The Pencils and Erasers Foundation

A free educational resource from The Pencils and Erasers Foundation

This page is for general education only. It is not tax advice and cannot account for your specific situation. U.S. tax rules for nonresident aliens are technical, and getting them wrong can create problems later, including during future visa or status applications. Always confirm your obligations directly on IRS.gov, use your university’s free nonresident tax software if offered, or consult a qualified tax professional before filing. Every link below points to an official IRS page.

What this guide covers: whether you’re a resident or nonresident alien for tax purposes, the Form 8843 requirement that applies regardless of income, when Form 1040-NR is also required, how scholarships and wages are actually taxed, tax treaties, the FICA exemption and its limits, getting an SSN or ITIN, state tax obligations, deadlines, and what happens if you file late or get it wrong.

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The one fact every F-1 student should know

If you were present in the U.S. on F-1 (or F-2 dependent) status for any part of the year (en one day) you almost certainly have a filing obligation with the IRS, regardless of whether you earned a single dollar.

This catches most students off guard. The relevant form, Form 8843, isn’t a tax return and doesn’t report income. It’s a statement explaining why your days in the U.S. don’t count toward a test called the Substantial Presence Test. But filing it is still mandatory, and skipping it has real consequences, not a fine, but the loss of your ability to exclude those days later, which can unexpectedly affect your tax residency status. (IRS — Substantial presence test)

Step 1: Are you a resident or nonresident alien for tax purposes?

This is the foundational question, and it’s worth understanding because it’s different from your immigration status. The IRS uses two tests: the green card test and the Substantial Presence Test. If you fail both, you’re a nonresident alien.

Most F-1 students qualify as “exempt individuals,” meaning your days of presence don’t count toward the Substantial Presence Test, for your first 5 calendar years in F-1 status. During those years, you’re generally a nonresident alien for tax purposes, which is usually simpler and means you’re only taxed on U.S.-source income, not your worldwide income. (IRS — Topic no. 851, Resident and nonresident aliens; IRS Publication 519)

A practical note: the IRS counts calendar years, not 12-month periods. If you entered the U.S. in November of a given year, that still counts as one of your five exempt calendar years.

After 5 calendar years, you generally stop being an “exempt individual” automatically and need to apply the Substantial Presence Test like anyone else — meaning you may become a resident alien for tax purposes, with different forms and worldwide income reporting. There are narrow exceptions (e.g., if you can show you don’t intend to reside permanently in the U.S. and have substantially complied with your visa terms), but this is genuinely a point where it’s worth getting professional or university help rather than guessing. (IRS Publication 519, “exempt individual” rules)

Step 2: Form 8843 — required regardless of income

Every nonresident F-1 student (and each F-2 dependent separately, including children) present in the U.S. during the tax year must file Form 8843, “Statement for Exempt Individuals and Individuals with a Medical Condition.” (IRS — About Form 8843)

A few specifics worth knowing:

• It is not optional, and there’s no income threshold. Even with $0 U.S. income, you file it.
• Each person needs a separate form. A spouse and two children on F-2 status means three additional forms — not one combined filing.
• It cannot be e-filed. It must be printed, signed, and mailed.
• If you have to file a tax return (Form 1040-NR), attach Form 8843 to the back of it and mail them together.
• If you don’t have to file a tax return, mail Form 8843 by itself to: Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215
• Keep a copy for your records.

What happens if you skip it: the IRS may not let you exclude those days from the Substantial Presence Test later, which can result in being unexpectedly reclassified as a resident alien — with back taxes and penalties a real possibility if that shift goes unnoticed for years. There’s an exception if you can show “clear and convincing evidence” you took reasonable steps to learn about and comply with the requirement, but that’s not a position you want to rely on. If you’ve missed prior years, the IRS allows you to file delinquent Form 8843s — one per missed year — rather than ignoring it. (IRS — Substantial presence test, filing consequences)

Step 3: Do you also need to file Form 1040-NR?

If you had any U.S.-sourced income — a campus job, paid CPT/OPT work, or a taxable portion of a scholarship — you generally need to file Form 1040-NR, the nonresident alien income tax return, in addition to Form 8843. (IRS — About Form 1040-NR)

There is no minimum income threshold that exempts a nonresident alien from filing — this is different from how it works for some U.S. citizens. (IRS — Foreign students, scholars, teachers, researchers and exchange visitors)

A separate, important point worth knowing if you’re hoping for a tax refund: most nonresident aliens cannot claim the standard deduction the way U.S. citizens and resident aliens can. There’s a narrow treaty-based exception for students and business apprentices from a specific list of treaty countries (commonly cited: India, under that treaty’s student/apprentice article) — but absent a specific applicable treaty provision, assume you don’t get the standard deduction and budget accordingly.

Do you need an SSN or an ITIN?

You’ll need one or the other to file a tax return.

• If you’re authorized to work (on-campus job, CPT, or OPT), you’re generally eligible for a Social Security Number (SSN), applied for through the Social Security Administration — usually with help from your university’s international student office.
• If you have no work authorization but still have a filing requirement (e.g., taxable scholarship income with no job), you’ll need an Individual Taxpayer Identification Number (ITIN), applied for using Form W-7. (IRS — About Form W-7; IRS — How to apply for an ITIN)
• If you only need to file Form 8843 with no income, you generally do not need either an SSN or ITIN at all.
• A valid passport is the only single document the IRS accepts as proof of both identity and foreign status for the ITIN application; without one, you need at least two other documents from the IRS’s accepted list, one with a photo.
• ITIN applications typically take 7 weeks, or 9–11 weeks during tax season (mid-January through April) or if applying from abroad — plan accordingly rather than waiting until the deadline.
• Having an ITIN does not grant work authorization or affect immigration status, and the IRS does not share ITIN information with immigration enforcement agencies for routine tax administration purposes.

Do you need to file a state tax return too?

This guide covers federal taxes only, but many states have their own separate income tax filing requirement, and the rules for who counts as a “resident” for state tax purposes are often different from the federal nonresident alien rules — some states will consider you a state tax resident even though the IRS treats you as a nonresident alien federally.

Whether you owe state tax, and what counts as taxable, varies significantly by state — some states have no state income tax at all, while most others do. Check your specific state’s department of revenue, or ask your university’s international student office, since this depends on where you live and work, not just where you study.

Common income scenarios

Campus job: Reported on a W-2, taxed at standard rates, and you’ll generally file Form 1040-NR plus Form 8843.

CPT/OPT employment: Treated the same as wage income for tax purposes — file 1040-NR and 8843 if you earned anything.

Scholarships and fellowships: This is more nuanced than most students expect.

• The portion of a scholarship that covers tuition, fees, and required course-related expenses (books, supplies, equipment required of all students in the course) is generally tax-free and not subject to withholding, whether you’re a citizen, resident, or nonresident. (IRS — Withholding on scholarships, fellowships and grants paid to nonresident aliens)
• Any portion covering room, board, travel, or other incidental expenses is generally taxable, and for nonresident aliens specifically, it’s subject to 14% withholding if you’re on an F, J, M, or Q visa (versus 30% for other nonresident aliens) — unless a tax treaty reduces or eliminates it.
• If the scholarship comes from a foreign source (paid by an entity outside the U.S.), it’s generally not subject to U.S. withholding or reporting at all.
• If a scholarship requires you to perform services (teaching, research) as a condition of receiving it, that portion is treated as compensation/wages, not a scholarship, and is taxed accordingly.

Stipends tied to required service (e.g., a research assistantship where you must work): treated as wages, reported on a W-2, not as scholarship income.

Tax treaties — don’t skip this if you’re eligible

The U.S. has income tax treaties with dozens of countries, many of which include specific provisions for students, trainees, researchers, and teachers that can reduce or eliminate U.S. tax on certain income (often scholarship/fellowship income, and sometimes wages, for a limited number of years). (IRS Publication 901, U.S. Tax Treaties)

To claim a treaty exemption, you generally need to file Form W-8BEN with the payer of the scholarship, or Form 8233 if it relates to compensation for services. (IRS — Claiming treaty exemption for a scholarship or fellowship grant)

Two things worth knowing: treaty benefits don’t replace the Form 8843 requirement — you still file both. And treaty articles for students/trainees often have time limits, so check your specific country’s treaty article rather than assuming the benefit lasts indefinitely.

Not every country has a U.S. tax treaty, and not every treaty includes a student/scholarship provision even where one exists — so check the current treaty list for your specific country of tax residence directly rather than assuming this section applies to you. (IRS Publication 901, U.S. Tax Treaties)

Social Security and Medicare tax (FICA) — you’re probably exempt

Nonresident alien F-1 students are generally exempt from FICA (Social Security and Medicare) tax on wages earned from authorized employment — on-campus jobs, or CPT/OPT — as long as you remain a nonresident alien for tax purposes (generally, within your first 5 calendar years). This exemption stops once you become a resident alien under the Substantial Presence Test. (IRS — Foreign student liability for Social Security and Medicare taxes)

Important boundaries on this exemption:

• It only applies to employment authorized by your visa status. Unauthorized work doesn’t qualify for the exemption — and creates separate, more serious problems.
• It does not apply to F-2 dependents’ wages, even though it applies to the F-1 student.
• It does not apply once you become a resident alien for tax purposes (typically after 5 calendar years), with one narrow exception: the separate “student FICA exception” for students employed by the school where they’re enrolled at least half-time, which can still apply even after becoming a resident alien in some cases.

If FICA tax is mistakenly withheld from your paycheck: first ask your employer’s payroll department for a refund — many will correct it directly, sometimes pointing them to the IRS guidance above is enough. If they can’t or won’t, you can file directly with the IRS using Form 843 (Claim for Refund and Request for Abatement) along with Form 8316. (IRS guidance referenced above)

What actually happens if you don’t file, or file wrong

If you owe no tax and just missed Form 8843: there’s no separate dollar penalty for a late standalone Form 8843 with no income. The real risk is different: the IRS can simply refuse to let you exclude those days from the Substantial Presence Test, which can mean being treated as a resident alien for that period without realizing it — a status that’s hard to unwind retroactively. (IRS — Substantial presence test)

If you owe tax and file late: the standard IRS failure-to-file penalty is 5% of the unpaid tax for each month or partial month the return is late, capped at 25%, plus a separate failure-to-pay penalty of 0.5% per month, plus interest. (IRS — Failure to file penalty)

If you owe no tax and file late: the IRS generally doesn’t impose the failure-to-file penalty if there’s no unpaid tax, but you still want to file to establish a clean compliance record and to claim any refund you’re owed (refund claims generally must be made within a few years of the original due date, so don’t sit on this indefinitely).

If you’ve missed multiple prior years: the IRS allows you to catch up by filing the missed returns and Form 8843s for those years rather than just the current one. This is exactly the kind of situation where getting it right matters more than getting it done fast, consider professional help if you’re more than one year behind.

If you already filed the wrong form (for example, filed Form 1040 when you should have filed Form 1040-NR, or vice versa, because you misjudged your residency status): you generally need to file an amended return. For nonresident alien returns specifically, this typically means Form 1040-NR with an explanation, or in some cases a specific amended nonresident form, this is genuinely a “get a professional” situation rather than a DIY fix, since incorrectly filing as a resident when you were a nonresident (or the reverse) can mean you claimed deductions or credits you weren’t entitled to, which compounds the more years it goes uncorrected.

Why this matters beyond the IRS itself

Tax compliance history can surface during future immigration steps — OPT applications, change of status, even green card processing down the line. Filing correctly and on time, even when it’s just a zero-income Form 8843, is part of keeping a clean record that’s separate from, but can intersect with, your immigration history.

Deadlines

For a typical tax year, the relevant deadlines are generally:

• Form 1040-NR (if you have a filing requirement): generally April 15 of the following year
• Form 8843 standalone (no income, no return required): generally June 15 of the following year

These exact dates can shift slightly year to year (weekends, holidays), always confirm the current year’s specific dates on IRS.gov rather than relying on a fixed date from memory.

Where to actually get help

• Your university’s international student office (ISSS/OIE) first — most provide free access to nonresident-specific tax software (commonly Glacier Tax Prep or Sprintax), and can point you to campus-specific resources
• IRS Publication 519, U.S. Tax Guide for Aliens — the comprehensive official guide this page draws from
• IRS — Foreign students, scholars, teachers, researchers and exchange visitors — IRS’s own hub page for this exact population
• A tax professional experienced specifically with nonresident alien returns, especially if your situation involves treaty claims, a dual-status year (status changed mid-year), or scholarship income with both qualified and taxable portions

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