HOW TO…FILE YOUR TAX FORMS


Your Tax Obligations :

Note: The following information is directed towards those individuals who are temporarily in the United States as students with valid visas.  Please be aware that U.S. tax laws change frequently.  The information here is very basic, but it is also subject to change.  Contact the IRS for the most up-to-date information. 

Some frequently asked questions of non-residents studying within the United States

Q Must I file a U.S. tax return, even if I received no income?

A Yes, the Internal Revenue Service (IRS) requires everyone who lives in the U.S., including international students to file a U.S. tax return even if no taxable income was earned. On your tax report, you simply state that you did not work or earn any money. Interest earned on savings accounts, etc. is not taxable.  

Q What form do I use to file my tax return?

A All F-1 students must file Form 8843.  The Form 8843, “Statement for Exempt Individuals Form,” qualifies you so that you are exempt from filing tax forms when not earning any income in the U.S.  If you have earned money, you will also need to file Form 1040NR (non-resident). 

Q Where do I get a Form 8843 or Form 1040NR?

A If you do not receive a Form 8843 or Form 1040NR through the mail directly from the IRS, one can be obtained from the city library or the local post office, or you can call the IRS at 1-800-Tax-Form (829-3676).  You can also get forms from the World Wide Web at:
http://www.irs.ustreas.gov/prod/forms_pubs/formpub.html

 Q What is the filing deadline?

A Your completed Form 1040NR must be mailed by April 15 of the year following the calendar year end.  Your completed Form 8843 must be mailed by June 15 of the year following the calendar year end.

Q On what types of income do I have to pay U.S. taxes?

A In general, a non-resident alien (such as an F-1 student) filing Form 1040NR is taxed only on their income from sources within the U.A. and on certain income connected with the conduct of a trade or business in the U.S.  Common examples of taxable income:

  • Wages, salaries, tips earned in the U.S. (Reported on Form W-2)

  • Interest, dividends, rents, royalties, etc. from U.S. sources (Reported on Form 1099)

  • Scholarships, grants and fellowships. (Reported on Form 1042S)

  • Scholarships, grants and fellowships are generally taxable in the U.S. if:

  • The receipt represents payment for services such as teaching, research, or other services which are required as a condition for receiving the scholarship or fellowship.  This is true even if some or all of the receipt comes in the form of a tuition or fee reduction.

  • The scholarship, grant or fellowship is received from a U.S. source and requires its use (or is otherwise used) for purposes such as room and board, or travel.

  • Scholarships, grants and fellowships are generally non-taxable in the U.S. if the receipt does not represent payment for services and one of the following apply:

  • The scholarship, grant or fellowships are applied to or used for: tuition and fees required to enroll in or attend an educational institution; or fees, books, supplies and equipment that are required at the educational institution for the courses of instruction.

  • The scholarship, grant, or fellowship is non-taxable even if used for purposes such as room and board, or travel if it’s from a non-U.S. source.

Please refer to IRS Pub. 519 U.S. Tax Guide for Aliens and Pub. 520 Scholarships and Fellowships for more information.

Q I understand that my home country may have signed a tax treaty with the United States that may allow me to exclude certain types of income, or pay reduced tax rates.  Is that correct?

A Yes, the United States has entered into tax treaties with many other countries.  These tax treaties may allow you to pay less tax in the form of lower U.S. tax rates or an exemption of certain types of income.  It should be noted that the provisions of a tax treaty with one nation will not be the same as those with another nation.  Refer to IRS Pub. 901 U.S. Tax Treaties in order to determine if your home country has entered into a tax treaty with the U.S. and the specific provisions.

 Also, if you are entitled to a tax treaty benefit which allows you to claim an exemption from withholding of tax by your employer, you should complete Form 8233 and an exemption statement.  Both Form 8233 and the exemption statement should be given to your employer prior to starting work.  See IRS Pub. 519 for the standardized exemption statement to be attached.

YOU SHOULD ALWAYS KEEP COPIES OF ALL MATERIAL SENT TO THE IRS, AS THIS INFORMATION MAY AFFECT YOUR IMMIGRATION STATUS UNDER CERTAIN CIRCUMSTANCES.  Not filing tax returns, or filing them incorrectly, could result in severe interest and penalties.  It could also impact applications for permanent residency or work visas in the future. 

USEFUL SOURCES OF TAX INFORMATION

  • Form 8843 and Instruction Booklet

  • Form 1040NR and instruction booklet

  • Pub. 519 U.S. Tax Guide for Aliens

  • Pub. 901 U.S. Tax Treaties

  • Pub. 513 Tax Information for Visitors

  • Pub. 520 Scholarships and Fellowships

  • Pub. 515 Withholding of Tax—Non-Resident Aliens

  • Internal Revenue Service:  Call 1-800-829-1040 for the Technical Service Division and 1-800-829-3676 for ordering forms and booklets only.