U.S. Taxes Explained for International Students: What You Need to Know (But No One Told You)
đ February 19, 2025 â âą 10 minute read
đĄ There are 1.1M+ international students in the U.S.âand every single one has tax obligations. If the rules feel confusing, youâre not alone. This friendly FAQ clears up the biggest questions fast so you can stay compliant, protect your future visa plans, and (hopefully) get money back. đđ¸
đ§ Table of Contents
What is the IRS?
How does the U.S. tax system work?
What income is taxable for international students?
What counts as âU.S.-sourceâ income?
What is a tax return (Form 1040-NR)?
Do international students have to file? What if I had no income?
What is tax residency status?
What is the Substantial Presence Test (SPT)?
Which forms do I file (1040-NR, 8843, W-2, 1042-S, 1099)?
What numbers/forms do I need (SSN, ITIN)?
How do I file (federal & state)?
Key deadlines & extensions
Exemptions, deductions & education credits
FICA (Social Security & Medicare)
Capital gains & other special items
What if I used the wrong form last year?
Can I get a refund?
Quick checklist to finish strong
1) đ What is the IRS?
The Internal Revenue Service (IRS) collects federal taxes and enforces tax law. It handles individual, employment, corporate, estate, gift, and excise taxes.
2) 𧞠How Does the U.S. Tax System Work?
Taxes are collected at federal and often state levels. Employers withhold tax from your paychecks and send you year-end forms (like W-2) each January summarizing what you earned and what was withheld.
3) đź What Income Is Taxable for International Students?
If youâre a nonresident for tax purposes, you typically pay U.S. tax only on U.S.-source income, such as:
Wages/salaries/tips
Some scholarships/fellowships (e.g., stipends or living allowances)
Interest/dividends (sometimes)
Prizes/awards
4) đ What Counts as âU.S.-Sourceâ Income?
Income earned from U.S. activities or payersâe.g., wages from a U.S. job, taxable scholarships from a U.S. institution, or certain U.S. bank/investment income.
5) đ What Is a Tax Return (Form 1040-NR)?
Your federal tax return reports all your U.S. income, tax withheld, and any refund or balance due. Form 1040-NR is the federal return for nonresident aliens. If you overpaid, you get a refund; if you underpaid, you pay the difference.
6) â Do International Students Have to File? What If I Had No Income?
Had U.S. income â file Form 1040-NR (and often a state return).
No U.S. income â still file Form 8843 (documents visa-based exemption days).
Everyone in F/J/M/Q status present in the U.S. during the year must file 8843.
7) đ§ What Is Tax Residency Status?
Youâre either a resident or nonresident for tax purposes (this is not immigration status). Most F-1 students are nonresidents for their first 5 calendar years; most J-1 students/scholars are nonresidents for 2 calendar years. After that, the SPT may make you a resident for tax purposes.
8) đ What Is the Substantial Presence Test (SPT)?
Youâre a resident for tax purposes if youâre physically in the U.S. for:
31+ days in the current year and
183 âweightedâ days over the current year + prior 2 years (all days this year + 1/3 of last yearâs + 1/6 of the year before).
Exempt individuals (e.g., most F/J students early on) donât count certain daysâhence Form 8843.
Example: 120 days in 2022, 2023, 2024 â 2024 total = 120 + 40 + 20 = 180 â not a resident by SPT.
9) đŹ Which Forms Do I File?
Form 1040-NR â nonresident federal return
Form 8843 â visa-based exemption statement (file even with no income)
Form W-2 â wages & tax withheld (from employer; due to you by Jan 31)
Form 1042-S â scholarships/treaty-exempt income (often arrives by Mar 15)
Form 1099 â investment/other income (may arrive by Jan 31)
10) đ˘ SSN vs. ITINâWhich Do I Need?
SSN: for authorized employment.
ITIN: for those who need to file but arenât eligible for an SSN. Apply with Form W-7.
No income & filing 8843 only â ITIN not required.
11) đ§ How Do I File (Federal & State)?
Federal: file 1040-NR (plus 8843 if applicable).
State: many states also require a return if you worked/lived there.
States without a wage income tax: AK, FL, NV, SD, TX, WA, WY; NH & TN generally tax investment income (not wages).
You can e-file 1040-NR (if eligible) or mail paper forms.
12) â° Key Deadlines & Extensions
2024 federal & most state returns (with income): April 15, 2025
8843 only (no income): June 15, 2025
Need more time? File Form 4868 by April 15 for an automatic 6-month filing extension (to October 15, 2025).
â ď¸ Extension to file, not to payâpay any estimated tax by April 15 to avoid penalties/interest.
13) 𧞠Exemptions, Deductions & Education Credits
Standard deduction: nonresidents cannot claim itâexcept certain Indian students/apprentices (Article 21(2) of the India-U.S. treaty).
SALT deduction (state & local taxes) may be itemized on Schedule A (1040-NR); overall SALT cap $10,000.
Education credits (AOTC/LLC) & Form 1098-T: generally not available to nonresidentsâdonât include 1098-T on 1040-NR.
Personal exemption: $0 (since 2018 through 2025 under current law).
14) 𧎠FICA (Social Security & Medicare)
Most F-1 students are exempt from FICA on authorized employment for their first 5 years in the U.S.
If FICA was withheld by mistake:
Ask your employer for a refund;
If not fixed, claim via Form 843 with required attachments.
15) đ Capital Gains & Other Special Items
If youâre a nonresident present 183+ days in a year and intended to stay >1 year at arrival, capital gains may be taxed at 30% (or treaty rate). Some treaties reduce this. Report on the flat-tax section of 1040-NR.
16) 𧯠What If I Filed the Wrong Form Last Year?
Filed 1040 (resident) by mistake instead of 1040-NR (nonresident)? Fix it with an amended return (Form 1040-X). Correcting now helps avoid IRS and immigration issues later.
17) đ¸ Can International Students Get a Refund?
Yesâif too much was withheld or a treaty applies. Refund size depends on income, withholding, treaty benefits, and your stateâs rules. Direct deposit to a U.S. bank account is usually fastest.
18) â Quick Checklist
Determine tax residency (SPT/exempt years)
Gather W-2/1042-S/1099, I-20/DS-2019, SSN/ITIN, travel dates
Prepare 1040-NR (+ state if needed)
File 8843 (everyone in F/J/M/Q present in the U.S.)
E-file if eligible / mail otherwise
Choose direct deposit to a U.S. account
If late, file nowâpenalties are lower when you act fast
đŻ Want it done right and fast? J1 Summer Tax Back determines your status, applies treaty benefits, prepares compliant 1040-NR + state + 8843, fixes FICA mistakes, and helps you e-file when eligibleâso you keep more of your money and your plans on track.