International students are often surprised to learn that being a student does not excuse them from U.S. tax filings. If you are on an F-1, J-1 or M-1 visa, including OPT and STEM OPT, you generally file as a nonresident alien for your first few years, which means a different return and a different set of rules from most U.S. taxpayers. This page explains the basics for students in Naperville, Aurora and Chicagoland campuses, and for students elsewhere in the U.S. whom we serve remotely.
The five-calendar-year rule
For tax residency, days you spend in the U.S. as an F, J, M or Q student do not count toward the substantial presence test. According to Publication 519, you are not exempt for a year if you were exempt for any part of more than five calendar years, unless you can show you do not intend to reside permanently in the U.S. and you substantially complied with your visa. Every calendar year in which you were present for any part counts as a year.
Example. A student arrives in August 2021. Calendar years 2021 through 2025 are the five exempt years. In 2026, the sixth calendar year, the student generally becomes subject to the normal day-counting test and, with a full year in the U.S., will usually be a resident alien for tax purposes. The return changes from Form 1040-NR to Form 1040, and foreign accounts and income come into scope.
Forms nonresident students file
- Form 8843. Required for people who exclude days as exempt individuals, whether or not they had income. It is due with the nonresident return, or mailed to the IRS by the same date if you have no return to file. Missing it can cost you the exclusion unless you can show reasonable steps to comply.
- Form 1040-NR. Due April 15 if you received wages subject to withholding, and June 15 if you did not. Nonresidents generally cannot take the standard deduction or claim education credits.
- State return. Illinois requires a return from a nonresident if Illinois-source income, such as wages from a campus job, creates a tax liability, or if you want back the Illinois tax withheld. The Illinois tax rate is 4.95 percent for 2025.
- Form 1042-S. Taxable scholarship, fellowship and some treaty income is reported on this form instead of a W-2.
Our Form 1040-NR guide walks through the form line by line. Many universities offer nonresident tax software; compare it with a professional review before you file.
Social Security and Medicare tax
Students in F-1, J-1 and M-1 status who are nonresident aliens are generally exempt from Social Security and Medicare tax on wages for work that USCIS allows and that serves the visa's purpose. That includes on-campus jobs up to 20 hours a week (40 hours during summer vacation), authorized off-campus work, and practical training. The exemption ends if you change to a non-exempt status such as H-1B, or if you become a resident alien, and it does not cover F-2, J-2 or M-2 dependents. If your employer withheld FICA by mistake, ask for a refund first. If that fails, file Form 843 with Form 8316 and supporting documents. Students with J-1 or Q-1 scholar and trainee status follow different year-count rules.
India treaty benefit for students
Students and business apprentices from India who qualify under Article 21(2) of the U.S.-India treaty may claim the standard deduction on Form 1040-NR if they do not itemize. Publication 519 also says they can claim dependents and the Child Tax Credit under the same rules that apply to U.S. citizens. Other countries' treaties differ, and some may exempt part of student wages. See the US-India tax treaty guide and ask about your country's treaty before assuming a benefit.
Common mistakes
- Filing Form 1040 with resident-alien software when you are a nonresident.
- Forgetting Form 8843 in a year with no income.
- Counting a partial first year as "not a year" for the five-year rule.
- Selling stocks or cryptocurrency without checking the nonresident rules, which depend on how long you are physically in the U.S.
- Ignoring Form 1042-S, or not saving your I-20, I-94 and travel records.
- Not switching to resident reporting, including FBAR and Form 8938, after the exempt years end.
When you change status
Moving from OPT to an H-1B, or from a student visa to a green card process, can trigger a dual-status year. The IRS says closer-connection relief is not available if you have applied for permanent residence. Read the residency rules guide and our page for H-1B and visa holders. If you need an ITIN, the Form W-7 categories include nonresident students; see ITINs for spouses and dependents.
How we can help
We prepare Form 1040-NR returns, Form 8843, state returns and treaty claims for students, and we help when a status change makes the next year more complicated. See international tax or contact us through our contact page. This page is general information, not advice for your situation.
Frequently asked questions
Do I have to file taxes if I had no income?
You may still have to file Form 8843. If you had no U.S. income, you generally file only that form, not a full return.
Is OPT income exempt from Social Security and Medicare tax?
Generally yes, while you are an F-1 nonresident alien within the five-year period and your work is authorized practical training. Once you are a resident alien or change status, FICA applies.
Can I use the standard deduction?
Most nonresidents cannot. Students from India can under the treaty if they do not itemize.
When do I become a resident for tax purposes?
Usually after five calendar years as an exempt student, or sooner if you stop being an exempt individual and meet the substantial presence test.
Official sources
- IRS: Publication 519, U.S. Tax Guide for Aliens
- IRS: Substantial presence test
- IRS: Foreign student liability for Social Security and Medicare taxes
- IRS: Taxation of dual-status individuals
- IRS: Instructions for Form W-7
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.