Why F-1 Students Are Nonresident Aliens
A nonresident alien is a non-U.S. citizen who passes neither the green card test nor the substantial presence test, which counts your days in the US.
As an F-1 student, you’re an “exempt individual,” so your days generally don’t count. Per the Form 8843 instructions, this lasts until you’ve been exempt for any part of more than 5 calendar years. Any part of a year counts as a full year.
After that, your days generally count unless you show you don’t intend to live in the US permanently. “Exempt” only affects your residency status, so your US income can still be taxed.
What Income F-1 Students Pay Tax On
Withholding is tax an employer or school takes out of a payment and sends to the IRS. You file Form 1040-NR only if you have taxable U.S. income or want a refund of withheld tax. Your wages are taxed at the same graduated rates U.S. citizens pay.
Scholarships and Grants
If you’re a degree candidate, scholarship money spent on tuition and required course costs generally isn’t taxed. Money for room and board or travel is taxable, and so is money paid for teaching or research.
Your school reports the taxable part on Form 1042-S. The Form 1040-NR instructions show 14% withheld from it for an F-1 student, though your final tax may differ. General rules on taxable scholarship money apply, but you report on Form 1040-NR.
Tax Treaty Benefits
Your home country’s tax treaty may exempt some income, depending on its terms. In one IRS example, a student from France exempts up to $5,000 of work income. You claim treaty benefits with Form 8233 at your employer or on Form 1040-NR.
Social Security and Medicare (FICA) Taxes
FICA is the Social Security and Medicare tax taken from U.S. paychecks. Nonresident F-1 students are generally exempt from FICA on USCIS-allowed work that fits their visa. That includes on-campus jobs and practical training (OPT or CPT).
The exemption ends if you become a resident alien or change to a non-exempt status. If FICA was withheld in error, ask your employer for a refund first, then file Form 843 with Form 8316 if needed.
Filing Form 8843 and Form 1040-NR
Form 8843 is an information statement explaining why your days don’t count toward residency.
| Your situation | What to file |
|---|---|
| No US income | Form 8843 only |
| Taxable income or withheld tax to get back | Form 1040-NR with Form 8843 attached |
General income thresholds for who has to file apply to U.S. citizens and permanent residents. State rules vary, so check your state’s revenue department.
Filing Deadlines
| If you | Both forms are due |
|---|---|
| Had wages with US income tax withheld | Generally April 15 (15th day of the 4th month) |
| Didn’t have wages with tax withheld | Generally June 15 (15th day of the 6th month) |
Weekend or holiday deadlines move to the next business day. If you file more than 16 months late, the IRS may deny your deductions and credits.
Deductions, Credits and Filing Status
On Form 1040-NR:
- You generally can’t take the standard deduction, though students from India may qualify under the U.S.–India tax treaty.
- You generally can’t claim the earned income tax credit or education credits.
- You can’t file as married filing jointly or head of household.
- You may deduct student loan interest unless you’re married filing separately.
Getting an SSN or ITIN
If you’re eligible for a Social Security number (SSN), such as through work authorization, use it. If not, you must use an Individual Taxpayer Identification Number (ITIN), which is an ID for federal tax purposes only. You request one by filing Form W-7.
