Tax Return Guide for International Students in the US

Navigating the US tax system can be daunting, especially for international students. This guide aims to provide a comprehensive overview of tax obligations, forms, and resources available to help international students fulfill their tax responsibilities. This article is intended as an overview and is not a substitute for tax or legal advice from a professional. Students should reach out to a tax professional or the relevant resources provided by their university with specific questions that relate to their tax status or any other personal tax or legal matter.

Overview of the American Tax System

Most people with earned income in the United States pay taxes on each paycheck they receive, F-1 students included. If you earn money in the United States, you must pay a certain percentage of that money in taxes. You pay taxes to the federal government, and you pay taxes to the state government in the state in which you reside. Tax returns detailing your income are usually due in April each year. After you file your tax returns, the revenue departments at each level reconcile the amount of income taxes you owe against the amount you have already paid throughout the year. If you have paid more taxes than you owe, you are eligible for a refund. If you have paid less money in taxes than you owe, you are responsible to pay the difference.

General Tax Questions for International Students

Do I Need to Meet with the Tax Department?

If you are an international student or scholar receiving payment from the university (salary, stipend, fellowship, prize, etc.), you need to meet with the Tax Department. Payments to individuals who are not US citizens or permanent residents are subject to special rules. You will likely be asked to complete the Sprintax Calculus NRA Tax Compliance paperwork.

Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

An international student or scholar can obtain an SSN if employed on campus. Once you have an offer letter from your department, go to your International Services Office advisor for a SSN eligibility letter. The student then will go to the Social Security Administration at 2100 M Street near campus to apply.

International students can apply for an ITIN by submitting Form W-7 (PDF) with their annual tax return. Instructions to Form W-7 (PDF) should be consulted.

The Tax Department plays no role in obtaining an SSN or ITIN; however, the student should report it when received, so that tax forms can be updated and tax treaty eligibility can be determined if applicable.

What To Do After Receiving an SSN or ITIN

Please update your SSN at the Center for Career Services located at the Marvin Center first and then contact the Tax Department. The Tax Department will then update and send the applicable tax forms.

Understanding Tax Treaties

Tax treaties with the US can exempt certain amounts and types of income from US taxation. Treaties vary by country, so if you are receiving income from GW, then meet with the Tax Department to determine eligibility. Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from the US. Income taxes on certain items of income they receive from sources within the states. In certain cases, F-1 students could be able to claim a tax treaty which can reduce or fully exempt their income from taxes. This assumes that such capital gains are not effectively connected with the conduct of a US trade or business.

FICA Taxes and Exemptions

International students are exempt from FICA taxes for the first 5 years on an F-1 visa. F-1 students who have been in the US greater than 5 years may still be exempt if registered for at least half time during a semester, which is administered by Payroll Services. You must complete your tax forms through the Tax Department so that the FICA exemption is applied appropriately. The Internal Revenue Code grants an exemption from social security and Medicare taxes to nonimmigrant students in F-1 status. Most F-1 students are not required to pay FICA tax. If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. You can apply for your FICA refund directly with the IRS. A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or that you authorized your employer to claim. File Form 843 (with attachments) with the IRS office where your employer’s Forms 941 returns were filed.

International students working off campus under CPT or OPT may still be eligible for a FICA exemption if considered a nonresident alien (generally first 5 years under F-1) for tax purposes. Please see Refund of Social Security and Medicare Taxes for more information. Note that the Tax Department cannot fill in the forms for you or review the forms provided at the link.

State Tax Withholding Forms

Please refer to the general instructions (PDF) on how to complete your state tax withholding forms. The Tax Department cannot complete or review your forms. You are solely responsible for the proper completion of the tax forms.

Standard Tax Rates for Non-Salary Payments

Stipend and fellowship payments to those on F or J visas are subject to 14% federal tax withholding. For anybody on a different type of visa, the standard rate is 30% federal tax withholding.

Prize and award payments are subject to 30% federal tax withholding.

Payments may be eligible for treaty relief. In addition, payments to those that are considered resident aliens (generally an F-1 student who has been in the US longer than 5 years) may not be subject to the 14% or 30% direct tax withholding requirement.

Tax Return Questions for Nonresident Aliens

Federal Income Tax Returns

If you have earned income in a given year, then you will be required to file the below income tax forms:

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Form 1040NR
Form 1040NR instructions
Form 8843 and instructions

If you are a nonresident alien and did not earn income last year, then the only form that you are required to file is Form 8843 and instructions. According to the Internal Revenue Service (IRS), 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. According to the IRS, Form 8843 is used by “alien individuals” to explain the basis of [a] claim that [one] can exclude days present in the United States for purposes of the substantial presence test because [they] were: An exempt individual Unable to leave the United States because of a medical condition or medical problem. Think of Form 8843 as a declaration of the time you were studying and not working in the United States.

State Income Tax Forms

Generally if you lived in DC, MD, or VA for the full year, then you would file the below income tax forms:

DC Form D-40 and instructions
MD Form 502 and instructions
VA Form 760 and instructions

If you moved states, read the state form instructions for the relevant states to determine residency and the proper form, as some states have part-year forms. If you lived in a state other than DC, MD, or VA and earned income there, then you may have a filing requirement. After you finish your federal return, Sprintax will inform you if you need to complete a state tax return. If so, you will have the option to use Sprintax for an additional fee. Some students and scholars must also file a state and/or municipal (local) tax form. Sprintax will help determine your State residence status.

Filing Deadline

April 15th of each year.

What if I Filed the Wrong Income Tax Returns in a Previous Year?

If you find out now that in a past tax year you filed the wrong income tax return form, you should correct the previously filed tax return by filing an amended tax return. Be sure to also get the instructions for the preparation of that year’s forms as the tax rates and exemption amounts are different for each tax year. in F or J student/scholar status, you may file retroactively for each year the form was not filed. Simply include a separate Form 8843 for each year that was missed. This means that your available income may be reduced by tax withholdings. When you file your annual tax return in April for the preceding year, you will use a tax software to calculate the exact amount of your tax liability for that calendar year based on your total income and other personal circumstances. Your actual tax liability will be compared to the amount that you had paid so far.

Tax Filing Status

The tax year is from January 1 to December 31 of any given year. This status is only a tax filing status and does not mean that you are a resident for immigration or other purposes. It is important to file in the correct status. The guidelines below are general guidelines only. If you are still not certain, you should create a Sprintax account as described in our Sprintax page. This software will help you prepare your federal tax return. For an additional fee, Sprintax can assist you in preparing your state income tax return.

Key Tax Concepts for International Students

Nonresident Alien Status

Generally, most international students & scholars who are on F, J, M or Q visas are considered nonresidents for tax purposes. As a nonresident for tax purposes, you only pay tax earned on income in the US. The best way to determine if you are a non-resident in the United States for tax purposes is to follow the guidelines set forth by the IRS. According to the IRS, you are considered a non-resident of the United States for US tax purposes unless you satisfy the qualifications of either the green card test or the substantial presence test. There are exceptions to the rules as well, according to the IRS, and - to make it even more confusing - you can be both a non-resident and a resident for US tax purposes within the same year, which requires a dual-status income tax return. Some of the IRS-approved exceptions include the following: First-year choice to be treated as a resident Non-resident spouse treated as a resident Closer connection to a foreign country Tax treaties. If you are unclear about your residency status for tax purposes because of one of the above reasons, it is best to reach out to visa assistance services or a tax professional.

Substantial Presence Test

The IRS uses the substantial presence test to determine whether an individual who is not a US citizen or a US permanent resident should be taxed as a resident or a nonresident alien for a specific year. If you do not pass the substantial presence test you will be classified as a nonresident alien for tax purposes. This means you will only be taxed on US-sourced income. However, some can be considered ‘residents’ or ‘resident aliens’. This does not mean that the student is a resident - it is only a tax filing status.

Source of Income

Sourcing your income is important and can save you from unnecessary tariffs or taxes on your money. A US citizen is subject to worldwide taxation, no matter where that money came from; however, a citizen of a different country only has to pay US taxes on income from sources within the United States. To determine where you made your income and if you are subject to US taxes, it’s important to consider the same factors determining the source of income that the US government uses to ensure compliance. For the most part, however, the important things to remember deal with location: Where did you perform the services for which you were paid? Where is your residence? Where is the address of the payer of a scholarship, grant, or fellowship?

F-1 Visa

The F-1 visa is a non-immigrant visa for those wishing to study in the US. Most F-1 students are considered nonresident aliens by the IRS. Filing taxes as an international student is required for all F-1 visa holders, even if you decide not to work while pursuing your education.

Federal Income Tax

Federal income tax is the tax 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.

State Income Tax

Most states in the US will collect state income tax in addition to federal income tax. Tax rates and deductions will differ for each individual state in the US, so the amount you will pay will depend on where you are. Nine states don’t have any tax-filing requirements. You may also be required to file a state tax return, depending on the state.

OPT and CPT

OPT is a program that allows international students to work in the US after their graduation and gain practical experience. CPT is an excellent option for students currently in the process of earning a degree. While pre-completion OPT is available, OPT is better known for post-graduate opportunities in the United States and even offers a 24-month STEM extension to continue working and earning in the US. Yes - students with an F-1 visa that are on CPT will not be exempt from Federal Taxes.

Tax Treaties

The US has income tax treaties with 65 countries. International students can also benefit from a tax treaty with their home country. Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from the US. Income taxes on certain items of income they receive from sources within the states. If you are eligible for tax reduction, credit, or exemption under tax treaty regulations, you are required to fill out a Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) to your employer.

Tax Return

Filing taxes as an international student is required for all F-1 visa holders, even if you decide not to work while pursuing your education.

Essential Tax Forms for International Students

Form 8843

If you did not earn any income, you should still file Form 8843 before July 15. The instructions for completing form 8843 can be found on page 3 and 4 of IRS form 8843 . Even if you have dependents, everyone must submit their own 8843 in a separate envelope.

Form W-2

The first thing you will need is your W-2 form, officially known as a “Wage and Tax Statement”. This is an IRS tax form used to report wages paid to employees and the taxes withheld. You’ll need your W2 to file your tax return and your employer should give it to you at the end of January. YES! employer you should have received Form W-2, Wage and Tax Statement that summarizes your previous year’s income and taxes withheld. W-2 documents are sent by the end of January. If you have worked for compensation and not yet received your W-2, please contact your Human Resources department. If you had more than one employer you should get a W-2 from each employer. It is issued by the end of January for the previous year.

Form 1042-S

Note: Only Nonresident Aliens receive this form. If your tax status changes to a Resident Alien you will not get a 1042-S.

Form 1099

This form reports miscellaneous income.

Form 1098-T

Many US nonresidents are unsure if they need to file Form 1098-T (Tuition Statement). This is for US nationals and residents only to figure out any educational credits - these credits are not available to nonresidents.

Form 1040-NR

Non-resident income earners turn in their Form 1040-NR when filing their tax returns.

Form W-4

Students who hold employment or internships through Optional Practical Training (OPT) most likely also fill out a W-4, especially if they are also getting paid. A W-4 is the tax form new employees fill out when they are first hired at a company, nonprofit organization, government agency, or other institution in the United States.

Form 8233

If you qualify for tax treaty benefits and plan to claim them, you may need a Form 8233, exemption from withholding compensation for independent (and specific dependent) personal services of a non-resident alien individual.

Form W8-BEN

If you are eligible for tax reduction, credit, or exemption under tax treaty regulations, you are required to fill out a Form W8-BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals) to your employer.

Form 1040(s)

It is the main form when filing taxes and reporting income.

Steps to Filing Your Tax Return

Gather Necessary Documents: Collect all necessary documents, including your W-2 form, 1042-S, and any other relevant income statements.
Determine Your Residency Status: Determine your residency status for tax purposes by using the guidelines provided by the IRS.
Complete Required Forms: Fill out the necessary federal and state tax forms.
File Your Tax Return: File your tax return before the deadline. You can file your tax return yourself directly with the IRS.

Resources for International Students

University Tax Departments

Payments to individuals who are not US citizens or permanent residents are subject to special rules. You will likely be asked to complete the Sprintax Calculus NRA Tax Compliance paperwork with us. Contact the Tax Department. The Tax Department will then update and send the applicable tax forms.

Sprintax

This software will help you prepare your federal tax return. For an additional fee, Sprintax can assist you in preparing your state income tax return. Sprintax is the easy way to find out if you’re due a tax refund. YES! Sprintax supports e-filing of nonresident federal tax returns.

IRS Resources

The IRS acknowledges that tax code is complex, and that people can make mistakes with their documents.

Shorelight advisor

If you are looking for more information about filing your US tax return as an international student, a Shorelight advisor can point you to additional resources or help you find a tax professional to address your personal tax needs.

Common Mistakes to Avoid

Filing as a Resident When You're a Nonresident

If you do use TurboTax to file your US taxes, you will be filing as a resident.

Not Filing Form 8843

Even if you did not earn any income, you should still file Form 8843 before July 15.

Missing the Filing Deadline

Taxes are due every year in April, usually April 15th.

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