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International Student Tax Division

F-1 & J-1 Visa
Tax Compliance Portal

The definitive, IRS-compliant guide for international students and scholars. Navigate residency status, tax treaties, and FICA refunds without the legal jargon.

✅ Updated for 2025 Filing ⚖️ Treaty Experts 🎓 10k+ Returns Filed

1. Determine Your Tax Status

Immigration status does not equal tax residency. Use this tool to see if you are a "Nonresident Alien" (Form 1040-NR) or a "Resident Alien" (Form 1040).

🤖 Residency Logic Engine

2. Which Forms Do You Need?

📄 Form 8843

The "Presence" Form.

  • Required for ALL F-1/J-1 nonresidents.
  • Must be filed even if you earned $0.
  • Deadline: June 15 (if no income), April 15 (if income).
  • Failure to file can impact future Green Card apps.

💵 Form 1040-NR

The "Income" Return.

  • Required if you had ANY U.S. source income (wages, taxable scholarships, crypto).
  • Replaces the standard 1040.
  • Cannot claim Standard Deduction (for most).
  • Cannot file Jointly (must file Married Filing Separately).

3. Understanding Income Types

Not all money is taxed the same way. The IRS categorizes international student income into two main buckets.

Income Type Examples Tax Treatment
ECI (Effectively Connected) Wages (on-campus, CPT, OPT), Teaching Assistantships Taxed at graduated rates (10% - 37%). Eligible for treaty benefits.
FDAP (Passive) Stock dividends, crypto staking, rental income Flat 30% tax unless a treaty reduces it. No deductions allowed.
Scholarships Tuition waivers, stipends Tuition/Books = Tax Free.
Room/Board/Stipend = Taxable (14% or treaty).
Bank Interest Chase/BoA savings interest Tax Free for nonresidents (do not report on 1040-NR).

4. Tax Treaty Database

Check if your country has a negotiated tax break for students. Note: You must have a U.S. SSN or ITIN to claim these.

Country Student Benefit Scholar/Teacher Benefit Article Ref.
🇨🇳 China $5,000 exemption (Unlimited years) 3 years tax-free (wages) Art. 20
🇮🇳 India Standard Deduction Allowed Same as students Art. 21
🇰🇷 South Korea $2,000 exemption (Max 5 years) 2 years tax-free Art. 21
🇩🇪 Germany Full Exemption ($9,000/yr limit often applies) 2 years tax-free Art. 20
🇫🇷 France Full Exemption (5 years) 2 years tax-free Art. 21
🇨🇦 Canada $10,000 exemption Exempt Art. XV

*Disclaimer: Treaty clauses are complex and subject to "Retroactive Clauses." Consult a pro.

5. The FICA Refund Process

International students (F-1/J-1) are exempt from Social Security & Medicare taxes for their first 5 years. Employers often mess this up.

💰 FICA Recovery Calculator

Check your W-2 (Boxes 4 and 6). If there are numbers there, you lost money.

Steps to Recover:
  1. Ask employer for refund (Written Request).
  2. If rejected, get a rejection letter.
  3. File Form 843 & 8316 with IRS.
  4. Wait 12-16 weeks for check.

6. State-Specific Rules

State taxes follow different rules than federal taxes. Being a "nonresident" for federal purposes does not mean you are a nonresident for state purposes.

New York

Strict Domicile.
If you live in a dorm/apartment for >11 months, NY often considers you a RESIDENT. You may file IT-201 instead of IT-203.

California

Worldwide Income.
CA does not recognize federal tax treaties. You must pay CA tax on income even if it is exempt federally.

Massachusetts

The 183 Day Rule.
If you have a permanent place of abode and spend >183 days, you are a resident. Global income is taxed.

Texas / Florida

No Income Tax.
Lucky you! No state filing required for wages. Only federal forms needed.

7. Frequently Asked Questions

General Filing

Can I file electronically (e-file)?
Historically, no. However, as of 2024/2025, modern providers (like us and Sprintax) can e-file Form 1040-NR. Filing Form 8843 alone usually still requires paper mailing.
I didn't file for previous years. Am I in trouble?
Don't panic. The IRS generally does not penalize you if you owe no tax (e.g., you only missed Form 8843). However, you should file "back taxes" immediately to clear your record before applying for H-1B or Green Cards.
Can I use TurboTax?
NO. TurboTax is designed for US Residents. It will file a Form 1040, which is illegal for nonresidents. It often grants you credits you aren't eligible for, leading to audits later.

Visa & Immigration

Will filing taxes affect my Green Card application?
Yes. USCIS asks for tax transcripts. Filing as a "Resident" (Form 1040) when you are a "Nonresident" can be seen as visa fraud. Filing correctly (1040-NR) protects your immigration future.
I am on OPT. Am I still a nonresident?
Usually, yes. OPT is still F-1 status. Unless you have been in the US for more than 5 calendar years, you remain a nonresident tax filer.

Spouses & Dependents

Does my F-2 or J-2 spouse need to file?
Yes. All dependents present in the US under F/J status must file their own Form 8843, even if they are children.
Can I claim my wife/child as a dependent?
Generally, no. Nonresidents (1040-NR) cannot claim dependents unless they are from Canada, Mexico, or South Korea (due to specific treaty terms).

📚 Essential Tax Glossary

Substantial Presence Test (SPT)

The formula counting your days in the US. 31 days current year + 1/3 last year + 1/6 year before. If >183, you are a resident.

ITIN

Individual Taxpayer Identification Number. For people who aren't eligible for an SSN but need to file taxes or claim treaty benefits.

Standard Deduction

A base amount of income that is tax-free ($14,600 in 2024). Most nonresidents CANNOT claim this.

W-2 vs. 1042-S

W-2 reports wages. 1042-S reports scholarship income or treaty-exempt income. You may receive both.

Start Your Filing

Fill out this secure intake form. A CPA specialist will review your visa history and income documents.

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