The United States is currently hosting over 1 million international students. According to Open Doors data, 1,126,690 international students from more than 210 countries studied at U.S. higher education institutions during the 2023/2024 academic year, marking a 7% increase from the previous academic year.
The number of new international students enrolling at U.S. colleges or universities for the first time remained strong, with 298,705 new international students in 2023/2024, virtually matching last year’s total (a 0.1% increase) and returning to pre-pandemic levels. Open Doors recorded all-time high numbers of international students from eight of the top 25 countries of origin: Bangladesh, Colombia, Ghana, India, Italy, Nepal, Pakistan, and Spain.
As tax season approaches, many international students are confused about the tax filing process and unsure about who is required to file taxes among international students in the U.S.
International students in the United States are required to file taxes under certain circumstances, as outlined by the Internal Revenue Service (IRS). This includes students, trainees, scholars, researchers, and exchange visitors temporarily residing in the U.S. who meet specific criteria. Tax obligations apply even to those on non-resident visas if they have taxable income from scholarships, fellowships, or work-related earnings.
Students receiving taxable scholarships or fellowships must file taxes, as do those earning income through Optional Practical Training (OPT) or Curricular Practical Training (CPT). Unlike U.S. residents, there is no minimum income threshold for non-residents, meaning that even modest earnings can trigger the need to file.
“There is no minimum dollar amount of income that triggers a filing requirement for a nonresident alien, including a foreign student or a foreign scholar,” the IRS states on its website.
However, there are exceptions. International students are not required to file taxes if their income is solely from foreign sources or if they earned interest from U.S. banks, financial institutions, or insurance companies. Similarly, those who received non-taxable scholarships or fellowships are exempt from filing, according to the IRS.
Many international students are also exempt from Social Security and Medicare taxes for up to five years of their stay in the U.S. This exemption can provide significant financial relief during their studies.
Tax forms vary based on individual circumstances. Students with taxable income must file Form 1040-NR , while all international students, regardless of income, must file Form 8843.
The IRS takes approximately 21 days to process Form 1040-NR, and refunds may take up to six months to arrive. Importantly, international students are not required to file Form 1098-T, the tuition statement, which is reserved for U.S. citizens and green card holders.
Given the complexities of tax filing, international students are encouraged to consult professional tax advisors or the IRS to ensure compliance. Understanding their specific obligations can help students navigate the process effectively and avoid potential penalties.
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Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
