Nonresident Taxes Explained for International Students

Nonresident Taxes Explained for International Students

You came to the U.S. to study and explore—not to decode tax jargon. In this quick workshop-style guide, we walk you through every step international students actually need, in plain English, so you can file correctly, claim refunds faster, and stay fully compliant with J1 Summer Tax Back.

What you’ll learn

  • Whether you are a nonresident for tax purposes (and why that’s different from your visa)
  • Which forms apply: Form 8843, Form 1040‑NR, W‑2, 1042‑S, 1099
  • State tax basics and multi‑state situations
  • FICA (Social Security & Medicare) rules and potential refunds
  • The documents you need before you start
  • Refund timelines, myths, and how to avoid scams
  • What to do if you didn’t file or misfiled in a prior year

CTA: Ready to file the right way? Start with J1 Summer Tax Back and get step‑by‑step guidance tailored to nonresidents.

1) Using J1 Summer Tax Back to prepare your Federal & State returns

How it works
We ask you simple questions about your visa, days in the U.S., and income documents. Based on your answers, we determine your tax residency for the year and prepare the correct nonresident forms for you.

Residency status (tax)
We check your visa type and your physical presence in the U.S. to confirm nonresident status under the Substantial Presence Test rules. Many F‑1/J‑1 students are nonresidents for their first years in the U.S.

Income entry made easy
Enter your W‑2, 1042‑S, and 1099 information exactly as shown on your forms. Our screens mirror the paper layout to reduce errors. If you received income that wasn’t reported on one of those forms, you can add it as miscellaneous income.

State filing
We automatically carry federal data to determine if you must file a state return (including part‑year or nonresident state filings). If required, we prepare the relevant state forms.

Download & file
When finished, download your PDF return package with signatures and mailing instructions for the IRS and any state(s). Keep a copy for your records.

Live support
Questions about your situation? Use our chat inside J1 Summer Tax Back—available throughout the filing season.

2) Tax overview for nonresidents

  • Everyone’s situation is unique. Don’t copy a friend’s return—your visa dates, income types, and state presence are different.
  • Income triggers filing. If you earned U.S.-sourced income (wages, scholarship subject to tax, stipend, royalties, investment income, etc.), you generally must file a Form 1040‑NR.
  • No U.S. income? You still file Form 8843 to confirm your presence and visa status for the year.
  • Tax deadline: The federal deadline typically falls in mid‑April (exact date varies by year). Avoid last‑minute stress—prepare early with J1 Summer Tax Back.

Non‑taxable items (do not by themselves trigger a U.S. filing requirement):

  • Scholarships that directly pay tuition and qualified education expenses
  • Funds from abroad (e.g., family support, grants paid by non‑U.S. sources)
  • Income you earned outside the U.S. (may be taxable in your home country)
  • Interest from a basic U.S. bank account
  • Genuine gifts you receive (the giver may have their own U.S. rules if large, but you as recipient typically do not owe income tax)

3) Forms & definitions you’ll see

Income documents

  • W‑2 – Reports wages/salary from employment.
  • 1042‑S – Reports taxable scholarship/stipend/royalty/award paid to a nonresident. You might receive multiple 1042‑S forms.
  • 1099 series – Reports other income (e.g., interest over certain thresholds, dividends, contract payments, some prizes/awards, rent, royalties).

Your nonresident return

  • Form 1040‑NR – U.S. Nonresident Alien Income Tax Return (the nonresident version of Form 1040).
  • State returns – Each state has its own rules and forms. If you had state tax withheld or earned income in a state, a state filing may be required. J1 Summer Tax Back determines this for you and prepares the correct package.

FICA (Social Security & Medicare)

  • Nonresidents on F‑1 or J‑1 are generally exempt from FICA taxes while they remain nonresidents.
  • Once you become a resident for tax purposes (or if you work under certain other statuses like H‑1B or J‑2), FICA usually applies and is not refundable.
  • If FICA was withheld in error while you were a nonresident student, you may be able to claim a refund. We guide you through the steps.

ITIN (Individual Taxpayer Identification Number)

  • You need an SSN or ITIN to file a tax return with income.
  • If you only file Form 8843 (no U.S. income), an SSN/ITIN is not required.
  • If you have taxable income but are not eligible for an SSN (e.g., certain stipend recipients), J1 Summer Tax Back can help prepare your ITIN application.

1098‑T (Tuition Statement)
Primarily used by U.S. residents to claim education credits. Nonresidents generally cannot use 1098‑T to claim those credits on 1040‑NR.

1095‑A/B/C (Health coverage forms)
Proof of health insurance. For nonresidents, these forms are not required for filing your nonresident return.

4) Spouse & children (Form 8843 included)

  • Nonresident spouses (e.g., on J‑2 or F‑2) do not file jointly with a nonresident taxpayer. Each spouse has a separate filing obligation based on their own income and status.
  • A nonresident spouse with income files Form 1040‑NR; without income, they typically file Form 8843.
  • Children present in the U.S. also file Form 8843, regardless of age, if they meet the exempt‑individual criteria (such as certain F/J visas).

5) State taxes (including New York notes)

  • You can be a resident, part‑year resident, or nonresident for state purposes—rules vary by state.
  • Study in one state but intern or work OPT/CPT in another? You may have to file multiple state returns.
  • New York State has distinctive residency rules; many undergraduates on F/J visas are treated as nonresidents, while graduate students/researchers may need additional tests (housing, time in NY, lease terms, etc.) to determine status.
  • If you paid state taxes, you might be due a state refund—but only if you file. J1 Summer Tax Back checks your state obligations and estimates any refund.

6) What you need before you start

  • Passport or government photo ID
  • U.S. entry/exit dates (I‑94 travel history + passport stamps)
  • All income forms: W‑2, 1042‑S, 1099 (if received)
  • Visa/immigration info: I‑20 (F) or DS‑2019 (J)
  • SSN or ITIN (if filing a tax return with income)

Nice‑to‑have for a smooth session: a comfortable chair, a clear desk, and your favorite coffee or chocolate.

7) Refund timelines (what to expect)

  • Many nonresidents receive federal refunds within several weeks after the IRS receives a mailed return; timelines vary by season and return type.
  • Returns mailed early in the season often process faster than those mailed in the April rush.
  • Returns including 1042‑S income can take longer.
  • Check the IRS “Where’s My Refund?” tool after a few weeks to confirm receipt and track progress. If nothing changes after ~8–10 weeks, consider calling the IRS.

8) Myths & scams to avoid

Myths

  • “No job = no filing.” → False. File Form 8843 if you had no U.S. income.
  • “I’m not from the U.S., so I don’t file.” → False. Nonresidents with U.S. income generally must file.
  • “Tax treaty = no filing.” → False. Treaties may reduce tax, but you still file to claim benefits properly.
  • “The IRS won’t notice.” → Dangerous. Non‑filing can create problems later.

Scams
Beware of calls/emails claiming you owe money and demanding urgent payment or threatening your visa. The IRS communicates by official letters and provides time to respond—never by threats. Report suspicious messages to your international office and the IRS.

Pro tips

  • Keep copies of everything you mail.
  • Use tracked mail to prove delivery.
  • Don’t copy a friend’s return—your facts differ.

9) If you don’t file

  • You could lose refunds you’re owed.
  • Future immigration applications may ask for proof of prior filings.
  • If you owe, penalties and interest can add up.
  • In deliberate fraud cases, immigration status can be affected.
    Bottom line: There’s no upside to not filing—only risk. Filing keeps you compliant and may put money back in your pocket.

10) Missed a year or filed the wrong way?

Don’t panic—fix it.

  • Amend with Form 1040‑X if you filed incorrectly (e.g., filed as a resident instead of nonresident). Column A = originally filed; Column B = corrected; Column C = difference.
  • Catch up on any missed years. Sometimes all you needed was Form 8843; in other cases, you’ll file 1040‑NR for the missing year. The sooner you correct, the sooner penalties stop and refunds (if any) can be released.
  • J1 Summer Tax Back supports prior‑year filings and can guide you through amendments.