State and Federal Income Tax FAQ

Yes, if you are a nonresident alien on an F, J, M, or Q visa that has received taxable income in the U.S. during 2024, you must file an income tax return.

International students on F-1 visa, who are considered nonresident aliens for tax purposes, must pay tax in the U.S. on the following types of income:

• Wages and compensation
• Salaries
• Tips
• Interest
• Dividends
• Some scholarships/fellowship grants
• Prizes/awards

There is no specific international student tax—the amount of tax you will have to pay will largely depend on your personal circumstances.

Yes, as a nonresident for tax purposes that was present in the U.S. in 2024, it’s important to ensure that you complete your tax filing obligations. If you have returned home, this does not disqualify you from having to fulfill your tax filing obligations, even if it just filling Form 8843.

International student on the F and J visas are automatically considered nonresident for their first 5 calendar years in the U.S. For help with determining your federal tax residency status, you can use NRVTAP's Residency Tool.

When you use Sprintax software, it will help you calculate your tax residency.

Sprintax is a software dedicated to preparing compliant nonresident tax returns. Sprintax will help to understand your tax obligations and prepare the necessary tax forms such as the Form 8843, federal, and state tax return. Sprintax also has a federal e-filing in place for eligible individuals.

Some states in the U.S. may require you to file a nonresident state tax return. In addition, nonresident filing requirements by state will have different characteristics and requirements. In some cases, you may have to file a nonresident state tax return if you’ve received income in a state where you don’t live, as well as a federal and tax return with your home state.

There are eight states in the U.S. that don’t charge state income tax:

• Wyoming
• Washington
• Texas
• Tennessee
• South Dakota
• Nevada
• Florida
• Alaska

Most U.S. states have taxation agreements meaning that if you lived and worked in one state, you will not be taxed twice on the same income, as long as you file state taxes in each.

Each state has different rules that determine the residency of the individual. In some cases, in order to be considered a full-year resident of any particular state you must be domiciled there and you must have also spent at least six months living there.

However, if you received income from another state and did not live there for any part of the year, you will be considered a nonresident for tax purposes in that state.

You may also be considered a part-year resident of that state. This, however, depends on the state, as some will judge length of stay, purpose of visiting the other state, intention to establish domicile in the new state, and more.

However, a lot of states have different rules when it comes to taxing. Some states adhere to federal-level tax rules.

That means, for example, that if you are seen as a nonresident for tax purposes at federal level, then you will be considered a nonresident for tax purposes at state level too.

If you have tax filing requirements, you will need to file a nonresident state tax return. Each state’s requirements differ. In the majority of cases, you will have tax filing obligations if you earned income within that state.

At tax time, you are expected to file both a federal and state tax return (if you have tax filing requirements), and they are usually filed simultaneously. That is because you will need information from your federal return to file a state tax return.

Some people choose to file state tax returns first to use their refund to offset any tax owed at a federal level. However, this is not recommended as it can take some time to receive the state tax refund.

Filing out of state taxes is a pretty common occurrence. Each state has a unique form that you will need to file to amend your state tax return—California uses Schedule X, for example.

You will need to attach the amended state tax return to your state tax return.

Yes, students with an F-1 visa that are on CPT are not be exempt from Federal Taxes. Most F visa students are considered nonresident aliens in the U.S., and are required to file a U.S. tax return.

Yes, if you earn income while in the U.S. for OPT or STEM Extension you are required to pay your Federal and State income taxes.

You must also complete a W-4 tax form with your new employer when you start a new job.

Yes, even if you did not earn any income during your time as a F visa holder in the U.S., you will have to file the Form 8843.

The address you need to send the forms to depends on where you stayed during your visit.

Generally, you will be sending your tax return to the Department of the Treasury Internal Revenue Service in whichever state you were in.

It is very important to comply, as missing the deadline may lead to some unwanted fines and penalties and jeopardize your chances of securing a U.S. visa or Green Card in the future.

The IRS acknowledges that tax code is complex, and that people can make mistakes with their documents. Issues can range from small things like forgetting to sign a form to big issues like reporting the wrong income or incorrectly calculating a deduction.

You will need three things to complete your amended tax return: a form 1040X, your original tax return, and any new required documents.

Once you complete the form, you’ll have to mail it to the IRS along with all required supporting documents. Amended returns are only filed on paper.

An F-1 student could be able to claim a tax refund on their scholarship if it is completely or partially covered by a tax treaty.

Most F-1 students are not required to pay FICA tax. You will only be obligated to pay this tax if you were in the U.S. for more than 5 years.

If social security or Medicare taxes were withheld in error from pay that is not subject to these taxes, contact the employer who withheld the taxes for a refund. If you are unable to get a full refund of the amount from your employer, file a claim for refund.

You can apply for your FICA refund directly with the IRS. To apply for a FICA tax refund with the IRS, you need Form 843 (Claim for Refund and Request for Abatement).

Attach the following items to Form 843:

• A copy of your Form W-2 to prove the amount of social security and Medicare taxes withheld,
• A copy of the page from your passport showing the visa stamp,
• INS Form I-94,
• If applicable INS Form I-538, Certification by Designated School Official, and
• A statement from your employer indicating the amount of the reimbursement your employer-provided and the amount of the credit or refund your employer claimed or that you authorized your employer to claim. If you cannot obtain this statement from your employer, you must provide this information on your own statement and explain why you are not attaching a statement from your employer
• If applicable, Form 8316, Information Regarding Request for Refund of Social Security Tax Erroneously Withheld on Wages Received by a nonresident alien on an F, J, or M Type Visa (PDF)

File Form 843 (with attachments) with the IRS office where your employer’s Forms 941 returns were filed. You can locate the IRS office where your employer files his Form 941 by going to Where to File Tax Returns on the IRS website.

The State and Local Taxes (SALT) deduction decreases taxable income by the amount paid to state and local tax government during the tax year. Most nonresidents (including students and other exchange visitors) can only use SALT as an itemized deduction on their Schedule A, 1040NR form.

There is a cap on SALT deductions at $10,000, which may not affect the deduction most of the students and scholars are eligible for. However, some nonresidents who are paying larger state and local taxes may be unable to use all of them as a deduction.

No. The personal exemption was reduced from $4,050 to $0 for F-1 international students in 2018.

In the U.S., Standard Deduction is an amount of money that some taxpayers may subtract from their income before tax is applied.

Nonresident aliens cannot claim the standard deduction. However, there is a special rule, described next, for certain nonresident aliens from India, who can claim it under Article 21 of the U.S.-India Income Tax Treaty.

A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States–India Income Tax Treaty. They can claim the standard deduction provided they do not claim itemized deductions.

International students can also benefit from a tax treaty with their home country. The U.S. has income tax treaties with 65 countries.

Under these treaties, residents (not necessarily citizens) of foreign countries may be eligible to be taxed at a reduced rate or exempt from the U.S.. Income taxes on certain items of income they receive from sources within the states. These reduced rates and exemptions vary among countries and specific items of income.

F-1 students who, at the time of their arrival in the U.S., intend to reside in the states for longer than one year are subject to the 30% taxation on their capital gains during any tax year in which they are present in the U.S. for 183 days or more, unless a tax treaty provides for a lesser rate of taxation.

This assumes that such capital gains are not effectively connected with the conduct of a U.S. trade or business. These capital gains would be reported on page 4 of Form 1040NR because they are being taxed at a flat rate of 30% or at a reduced flat rate under a tax treaty.

Yes, an international student can donate blood products.

While there are no citizenship or visa requirements for blood donation, you’ll be asked for a form of ID (driver’s license, passport, donor card, student photo ID) as well as screening questions.

Income from donating plasma is considered taxable income.

Therefore, it will show up on a 1099 MISC form and you will need to report it when filing your U.S. nonresident tax return (1040-NR).

Many F-1 international students choose TurboTax to manage their tax returns, but TurboTax is a service for residents.

While TurboTax—the biggest online tax preparation service in the U.S.—offers a fantastic product that helps millions of U.S. residents prepare their taxes and claim refunds, their offering can only be used by U.S. residents.

If you do use TurboTax to file your U.S. taxes, you will be filing as a resident. This means your tax return will be inaccurate and you may be subject to fines and penalties.

Yes, if they meet the eligibility requirements:

• They must have lived in Minnesota for at least 183 days during the calendar year.
• They must not be a dependent—they must have provided more than ½ of their total support.
  • If their family provided more than ½ of their support, they are considered a dependent.
  • Total support includes all of the funds the individual spent, or were spent on their behalf. This includes the money for tuition, fees, books, rent, food, clothing, fun, etc.
• They must have lived in an “abode” that is subject to property taxes.
  • An abode is a dwelling, suitable for year-round living, that has sleeping, cooking, and bathing facilities.
  • Some co-op or other university housing facilities are tax exempt, and do not pay property taxes.

Note: Most international students and scholars do not meet the eligibility requirements.

Spouses are never considered dependents. Children may be considered dependents if they meet certain criteria.

Generally nonresident aliens cannot claim any dependents on their income tax return. There are a few exceptions.

Nonresidents from Canada, Mexico, India, and South Korea may be able to claim their children as dependents on their income tax return. To be claimed the children must be either U.S. residents with a SSN, U.S. resident aliens with an ITIN, or residents of Canada/Mexico with an ITIN. Usually only children that have been born in the U.S. will meet these requirements.

Nonresident aliens are not eligible to claim education benefits, such as the American Opportunity Credit, Lifetime Learning Credit, or the Tuition and Fees deduction.

Form 1098-T is a form to report your tuition paid, scholarships, and student status. Receiving this form (or not) does not determine if you are eligible for any benefits.

F-1 nonresidents are exempt from FICA (Social Security and Medicare) taxes on wages earned from legal employment in the U.S. If your employer withheld FICA taxes in error, you can request a refund from your employer first. If your employer refuses, please file the appropriate tax forms (Form 843) with the IRS to request a refund from the government. Please contact the IRS or a tax professional for assistance. Wages earned by those in H-1B and J-2 status are not exempt from FICA taxes.

If you have questions regarding tax issues, tax forms, or anything in regards to federal taxes, please visit the Internal Revenue Service (IRS) website or contact them by phone toll free at 1.800.829.1040 or 217.782.3336.