You might be surprised to hear that over 1.1 million international students are currently studying in the United States. What probably won’t surprise you is that each and every one of them has some level of tax responsibility while in the U.S. So, what exactly are those responsibilities? Let’s break it all down.
What Is the IRS?
The Internal Revenue Service is the U.S. government agency in charge of collecting taxes and enforcing tax laws. It was created back in 1862 by President Abraham Lincoln. The agency oversees the collection of various taxes including individual and corporate income taxes, employment taxes, and taxes related to gifts, excise, and estates.
Understanding How the U.S. Tax System Works
The United States operates under a dual tax system, with both federal and state governments collecting taxes. For individuals, including international students, this means you may be subject to multiple tax filings depending on where you live and earn income.
When you earn income in the U.S., your employer typically withholds part of your wages for federal and possibly state taxes. At the beginning of the following year, your employer sends you documentation summarizing your income and the tax withheld. This system allows the IRS to compare the taxes withheld during the year against your total tax liability when you file a return. Based on the final amount, you may either receive a refund or owe additional tax.
What Income Is Taxable for International Students?
If you’re studying in the U.S., certain types of income you earn are considered taxable. These may include:
- Wages from on-campus or authorized off-campus employment
- Salaries
- Tips received from service jobs
- Interest and dividends earned from U.S. sources
- Portions of scholarships and fellowship grants used for non-tuition expenses such as housing or travel
In short, if the income originates from within the U.S. or from a U.S.-based entity, it likely falls under taxable income.
What Is Considered U.S. Source Income?
Income is considered U.S.-sourced if it meets any of the following criteria:
- Earned through employment within the U.S.
- Received from scholarships or grants provided by U.S.-based institutions or organizations
- Earned interest from funds held in U.S. banks or financial institutions
This classification is important because U.S. tax laws typically only tax income from U.S. sources for nonresident aliens. If your income comes from outside the country, it’s generally not subject to U.S. taxes.
Introduction to the Tax Return
A tax return is a document you file with the IRS to report your income, calculate the tax you owe, and determine whether you are due a refund or need to make an additional payment. For international students who qualify as nonresident aliens, the correct form to use is typically Form 1040-NR.
Filing your tax return allows you to declare your income, document the taxes already paid through withholding, and claim any deductions or benefits available through tax treaties. The form also provides the IRS with a record of your financial activity during the year.
Do International Students Need to File?
Yes, filing a tax return is mandatory if you earned any U.S.-sourced income during the calendar year. However, even if you did not earn any income, you are still required to file Form 8843. This form acts as a declaration of your status as a nonresident alien and confirms your exempt status under the tax code.
Many international students are surprised to learn that filing is necessary even without income. But this requirement ensures the IRS has accurate records of all foreign nationals present in the U.S. under student and exchange visitor visas.
Tax Residency Status: What It Means
Your tax obligations in the U.S. depend heavily on your tax residency status. There are two main classifications:
- Nonresident alien
- Resident alien
Most international students fall under the nonresident alien category during their early years in the United States. This status affects what income is taxed, which forms you need to file, and what deductions or exemptions you can claim.
How to Determine Your Residency Status
Your visa type and how long you’ve been in the U.S. are key factors in determining your residency status. Most students on F, J, M, or Q visas are considered nonresident aliens during their initial stay:
- F-1 visa holders: Nonresident status for the first five calendar years
- J visa holders (students and scholars): Nonresident status for the first two calendar years
Once this initial period ends, your residency status might change depending on whether you pass either the Green Card Test or the Substantial Presence Test.
The Substantial Presence Test Explained
The Substantial Presence Test helps the IRS determine if you should be considered a resident for tax purposes based on your physical presence in the United States. To pass this test, you must have been physically present in the U.S. for:
- At least 31 days during the current year, and
- A total of 183 days during the three-year period including the current year and the two years before
The total number of days is calculated as follows:
- Count all days you were present in the current year
- Add one-third of the days from the previous year
- Add one-sixth of the days from two years before
Example of the Substantial Presence Test
Sam was in the U.S. for 120 days each year from 2022 through 2024. To determine his status for 2024:
- 120 days from 2024
- 40 days (one-third of 120) from 2023
- 20 days (one-sixth of 120) from 2022 Total: 180 days
Since 180 is less than 183, Sam does not meet the threshold to be considered a resident for tax purposes in 2024.
What Days Don’t Count Toward Physical Presence?
Certain days do not count toward your physical presence for the Substantial Presence Test. These include:
- Days commuting from Canada or Mexico if you live there and work in the U.S.
- Days you are in the U.S. for less than 24 hours during transit
- Days you are present as a crew member on a foreign ship or airline
- Days when you were unable to leave the U.S. due to a medical condition that developed while you were present
- Days you are an exempt individual under specific visa types
Who Qualifies as an Exempt Individual?
The IRS defines exempt individuals as those who should not count certain days toward the Substantial Presence Test due to their visa type. This includes:
- Foreign government employees on A or G visas (excluding A-3 or G-5 classifications)
- Students on F, J, M, or Q visas who comply with their visa conditions
- Teachers or trainees on J or Q visas who comply with their visa conditions
- Professional athletes temporarily in the U.S. for a charitable event
Essential Tax Forms for International Students
If you are an international student in the U.S., there are two primary forms you should be aware of:
- Form 8843: Required for all international students on F, J, M, or Q visas, even if you had no income
- Form 1040-NR: Required if you earned income from U.S. sources
These forms help the IRS assess your tax status, determine your obligations, and ensure compliance with U.S. tax laws.
Required Documents for Filing Taxes
Before filing your tax return, gather all relevant documents. The key items include:
- A Taxpayer Identification Number, either a Social Security Number or an Individual Taxpayer Identification Number
- W-2 form: Reports wages earned and taxes withheld by your employer (should be received by January 31)
- 1099 form: Reports bank interest or miscellaneous income (also due by January 31)
- 1042-S form: Reports scholarship income or payments covered by tax treaty benefits (usually received by March 15)
If you did not receive any taxable income, you won’t receive these forms, and you do not need a TIN. In this case, you simply need to file Form 8843.
Options for Filing Your Tax Return
Once you have all necessary documents, you can choose how to file your tax return. You may complete and mail the forms yourself or use an online tax service designed for nonresidents. Depending on where you lived or worked, you may also need to file a state income tax return.
Filing your taxes can seem overwhelming, but it’s a crucial responsibility. Taking the time to understand your requirements and gather the correct paperwork ensures that you remain compliant with U.S. laws and avoid unnecessary penalties.
Step-by-Step Guide to Filing U.S. Taxes for International Students
Filing taxes for the first time as an international student in the United States may seem overwhelming, but with the right information and resources, the process becomes manageable. This guide walks you through the entire process, from gathering required documents to submitting your tax return to the IRS.
Understanding What You Need Before Filing
Before you start preparing your tax return, gather the necessary documents and identification numbers. Each document serves a specific purpose and ensures accurate reporting of your income and compliance with U.S. tax laws.
Taxpayer Identification Number
You need a U.S. Taxpayer Identification Number to file your tax return. This can be either a Social Security Number or an Individual Taxpayer Identification Number. International students authorized to work in the U.S. are eligible to apply for a Social Security Number. If you are not authorized to work and need to file a return, you can apply for an ITIN using Form W-7.
Income Forms
You will receive different forms depending on the type of income you earned:
- Form W-2: This form is issued by your employer and shows how much you earned in wages or salary and how much tax was withheld. It should be provided by January 31.
- Form 1099: You may receive this if you earned interest, were self-employed, or received other types of non-employee compensation.
- Form 1042-S: This form reports certain scholarship income and wages that are subject to tax treaties. It is usually issued by March 15.
If you did not earn any U.S.-sourced income, you will not receive income forms. In that case, you are still required to file Form 8843.
Step 1: Determine Your Tax Residency Status
As explained in the first article, your tax residency status will determine how you file your return and which forms you must complete. Most international students on F, J, M, or Q visas are nonresident aliens during their initial years in the U.S.
Use the Substantial Presence Test or Green Card Test to determine your current status. If you are a nonresident alien, you will file Form 1040-NR. If you meet the requirements to be considered a resident alien, you may need to use Form 1040 instead.
Step 2: Know Your Filing Obligations
International students must file:
- Form 8843 every year they are present in the U.S. on a qualifying visa, even if they have no income
- Form 1040-NR if they have earned U.S.-sourced income during the calendar year
Depending on your state of residence and whether you earned income in that state, you might also need to file a state tax return.
Step 3: Gather Supporting Documents
Collect the following documents to ensure your tax return is accurate:
- Passport and visa
- Entry and exit dates for each trip to the U.S. during the tax year
- All income documents: W-2, 1099, 1042-S
- Form 8843
- Your Social Security Number or ITIN
- Any documentation related to tuition, scholarships, or fellowships
Keeping these documents organized will make the filing process smoother and reduce the chance of errors or omissions.
Step 4: Understand the Tax Forms
Form 8843
This form is required for all international students on F, J, M, or Q visas, even if you earned no income. It is used to document your status as an exempt individual and ensure you are not incorrectly treated as a resident for tax purposes.
You must file a separate Form 8843 for each family member on a dependent visa.
Form 1040-NR
This is the federal tax return form for nonresident aliens. It is used to:
- Report income earned in the U.S.
- Calculate taxes owed or refunds due
- Claim any tax treaty exemptions or deductions
Ensure you read the instructions carefully and complete the appropriate schedules if required.
Step 5: Complete Your Federal Tax Return
Begin by filling out Form 8843. You will need to include personal information, visa status, days of presence in the U.S., and the purpose of your visit.
Next, complete Form 1040-NR. Use the information from your W-2, 1099, or 1042-S forms to report your income. If you qualify for any deductions or treaty benefits, include those as well.
Review the instructions to determine which additional forms or schedules are required. Be sure to double-check your math and make sure all fields are completed accurately.
Step 6: Check for Tax Treaties
Many countries have tax treaties with the United States that may allow students to claim reduced tax rates or full exemptions on certain types of income.
Check if your country has a tax treaty with the U.S., and determine if you qualify based on your visa type and the type of income you received. If so, complete the relevant sections on Form 1040-NR and attach any required statements.
Step 7: File a State Tax Return (if applicable)
If you lived or worked in a state that imposes income taxes, you may need to file a separate state tax return. Each state has its own forms, rules, and deadlines.
Visit your state’s department of revenue website to access the appropriate forms and instructions. The filing process and requirements vary, so it’s important to review your state’s guidelines carefully.
Step 8: Submit Your Tax Return
Once your forms are completed, review everything for accuracy. If you are mailing your return, be sure to send it to the correct IRS address based on your location and whether you are including a payment.
Alternatively, you can submit your forms electronically through approved e-filing systems that support nonresident tax returns. Keep a copy of everything you submit for your records.
Step 9: Understand the Tax Deadlines
The deadline for filing your federal tax return is typically April 15. If the deadline falls on a weekend or holiday, it is extended to the next business day.
If you need additional time to file, you can request an automatic extension by submitting Form 4868 by the original deadline. This extends your filing deadline to August 15 but does not extend the time to pay any taxes owed.
If you owe taxes, submit an estimated payment by April 15 to avoid penalties and interest. Failing to do so can result in additional charges.
Step 10: Expect a Refund or a Tax Bill
Once your tax return has been processed, the IRS will determine whether you are due a refund or need to pay additional tax. If you overpaid, you will receive a refund via direct deposit or mailed check. If you owe, the IRS will send you a bill with instructions on how to pay.
Refunds typically take a few weeks to process. You can check the status of your refund using the IRS “Where’s My Refund” tool on their official website.
Step 11: Keep Your Records
After filing, keep copies of your:
- Completed tax forms
- All supporting documents
- Any correspondence with the IRS
- Proof of mailing or e-filing
These records are essential in case you are audited, need to verify previous filings, or apply for immigration benefits in the future.
Step 12: Plan for Next Year
Understanding your tax responsibilities early in the year can help you avoid last-minute stress. Keep your income and travel records organized throughout the year, and make note of any major changes in your visa status or employment.
If your residency status changes, or if you move to a different state, review how these changes affect your filing requirements. Being proactive ensures you stay compliant and avoid surprises during the next tax season.
Common Mistakes Made by International Students When Filing Taxes
Filing taxes in a foreign country can be confusing. Unfortunately, even small mistakes can have significant consequences. Understanding the most common errors can help you avoid problems before they arise.
Filing the Wrong Tax Form
One of the most frequent mistakes is filing the incorrect tax form. Many international students mistakenly file Form 1040, which is designed for U.S. citizens and resident aliens. Most international students should file Form 1040-NR instead.
Using the wrong form may result in penalties, incorrect refunds, or issues with your immigration record. Always assess your residency status before choosing the correct form.
Failing to File Form 8843
Even if you didn’t earn income during the tax year, you’re still required to file Form 8843 if you were physically present in the U.S. on a qualifying visa. Forgetting or ignoring this obligation can lead to complications down the road, especially during visa renewals or status adjustments.
Missing the Tax Filing Deadline
Failing to meet the tax deadline is another common issue. The federal filing deadline is typically April 15, and missing it without filing an extension (Form 4868) can result in penalties and interest on unpaid taxes.
Incorrectly Claiming Tax Treaty Benefits
Tax treaties between the U.S. and other countries can reduce or eliminate certain tax obligations. However, applying treaty benefits incorrectly—such as claiming deductions you’re not eligible for—can lead to audits or the loss of treaty advantages in the future.
Always check the details of the treaty between your country and the U.S., and ensure you meet all conditions before applying any benefits.
Not Reporting All U.S.-Sourced Income
Students sometimes fail to include all taxable U.S. income, especially income from internships, assistantships, or freelance work. Omitting even small amounts of taxable income can result in penalties, back taxes, and issues with the IRS.
Ensure you report all types of income accurately using the forms provided by employers, financial institutions, or universities.
Filing as a Resident Too Soon
Some students incorrectly assume they become tax residents after one or two years. The Substantial Presence Test determines your residency status based on the number of days you’ve been in the U.S. within a three-year period. Filing as a resident too early can lead to complications with your return and may delay refunds or trigger audits.
Refunds: Eligibility, Process, and Expectations
International students are often eligible for refunds if they had too much tax withheld from their income throughout the year. Understanding how and when to expect a refund is a vital part of the tax process.
Who Can Receive a Refund?
You may be eligible for a refund if:
- Too much tax was withheld from your paychecks or scholarship
- You qualify for tax treaty benefits that reduce your taxable income
- You had no income but had taxes withheld in error
Eligibility for refunds depends on filing a correct and timely tax return.
Average Refund Amount
Refund amounts vary widely depending on how much tax was withheld and the types of deductions or exemptions claimed. International students who work part-time or receive taxable scholarships may receive several hundred dollars back if they qualify for refunds.
How Refunds Are Processed
Once you file your tax return and it is accepted by the IRS, your refund is processed. Most refunds are issued within 21 days of filing electronically or 6–8 weeks if filed by mail. To receive your refund, you’ll need to:
- Provide valid banking information for direct deposit or a U.S. mailing address for checks
- Ensure all personal identification, including your Taxpayer Identification Number, is correct
Use the IRS refund tracking tool online to monitor the status of your refund after you file.
What to Do If You Don’t Receive a Refund
If your refund is delayed or not issued, there may be several causes:
- Errors in your tax return
- Mismatched personal identification information
- IRS processing delays
Contact the IRS or review your filing confirmation to identify the issue. If necessary, submit an amended return using Form 1040-X to correct mistakes.
Dealing with Tax Notices or Penalties
Receiving a notice from the IRS can be alarming, but most issues can be resolved calmly and systematically. Here are steps to take if you’re notified about a tax issue:
Common Reasons for Notices
- Incorrect form filed
- Missing information
- Mismatched income reporting
- Misapplication of treaty benefits
How to Respond
Read the notice carefully and follow the instructions. In most cases, the IRS will specify the issue and what documents or corrections are needed. Respond within the timeframe given in the notice to avoid additional penalties.
If you’re unsure how to proceed, contact a qualified tax advisor who understands nonresident returns and international student cases.
Immigration Consequences of Non-Compliance
Tax compliance is a legal requirement that can have implications beyond financial penalties. For international students, tax issues can affect immigration benefits, visa renewals, and green card applications.
Tax Compliance and Visa Applications
U.S. Citizenship and Immigration Services may require proof of tax filing history when reviewing applications for changes in immigration status. Failure to file required forms may lead to denial of future benefits.
Filing History for Green Card Applicants
When applying for a green card, you will be asked to submit tax returns as part of the application process. Having incomplete or inaccurate tax records may raise red flags and slow down or jeopardize your application.
Maintaining a complete and accurate filing history shows good moral character and adherence to U.S. laws.
Best Practices to Stay Compliant
International students can avoid problems by following best practices and planning ahead each year.
Keep Records Year-Round
Save all tax-related documents, including:
- Forms W-2, 1099, and 1042-S
- Copies of Form 8843 and Form 1040-NR
- Any correspondence with the IRS
- Travel records to track U.S. presence
Organizing your documents will make filing easier and provide proof if issues arise later.
Track Your Tax Residency Status
Residency status can change over time. Know how many years you’ve been in the U.S. on your current visa and recalculate your Substantial Presence Test status every year.
Being aware of when you shift from nonresident to resident for tax purposes ensures you file the correct forms and avoid confusion.
Use Accurate U.S. Source Income Definitions
Only income from U.S. sources is taxable under U.S. law for nonresidents. However, it’s essential to understand what qualifies as U.S.-source income:
- Employment within the U.S.
- Internships with U.S. companies
- Scholarships or fellowships provided by U.S. institutions
- Bank interest in some cases (though often not taxable)
Foreign income is generally not taxed, but students should be sure to document its source clearly.
Understand When to File an Extension
If you cannot complete your tax return by April 15, submit Form 4868 for an automatic extension until August 15. However, this only extends your filing deadline—not your payment deadline. If you owe taxes, you must pay them by April 15 to avoid penalties.
Double-Check for State Tax Obligations
Even if you fulfill your federal requirements, many states have their own tax systems. Depending on where you live and work, you may be required to:
- File a state income tax return
- Pay additional taxes or claim state-specific deductions
Check your state’s Department of Revenue website for accurate information and deadlines.
Refile or Amend Your Return if Necessary
Mistakes happen. If you discover an error after filing your return, you can submit an amended return using Form 1040-X. Amending your return promptly can prevent penalties and clarify your record with the IRS.
Always review your return before submitting it, and consider consulting an expert familiar with international tax law if you’re uncertain.
Annual Checklist for Tax Season
To keep yourself organized, use this checklist every tax season:
- Confirm your residency status
- Collect all income documents
- Prepare Form 8843
- Complete Form 1040-NR if you earned income
- Review your eligibility for tax treaty benefits
- Check your state filing requirements
- Submit forms by April 15 or file Form 4868
- Save all records for future reference
Following a consistent process each year can help eliminate confusion and ensure full compliance with IRS regulations.
Conclusion
Navigating the U.S. tax system as an international student can feel overwhelming, especially when you’re balancing studies, work, and adapting to a new environment. Yet, understanding and fulfilling your tax obligations is not just a legal responsibility, it’s an essential part of maintaining your status, maximizing potential refunds, and avoiding unnecessary complications in the future.
Throughout this series, we’ve walked through the fundamentals of how the U.S. tax system works, identified who must file and which forms are required, and provided a step-by-step guide to preparing and submitting your tax return. We’ve also examined common filing errors, how to handle refund claims, what to do if you receive a notice from the IRS, and how to stay compliant year after year.
Whether you’re filing a tax return for the first time or you’re approaching your final year in the U.S., staying informed is the most powerful tool you have. Pay close attention to deadlines, understand your residency status, and keep all your tax documents organized and up to date. If your situation becomes complex, don’t hesitate to seek guidance from resources that specialize in international tax matters.
Filing taxes might not be the most exciting part of your journey in the U.S., but doing it correctly protects your financial future and supports your long-term goals, including staying eligible for visa renewals, future employment, or permanent residency. By approaching tax season with clarity and preparation, you’ll gain confidence in meeting your responsibilities and possibly even enjoy the reward of a refund at the end.