Office of International Programs (OIP)

OIP Home > F-1 Services > Current Students > Taxes > Tax Differences Between Residents and Non-Residents >

Tax Differences
Between Residents and Non-Residents

(For Tax Year 2010)
Non-Residents: Residents:
1. Tax is generally paid on U.S. income. 1. Tax is generally paid on worldwide sourced income only. 
2. Tax treaty provisions may exempt some income from tax. 2. Tax treaty provisions do not apply.
3. Interest income (interest on CD's, savings accounts, etc.) may be tax free. 3. Interest income (interest on CD's, savings accounts, etc.) is taxable.
4. Cannot file jointly with their spouse. 4. Can file jointly with their spouse.
5. Generally only one personal exemption is allowed regardless of family status. 5. Can claim one personal exemption for him/herself in addition to claiming exemptions for spouse and other dependents.
6. No standard deduction is permitted. 6. Standard deduction is permitted.
7. Itemized deductions are limited to: 
-State & local taxes withheld
-Contributions to charity
-Casualty /theft losses
-Miscellaneous business deductions
 7. Greater flexibility as to what may qualify as itemized deductions.
8. Investment income is generally taxed at a flat 30% rate. 8. Investment income may generally be taxed at a lower rate.
9. No child or dependent care credit is permitted. 9. Child or dependent care credit is permitted.

10. In most cases, non-residents are not required to pay social security (FICA) taxes.

 10. Are required to pay social security (FICA) taxes.




Non-Residents: Residents:
11. Cannot claim exempt from tax withholding. 11. In certain cases, can claim exempt from tax withholding.
12. Not required to pay taxes on foreign-sourced scholarships. 12. Foreign-sourced scholarships are taxable.
13. Can only file either Form 1040NR or Form 1040NR-EZ. 13. Can complete same income tax forms as U.S. citizens.
14. Forms must be filed with the IRS office located in Austin, Texas. 14. Forms must be filed with the IRS office located in Sacramento, California (if you live in San Francisco).
15. If you had a job in the U.S. and received wages in 2010 for which you paid U.S. income taxes, you must file a tax return before April 18, 2011. If you did not receive wages in 2009 for which you were required to pay U.S.income taxes, your income tax return is before June 15, 2011. 15. If you had a job in the U.S. and received wages in 2010 for which you paid U.S. income taxes, you must file a tax return before April 18, 2011. If you did not receive wages in 2009 for which you were required to pay U.S.income taxes, your income tax return is before June 15, 2011.


Generally speaking, if you qualify, it is to your advantage (most of the time) to file as a resident!

SF State Home