USA - Income tax rules for Non-Resident Aliens (NRAs) - (2025):

USA - Income Tax rules: Taxation of nonresident aliens in the U.S.: Before understanding the taxation for nonresident aliens, we have to understand the taxation system of the U.S. as described below:
Classification of U.S. people for tax purposes: All the people residing in the USA  can be classified into the following four groups for tax purposes: U.S. citizens. Permanent resident aliens (popularly called green card holders, though the card color is pink) Resident aliens. Non-resident aliens.
The taxation system of the USA for resident aliens, US residents, or U.S. citizens: You must go to the US government or IRS website for full details. However, a brief idea is given here: Taxes on worldwide income. Receivable forms no.W-2 and 1099 Form number 1040 for income tax return filing. Eligibility for itemized deduction. May claim unrestricted withholding allowances.
The U.S. Taxation system for nonresident aliens: The important points of the U.S. taxation system for nonresident aliens are listed below: The income from only U.S. sources is taxable. Receivable forms are 1042-S and W-2. Form 1099 is never received. The filing form number is 1040NR or 1040NR-EZ. May not be eligible for itemized deductions. May not claim standard deductions. Restricted withholding allowances. Federal tax return: Nonresident aliens are required to file an income tax return if they receive income in the U.S.  The federal tax return is submitted to the U.S. central government through the Internal Revenue Service (IRS). State tax return: In addition to federal tax returns, the nonresident aliens may be required to file them at the state level. Nonresident aliens must file tax returns in all states where they worked or lived during a calendar year. You must go through the state revenue websites to know the details of state tax returns. Sprintax software may be used to file federal tax and state tax returns for nonresident aliens.
Who are Non resiednt aliens? The following types of people staying in the U.S. fall into the category of nonresident aliens: Not a U.S. citizen. Not a U.S. national. Not passed the green card test. Not passed the Substantial Presence test.
Internal Revenue Service (IRS) conducts the following two tests to assess the alien status: Green card test Substantial Presence test  If you satisfy any one of the conditions above, you will be treated as a resident alien for income tax purposes; otherwise, you will be treated as a nonresident alien. U.S. Citizenship and Immigration Service allows a green card holder (resident alien) to reside in the country legally. However, if an individual does not have a green card, but spends at least 31 days in the U.S. during the current tax year and a total of 183 days during the last three tax years ( inclusive of the current tax year), the individual will usually satisfy the physical present test and will be treated as a resident alien.
Identification of resident aliens and nonresident aliens for tax purposes: The Substantial Presence Test must be performed for tax purposes to identify the resident and nonresident aliens. This test calculates the number of days present in the U.S. during three calendar years as per the formula given below: Number of days present in the current year = A (for example) Number of days present in the first preceding year divided by three = B (for example) Number of days present in the second preceding year divided by six = C (for example) Total number of days present = the sum of the above three lines = (A+B+C) If the sum (A+B+C) is less than 183 days, the individual is a nonresident alien. If the total (A+B+C) is equal to or greater than 183 days, the individual is taxed just like a U.S. citizen.
Example of counting 183 days: Suppose you want to calculate the status for the 2024 tax year:
Number of days lived in the U.S. in 2024	60 days  (say A)
Number of days lived in the U.S. in 2023 = 150 days  Divide 150 days by 03	50 days (say B)
Number of days lived in the U.S. in 2022 = 120 days Divide 120 days by 06	20 days (say C)
Total	130 days (A+B+C)
In this example, the total days are less than 183 days, therefore you will be treated as a non-resident alien for paying income tax for the tax year 2024. Note: Please keep in mind that under the following circumstances, the number of days present in the U.S. will not be counted: Days you commute to work in the United States from a residence in Canada or Mexico if you regularly commute from Canada or Mexico Days you are in the United States for less than 24 hours when you are in transit between two places outside the United States days you are in the United States as a crew member of a foreign vessel. Days you are unable to leave the United States because of a medical condition that arose while you were in the United States days you are an “exempt individual”. An “exempt individual” for purposes of this test refers to the following   individuals: An individual is temporarily present in the United States as a foreign government-related individual under an “A” or “G” visa. A teacher or trainee temporarily present in the United States under a “J” or “Q” visa who substantially complies with the requirements of the visa. A student temporarily present in the United States under an “F,” “J,” “M,” or “Q” visa who substantially complies with the requirements of the visa. A professional athlete temporarily in the United States to compete in a charitable sports event.
Exemption from the Substantial presence test: The exemption from the substantial presence test for counting the days present in the USA is given as per the following criteria:
Visa type	Exemptions
F, J, M, Q	Students are exempted for five calendar years.
J or Q	Nonstudents (Scholars) are exempted for two of the past six calendar years.
This exemption is applicable for the substantial present test only. It does not apply for exemption from social security, federal income tax, or filing an income tax return.
What is excluded from the determination of taxable income for a nonresident alien? All income paid to nonresidents is taxable except the income from the following three ways: Foreign source income Internal Revenue Code Income tax treaty Foreign source income:  If the location of the activity is outside the United States, the income is not taxable and not reportable. Internal Revenue Code:  To qualify for exclusion under Section 117, the income must be: A Qualified Scholarship. Received by a candidate for a degree. Awarded to study at an educational organization. Tuition fees,  required Enrollment / Attendance fees, and required books, supplies, and equipment fall in the qualified (non-taxable) category. It is reported on Form 1042-S only.  Stipend (living allowance), room/housing, board/meals, travel, cash, and non-required equipment fall in the Non-qualified (taxable) category. It is reported on Form 1042-S. To qualify as a “candidate for a degree”, the individual must attend an institution or organization that regularly grants degrees. It is not required that the individual be enrolled in a degree-granting program. If payment is made for teaching, research, or other services, it is considered compensation, not scholarship or fellowship. Scholarship, fellowship, grant, allowance, and award refer to payments that do not require the performance of a service. These payments may not be taxable and will be reported on Form 1042-S. If a nonresident alien is required to perform a service, the payment is considered compensation, and it is taxable. Such payments will be reported on Form W-2. Income tax treaty exemption forms: If an income tax treaty exists between the U.S. and the nonresident alien’s country of residence, the following tax treaty exemption forms are used: Form 8233 is used for Dependent (employee) and Independent (non-employee) compensation. It is good for only one year. It must be renewed annually in January if tax exemption is to continue. The employer must review, sign, and mail the form to the IRS within five (5) days of receipt. Form W-8BEN is used to claim a reduced rate or exemption from withholding as a resident of a foreign country. This form is valid for three years and must be given to the employer. This form is retained for four years after the last year of tax treaty exemption. Compensations  paid to non resident aiens: It is subjected to special graduated withholding rates. Form W-4 needs to be completed as given below: Single One Withholding Allowance An additional $7.60 per week If the W-4 form is not completed, then tax at a single rate with zero allowance is applicable. The standard rate of  tax withholding for a nonresident alien is 30%; however, several exemptions are applicable, as given below: Income excluded from the foreign source under the Internal Revenue Code. Income excluded by Income Tax Treaty. Reduce the rate of 14% for scholarship/fellowship payments to F, J, M, and Q Visa holders. Per diem payments under USAID contracts. Employees working outside the United States. Compensation to employees.
U. S. Tax Reporting Responsibilities: Form 1042-S is used to report: All employee compensation payments that are exempted from taxation under an income tax treaty. All other taxable income paid to a Nonresident Alien. Type of income Gross income paid Applicable rate of tax withheld or reason for exemption from withholding Total tax withheld Country of residence An individual may receive: Form 1042-S and a Form W-2. or only a Form 1042-S or only a Form W-2  An individual should never receive a Form 1099.
FICA (Federal Insurance Contributions Act) Tax Withholding or OASI (Old Age & Survivors Insurance) or Social Security and Medicare Tax: The Federal Insurance Contributions Act (FICA) requires taxation on income earned to fund federal programs that provide benefits for U.S. citizens and permanent residents when they retire, are disabled, or are the children of deceased workers. Funds withheld for FICA are reflected on paycheck stubs and the Form W-2 (Boxes 4 and 6). Exemptions from FICA tax: Such exemptions are listed below: (A) An exemption from FICA tax withholding is applicable under Sec. 3121(b)(19) for the following individuals: A Nonresident Alien; Individuals present in the U.S. under an F-1, J-1, M-1, or Q-1 Visa. Performing services under the primary purpose of the visa’s issuance. These visa holders will be considered nonresident aliens regardless of the number of days present in the U. S. for a two or five-year period, depending upon if they are teachers or trainees, scholars, researchers,  or students. These taxes should not be deducted from paychecks. J-2 visa holders with work authorization are not exempted from FICA taxes. When F-1, J-1, M-1, or Q-1 Visa holders stay beyond these periods but are still considered Nonresident Aliens under a treaty with the alien’s country of residence, there can be a situation where wages are excluded by treaty from income tax withholding but are still subject to FICA withholding. FICA tax applies retroactively to the beginning of the calendar year in which the residency status occurred. Periods for which NRA is claiming this exemption must be monitored to ensure that FICA is properly withheld where appropriate. The mechanism for the exemptions is found under Internal Revenue Code 3121 (b)(19) and is available to persons in F-1, J-1, M-1, and Q immigration status. It is a blanket exemption and the only qualification is that the person is a non-resident for tax purposes and that the work is authorized (e.g. CPT, OPT, AT).  Refer to IRS Publication 519 for additional information. Obtaining Reimbursements of FICA Withholdings: If a student or scholar’s employer has mistakenly withheld FICA taxes, the student or scholar must work with their employer directly to request a reimbursement. If the employer will not assist in this matter, the student or scholar must file IRS Form 843 and IRS Form 8316 to request reimbursement. In the event an F-1 or J-1 student, scholar, or researcher is employed by USC and USC withheld FICA taxes in error, contact University Payroll Services at payroll@usc.edu. (B) Exemption Under Internal Revenue Code Sec. 3121(b)(10): Payments to Nonresident Aliens enrolled and regularly attending classes may be exempted from FICA tax under the student FICA exemption. Section 3121(b)(1) allows the student FICA exemption, which generally provides that a student who works for the school at which he/she is enrolled and regularly attends classes is exempted from the FICA tax. This exception applies to U.S. citizens and Nonresident Alien Students. (C) Application of Tax Treaties to FICA Tax Withholding: Except for the tax treaty with the former USSR, income tax treaties apply only to federal income tax withholding. Therefore, an exemption from FICA tax withholding is usually only allowed under Sec. 3121(b) of the Internal Revenue Code. (D)  Social Security “Totalization” Agreements: The United States has bilateral Social Security agreements with 17 countries. The agreements eliminate dual Social Security coverage and taxes and improve benefit protection for workers who have divided their careers between the United States and another country. To utilize the totalization agreement as an exemption for U.S Social Security tax, the foreign employee must prove that either he/she or a third party on his/her behalf is continuing to pay the Social Security tax to his/her country for the income that he/she earns while working in the U.S. Employees may establish this by providing a “coverage certificate” from their home country's Social Security authorities. To know more about the International Social Security Agreement, the following contact details may be useful: Social Security Administration’s Office of International Policy (OIP) at (410) 965-3548 or (410) 965-3554. Website:https://www.ssa.gov/international/totalization_agreements.html
Who will file the income tax return? The following types of people must file a tax return: A nonresident alien individual engaged or considered engaged in a trade or business in the United States during the year. A nonresident alien individual who is not engaged in a trade or business in the United States and has U.S. income on which the tax liability was not satisfied by the withholding of tax at the source. A representative or agent is responsible for filing the return of an individual described above. A fiduciary for a nonresident alien estate or trust, or A resident domestic fiduciary or other person charged with the care of the person or property of a nonresident individual may be required to file an income tax return for that individual and pay the tax.  A nonresident alien student, teacher, or trainee who is temporarily present in the United States on an F, J, M, or Q visa is considered to be engaged in a trade or business in the United States. He must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return, only if he has income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc.  A nonresident alien must file the return for claiming the refund or benefits as given below: To claim the refund of over-withheld or overpaid tax. Or To claim the benefit of any deductions or credits.  For example, if you have no U.S. business activities but have income from real property that you choose to treat as effectively connected income, you must file a true and accurate return to take any allowable deductions against that income. For a legal U.S. resident (resident alien), the same tax rules as U.S. citizens are applicable, and you need to report all income you earn on annual tax returns, regardless of which country in which you earn it. However, a non-resident alien will pay the income taxes to the IRS, only on the income that's effectively connected to the U.S. The IRS has no authority to impose tax on the income that non-residents earn in their home countries or any foreign country.
What is taxable income? The income of a nonresident alien is subjected to the following:  U.S. income tax may be divided into the following categories: Income that is effectively connected with a trade or business in the United States. U.S. source income that is fixed, Determinable, Annual, or Periodic (FDAP).
How will income tax be calculated on taxable income? Effectively Connected Income, after allowable deductions, is taxed at graduated rates. These are the same rates that apply to U.S. citizens and residents. Effectively Connected Income should be reported on page one of Form 1040-NR, U.S. Nonresident Alien Income Tax Return.  FDAP income is taxed at a flat 30 percent (or lower treaty rate if it qualifies), and no deductions are allowed against such income. FDAP income not effectively connected with a U.S. trade or business should be reported on Schedule NEC (Form 1040-NR), Tax on Income Not Effectively Connected With a U.S. Trade or Business.
Which form is required to be filled by the nonresident aliens for income tax returns? Nonresident aliens who are required to file an income tax return must use Form 1040-NR, U.S. Nonresident Alien Income Tax Return. What is included or not included in a simple Form 1040 return? Assuming no added tax complexity, some of the inclusions are listed below: W-2 income Interest, dividends, or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EITC) Child Tax Credit (CTC) Student loan interest deduction Taxable qualified retirement plan distributions. Some of the situations not included in the simple form 1040 return are listed below: Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest, and state and local tax deductions. Unemployment income is reported on a 1099-G. Business or 1099-NEC income (often reported by those who are self-employed, gig workers, or freelancers). Stock sales (including crypto investments). Income from rental property or property sales. Credits, deductions, and income are reported on other forms or schedules.
How to file an income tax return in the U.S.? There are several methods to file income tax returns in the U.S. Any suitable method can be chosen. Some of the methods are listed below: For Non-Resident Aliens:  If you want to file the return by yourself. You can visit the related websites. Some of the websites are listed below: http://www.irs.gov https://www.ftb.ca.gov http://www.uscvita.org In case of need, you can use Sprintax Tax Preparation Software. Or, in case of need, you can hire private tax specialists like  http://www.englercpa.com/international.html ( Gary Engler, Certified Public Accountant (CPA)) For amended returns: When F and J students and scholars submit tax forms to the U.S. government, they are making a legal and recorded statement of status and eligibility, which must be correct. False filings can seriously impact future immigration eligibility and status. If a student or scholar has filed incorrect tax forms, OIS strongly encourages seeking assistance from either a Certified Public Accountant (CPA), tax attorney, or licensed tax firm to make corrections as soon as possible to avoid any penalties. These services will incur a charge to be determined by the service provider.
When and where is it required to fill out the income tax return? If a person is an employee and receives wages subject to income tax withholding, or has an office or place for business in the United States, he is generally required to fill out the income tax return by the 15th day of the 4th month after the end of his tax year. Otherwise, for a person filing using a calendar year, it is generally April 15. The tax filing deadline (April 15) applies to federal and state tax returns. If a person is not an employee or self-employed person who receives wages or non-employee compensation subject to the income tax withholding,  or he does not have an office or place for business in the U.S., he must file the income tax return by 15 th day of the 6th month after the end of his tax year. Otherwise, for a person filing using a calendar year, it is generally June, 15. It is required to submit at the address as per instructions in Form No.1040-NR.
What will happen due to non-filing the return by the due date or what should I do if the return is not filled by the due date? To get the benefits of any admissible deductions or credits, A true and accurate income tax return is required to be submitted timely, i.e. within the due date. The IRS (Internal Revenue Service) has the right to deny such benefits if the income tax return is not filed by the due date. If the income tax return is not filed by the due date, the people should file form 4868 to request an automatic extension of time to file the income tax return. From 4868 is required to be submitted by the regular due date of filing the return.
What action is required by a person (a departing alien) who is leaving the United States? Before leaving the U.S., all departing aliens (with certain exceptions) must obtain a certificate for compliance, which is popularly known as a Sailing permit or departure permit.  This document is issued by the IRS (Internal Revenue Service) after filling a Form 1040-C, U.S. Departing Alien Income Tax Return, or Form 2063, U.S. Departing Alien Income Tax Statement. If a departing alien has left the U.S. after filling the Form 10490-C, the person is still required to file the annual income tax return of the U.S. If the departing alien is married, and both of you are required to file the income tax return, in such case,  each of you is required to submit a separate return unless one of the spouses is a U.S. citizen or a resident alien. In the latter case, the departing alien could file the joint return with his or her spouse.
Is it needed to have an ITIN or SSN to file an income tax return by nonresident aliens? Yes, to file the return, an individual taxpayer identification number (ITIN) is needed. For ITIN approval, you have to submit Form W-7 to the IRS.  If the ITIN is pending, you can use your SSN (Social Security Number) to file the return. ISSN (Social Security Number) is issued by the Social Security Office and it is used for Income tax returns,  work, wages, tax credits, social security benefits, identification, banking services, Government services, financial history, etc. If a taxpayer does not have both ITIN and SSN at the time of filing the return, Sprintax software will have to file the return.
Is it necessary to pay the taxes and file the income tax return, even if the taxes are deducted from my paycheck/return during the tax year? The answer is yes. You have to file the return. Whether you have to pay additional taxes will depend on the calculation during the filing. If you have already paid the total amount that was due, there is no need to pay additional taxes, but if still, some balance is due, then you have to pay the balance amount. In any case, you have to file the return.
How can I confirm that my tax return has been processed by the IRS? You can confirm by accessing the website www.irs.gov.in  It will show you the status and refund of your return. If something is found incorrect or missing, the IRS will not prefer to communicate through phone or email. Instead, the IRS will send you the information by US mail (United States Postal Service).
If my spouse/partner also has earned income, is it possible to return the file jointly? If your spouse/partner is a resident alien for tax purposes, you and your spouse/partner can file a joint tax return. If you are both nonresident aliens for tax purposes, you cannot file together.
Who is eligible for the Earned Income Tax Credit (EITC)? If a taxpayer has earned income from employment, self-employment, or another source and meets certain rules.  You must either meet the additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you. In such cases, taxpayers may be eligible for EITC. For details, please refer to IRS website:http://www.irs.gov
Who can help in case of need? If a taxpayer finds some difficulties in filing the income tax return, in addition to the IRS website, some other options are also available below: Websites of Universities and related organizations. Workshops on Income tax return filing Sprintax software free or paid versions is best suited for nonresident aliens for filing the return and getting the refund. Turbo tax services for tax preparation and refunds are useful for U.S. residents. Vita volunteers. Tax preparer, Independent tax expert on a payment basis.  Certified Public Accountants through www.aicpa.org or http://www.icpas.org Enrolled agents. through http://www.naea.org National tax-prep chains: H&R Block and Jackson-Hewitt may be good options because they work best for simple, straightforward returns.  Note: Please keep in mind that if you are hiring someone for a tax return, such tax preparers should be qualified and have experience in filing returns for non-resident aliens. Their rate, services, terms, and conditions should be on par.
What are the tax rules for International students? Most international students are classified as nonresidents for tax purposes and will be taxed in the same manner as a nonresident alien. If you are an international student, you must file a tax return if you were in the US the previous tax year. If you did not earn any income, to fulfill your visa obligations, you will still need to file Form 8843. Nonresident aliens use Form 1040 NR to report income that is sourced in the US or is connected with a US business or trade. Nonresident aliens who receive interest income from deposits with a US bank, loan & savings institution, insurance company, or credit union are exempt from taxation on such interest income as long as it is not effectively connected with a US business or trade. Some international students can become resident aliens, for example, F1 visa holders after the fifth year.
What other taxable income is to be included or not included in the federal tax return? Various types of miscellaneous income should be included in the federal tax return. Some are listed below: Interest Income: Deposit interest on US bank accounts is not taxable for nonresident aliens, but such interest income must be reflected in Form 1042-S. Other types of interest income from U.S. sources are taxable for nonresident aliens at @30% (a lesser rate if a tax treaty is applicable). The beneficial owner may claim the lesser tax rate under the tax treaty by filing Form W-8BEN with the withholding agent (i.e. interest payer). The beneficial owner is the natural person who owns or controls a company, a trust, or a foundation. This is the person who enjoys the benefits of ownership although the title to some form of property may be in another name. Dividend income: It is paid out of the profits of a corporation to the stockholders. It may also be covered by a tax treaty, and it could be taxed at a reduced rate. If the beneficial owner files Form W-8BEN with the withholding agent, a lesser tax treaty rate may be claimed. Even if the entire amount is exempt under a tax treaty, the withholding agent will report the payment on Forms 1042-S and 1042. Capital gains: It is realized when a capital asset is sold or exchanged at a price higher than its basis. It is not usually taxable to a nonresident alien who has been present in the US for less than 183 days in a calendar year, however, it is taxable at a 30% tax rate if the presence is 183 or more days. It may be subject to reduced tax rates under tax treaty agreements. If you receive capital gains income, you must report the gains on Form 1040NR. Plasma donations: Income earned through plasma donations is subject to the same rules and regulations as any other form of income. Since it is taxable income, you must report it on your tax return. Moreover, plasma donation centers are required by US law to provide a Form 1099-MISC, which will outline the total compensation you received throughout the tax year. After completing this form, you must file it along with all other tax documents.  Teaching or  Research compensation, or pay for teaching: Nonresident alien teachers, researchers, or professors invited by a US university or other accredited institution for research work or teaching at the educational institution under Cultural Exchange Programs on a J-1 visa will receive this payment. Some tax treaties exempt a whole compensation of J-1 teachers or researchers from tax for a limited number of years, and this is why this category is given a separate income code number. Compensation during scholarships and grants; International students or trainees (on F-1, M-1, or J-1 visas) receive scholarships/grants or personal service income related to their study and training. Some tax treaties exempt a certain amount of this income, varying by country from $2,000 to $10,000 from tax for a limited number of years if all other requirements of the tax treaty article are fulfilled. Au Pair Wages: An Au Pair is a young male or female who lives with a Host Family from another country and supports the family with childcare in return for full board, lodging, and pocket money. An au pair takes an active part in the family life. Wages paid to Au Pair Visitors are treated as wages paid to household employees. Because au pair wages are paid for domestic services, they are not subject to reporting on Forms W-2 and 941, respectively, and the host does not have the obligation to deduct income taxes. However, Au pair income is fully taxable and similar to dependent personal services, it is considered effectively connected to US trade or business and it is taxable at a graduated tax rate. Similar to students and other foreign nationals,  au pairs are required to file US individual income tax returns. Au Pair should file Form 1040ES-NR if you are a nonresident and pay income tax payments during the year in installments or just file an end-of-year tax return on the 1040NR  form and pay the whole tax liability at once by 15 April, next year. Au Pair will need a US TIN in both cases – a social security number or ITIN. With the mutual consent of the Au pair and host family, the Au pair may file Form W-4 with the host family, and indicate on line 6 of the form that the Au pair wishes to have a withholding amount of federal income tax deducted from their weekly wages. Then, the host family must report and pay this withheld tax on Schedule H of Form 1040. However, the Au pair must apply for a US social security number. Social Security and Medicare tax: A nonresident alien on an “F-1,” “J-1,” “M-1,” or “Q-1” visa who is temporarily in the US is not subject to Medicare and social security taxes on pay for services for which the alien was admitted to the US. Medicare and Social Security should not be paid or withheld on this amount. The same exemption from Medicare and social security taxes also applies to employment performed under Optional Practical Training and Curricular Practical Training (off or on-campus) by foreign students with “F-1,” “J-1,” “M-1,” or “Q” status, but the employment must be authorized by the US Citizenship and Immigration Services.
Who is a Dual-Status taxpayer? In the year of transition between being a nonresident and a resident for tax purposes, you are generally considered a Dual-Status Taxpayer.  A Dual-Status Taxpayer files two tax returns for the year—one return for the portion of the year when considered a nonresident and another return for the portion of the year considered a resident. In some situations, a taxpayer can elect to be treated as a full-year resident in the transition year to avoid filing two separate returns. In case of need, you may take the help of some experts like Turbo Tax.
What are federal and state taxes? Taxes for the 2024 calendar year (January 2024 – December 2024) are reported in the spring of the following year. 2024 Federal and State of California taxes must be postmarked by  April 15, 2025. Tax forms are filed with both the U.S. government (federal) through the Internal Revenue Service (IRS) and the U.S. state(s) where income was earned. For example, if a student earned income in California (CA) and New York (NY), that student would file a federal tax form as well as separate state forms for both CA and NY.

Forms and documents: The relevant forms and documents may be obtained from the employer, relevant websites, or other trusted means. Some of the forms and documents are listed below:

Form W-2: This form shows the total income earned and the income tax withheld at the state and federal levels. Workers receive a W-2 from each employer and thus may have multiple W-2s to include in their federal and state tax filings. Information about the Form W-2 for F-1 and J-1 students and scholars employed by USC can be found on the USC Payroll Services website.

Form 1042-S: The purpose of this form is to report U.S. taxable income and U.S. income tax withholding in the following cases: Scholarships, fellowships, or grants awarded to students or postdoctoral fellows and compensation for services rendered. Income claimed as exempted from US income tax under a tax treaty. Treaties are claimed by filing Form 8233 Information about Form 1042-S for F-1 and J-1 students and scholars employed by USC can be found on the USC Payroll Services website.

Form 1099: This form shows any interest earned on bank accounts, stocks, funds, etc., which students may need to claim. It also reflects any income earned as an independent consultant or through a temporary/staffing agency.

Form 1098-T: A 1098-T Form is provided to some students to notify them that they may be eligible for federal income tax credits. The majority of international students and scholars are not eligible to claim education expense tax credits on their federal tax forms as they are not US Citizens, Permanent Residents (PR), married to a U.S. citizen or PR, allowed to legally be claimed as a dependent by a US citizen or PR, or have not been in the US long enough to file taxes as a Resident for federal tax purposes. For more eligibility information, you can review IRS Publication 970. If eligible, you can access the USC (University of South California) Student Financial Services website for questions regarding Form 1098-T.

Form 8843 for Non-Resident Aliens (NRAs): All Non-Resident Aliens (NRAs) in F or J visa status and their dependents are needed to file Federal Form 8843 and Statement of Non-Residence every tax season, even if no income was earned. If you did have U.S. income, your full nonresident tax return will include Form 8843.

540NR and instructions – State of California Form 8843 – Statement of Non-Residence Form 8233 – Request for Tax Treaty Exemption Form 843 &  Form 8316 – Incorrect Withholding of FICA Tax

U. S. and Naturalization Service Forms and Documents: Employer Information Bulletin 96-08: Employee or Independent Contractor provides information on how to identify an independent contractor for INS purposes. IAP-66:  Certificate of Eligibility for Exchange Visitor (J-1) Status. It is required for nonimmigrant exchange visitors. Form I-9: Employment Eligibility Verification must be completed by each worker and is used by the agency to determine the worker’s citizenship status, employment authorization, and identification and registration numbers. Form I-20: Certificate of Eligibility for Nonimmigrant (F-1) Student Status is to be completed by an official of the school attended by the F-1 Visa holder. The form is a certification concerning the educational program and financial support of the student. I-94 Card, Departure Record: It is issued to non-immigrant aliens upon arrival in the U. S. The departure record contains the alien’s name, country of citizenship, date of birth, visa type, and the date through which the alien may stay. Changes in the alien’s status, extensions of stay, and employment eligibility may be noted. Form I-151: The Alien Registration Card (Green Card) was replaced on March 20, 1996, with the I-551. Alien Registration Receipt Card (Form I-551), issued by the Immigration and Naturalization Service, is the official document to identify permanent resident aliens. Visa: It is an official endorsement of a passport indicating the owner has permission to enter or cross a particular country. The Visa type further identifies the primary purpose of the visit and relates to a section of law. In most instances, the section of law refers to the Immigration and Nationality Act. Non-immigrant Visas have one letter and one number or one letter. Immigrant Visas have either two letters and one number or one letter and two numbers, and the holders are classified as resident aliens.

Internal Revenue Forms, Publications, and Useful Links   Useful Internal Revenue forms, publications, and links are listed below: Form 8233: Exemption from Withholding on Compensation for Independent Personal Services of a Nonresident Alien Individual. It is required to be completed by the Nonresident Alien when he/she claims the personal exemption, a treaty exemption, or both. WSU(Washington State University) is responsible for monitoring the tax treaty benefit eligibility period for each individual who has filed a Form 8233. Form W-7, Application for IRS Individual Tax Identification Number (TIN), is for individuals not otherwise eligible to receive a Social Security number. Form W-8BEN: Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding is required for nonresident individuals to tell the payor that the individual is not subject to certain U. S. information return reporting or backup withholding rules. The form is also used to claim a reduced rate of or exemption from withholding as a resident of a foreign country with which the United States has an income tax treaty.  The University is responsible for keeping all Forms W-8BEN and for monitoring the tax treaty benefit eligibility period for each student who has filed a Form W-8BEN.  Publications: IRS Publication 15, Employer’s Tax Guide. IRS Publication 15A, Employer’s Supplemental Tax Guide. IRS Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Corporations. IRS Publication 519, U. S. Tax Guide for Aliens. IRS Publication 520, Scholarships and Fellowships. IRS Publication 570, Tax Guide for Individuals With Income From U.S. Possessions. IRS Publication 597, Information on the United States-Canada Income Tax Treaty. IRS Publication 901, United States Tax Treaties. IRS Publication 1542, Per Diem Rates. IRS Publication 1915, Understanding Your IRS Individual Taxpayer Identification Number. IRS Publication 505 – Tax Withholding and Estimated Tax http://www.irs.gov/pub/irs-pdf/p505.pdf IRS Publication 596 – Earned Income Credit http://www.irs.gov/publications/p596/index.html IRS Publication 901 – U.S. Tax Treaties http://www.irs.gov/pub/irs-pdf/p901.pdf IRS Publication 519 – U.S. Tax Guide for Aliens http://www.irs.gov/pub/irs-pdf/p519.pdf

Form SS-5 for Social Security Card: Form SS-5 is required to be completed to apply for a Social Security Card, and it is to be submitted to the Social Security Administration. Form SS-5 may be obtained from the local Social Security Office by phone (1-800-772-1213) or via the website at http://www.ssa.gov. Documents needed  for applying for a Social Security Card: You have to submit the original documents or copies certified by the custodian of the record. Photocopies or notarized copies of the documents are not accepted. If you have never been assigned a Social Security Number before and want an original card, it is needed to show proof of age, identity, and U.S. citizenship or lawful alien status. If you need a duplicate card (without a change of name), it is needed to show the identity only.  For the corrected card (due to the name change), you need to show proof.  To change your name, you need to show proof of your old name and new name. Note: If you are born outside the U.S., it is also needed to show proof of  U.S. citizenship or lawful alien status.  Acceptable documents: Age:  It is preferred to submit the birth certificate. However, the following documents are also accepted: Hospital record of birth, which is made before the age of 5. Religious record of birth made before the age of 3 months. If you were born outside the U.S., a passport as proof of citizenship is accepted. Identity: Generally, current documents which have sufficient information for identification are accepted. It should have a signature, name, age, date of birth, parents’ names, etc.  Some of the acceptable documents are listed below: Driver’s license Employer ID card Passport Marriage or divorce record Adoption record Health Insurance card (not a Medicare card) Military Records Insurance policy School ID card However, birth certificates, hospital birth records, SSN cards, SSN card stubs, or SSA records are not acceptable documents. Note: If the Social Security Card is applied on behalf of someone else, proof of identity is needed for both you and the person to whom the card will be issued.

Final words:

All non-resident tax return forms like 1040NR or 8843 are available on the IRS website.

The aliens are divided into two groups: “Resident Aliens” and “Nonresident Aliens” as defined by Internal Revenue Code Sec. 7701(b) or by a tax treaty.

The resident aliens are treated the same as U.S. citizens for withholding tax purposes.

Nonresident Aliens are treated as per applicable special withholding rules for withholding tax purposes.

Nonresident Aliens who refuse to attend a Tax Determination Interview and/or file a proper Form W-4 as required by IRS regulations shall have federal income taxes withheld at the rates of single status, and zero exemptions are allowed.

Some Nonresident Aliens are eligible for exemptions from federal income tax withholding because of tax treaties if they file IRS Form 8233 accompanied by the required statement as a result of attending a Tax Determination Interview.

With certain exceptions, international students and scholars who are temporarily present in the U.S. on F-1, J-1, M-1, and Q-1 Visas are usually exempted from the withholding of Social Security and Medicare taxes. This exemption does not apply to spouses and children on F-2, J-2, M-2, and Q-2 Visas or to Nonresident Aliens who have become Resident Aliens or to Nonresident Aliens who have changed to any immigration status other than F-1, J-1, M-1, or Q-1.

All amounts paid to Nonresident Aliens in the form of scholarships, fellowships, grants, and financial aid that exceed mandatory enrollment fees must be reported to the IRS on Form 1042-S regardless of the amount paid unless the grant is from sources outside the United States, in which case the grant is neither reportable nor subject to withholding.

Payees who are temporarily present in the U.S. holding F-1, J-1, M-1, or Q-1 Visas are subject to withholding at 14% of the taxable portion of the grant. These individuals are considered to be engaged in a U.S. trade or business.

Some Nonresident Aliens are eligible for exemptions from federal income tax withholding because of tax treaties if they file IRS Form W-8BEN.

In general, those portions of a scholarship, fellowship, or grant that are used to pay tuition, fees, books, supplies, or equipment are not taxable under Sec. 117 of the Internal Revenue Code if the recipient is a candidate for a degree. Any portion of the scholarship, fellowship, or grant over and above the five items mentioned above is taxable.

Resident aliens ( legal U.S. residents) are subject to paying taxes as U.S. citizens. You must report all income on annual tax returns, regardless of which country in which you earn it.

In the year of transition between being a nonresident and a resident for tax purposes, you are generally considered a Dual-Status Taxpayer and must file two tax returns for the year.

Stipends, tuition waivers, or other financial aid paid to or on behalf of Nonresident Aliens which require the recipient to perform services in exchange for the financial aid (such as graduate assistantships) are taxable as wages and reportable to the IRS.

If a person has some doubt about the resident or non-resident status for tax purposes, the help may be taken from non-resident tax expert Sprintax, who will determine your status and prepare your non-resident return, if applicable. Sprintax is a tax preparation software designed for international students, scholars, their dependents, and alumni to prepare your required Form 8843 and nonresident federal tax return.

Most international students and scholars are subjected to taxation on any income earned in the United States (U.S.) from the beginning of their arrival in the U.S. Income can include salary, scholarships, fellowships, money earned from U.S. mutual funds, or U.S. bank accounts. Some students and scholars may be exempted from certain taxes.

Being a non-resident (i.e., F or J visa holder) for immigration purposes does not automatically make a student or scholar a Non-Resident Alien (NRA) for tax purposes. F-1 and J-1 students and their dependents are usually considered NRAs for tax purposes for their first five years in the U.S. J-1 scholars are usually considered NRAs for their first two years in the U.S.

Some countries are eligible for varying amounts of income exemption from taxation under tax treaties between their home government and the United States.  IRS Publication 901 lists current U.S. tax treaties.  Please note that tax treaties only pertain to federal and not state or local taxes.

If you had U.S. source income, you will receive one or more forms (W-2, 1042-S, 1099) indicating the type, source, and amount of income received.

Always follow the instructions given on the official websites.  Always use the correct form as prescribed by the authority. Always submit the return before the due date. Always provide the authentic, true, and complete information as asked in the income-tax return form. If it is not submitted timely, always inform the authority and take necessary action to file the return before the extended date. U.S. and state income tax laws are complex, and each individual's situation is unique. For any doubt, clarification, or help, approach authorized websites like https://www.irs.g.ov. Or approach the right person.

Disclaimer: This blog is written for information purposes only. It does not replace information and instructions mentioned on the official websites of the IRS U.S. government. Data are collected and compiled from different sources and written manually. It is not A.I. or AI-generated. The utmost care and the best efforts are made to provide you with updated and authentic information after studying the following and similar websites. Moreover, the author is not an authorized professional. Therefore, he is not responsible (legal or otherwise) for any contradictions, discrepancies, and consequences noticed anytime, anywhere, any way, or in any form.  https://www.irs.gov https://payroll.wsu.edu https://turbotax.intuit.com https://ois.usc.edu/ https://isso.columbia.edu https://internationalaffairs.uchicago.edu https://www.usa.gov https://blog.sprintax.com

Be honest, smart, and knowledgeable to file the return correctly and timely, and don't forget to get a refund if any *IRS is always with you * ==The end==