Tax filing for international students
Most international students are non-residents for their first five years — and most filing software silently files them as residents, which is wrong.
You are in the right place if…
F-1 and J-1 students
With or without income, you almost certainly have a filing obligation.
Students on OPT or CPT
Employment income, and the FICA question nobody explains.
Recent graduates changing status
The year you move from F-1 to H-1B is the complicated one.
Everything in the fee
- Non-resident return preparation1040-NR
- Statement for exempt individuals8843
- Tax treaty benefit claims8833
- Scholarship and fellowship income1042-S
- FICA refund claims843
- State non-resident returnsState
- ITIN applicationsW-7
- Residency change year returnsDual-status
Form 8843 is due even with no income
F-1 and J-1 students are treated as exempt individuals for the substantial presence test, generally for their first five calendar years. That exemption is not automatic — it is claimed on Form 8843, which is due even if you earned nothing at all during the year. A great many students never file it and do not discover the problem until they apply for a green card.
You should not be paying FICA on OPT
Students working on F-1 OPT are generally exempt from Social Security and Medicare withholding while they remain non-residents. Employers get this wrong regularly. If FICA was withheld in error, it can be reclaimed — first from the employer, and failing that from the IRS directly.
Treaty benefits are worth checking
Many countries have treaties with the U.S. that exempt a portion of student income from federal tax. India, China and several others have provisions that are frequently missed because consumer filing software does not ask.
Do not use consumer filing software
The major DIY products file resident returns. If you are a non-resident and file as a resident, you have claimed deductions and credits you were not entitled to — and that has to be unwound later, usually at a worse moment.