Yes — international students in the U.S. do pay taxes, but the rules are lighter than what citizens face. If you’re on an F, J, M, or Q visa, you generally owe federal income tax on money you earn from U.S. sources, including wages from authorized work and the taxable portion of any scholarship. For your first five calendar years in the country, though, you’re classified as a nonresident alien, which exempts you from Social Security and Medicare tax on your wages and may qualify you for treaty benefits that reduce or eliminate tax on certain income. You’ll also use different forms than a U.S. citizen would.
Why Your Residency Status Decides Everything
Before you look at a single dollar of income, figure out your tax residency. The IRS splits foreign nationals into nonresident aliens and resident aliens, and the two groups follow different rules, use different forms, and face different rates.
Most students on F, J, M, or Q visas are nonresident aliens for their first five calendar years in the United States.1Internal Revenue Service. Exempt Individual – Who is a Student The year you arrive counts as year one, even if you land in December. During those five years you’re treated as an “exempt individual” for the substantial presence test, so your days in the U.S. don’t count toward the 183-day threshold that would otherwise flip you into resident-alien status.2Internal Revenue Service. Substantial Presence Test
After the fifth calendar year, your days start counting, and once the weighted total hits 183 you become a resident alien and file the same way U.S. citizens do.2Internal Revenue Service. Substantial Presence Test The rest of this article assumes you’re still in the nonresident alien window, since that’s where almost all international students sit.
Which Income Is Actually Taxed
As a nonresident alien, only income connected to the United States is subject to U.S. tax. Money you receive from foreign sources isn’t.3Internal Revenue Service. Nonresident Aliens – Exclusions from Income
Wages From Authorized Work
Pay from on-campus employment, Curricular Practical Training, Optional Practical Training, or any other authorized job is taxed at the same graduated federal rates that apply to U.S. citizens and residents.4Internal Revenue Service. Nonresident Aliens Your employer withholds federal income tax from each paycheck, and you square up the amount when you file.
Scholarships and Fellowships
A scholarship or fellowship used for tuition, enrollment fees, books, supplies, and equipment required for your courses is tax-free.5Office of the Law Revision Counsel. 26 USC 117 – Qualified Scholarships Amounts covering room and board, travel, or optional equipment are taxable, as is any portion that pays you for required teaching or research.6Internal Revenue Service. Publication 970 – Tax Benefits for Education
The default withholding rate on taxable scholarship income paid to nonresident aliens is 30%, but for F, J, M, and Q visa holders that rate drops to 14% when the amount comes from a qualifying scholarship or certain qualifying organizations.7Internal Revenue Service. Withholding Federal Income Tax on Scholarships, Fellowships and Grants Paid to Nonresident Aliens A tax treaty with your home country can reduce it further.
Bank Interest
Interest you earn on deposits at U.S. banks, savings institutions, and insurance companies is generally not taxable for nonresident aliens, provided it isn’t tied to a U.S. business you operate.8Office of the Law Revision Counsel. 26 U.S. Code 871 – Tax on Nonresident Alien Individuals A regular savings account won’t create a tax bill, which trips up a lot of students who assume it would.
No Social Security or Medicare on Your Wages
One of the biggest breaks for international students is the FICA exemption. Nonresident alien students on F-1, J-1, or M-1 visas who have been in the country fewer than five calendar years don’t owe Social Security tax (6.2%) or Medicare tax (1.45%) on their wages.9Internal Revenue Service. Foreign Student Liability for Social Security and Medicare Taxes That’s 7.65% you keep that a U.S. worker on the same wage would lose.
Payroll departments that aren’t familiar with nonresident alien rules sometimes withhold these taxes anyway. Ask your employer to correct the error and refund the money first. If they won’t, file Form 843 with the IRS to request the refund yourself, attaching your W-2 and an explanation.10Internal Revenue Service. Instructions for Form 843 Don’t let it slide. The amounts add up.
Tax Treaties With Your Home Country
The U.S. has income tax treaties with dozens of countries that can reduce or eliminate tax on certain income for international students. Common benefits include exemptions on wages up to a set dollar amount, reduced or zero tax on scholarships, and exemptions on compensation for teaching or research. IRS Publication 901 lists the countries with active treaties and the specific benefits for each.11Internal Revenue Service. Publication 901 – U.S. Tax Treaties
To claim treaty benefits on wages, give your employer a completed Form 8233 before the income is paid.12Internal Revenue Service. About Form 8233 For non-wage income like scholarships or grants, use Form W-8BEN.13Internal Revenue Service. About Form W-8 BEN Both forms need your taxpayer ID number. Even when a treaty wipes out the tax entirely, you still report the income on your return.
What You Can and Can’t Deduct
Here’s a surprise for most international students: nonresident aliens cannot take the standard deduction. The one exception is for students and business apprentices from India, who may claim it under Article 21 of the U.S.-India income tax treaty.14Internal Revenue Service. Nonresident – Figuring Your Tax Everyone else is stuck with itemized deductions, and only those tied to U.S. income count.
The itemized deductions available to nonresident aliens include state and local income taxes paid where you earned income, charitable contributions to qualifying U.S. nonprofits, and casualty or theft losses from a federally declared disaster. Certain above-the-line adjustments are also allowed, including the student loan interest deduction and IRA contributions, if you qualify.14Internal Revenue Service. Nonresident – Figuring Your Tax In practice, most students with just wages or a scholarship will have little to itemize.
Claiming dependents is similarly limited. Only nonresident aliens who are U.S. nationals or residents of Canada, Mexico, or South Korea can claim qualifying dependents. Students from India eligible under Article 21(2) may also qualify.15Internal Revenue Service. Nonresident Aliens – Dependents For everyone else, the dependent exemption isn’t available.
Getting a Taxpayer ID Number
You can’t file a return without a tax ID number. Students use one of two.
If you’re authorized to work — through on-campus employment, CPT, OPT, or similar — you qualify for a Social Security Number. You’ll need your immigration documents, and for on-campus jobs a letter from your designated school official confirming enrollment and employment.16Social Security Administration. International Students and Social Security Numbers You don’t have to have the SSN in hand before you start working, but apply as soon as you can.
If you’re not eligible for an SSN but need to file — because of a taxable scholarship, for instance — you’ll apply for an Individual Taxpayer Identification Number using Form W-7, which you submit with your federal tax return and original identity documents or certified copies. A passport works on its own; without one, you’ll need at least two other documents from the IRS’s accepted list.17Internal Revenue Service. Instructions for Form W-7 Processing takes about seven weeks, stretching to nine or eleven during tax season (January 15 through April 30) or if you apply from overseas.18Internal Revenue Service. Individual Taxpayer Identification Number (ITIN)
The Forms You File and When
For the 2025 tax year, the filing deadline is April 15, 2026. If it falls on a weekend or holiday, it shifts to the next business day.19Internal Revenue Service. When to File
Form 8843 — Required Even With Zero Income
Every international student and scholar on an F or J visa who was present in the U.S. during the tax year must file Form 8843, even if they earned nothing at all. The form documents your status as an exempt individual for the substantial presence test.20Internal Revenue Service. About Form 8843
Form 1040-NR — If You Had Taxable Income
If you had wages, taxable scholarship income, or other U.S.-source taxable income, you also file Form 1040-NR, the nonresident alien income tax return.21Internal Revenue Service. Taxation of Nonresident Aliens This is where you report income, apply treaty benefits, take any deductions, and calculate what you owe or get back. Form 1040-NR can now be e-filed through commercial tax software.22Internal Revenue Service. Instructions for Form 1040-NR (2025)
Don’t Forget State Taxes
Federal is only half the picture. If you earned income in a state that collects income tax, you probably owe a state return too. Most states tax income earned within their borders regardless of visa status. A handful have no individual income tax, so students there can skip the step. Each state has its own forms, thresholds, and deadlines — your university’s international student office can usually point you to the right resources.
What Happens If You Skip Filing
If you owe tax and miss the deadline, the IRS charges a failure-to-file penalty of 5% of the unpaid tax each month, up to 25%. Returns more than 60 days late carry a minimum penalty of $525 or 100% of the unpaid tax, whichever is smaller.23Internal Revenue Service. Failure to File Penalty Unpaid taxes also accrue interest from the day after the deadline, compounding daily.
Even if you owe nothing, skipping Form 8843 year after year can cause trouble later if the IRS questions your nonresident alien status and runs the substantial presence test without your exempt days excluded. For students who may one day apply for a work visa, green card, or citizenship, a clean filing history matters.
Where to Get Help
Tax software built for nonresident aliens, such as Sprintax and Glacier Tax Prep, handles Form 1040-NR and treaty calculations. Many universities license one of these programs and offer it free to international students, so check with your international student office before paying out of pocket. Sprintax supports federal and state; Glacier is federal only.
The IRS also runs the Volunteer Income Tax Assistance (VITA) program, which provides free preparation for people with low to moderate income.24Internal Revenue Service. IRS Tax Volunteers Some university VITA sites are trained specifically for nonresident returns. Professional preparers who specialize in this area typically charge $400 or more, so the free options are worth trying first.