Lana Oconnell
International students in the US are required to file tax returns with the Internal Revenue Service (IRS) each year they are in the country. This is true even if they do not have US-source income, though students with F-1 visas are not required to pay employment taxes. The US tax system is a pay-as-you-go system, meaning tax withholdings are usually automatic from paychecks, stipends, or financial aid. 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 US. This is used by alien individuals to explain the basis of a claim that they can exclude days present in the US for purposes of the substantial presence test.
| Characteristics | Values |
|---|---|
| Who needs to file taxes? | All international students and scholars on F, J, or M visas who have been in the USA for more than five calendar years. |
| What forms do they need to fill? | Form 8843, Form 1040X, Form 1042-S, Form 1099, Form 1040NR or 1040NREZ, Form W-4, Form W8-BEN, Form 1098-T, Form 1095, Form W-2, Form 8843, etc. |
| What is the deadline? | 15 April 2025 |
| What if the deadline is missed? | May lead to some unwanted penalties, and jeopardize the chances of securing a US visa or Green Card in the future. |
| What if no income is earned? | Non-resident aliens with no income must still file Form 8843. |
| What if the income is from outside the US? | Non-resident aliens only need to report US-sourced income. |
| What if the income is exempt from tax under a tax treaty? | 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. |
| Can international students get a tax refund? | Yes, many F-1 international students can claim tax refunds from the US. |
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What You'll Learn
F-1 visa holders must file taxes, even with no US-based income
F-1 visa holders are classified as nonresident aliens in the US for tax purposes. Even if they have no US-based income, they must still file a tax return. This is because the US tax system is a pay-as-you-go system, meaning tax withholdings are usually automatic. F-1 visa holders must file Form 8843 with the Internal Revenue Service (IRS) to declare the time they were studying and not working in the US. This form is required by the US government for certain nonresident aliens who are in the US on F-1, J-1, F-2, or J-2 visas for purposes of the substantial presence test.
F-1 visa holders who intend to reside in the US for longer than one 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. However, if there is a tax treaty between the US and the student's home country, they may qualify for a reduced rate of taxation. It is important to note that there are specific rules governing tax treaties, and it is the student's responsibility to understand how these rules apply to their situation.
Additionally, F-1 visa holders who have any form of taxable income, such as a taxable scholarship or fellowship grant, must file taxes on this income. This includes income that is partially or totally exempt from tax under the terms of a tax treaty. While F-1 visa holders are exempt from Social Security and Medicare taxes, they may be liable for self-employment taxes under certain conditions.
It is important for international students to understand their tax obligations and seek professional advice if needed. Failure to comply with tax obligations can result in complications when applying for US visas in the future.
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Non-F-1 visa holders may need to pay income tax
International students in the US on visas other than F-1 may need to pay income tax. The US tax system is a pay-as-you-go system, with automatic tax withholdings from paychecks, stipends, or financial aid. The amount is estimated based on information provided in tax documents, tax filing status, and possibly residency.
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 US. This form is used by "alien individuals" to explain their claim to exclude days present in the US for purposes of the substantial presence test.
Some international students and scholars will also need to file a CT state tax return. It is important to determine your federal tax filing status: nonresident tax filer or resident tax filer. This status determines how you are taxed and which forms you need to fill out. Your tax filing status may change over time, so it is a good idea to review the guidelines each time you complete your taxes.
International students on F-1 visas who have been in the US for more than five calendar years may become resident aliens for tax purposes and be liable for Social Security and Medicare taxes. F-1 visa holders are generally considered nonresident aliens in the US and are required to file a US tax return (Form 1040-NR) for income from US sources. If an F-1 visa holder changes to an H-1B visa, they may still qualify as a nonresident alien for tax purposes. However, if an H-1B visa holder stays in the US for more than 183 days, they will be considered residents for tax purposes and need to file the resident 1040 form.
Some countries have tax treaties with the US that can reduce or eliminate federal income taxes. If eligible, international students can fill out a Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for US Tax Withholding and Reporting (Individuals), to their employer.
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Tax treaties between home country and the US
International students and scholars in the US have a federal tax filing requirement, even if they do not have any US-sourced income. This includes all individuals on F or J visas, who must file Form 8843, even if they did not earn an income while studying in the US.
The US has tax treaties with several foreign countries, which can sometimes reduce or eliminate federal income taxes. These treaties allow residents of foreign countries to be taxed at a reduced rate or to be exempt from US taxes on certain types of income received from sources within the US. These reduced rates and exemptions vary among countries and specific items of income.
To benefit from a tax treaty, an individual must be a resident of the foreign country, and their country of origin must share a tax treaty with the US. In addition, the individual must have an SSN (Social Security Number) or an ITIN (Individual Taxpayer Identification Number). If an individual is eligible for tax treaty benefits, they must fill out a Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting.
Some countries with tax treaties with the US include Barbados, Hungary, and Jamaica, whose students can elect to be treated as "resident aliens for tax purposes." However, it is important to note that tax treaties do not apply to permanent residents or immigrants. Additionally, benefits from tax treaties may only be used once in a lifetime, and individuals must re-establish home country residency to claim both student and teacher treaty benefits.
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Tax refunds and exemptions for international students
International students in the US on F-1 visas are considered "exempt individuals" and are excused from the Substantial Presence Test for the first five years they are in the US. F-1 students are also granted an exemption from social security and Medicare taxes. Additionally, if their country of origin has a tax treaty with the US, they may be eligible for a reduced tax rate or exemption.
International students who have earned income in the US are required to file a tax return. This includes income from internships or Curricular Practical Training (CPT) positions. However, it's important to note that not all income is taxable, and there are specific rules governing tax treaties between the US and other countries. Students should carefully review the guidelines to determine their tax filing status and understand the laws governing their specific situation.
When filing taxes, international students may need to include W-2's, 1099's, and 1042-S's, which will be provided by their university and employer. They may also need to apply for an Individual Taxpayer Identification Number (ITIN) or Social Security Number (SSN). Most F-1 students are considered nonresident aliens by the IRS and will need to file Form 1040-NR (federal tax return) and Form 8843. Additionally, depending on the state, they may need to file a state tax return.
After filing their tax returns, international students will need to reconcile the amount of income tax they owe against the amount they have already paid. If they have paid more taxes than they owe, they are eligible for a refund. However, if they have paid less than what they owe, they are responsible for paying the difference. It is important to note that the IRS does not allow electronic filing for nonresident aliens, so international students will need to mail their tax forms to the IRS.
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Determining residency status for tax purposes
If you are not a US citizen, you are considered a non-resident of the United States for US tax purposes unless you meet either the Green Card Test or the Substantial Presence Test for the calendar year (January 1 – December 31).
Students in F or J status are generally considered non-resident aliens for tax purposes for the first five calendar years of their stay in the US. However, some students and scholars are considered "residents" or "resident aliens" for tax purposes, even if they continue to have a non-immigrant visa status.
Your tax residency status determines how you are taxed and which tax forms you need to fill out. For example, non-resident alien students and scholars who have a taxable scholarship or fellowship grant, income partially or totally exempt from tax under a tax treaty, or any other income that is taxable under the Internal Revenue Code, are required to file taxes.
It is important to note that "resident for tax purposes" is only a tax filing status and does not mean that you are a resident for immigration or other purposes. Your tax filing status may change over time, so it is recommended to review the guidelines each time you complete your taxes.
To accurately determine your tax residency status, you can refer to the IRS "Introduction to Residency Under US Tax Law" page and IRS Publication 519, available on the IRS website. Additionally, the GLACIER Tax Prep program can help determine your residency status for federal tax filing purposes by asking a series of questions.
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Frequently asked questions
Yes, all international students and scholars on F or J visas must file Form 8843, even if they did not earn an income while studying in the United States.
Yes, students in the USA on F-1 visas are required to pay federal and state income taxes. However, they are not required to pay employment taxes such as Social Security and Medicare (FICA).
Yes, many F-1 international students can claim tax refunds from the US, especially if their country of origin has a tax treaty with the US.
The deadline for international students to file their federal income tax return is April 15.
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