Tax Information
Filing taxes can be confusing, but the Office of General Counsel is here to help. This is your guide for ensuring you abide by IRS regulations.
Filing Taxes for Nonresident Aliens FAQ’s
The IRS is the United States’ taxing authority that is required to collect taxes from all American-sourced income for international students and employees. Taxes must be filed by April of each year. For assistance, please reach out to the Office of General Counsel. For more information, please visit the IRS the IRS Nonresident Aliens website.
What is a nonresident alien?
As an international student, you are likely considered a nonresident alien (non-U.S. citizen), unless you meet one of two tests: the green card test or the substantial presence test for the calendar year (January 1 – December 31).
If you fall under either of the following criteria, you must file a return:
- A nonresident alien individual engaged or considered to be 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.
What forms do I need to file?
If you were a nonresident student or researcher who was temporarily present in the United States on an F-1 or J-1 visa who has earned income that is subject to tax, such as wages, tips, scholarship and fellowship grants, dividends, etc., you must file Form 1040-NR, U.S. Nonresident Alien Income Tax Return.
All international students, researchers and any applicable dependents are required to fill out Form 8843 each year they are in the U.S., regardless of if they had income or not.
F-1 and J-1 students maintaining status are exempt from the substantial presence test for 5 years. J-1 scholars are exempt from the substantial presence test only if they have been in the U.S. no more than 2 out of the last 6 years.
What documents do I need to file?
W-2: Wages
All income received by resident alien employees and income received by nonresident alien employees, on which tax treaty benefits have not been claimed, will be reported, along with the taxes withheld, on Form W-2 Wage and Tax Statement.
W-7: Application for IRS Individual Taxpayer Identification Number (ITIN)
Form W-7 is used to apply for an IRS individual taxpayer identification number (ITIN). This form can also be used to renew an existing ITIN that is expiring or that has already expired.
An ITIN is a 9-digit number issued by the IRS to individuals who are required for U.S. federal tax purposes to have a U.S. taxpayer identification number but who do not have and are not eligible to get a Social Security number (SSN).
Form 1042-S: Foreign Person’s U.S.-Sourced Income Subject to Withholding
A 1042-S is a year-end federal tax document given to a non-resident alien who:
- Received wages exempted from federal and state tax withholding by a tax treaty; and/or
- Received a non-qualified taxable scholarship (Any amounts received for incidental expenses or by a non-degree candidate are taxable scholarships. Incidental expenses include room and board, travel, and expenses for equipment and other items that are not required for either enrollment or for attendance, or in a course of instruction).
- The 1042-S has an income code, which describes the type of income being reported. In certain cases, you may receive a W-2 in addition to a 1042-S.
Form 1040-NR: U.S. Nonresident Income Tax Return
You will need to file Form 1040-NR if you:
- Were a nonresident alien engaged in a trade or business in the United States.
- Represented a deceased person who would have had to file Form 1040-NR.
- Represented an estate or trust that had to file Form 1040-NR.
FICA Exemption Chart for Foreign National Employees
Nonresident foreign nationals with USCIS work authorized documents may be exempt from FICA taxes on their wages for their USCIS authorized services performed when the employment directly correlates to the purpose of their nonimmigrant work status. For the purposes of Meharry, two specific classes of nonimmigrants/nonresidents may be exempt: F-1—work study, EAD OPT–and J-1 Research Scholars.
Classification | Exemption Formulate/Determination |
F-1 Student | Exempt for up to five calendar years* for employment including:
|
J-1 Researcher | Exempt for up to two calendar years* for employment including:
|
H-1B Specialty Employees | NOT EXEMPT – For FICA taxes, an H-1B employee is treated the same as a U.S. citizen when providing services to a U.S. employer within the United States (IRS). |
Dependents/Spouses of F-1 or J-1 visa holders (i.e., F-2, J-2) | NOT EXEMPT – The FICA tax exemption does not apply to spouses and children in F-2 or J-2 nonimmigrant statuses (IRS). |
*Please note that for the purpose of measuring a foreign national’s date of entry for determining the calendar year(s) of the visa holder, the actual date of entry is not determinative. The specific calendar year is the only consideration. For example, a foreign student who enters the U.S. on December 31, 1998, would count 1998 as the first of their five years as an “exempt individual.
FICA Rules for Nonresident Aliens in the U.S. Under F-1 and J-1 Nonimmigrant Category
FICA is comprised of the following taxes: (1) 6.2 percent Social Security tax, (2) 1.45 percent Medicare tax — the “regular” Medicare tax — and (3) a 0.9 percent Medicare surtax when the employee earns over $200,000. Employers must withhold these amounts from an employee’s wages — the “employee portion”.
There is also an employer portion of two of these taxes: (1) 6.2 percent Social Security tax and (2) 1.45 percent Medicare tax.