this period. However, they may still be liable for taxes on income earned in the US, and failure to comply with tax obligations can impact future visa applications.
| Characteristics | Values |
|---|---|
| Tax filing requirement | All international students and scholars must file their tax returns each year, even if they do not have US-source income. |
| Tax liability | International students are liable to pay taxes on their income. |
| Tax residency status | International students are generally considered non-resident aliens for tax purposes for the first five calendar years of their stay in the US. |
| Social Security and Medicare taxes | International students are exempt from Social Security and Medicare taxes if they are employed by a school, college, or university where they are enrolled at least half-time. |
| Tax treaties | The US has income tax treaties with 65 countries, which may reduce or eliminate taxes on certain types of income. |
| Tax forms | International students must file Form 8843, and may also need to file Form 1040-NR (federal tax return) and Form W-4. |
| Tax refunds | International students may be eligible for a tax refund if they have paid more taxes than they owe. |
| Penalties | Failing to file tax returns may result in visa processing delays and other international documentation issues. |
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What You'll Learn
International students with income must file taxes
International students in the United States with income must file taxes. This applies even if you are not a US citizen or permanent resident and are receiving payments from the university, such as compensation, stipends, financial aid, or fellowships. It is important to understand your tax obligations to avoid future complications with visa applications.
The US tax system is a pay-as-you-go system, with automatic tax withholdings from your income. Your tax liability will be compared to the amount withheld, and you may be eligible for a refund if you have overpaid. On the other hand, if you have underpaid, you will be responsible for paying the difference.
International students on F or J visas must file Form 8843, even if they do not have income. This form is used by "alien individuals" to explain their status as students and not workers in the United States. Additionally, if you have received income, you will likely need to file Form 1040-NR as a non-resident income earner.
Most F-1 visa international students are considered nonresident aliens by the IRS and are exempt from paying Social Security and Medicare taxes. However, if you earn income, you must pay taxes to the federal and state governments. Certain income sources, such as scholarships or investments, may be exempt from taxation. It is recommended to consult the IRS or a qualified tax accountant for specific guidance on your tax obligations.
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Non-resident tax status
International students in the US on an F-1 visa are generally considered nonresident aliens for tax purposes for the first five calendar years of their stay. After five calendar years, they become residents for tax purposes. The year that a student enters the US counts as their first year, even if they were in the country for only part of that year.
F-1 students can file joint returns if their spouse is a US citizen or resident. If both F-1 visa holders are nonresidents for tax purposes, their filing status should be 'Married Filing Separate'.
Nonresident alien students and scholars who have income only from a US savings or loan institution, a US credit union, a US insurance company, or an investment that generates portfolio interest are exempt from filing taxes. They are also exempt if their income comes from a scholarship or fellowship grant that is entirely tax-free, or from any other income that is nontaxable under the Internal Revenue Code. However, income that is not taxable because of an income tax treaty must be reported on a US income tax return, even though no income tax is due.
Nonresident aliens are generally liable for Social Security and Medicare Taxes on wages paid to them for services performed in the United States, with certain exceptions based on their nonimmigrant status. Foreign students temporarily present in the US on F-1, J-1, or M-1 visas for less than five calendar years are generally nonresident aliens and are exempt from Social Security Tax and Medicare Tax on wages paid to them for services performed within the United States.
To determine your tax residency, you may need to take the IRS's substantial presence test. It is possible that you will be considered a "dual-status resident". The best source for information about Dual Status residency is from the IRS publication 519 "U.S. Tax Guide for Aliens".
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Social Security and Medicare taxes
International students and scholars have a federal tax-filing requirement, even if they do not have a U.S. source of income. This means that international students must file their tax returns annually in April.
As a general rule, non-immigrants are not permitted to earn self-employment income in the United States. However, if a non-immigrant student earns self-employment income in the United States, this income will be subject to U.S. income tax. If they become a resident alien, they are also subject to self-employment tax.
Non-resident aliens are, in general, liable for Social Security and Medicare Taxes on wages paid to them for services performed in the United States, with certain exceptions based on their non-immigrant status. Foreign students temporarily in the United States on F-1, J-1, or M-1 visas for less than five calendar years are generally non-resident aliens. These non-resident alien students are exempt from Social Security and Medicare Taxes on wages paid to them for services performed within the United States. To qualify for the exemption, the services performed must be allowed by the USCIS for these non-immigrant statuses, and such services are performed to carry out the purposes for which such visas were issued.
Foreign students in F-1, J-1, or M-1 non-immigrant status who have been in the United States for more than five calendar years become resident aliens for U.S. tax purposes if they meet the "Substantial Presence Test" and are liable for Social Security and Medicare taxes. However, they may be exempt from FICA (Social Security and Medicare) taxes under the "student FICA exemption." This exemption applies to all students, regardless of their U.S. tax residency status, and states that Social Security and Medicare taxes do not apply to services performed by students employed by a school, college, or university where the student is enrolled at least half-time. The student's on-campus employment must be incidental to and for the purpose of pursuing a course of study.
The United States has entered into agreements with several nations called Totalization Agreements to avoid double taxation of income with respect to Social Security taxes. These agreements must be considered when determining whether any alien is subject to U.S. Social Security and Medicare taxes.
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Tax treaties
The United States has entered into agreements with several nations, known as Totalization Agreements, to avoid double taxation of income with respect to Social Security taxes. These agreements benefit international students and scholars who are considered non-residents for tax purposes.
To take advantage of a tax treaty benefit, international students and scholars must provide IRS Form 8233 and a tax treaty statement to their U.S. income provider. This will help to reduce or avoid tax withholding on income. In some cases, a Form W-9, Request for Taxpayer Identification Number and Certification, with an attachment including the payee's name and U.S. address, may be sufficient to avoid income tax withholding.
It is important to note that tax treaty benefits do not eliminate the federal tax filing requirement for international students and scholars, even if they do not have U.S. source income. However, the tax treaty may impact the amount of tax withheld from their paychecks, stipends, or financial aid. The actual tax liability will be determined when they file their annual tax return in April for the preceding year.
Additionally, alien students, trainees, teachers, and researchers who are employees can use Form 8233 to claim an exemption from tax withholding on compensation for services that are exempt from U.S. tax under a U.S. tax treaty. They must attach the appropriate statement, shown in Appendix A (for students) or Appendix B (for teachers and researchers) of Publication 519, U.S. Tax Guide for Aliens, to Form 8233 and submit it to the withholding agent.
International students and scholars should carefully review their tax obligations and consult official sources, such as the Internal Revenue Service (IRS) or a qualified tax accountant, to ensure they comply with all relevant laws and regulations.
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Tax refunds
International students in the US are required to file their tax returns if they were in the country during the previous calendar year and earned an income. This is true regardless of whether they have US-source income or not.
International students on F-1 visas are considered nonresident aliens for tax purposes and are taxed only on US-source income. They will need 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. Additionally, they must file Form 8843 with the IRS. If they have received income in the last calendar year, they will likely need to file Form 1040NR as well.
International students can benefit from tax treaties with their home countries. The US has income tax treaties with 65 countries, and residents of these countries may be eligible for reduced or exempt US taxes on certain items of income. In such cases, the overpaid amount will be refunded to the student.
F-1 students can also claim a tax refund on their scholarship if it is completely or partially covered by a tax treaty. They are also exempt from FICA (Social Security and Medicare) taxes and will only be obligated to pay this tax if they were in the US for more than five years. If Social Security or Medicare taxes were withheld in error, students can contact their employer for a refund. If they are unable to get a full refund from their employer, they can file a claim for a refund with the IRS on Form 843.
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Frequently asked questions
All international students and scholars have a federal tax filing requirement, even if they do not have US-sourced income.
The deadline is usually in April each year. For F-1 students, the deadline in 2025 is Monday, 15 April.
All international students and their dependents must file Form 8843. If you received income in the last calendar year, you will likely also need to file Form 1040-NR.
International students on F-1 visas are generally considered nonresident aliens for tax purposes for the first five calendar years of their stay in the US. Nonresident aliens are exempt from some taxes, including Social Security and Medicare Taxes.
