Legal AdviceTaxation

Filing Your Tax Return as an International Student in the USA

International student in the USA is equally liable to pay taxes as a non-resident of the state. Further, they will be taxed under the US source of income. Like non-residents of the USA, international students have to file their tax returns if they are in the USA.

Filing tax returns is mandatory and is essential for international students to obtain their green cards and to invocate their visas. The international student in the USA tax return process can sound complicated because it is indeed a complicated process. However, no matter how complex the process is, it is essential to understand the importance of filing tax returns for international students in the USA. let us know the process in detail.

Important Terms Under International Student Tax Returns

Before we dive into the details of filing the tax returns as an international student in the USA, let us know about the important terms that come under international students in the USA tax return process. They are:

  • Non-resident alien for tax purposes.

International students with an F, J, or M Visa and further, have been residing in the US for less than 5 years come under the non-resident alien for tax purposes. 

  • Resident alien for tax purposes. 

International students with F, J, or M visas who have been residing in the USA for more than 5 years come under the resident alien for tax purposes. 

  • Income

All earnings that the international students get from their scholarships, grants, stipends, etc. come under the term Income.

Thus, these are the important terms that come under the international students in the USA tax return process.

Who Can File for Tax Returns As an International Student in the USA?

There are certain eligibility criteria for qualifying to file for tax returns as an international student in the USA. They are:

  • All international students and their spouses and dependents.

The first eligibility criteria are for the international students and their spouses and dependents. They automatically can apply for taxes and for their returns by submitting the 8843 form. 

  • Students with F1 visas are also eligible for applying for tax returns except for employment taxes.

The next category of people who can apply for tax returns is the students who are F1 visa holders and have paid taxes for all the areas of the US administration except for the employment taxes. Because students with F1 visas need not pay employment tax in the USA.

  • International students who pay federal and state taxes are also eligible.

Another category students can file for tax returns are the international students who pay federal and state taxes. After all, students who are eligible to pay federal taxes are also eligible for payment of state/local taxes.

  • Non-earning students can also file for tax returns by completing the 1040NR and 1040NR-EZ.

Non-earning students who are eligible to pay for the previously mentioned taxes are also eligible for filing for tax returns by completing the 1040NR and 1040NR-EZ. However, talk to a professional first before you move ahead.

Hence, these are the people who are eligible for filing tax returns as international students in the USA. 

FILE YOUR INCOME TAX RETURNS IN USA

How to File for Tax Returns?

The filing of tax returns as international students in the USA is a long process. But you can do it all by yourself. These are the steps for the same:

  • Visit the official website of IRS and fill out form 8843. 

As a first step, visit the official website of IRS and fill out form 8843. There are separate forms for each member of the family including the international students themselves. 

  • Fill in all the essential requisite details.

Secondly, fill in all the essential details as per requested in form 8843. Cross-check the form once or twice before submitting it for processing the same. 

  • Consult expert advice before you start with the process. 

Finally and the most important thing is to consult an expert to know about the international tax returns process. 

Thus, these are some of the steps to filing tax returns. 

Benefits of Filing Tax Returns

There are various benefits to filing tax returns as an international student in the USA. They are:

  • The students can receive tax refunds by filing the tax returns on time.

By filing tax returns on time, international students can receive tax refunds immediately. Moreover, it is one of the most popular advantages of international students in the USA tax return process.

  • It helps in reducing tax liabilities for international students.

By filing tax returns on time, international students can avail of a reduction in tax liabilities in the USA  as per the tax treaty agreement signed by the USA with more than 55 countries. 

  • Tax returns filed on time can help international students and residents to avoid penalties and interests.

In most cases, the foreign nationals have to pay additional interests or penalties on student taxes in the country. However, if they file the tax returns on time, they can avoid paying the interests and penalties.

  • Filing tax returns can help international students to proceed with their visa requirements.

International students who file their tax returns on time can proceed with their visa revoking process. Further, for availing of the green card.

  • The IRS can verify the tax returns of international students. 

International students who file their tax return is verified by the IRS. if they pay the tax return on time then the IRS will verify the same and refund the same. Further, if they do not file the tax return. 

Hence, these are the benefits of filing tax returns as an international student in the USA. 

Conclusion

Overall, international students in the USA should file tax returns without fail. This will help them to reduce their tax liabilities and further, enjoy the benefits of the same. Moreover, you should be aware of the important terms that come under the international students in the USA tax return process. Furthermore, filing tax returns as an international student in the USA is the top priority of an international student if they wish to continue their studies in the country. 

Finally, if international students planning to revoke their visas and acquire green cards, they should ensure that they apply for the tax returns on time. Most importantly, international students can file their tax returns by visiting the official website of the IRS. follow the steps mentioned above and file the tax returns on time. Lastly, filing tax returns can be a complicated process but with expert help, international students can enjoy studying in the USA without worrying about their tax liabilities. Get in touch with Vakilsearch to learn more.

Read More:

  1. 5 Ways to File Your US Tax Return Quickly and Efficiently
  2. How to file Income Tax Return after the due date?

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