Current Students

Employment

Tax Responsibilities

The staff at the Office of International Students and Scholars does NOT give tax advice. For detailed tax information, please go to the Internal Revenue Service website or call 1-800-829-1040.

Who needs to file a return?

If you are a non-resident alien doing business in the United States, you are required to file a tax return regardless of your income. (To "file a return" means to send it to the IRS, either through the mail or electronically.) You are considered to be engaged in business even if you are an employee working for wages. If you are a student or scholar visiting the United States on an F, J, M or Q visa, and are classified as a nonresident for U.S. tax purposes, you are required to file a tax return each year you are here if you have any income subject to U.S. income tax. Additionally, if you are an exempt individual, you are required to file Form 8843 regardless of your income. Here is a description of the forms you are required to file:

  • Form 1040NR, U.S. Nonresident Alien Income Tax Return, or, if you qualify, Form 1040NR-EZ, U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents, and
  • For exempt individuals, Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition.

Form 8843 is required if you are an "exempt individual." This does not mean you are exempt from paying U.S. taxes, but that you are exempt from the substantial presence test for determining residency status.

What happens if you don't file?

Studies have shown that most nonresidents either do not file a return, or file incorrectly. However, it has also been shown that there is massive overpayment of U.S. taxes by nonresidents who do not file, rather than underpayment (J.W. Antenucci, "Widespread Noncompliance and Overpayment of Taxes by Foreign Scholars," Tax Notes, May 13, 1996). Just because your employer has withheld tax from your wages does not mean that you have paid the proper amount. You could have a sizeable refund due! If you do not have a tax liability, you might be wondering what will happen if you do not file a return. Well, the IRS will not impose penalties if no tax is due. However, the terms of your visa require you to comply with all laws of the United States, including the requirement to file an income tax return. You might be required to show proof that you filed if you wish to change your visa status, or obtain permanent residency, or regain entry into the United States once you have left. Don't risk your visa status by failing to comply with this requirement.

When and where to file

If you received wages subject to U.S. tax withholding, the due date for filing your tax return is April 15 of the following year. If you did not receive taxable wages during the year, the due date for filing your tax return is June 15 of the following year. Your Form 1040NR or Form 1040NR-EZ (including Form 8843) must be sent to:

Internal Revenue Service Center
Philadelphia, PA 19255

Choosing a paid preparer

If your tax situation is complex; seek the aid of a professional tax preparer. Unfortunately, there are relatively few preparers who have experience in preparing returns for foreign nationals. Be sure to ask prospective preparers if they are familiar with Form 1040NR and the rules applicable to F-1 and J-1 visa holders. Do not engage a preparer who is not. The professional designations of "Certified Public Accountant" or "Enrolled Agent" are indications of a preparer's competency, but are not guarantees. Most tax preparers charge on a per hour basis rather than a fixed fee. If a preparer will not state an exact fee in advance, you should at least be told the maximum amount that you might have to pay. Even if you are planning to hire a preparer, it's best to learn as much as you can on your own.

Filing your own return

The first thing you must do is to determine whether you are a resident, a nonresident, or a dual status alien for tax purposes. These titles do not relate to your immigration status. Even though you are a citizen of another country, you might still be considered a U.S. resident for U.S. tax purposes. This is an important first step because it determines whether you must file, what form to file, and whether you are eligible for treaty benefits. The first few pages of IRS Publication 519 explain how to determine your residency status. If you determine that you are a nonresident or dual status alien, all the information you will probably need to complete your nonresident return is contained in two U.S. Internal Revenue Service booklets and the instructions to Form 1040NR or 1040NR-EZ.

The IRS booklets are Publication 519 (U.S. Tax Guide for Aliens) and Publication 901 (U.S. Tax Treaties). If you are a resident of Canada, you will also find Publication 597 (Information on the United States-Canada Income Tax Treaty) helpful. All of this material can be obtained from the IRS Web site at Forms and Publications. Here is a complete list of all the forms and publications you should need.

Reading the first page of the instructions to Form 1040NR-EZ will tell you if you can use this shorter form. If you do not qualify, use Form 1040NR.