Introduction: Overview of taxes for international individuals
Many international students struggle with paying taxes and filing tax returns. You may think that you don't need to do anything because you are an international individual, but this is not true. Every international student is required to file taxes (along with their dependents) if they were in the U.S. during the previous calendar year and had U.S. income and/or a taxable scholarship or fellowship grant.
So why bother with tax and tax forms from a financial literacy perspective? Taxes need to be considered because international students are subject to different tax treatment if they are granted permission to work and receive treaty benefits for scholarships, fellowship grants, studying, teaching or training. While filing taxes may sound difficult, there are a number of benefits to filing taxes other than the fact that it is the law. You might get a refund and/or fulfill your visa obligations to remain legal under F, J, M and Q type visas, even if you did not earn any money in the USA.
Every alien individual (other than a foreign government-related individual) must file Form 8843 to explain the basis of their claim that they can exclude days of presence in the United States for purposes of the substantial presence test. Depending on the types of visa and years you stayed, you may be "EXEMPT" from counting days of presence. However, you are NOT exempt from paying income tax unless your country of origin has a Tax Exempt Treaty with the U.S.A. Even if you have no income as a student or scholar, you still must file Form 8843 (one for each family member who is in the U.S.).
This module exists to highlight tax variances that international students face and to list the dos and don'ts of taxes in order to equip international students with the necessary resources to make informed decisions. For successful tax filing as an international student, you can follow five steps listed below. Let's get started!
Chapter 1. Language and terminology - key tax terms for internationals
Chapter 2. What is my residency status for federal income tax purposes?
Chapter 3. Which documents am I most likely to receive as a non-resident alien?
Chapter 4. Which tax forms should I file?
Chapter 5. Where can I get help as a PSU non-resident alien?