Filing Requirements
This site is dedicated to helping you comply with U.S. tax laws
if you are a foreign national visiting the United States on a
temporary visa. For most Americans, completing their tax return
is a confusing and frustrating exercise. We can only imagine how
ominous the task must seem for your, a foreign visitor. Hopefully
the information you find here will make the job easier.
Who Needs to File a Return?
If you are a non-resident alien doing business in the United
States, you are required to file a tax return regardless of your
income. (To "file a return" means to send it to the
IRS, either through the mail or electronically.) You are considered
to be engaged in business even if you are an employee working
for wages. If you are a student or scholar visiting the United
States on an F, J, M or Q visa, and are classified as a nonresident
for U.S. tax purposes, you are required to file a tax return each
year you are here if you have any income subject to U.S. income
tax. Additionally, if you are an exempt individual (explained
under "Residency Status"), you are required to file
Form 8843 regardless of your income. Here is a description of
the forms you are required to file:
These forms and instructions can be downloaded from the IRS
Web site at www.irs.gov.
In prior years, non-resident alien students and scholars were
required to file an income tax return regardless of their income.
The IRS changed this policy in 1997 to require a return only if
you have income subject to U.S. tax. However, a formal interpretation
has not been issued by the IRS specifying exactly what they mean
by this. One IRS official has stated that if you have received
only a "qualified scholarship" that is excluded by U.S.
statute, you do not have to file a return. Another IRS official
stated that you must file a return if you have income exempt by
treaty in order to claim the treaty exemption. It doesn't matter
that your employer withheld adequate tax from your paychecks or
that you have a small amount of income and owe no tax you are
still supposed to file.
Form 8843 is required if you are an "exempt individual."
This does not mean you are exempt from paying U.S. taxes, but
that you are exempt from the substantial presence test for determining
residency status. See "Residency Status." You must file
Form 8843 even if you are not required to file an income tax return.
What Happens If You Don't File?
Studies have shown that most nonresidents either do not file
a return, or file incorrectly. However, it has also been shown
that there is massive overpayment of U.S. taxes by nonresidents
who do not file, rather than underpayment (J.W. Antenucci, "Widespread
Noncompliance and Overpayment of Taxes by Foreign Scholars,"
Tax Notes, May 13, 1996). Just because your employer has withheld
tax from your wages does not mean that you have paid the proper
amount. You could have a sizeable refund due!
If you do not have a tax liability, you might be wondering what
will happen if you do not file a return. Well, the IRS will not
impose penalties if no tax is due. However, the terms of your
visa require you to comply with all laws of the United States,
including the requirement to file an income tax return. You might
be required to show proof that you filed if you wish to change
your visa status, or obtain permanent residency, or regain entry
into the United States once you have left. Don't risk your visa
status by failing to comply with this requirement.
When and Where To File
If you received wages subject to U.S. tax withholding, the due
date for filing your tax return is April 15 of the following year.
If you did not receive taxable wages during the year, the due
date for filing your tax return is June 15 of the following year.
Your Form 1040NR or Form 1040NR-EZ (including Form 8843) must
be sent to the Internal Revenue Service Center, Philadelphia,
PA 19255. See page 33 of Publication 519 for more information.
How To Find Free Tax Help
Contact your local IRS office to find out about free taxpayer
assistance and ask for the Taxpayer Education Coordinator or your
International Student Services advisor on campus for information.
Choosing a Paid Preparer
If your tax situation is complex, seek the aid of a professional
tax preparer. Unfortunately, there are relatively few preparers
who have experience in preparing returns for foreign nationals.
Be sure to ask prospective preparers if they are familiar with
Form 1040NR and the rules applicable to F, J, M and Q visa holders.
Do not engage a preparer who is not. The professional designations
of "Certified Public Accountant" or "Enrolled Agent"
are indications of a preparer's competency, but are not guarantees.
Most tax preparers charge on a per hour basis rather than a fixed
fee. If a preparer will not state an exact fee in advance, you
should at least be told the maximum amount that you might have
to pay. Even if you are planning to hire a preparer, it's best
to learn as much as you can on your own. Take some time to look
through these pages; you might find that you can do the job yourself.
Filing Your Own Return
The first thing you must do is to determine whether you are
a resident, a nonresident, or a dual status alien for tax purposes.
These titles do not relate to your immigration status. Even though
you are a citizen of another country, you might still be considered
a U.S. resident for U.S. tax purposes. This is an important first
step because it determines whether you must file, what form to
file, and whether you are eligible for treaty benefits. See Residency
Status and Foreign National FAQ. Also, the first few pages of
IRS Publication 519 (see below) explain how to determine your
residency status.
If you determine that you are a nonresident or dual status alien,
all the information you will probably need to complete your nonresident
return is contained in two U.S. Internal Revenue Service booklets
and the instructions to Form 1040NR or 1040NR-EZ. This information
is explained, condensed and simplified here.
The IRS booklets are Publication 519 (U.S. Tax Guide for Aliens)
and Publication 901 (U.S. Tax Treaties). If you are a resident
of Canada, you will also find Publication 597 (Information on
the United States-Canada Income Tax Treaty) helpful. All of this
material can be obtained from the IRS Web site at Forms and Publications.
You can view and print out tax forms and publication using the
PDF file format. If you do not want to spend the time to download
this material (the publications take a while) simply call 1-800-TAX-FORM
(1-800-829-3676) and ask for them to be mailed to you. It should
take a week to ten days to get them.
Here is a complete list of all the forms and publications you
should need.
• Form 1040NR and Instructions or Form 1040NR-EZ and Instructions
• Form 8843
• Form 843 (for improperly withheld social security tax)
• Publication 519
• Publication 901
• Publication 597 (if you are from Canada)
Reading the first page of the Instructions to Form 1040NR-EZ
will tell you if you can use this shorter form. If you cannot,
use Form 1040NR.
After determining your residency status, proceed to The Tax
Return to learn about filing status and how specific items of
income and expense are reported on your return.
