This is general information to help you understand the system. It isn’t tax advice. Your situation depends on your visa, your home country, any tax treaty and your income. For anything complicated, use IRS resources, your school’s tax software or a qualified preparer.
US taxes feel complicated because they are. Even Americans pay software or professionals to help. But the basic structure is simple once you see it, and knowing it saves you from the most common first-year mistakes.
Three kinds of tax on your paycheck
| Tax | Who collects it | Notes |
|---|---|---|
| Federal income tax | IRS | Everyone with taxable income |
| State income tax | Your state | Most states; not Texas, Florida, Washington and a few others |
| FICA (Social Security + Medicare) | IRS via employer | Some nonresident students and scholars are exempt |
| Local income tax | Some cities | New York City, for example |
Your employer withholds these from every paycheck and sends them to the government. At the end of the year you file a return to settle up. If too much was withheld, you get a refund. If too little, you owe the difference.
Resident or nonresident for tax?
This is the part that confuses newcomers most. Your tax status is not the same as your visa. The IRS uses its own tests.
- Green card holders are generally resident aliens for tax.
- Other visa holders usually use the substantial presence test, which counts days you were physically in the US over three years.
- Many F-1 and J-1 students are “exempt individuals” for the first five calendar years, meaning those days don’t count and they stay nonresidents.
- J-1 researchers and teachers often have a shorter exemption period.
Why it matters: residents and nonresidents file different forms, can claim different deductions and are taxed on different income. Nonresidents are generally taxed only on US-source income.
Your first year: If you arrived partway through the year, you might be a “dual-status” taxpayer. This is a good time to use professional help or IRS guidance.
The W-4 on your first day
When you start a job, HR will ask you to fill out Form W-4. It tells your employer how much federal tax to withhold. Nonresident aliens follow special instructions, including not claiming certain statuses. If you’re unsure, ask HR if they have a nonresident process, and check IRS Notice 1392.
Your state may have its own version of the W-4. Fill that out too.
What you’ll receive in January and February
- Form W-2 from each employer, showing wages and taxes withheld
- Form 1042-S if you received scholarship income or treaty-exempt wages as a nonresident
- Form 1099 for freelance or interest income
- Form 1098-T from your school for tuition (mainly relevant for residents)
Keep every one of these in a folder, digital or paper. You’ll need them to file.
Which forms you file
| Situation | Main form |
|---|---|
| Resident alien | Form 1040 |
| Nonresident alien with US income | Form 1040-NR |
| F-1/J-1 student or scholar, even with no income | Form 8843 |
| State return | Your state’s form, if it has income tax |
Many universities give international students free access to nonresident tax software. Ask your international office in February.
Tax treaties
The US has income tax treaties with many countries. Some let students or researchers exclude part of their income from tax for a few years. You usually claim treaty benefits through your employer (with Form 8233) or on your return. Check IRS Publication 901 for your country.
Deadlines
- Mid-April: most federal returns due, including 1040 and 1040-NR for people with wages
- June 15: Form 8843 and 1040-NR for nonresidents with no wages subject to withholding
- State deadlines usually match federal, but check
You can request an extension to file, but not to pay. If you owe money, pay by the April deadline to avoid interest.
Social Security and Medicare (FICA)
Most workers pay FICA taxes. Many nonresident F-1, J-1, M-1 and Q students and scholars are exempt while they are nonresidents. If you’re in that group and see FICA withheld on your pay stub, ask HR. If they can’t refund it, you can request it from the IRS.
Common first-year mistakes
- Using regular consumer tax software as a nonresident, which may file the wrong form
- Skipping Form 8843 because you had no income
- Not reporting freelance or side income
- Forgetting state returns
- Paying scammers who call claiming to be the IRS. The IRS doesn’t demand payment by phone or gift card.
Getting help
The IRS runs a free program called VITA for people with lower incomes, and some sites help nonresidents. Your university may host sessions in spring. For self-employment, investments or a dual-status year, a paid preparer who works with immigrants is often worth it.
A simple example
Imagine you start a job in September as a nonresident, earning $6,000 a month. By December you’ve earned $24,000. Your employer withheld federal and state income tax and, if you’re not exempt, FICA. In February you receive a W-2 showing the totals. You file a 1040-NR and state return by April. Depending on your withholding and any treaty benefit, you get a refund or owe a small amount.
This is simplified, but it shows the rhythm: withholding during the year, forms in early spring, filing by the deadline.
State taxes when you move
If you move between states during the year, you may need to file a part-year return in each. States with no income tax, like Texas and Florida, don’t require a state return for wages. Keep your moving dates and addresses on record.
Freelance and side income
Income from freelancing, tutoring or selling services is taxable and often has no withholding. Set aside a portion of each payment for taxes. Remember that many visas restrict self-employment, so check your work authorization before taking side work.
Your ITIN
If you need to file a US tax return but aren’t eligible for an SSN, such as a dependent spouse, you may apply for an Individual Taxpayer Identification Number (ITIN) using Form W-7, usually with your tax return. An ITIN is for tax purposes only and doesn’t authorize work.
Keeping good records
| Keep | How long |
|---|---|
| W-2, 1042-S, 1099 forms | At least three years |
| Copies of filed returns | At least three years, ideally longer |
| Proof of days in the US (passport stamps, I-94 history) | As long as you might need to show tax residency |
| Tuition and scholarship documents | At least three years |
Tax refunds
Refunds usually arrive by direct deposit within a few weeks of e-filing. Paper-filed nonresident returns can take longer. The IRS “Where’s My Refund?” tool shows the status.
If you get a letter from the IRS
Don’t ignore it, and don’t panic. Most IRS letters ask for information or explain a change. Read it carefully, compare it with your records and respond by the date listed. Be suspicious of emails, texts and calls claiming to be the IRS; official contact usually starts with a letter by mail.
Your first tax season, step by step
- January–February: collect W-2, 1042-S and any 1099 forms
- Figure out whether you’re a resident or nonresident for the tax year
- Use the right software or a preparer for your status
- File federal, then state
- Save copies of everything you filed
- Track your refund or pay any amount due by the deadline
Terms you’ll hear
- Withholding: tax taken from each paycheck
- Standard deduction: a fixed amount residents can subtract from income; nonresidents generally can’t claim it
- Refund: money back when too much was withheld
- Tax treaty: an agreement that can reduce tax for residents of certain countries
- Estimated tax: payments you make yourself during the year on untaxed income
Becoming a resident for tax
After a few years, many visa holders pass the substantial presence test and become resident aliens for tax. That changes a lot: you’re taxed on worldwide income, you can usually claim the standard deduction, and you may need to report foreign bank accounts above certain thresholds. The year you switch, review your situation carefully or get professional help.
