Tax Deductions Explained for International Students in the U.S. — What Applies and What Doesn’t
📅 February 5, 2025 – ⏱ 5 minute read
💡 Did you know that as an international student in the U.S., you may be entitled to a tax refund?
If you’re studying on an F-1, J-1, M-1, or Q visa, chances are you’ve earned income through on-campus work, OPT/CPT, or practical training. And yes — this means you may have paid federal and state taxes.
But here’s the good news: under certain conditions, you can get part or even all of that money back. 💵
This guide will explain how international students can maximize their U.S. tax refund and stay fully compliant with the IRS.
📚 Table of Contents
1️⃣ Do international students have to pay taxes?
2️⃣ Do international students need to file a tax return?
3️⃣ Can international students deduct expenses?
4️⃣ How to claim tax treaty benefits
5️⃣ Can students get a refund on tuition?
6️⃣ Are international students due a tax refund?
7️⃣ How much can I get back?
8️⃣ Social Security and Medicare (FICA) refunds
9️⃣ How to file your tax return correctly
1️⃣ 💵 Do International Students Have to Pay Taxes?
Yes. Many international students believe that their student status exempts them from paying taxes — but that’s a myth.
According to U.S. tax law (IRS Publication 519), nonresident aliens are taxed only on U.S.-source income — meaning any income earned while in the United States.
This includes:
Wages and tips
On-campus or OPT/CPT income
Scholarship or fellowship grants
Dividends or investment income
As a nonresident, you must file Form 1040-NR (U.S. Nonresident Alien Income Tax Return) to report and calculate your federal income tax.
📌 Note: Most nonresidents cannot claim the standard deduction that U.S. residents receive.
2️⃣ 🧾 Do International Students Need to File a Tax Return?
Yes.
If you earned any income in the U.S., you are required to file a federal tax return — even if taxes were already withheld from your pay.
Even if you didn’t work or earn money, you must still submit Form 8843 to maintain your visa compliance.
👉 Scholarships and fellowships are taxable for nonresident aliens, unless exempted under a tax treaty.
3️⃣ 📚 Can International Students Deduct Expenses?
Generally, you can’t deduct personal or living expenses, unless the U.S. tax code specifically allows it.
However, you may be able to deduct qualified educational expenses, such as:
Tuition and academic fees
Books and supplies required for your program
Equipment directly related to your studies
These deductions apply if you are a degree candidate or at least a half-time student.
4️⃣ 🌍 Take Advantage of a Tax Treaty
One of the best ways to reduce or eliminate U.S. income tax is through a tax treaty between your home country and the United States.
More than 65 countries have tax treaties with the U.S., and most include special benefits for students, trainees, and researchers.
If you qualify, a treaty can allow you to:
✅ Exclude a portion (or all) of your U.S. income from federal tax
✅ Reduce the amount withheld from your paycheck
✅ Avoid double taxation on the same income
5️⃣ 🎓 Can International Students Get a Refund on Tuition?
Unfortunately, no — most international students are not eligible for tuition-based education tax credits.
While your school may send you a Form 1098-T (Tuition Statement), this form is intended for U.S. citizens and residents who qualify for education credits like:
The American Opportunity Tax Credit (AOTC), or
The Lifetime Learning Credit (LLC)
If you include Form 1098-T on your return as a nonresident, your filing will be incorrect and noncompliant with IRS rules.
6️⃣ 💰 Are International Students Due a Tax Refund?
You could be!
If the tax withheld from your paychecks or stipends during the year was more than your total tax liability, you’ll receive a refund.
If too little was withheld, you’ll owe the difference.
Remember that each state has its own tax rules — so you may need to file both federal and state returns, even if one refund is smaller than the other.
7️⃣ 💵 How Much Tax Refund Can an International Student Get?
The amount of your refund depends on several factors:
How much you earned
How much was withheld in taxes
Your eligibility for a tax treaty benefit
Whether you had any deductions
💡 Many international students are eligible for hundreds of dollars in refunds.
If your employer withheld taxes based on the wrong tax status (for example, as a resident instead of a nonresident), you might be entitled to a larger refund once you correct it on your tax return.
8️⃣ 🧮 Social Security and Medicare (FICA) Refunds
Most F-1 and J-1 students are exempt from FICA taxes (Social Security and Medicare) for their first five years in the U.S.
However, some employers mistakenly withhold these taxes from nonresident pay.
If this happened to you:
1️⃣ Ask your employer for a refund.
2️⃣ If they cannot process it, you can file a claim directly with the IRS for your FICA refund.
This refund can amount to hundreds of dollars, depending on how much was withheld.
9️⃣ 🧾 How to Prepare and File Your Tax Return
To file your U.S. taxes correctly as an international student, you’ll need:
Form 1040-NR (Federal Return)
Form 8843 (for all F, J, M, or Q visa holders)
Any income forms you received (W-2, 1042-S, 1099, etc.)
Your SSN or ITIN
📅 The 2024 tax year deadline is April 15, 2025.
If you had no income, the deadline to file Form 8843 is June 15, 2025.
🎯 Final Thoughts
Getting a full tax refund as an international student is all about understanding your rights and responsibilities.
✅ Check if your country has a tax treaty.
✅ File correctly and on time.
✅ Review your pay stubs for FICA errors.
✅ Keep copies of all your tax forms.
With the right approach, you can stay compliant, avoid penalties — and maybe even enjoy a bigger refund than expected! 💸✨