I.Why Should You Care?
Most international students studying in the United States realize that it is a privilege to come to the U.S. to study. Therefore, they are careful not to do anything which might jeopardize their status here, for instance, by not paying income taxes that they may owe. Since taxes are usually withheld from wages, paying taxes is a relatively easy process.
However, the United States income tax system depends to a large extent upon voluntary compliance. That means that a taxpayer can often, for a short while, keep from paying his/her rightful share of income tax by simply ignoring his/her duty to pay the taxes. This is especially true if a student is paid without having income taxes withheld. Some students, therefore, ignore their duty to pay taxes. Many students who are here only a short time, apparently succeed in not paying their rightful amount of tax. However, if you have friends who don't pay their income taxes and encourage you to do the same, you should consider the following facts:
II.Do You Need To File A Tax Return?
The first question you should ask as an international student is whether you need to file a U.S. income tax return. If you earn any money while in the U.S., you may need to file a return. Students on F visas will be considered Non-Resident Aliens (NR) for tax purposes for the first 5 years of their stay in the U.S. The five-year period can be extended by applying to the IRS. If you are a non-resident for tax purposes and have earned no income from U.S. sources, you will only need to submit to the IRS a completed Form 8843.
After you have been in the U.S. for five calendar years (for F-1 visa students), you may become a Resident Alien for tax purposes. In that case, if you had a job in the U.S. last year, you could file the same tax return forms that U.S. citizens file. If, however, you wish to and are eligible to continue filing as a non-resident after five years, you will need to make a special application to the IRS.
III.Should You Prepare Your Own Tax Return Or Should You Get Help?
Unfortunately, U.S. income tax laws can be very complex. If you are a Resident Alien for income tax purposes and want to prepare your own return, see if you are eligible to file the "short" Form 1040A or Form 1040EZ. If you must file the 1040 "long" form," you may want to consider asking for help. It's usually well worth it. Tax preparation services may charge $50.00-$100.00 (or more) for a tax return, but some will usually save you at least that much in deductions that you would have missed.
If you are a Non-Resident Alien for income tax purposes, most tax preparers will be unfamiliar with the special tax Forms 1040NR and 1040NR-EZ. Be careful that you choose someone who knows what they are doing. Ask your international student advisor, tax attorneys, CPA's, etc., for referral to someone who understands Non-Resident Alien taxation.
If you want to prepare your own tax return, we strongly recommend that you obtain the following publications from the IRS:
Most international students studying in the United States realize that it is a privilege to come to the U.S. to study. Therefore, they are careful not to do anything which might jeopardize their status here, for instance, by not paying income taxes that they may owe. Since taxes are usually withheld from wages, paying taxes is a relatively easy process.
However, the United States income tax system depends to a large extent upon voluntary compliance. That means that a taxpayer can often, for a short while, keep from paying his/her rightful share of income tax by simply ignoring his/her duty to pay the taxes. This is especially true if a student is paid without having income taxes withheld. Some students, therefore, ignore their duty to pay taxes. Many students who are here only a short time, apparently succeed in not paying their rightful amount of tax. However, if you have friends who don't pay their income taxes and encourage you to do the same, you should consider the following facts:
- It is a crime to willfully fail to correctly file an income tax return.
- If you incorrectly claim "exempt" status on your W-4 form, you can be fined $500 or more.
- If you are going to be in the United States for an extended period of time, the Internal Revenue Service (IRS) will eventually catch-up with your failure to pay your income taxes. At that time you will not only be required to pay the taxes that you owe, but you will also be required to pay interest on the taxes and you will probably be assessed additional penalty taxes as well. In addition, if you ever decide to apply to become a legal permanent resident of the U.S., the Immigration Service often asks to see the tax returns which you have filed in the previous years. If you failed to file tax returns previously, you will have to file the tax returns and pay any taxes that you may owe or risk having your application for legal permanent residency denied.
II.Do You Need To File A Tax Return?
The first question you should ask as an international student is whether you need to file a U.S. income tax return. If you earn any money while in the U.S., you may need to file a return. Students on F visas will be considered Non-Resident Aliens (NR) for tax purposes for the first 5 years of their stay in the U.S. The five-year period can be extended by applying to the IRS. If you are a non-resident for tax purposes and have earned no income from U.S. sources, you will only need to submit to the IRS a completed Form 8843.
After you have been in the U.S. for five calendar years (for F-1 visa students), you may become a Resident Alien for tax purposes. In that case, if you had a job in the U.S. last year, you could file the same tax return forms that U.S. citizens file. If, however, you wish to and are eligible to continue filing as a non-resident after five years, you will need to make a special application to the IRS.
III.Should You Prepare Your Own Tax Return Or Should You Get Help?
Unfortunately, U.S. income tax laws can be very complex. If you are a Resident Alien for income tax purposes and want to prepare your own return, see if you are eligible to file the "short" Form 1040A or Form 1040EZ. If you must file the 1040 "long" form," you may want to consider asking for help. It's usually well worth it. Tax preparation services may charge $50.00-$100.00 (or more) for a tax return, but some will usually save you at least that much in deductions that you would have missed.
If you are a Non-Resident Alien for income tax purposes, most tax preparers will be unfamiliar with the special tax Forms 1040NR and 1040NR-EZ. Be careful that you choose someone who knows what they are doing. Ask your international student advisor, tax attorneys, CPA's, etc., for referral to someone who understands Non-Resident Alien taxation.
If you want to prepare your own tax return, we strongly recommend that you obtain the following publications from the IRS:
| Publication Number | Title |
| 519 | U.S. Tax Guide For Aliens |
| 520 | Scholarships & Fellowships |
| 901 | U.S. Tax Treaties |
| Forms 1040NR &1040NR-EZ | U.S. Non-Resident Alien Income Tax Return forms and instructions |
