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Tax Help for International Students and Visa Workers
Updated: Oct 5
Short answer: All State Tax Resolution, led by Enrolled Agent Sabih Shafi, helps F-1 and J-1 students, J-1 scholars, H-1B and other work-visa holders, and their spouses nationwide with U.S. returns, refund claims and IRS notices. Whether the IRS treats you as a nonresident or a resident for tax decides your form, your taxable income and whether Social Security tax should come out of your pay.
Key takeaways
Yes, international students owe U.S. tax on U.S. income. Nonresidents file Form 1040-NR. Residents file Form 1040.
F-1 and J-1 students can leave U.S. days out of the residency count for 5 calendar years, and J-1 teachers, researchers and trainees for 2. H-1B workers cannot. Form 8843 reports those days.
Social Security and Medicare tax generally should not come out of a nonresident student's pay for allowed work, including optional practical training (OPT). If it did, you can ask for a refund.
A wrong return or missed form can usually be fixed. If you are behind, file first.
Do international students pay taxes? Resident or nonresident
Yes. For tax, you are either a nonresident alien, taxed on U.S. income such as wages and taxable scholarships, or a resident alien, taxed like a citizen on income from all over the world.
You are a resident if you pass the substantial presence test: at least 31 days in the U.S. this year and 183 over three years. Count every day this year, one third of last year's days and one sixth of the year before.
Some people can leave days out of that count. The IRS calls them "exempt individuals," but the label does not exempt them from tax.
Students (F, J, M, Q): up to 5 calendar years. Any part of a year counts, and years as a student, teacher or trainee add up. After that you count your days, unless you can show you do not intend to live in the U.S. permanently. The burden is on you.
J and Q teachers, researchers, trainees: 2 calendar years. It ends if you were exempt for any part of 2 of the 6 prior years, with a narrow foreign-employer exception.
Spouses and children: a spouse or unmarried child whose visa depends on an exempt person can be exempt too. Each files their own Form 8843.
H-1B and similar work visas: no exclusion. Every day counts once you stop being an exempt individual, such as when you change to H-1B. Many H-1B workers become residents for tax within their first year or two, depending on their dates.
Form 1040-NR, Form 1040 and dual-status years
Nonresidents file Form 1040-NR. Residents file Form 1040, like a citizen. A nonresident generally cannot take the standard deduction, file jointly or use head of household status. The return is due April 15 if tax was withheld from your wages, and June 15 if not. See our Form 1040-NR guide.
A dual-status year is part nonresident and part resident, usually the year you arrive or leave. Foreign income is taxed only for the resident part.
Form 8843 explains why you left days out. Attach it to Form 1040-NR, or mail it alone by the same due date if you have no return. The IRS warns that filing late may cost you the exclusion unless you show you took reasonable steps to comply.
Social Security and Medicare tax: OPT and refunds
The IRS says nonresident F-1, J-1, M-1 and Q workers are exempt from Social Security and Medicare (FICA) tax. That covers pay for work their status allows and that fits the purpose of their visa: on-campus work, off-campus work USCIS allows, and practical training, including OPT and curricular practical training (CPT).
The exemption ends when you become a resident for tax or change to a status that is not exempt. H-1B wages carry the tax from day one. Spouses on F-2, J-2 or M-2 visas do not get the exemption.
If it was withheld in error:
Ask your employer first. Request a refund and a corrected W-2.
Then file Form 843 with Form 8316 (or a signed statement with the same details). Attach what Publication 519 lists: your W-2, visa, Form I-94, Form I-20 or DS-2019, Form I-766 (your OPT work permit) and a statement from your employer on what it repaid, or why you have none. Use a separate Form 843 for each employer and year.
Watch the clock. Claims generally must come within 3 years of filing your return or 2 years of paying the tax, whichever is later.
The IRS's staff manual says it checks for a Form 1040-NR for that year. It also says FICA withheld during OPT can still be refunded after you move to H-1B.
The IRS can write to ask for more information or to disallow a claim. The same manual names Letter 513C (missing items, such as a Form 1040-NR), Letter 916C (a rejection, for example when a resident Form 1040 was filed) and Letter 105C (a disallowance, with appeal rights). Check the number on yours. If it asks for a reply, act by the due date printed on it.
Tax treaties and scholarships
Some countries' tax treaties exempt part of a student's, trainee's or teacher's pay or scholarship for a limited time. The IRS says the limit is usually 4 to 5 years for students and trainees and 2 to 3 years for teachers and researchers. The treaty text controls, and you must meet its residency test. Pay from a foreign employer can also be exempt for F, J, M and Q visa holders who are nonresidents.
To claim a treaty at work, give your employer Form 8233, with a treaty statement for students, trainees and teachers. Income that is not pay for services, such as some scholarships, uses Form W-8BEN. If you skip this step, you can still claim the treaty on Form 1040-NR, and exempt income is still reported. Form 8833 is needed only for some treaty positions, and generally not for student, trainee or teacher income. See our Form W-8BEN guide.
For a degree candidate, the part of a scholarship that pays tuition, required fees, and required books, supplies and equipment is generally not taxable. Room, board, travel and pay for teaching or research are taxable. Payers withhold from a nonresident's taxable scholarship at a flat rate, lower for F, J, M and Q students or under a treaty, and report it on Form 1042-S.
Spouses, ITINs and state returns
Spouses are tested separately, and a joint return generally needs both spouses to be residents for the full year. A spouse or child who cannot get a Social Security number can apply for an ITIN with Form W-7. They must be claimed for an allowable tax benefit or file their own return. An ITIN is for tax use only. It does not authorize work or change immigration status. See our ITIN guide.
States set their own residency rules, so your federal answer may not settle your state return. The IRS notes that some states honor tax treaties and some do not.
Common problems we see
A resident return filed by mistake. We often see students use consumer software that files Form 1040 instead of Form 1040-NR.
A missing Form 8843.
FICA withheld in error and never claimed.
Unreported income in the first H-1B year. As a resident, you report income from all sources, including foreign interest, rent and pay. Foreign accounts can also trigger separate reports, such as the FBAR and Form 8938.
The fix is usually a corrected return. The IRS says to file Form 1040-X and attach the correct return, whether Form 1040 or Form 1040-NR.
Behind on returns, or owing the IRS?
File every missing return, even if you cannot pay in full. The IRS holds refunds while returns are missing, and a refund of withheld tax must be claimed within 3 years of the due date. A nonresident return filed more than 16 months after its due date can lose deductions and credits, though credit for withheld tax is not affected. The IRS may waive the deadline if you acted reasonably and in good faith and cooperate with it.
Then a payment plan lets you pay over time, and penalty relief may apply if you have a good reason. See what to do if you have not filed in years.
Tax filings can matter for immigration applications. Immigration questions belong with an immigration attorney.
How we help
I am Sabih Shafi, an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. We work by phone and video, in English or Spanish, with clients across the country and abroad.
Returns: nonresident, resident, dual-status and amended, with Form 8843.
FICA refund claims on Form 843 and Form 8316, treaty claims, and replies to IRS letters.
Spouses and children: returns that include them, and answers about ITINs.
Unfiled years, then payment plans and penalty relief.
A flat fee quoted in writing before work starts.
Frequently Asked Questions
Do international students pay taxes?
Yes, on U.S. income such as wages and taxable scholarships. Those with taxable income file Form 1040-NR as nonresidents during their first 5 calendar years, plus Form 8843.
Do F-1 students pay Social Security and Medicare tax on OPT, and can they get it back?
Generally not while they are nonresidents, because the IRS includes practical training in the exemption. If it was withheld, ask your employer first, then file Form 843 with Form 8316 and your documents. The exemption ends if you become a resident for tax or change to a status that is not exempt.
Do H-1B holders file Form 1040 or Form 1040-NR?
H-1B workers cannot exclude days, so most pass the day count and file Form 1040 as residents. Your first year may be a nonresident or dual-status return, depending on your dates.
What is Form 8843, and do I need it with no income?
It explains why you left days out of the residency count. With no return to file, mail it alone by the Form 1040-NR due date. Each family member files their own.
I got an IRS letter about my refund claim. What should I do?
Find the letter number and the due date. Gather what it asks for, such as a Form 1040-NR, visa papers or proof you asked your employer first. Reply by the due date.
General information, not tax advice for your situation.
Related Reading
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This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
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