International students who are not U.S. citizens are considered nonresidents, but they may be considered residents for tax purposes if they meet the green card test or the substantial presence test for the calendar year. In some scenarios, when a student arrives or departs from the United States within the calendar year, the student may be considered both a resident and a nonresident for tax purposes; in such cases, they are considered a dual-status alien.
The Substantial Presence Test Explained
The substantial presence test determines tax residency status based on days spent in the United States over three years. It uses a weighted formula counting current and prior days. Many students are exempt temporarily, depending on their visa category and individual circumstances.
To meet the IRS’s substantial presence test, an individual must be physically present in the United States on at least:
- 31 days during the current year, in addition to 183 days during the three-year period that includes the current year and the two years immediately prior, counting:
- All the days the individual was present in the current year,
- And 1/3 of the days the individual was present in the first year before the current year,
- And 1/6 of the days the individual was present in the second year before the current year.
Essential Documents for Filing Your Tax Return
To begin the filing process, international students need official documents for identification and income-related forms.
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
Along with a passport and immigration status documents, to comply with IRS identification requirements, report income, file taxes, and claim refunds, international students must have either a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).
Form W-2, 1042-S, and 1098-T
Students also need income-related documents. These tax forms should come from employers, scholarship sources, or your school — and enable you to report wages, scholarships, tuition payments, and withholding amounts.
Beginner’s Guide to Filing a Tax Return for International Students
Gather the necessary documents and follow these steps to help you navigate the U.S. income tax filing process:
Step 1: Determine Your Residency Status
Review your visa type and days in the U.S. (i.e., green card test and substantial presence test) to determine your residency status for tax purposes.
Step 2: Gather Necessary Documents
In addition to having a basic grasp of filing deadlines, residency rules, and the filing options available for international students, be sure to have your:
- Identification numbers
- Visa documents
- Income statements
- Tax documents (W-2, 1042-S, 1099, 1098-T, etc.)
- Prior tax returns
- Tuition statements
Step 3: Choose the Correct Tax Form
International students may need to file more than one form with the IRS and/or their state, depending on their income sources, deductions, and eligibility for treaty benefits. Typically, international students file at least one of these forms:
- IRS Form 1040 – Resident aliens file a 1040.
- IRS Form 1040-NR – Nonresident aliens still file a 1040-NR.
- IRS Form 8843 – Generally, F-1, J-1, M-1, and Q-1 visa holders must also file a Form 8843.
- IRS Form 8833 – Individuals claiming tax treaty benefits must file Form 8833.
Step 4: Fill Out Your Tax Return
Carefully complete your forms by accurately filling out personal information, details, income amounts, and applicable deductions. Follow the IRS’s instructions to minimize errors, prevent processing delays, and avoid penalties.
Step 5: Submit Your Tax Return
You may submit completed tax forms electronically or by mail. Be sure to make copies for yourself and submit forms before the deadlines.
Common Tax Deductions and Credits for International Students
When filing taxes, international students should be aware of potential deductions and credits for which they qualify. Additionally, depending on the state in which you are studying, you may also be responsible for filing a state or other local income tax return.
Educational Expenses
International students might qualify for some education-related deductions and credits. A student’s eligibility depends on their residency status, income type, visa classification, and tax treaty status. Typically, though, nonresident aliens do not qualify for education-related deductions or education-related tax benefits.
State Taxes and How They Affect You
State tax rules and regulations vary significantly across the United States. As a result, some international students may need to file state returns and pay local taxes.
Tax Treaties and Exemptions
Before filing an income tax return, be sure to research your country of residence to determine whether or not you may qualify for exemptions based on existing tax treaties with the U.S.
Understanding Tax Treaties Between Your Home Country and the U.S.
The U.S. has tax treaties with several foreign countries. These treaties exist to prevent double taxation while encouraging international education. In some cases, treaties might exempt certain types of income (like wages or scholarships) from U.S. taxes. Eligibility depends on the country, visa type, income category, and time limits.
For the most up-to-date information, go directly to the source by researching your home country on the IRS tax treaty page.
Claiming Tax Treaty Benefits on Your Return
To claim tax treaty benefits on an income tax return, international students must complete the appropriate IRS forms (usually Form 1040-NR and Form 8833).
Frequently Asked Questions
Do international students have to file taxes in the U.S.?
Many international students may be required to file tax forms in the United States, even if they do not have taxable income. Filing requirements depend on factors such as visa status, residency classification, and income sources.
What is the substantial presence test?
The substantial presence test is used to determine whether an individual qualifies as a resident for tax purposes based on the number of days spent in the United States over a three-year period.
Do international students have to pay state taxes?
Some international students may be required to file state tax returns, depending on the state in which they live and earn income. State tax rules vary, so it may be helpful to review local requirements.
Post University Welcomes International Students: Explore Your Opportunities for Education
If you are looking for an educational home away from home, explore the opportunities at Post University. Our International Admissions Office could help you choose the right program, prepare to meet admissions requirements, and understand international income tax filing. To learn more, peruse our website or contact the International Admissions Office today.
