U.S. Taxes

Updated 11/11/2024

General Information

Most international students and scholars are liable for taxation on any income earned in the United States (U.S.) from the beginning of their arrival in the U.S. Income can include: salary, scholarships, fellowships, money earned from U.S. mutual funds or U.S. bank accounts.

Federal and State Taxes

Taxes for the 2024 calendar year (January 2024 – December 2024) are reported in the spring of the following year. 2024 Federal and State of California taxes must be postmarked by: April 15, 2025. Tax forms are filed with both the U.S. government (federal) through the Internal Revenue Service (IRS) and the U.S. state(s) where income was earned. For example, if a student earned income in California (CA) and New York (NY), that student would file a federal tax form as well as separate state forms for both CA and NY. Refer to How to File U.S. Taxes for more information.

Determining Status as a Non-Resident Alien or Resident for Tax Purposes

Being a non-resident (i.e. F or J visa holder) for immigration purposes does not automatically make a student or scholar a Non-Resident Alien (NRA) for tax purposes.

  • F-1 and J-1 students and their dependents are usually considered NRAs for tax purposes for their first five years in the U.S.
  • J-1 scholars are usually considered NRAs for their first two years in the U.S.

To determine status as a NRA or Resident for tax purposes, refer to IRS Publications 515 and 519. For further questions, visit the IRS web site, or call 1-800-829-1040.

Tax Exemptions

Some students and scholars may be exempt from certain taxes. Please review this section for details on such exemptions.

Tax Treaties

Some countries are eligible for varying amounts of income exemption from taxation under tax treaties between their home government and the United States. IRS Publication 901 lists current U.S. tax treaties. If a student or scholar needs to set up a tax treaty withholding exemption with an employer other than USC, they would use IRS Form 8233. Please note that tax treaties only pertain to federal and not state or local taxes.

FICA Taxes (Social Security & Medicare)

Federal Insurance Contributions Act (FICA) requires taxation on income earned to fund federal programs that provide benefits for U.S. citizens and permanent residents when they retire, are disabled, or are the children of deceased workers. Funds withheld for FICA are reflected on paycheck stubs and the Form W-2 (Boxes 4 and 6).

FICA Exemptions

  • F-1 and J-1 student visa holders are typically exempt from paying FICA taxes for their first five years in the U.S. and these taxes should not be deducted from paychecks
  • J-1 scholars and researchers are typically only exempt for two years
    •  J-2 visa holders with work authorization are not exempt from FICA taxes

The mechanism for the exemptions are found under Internal Revenue Code 3121 (b)(19) and is available to persons in F-1, J-1, M-1 and Q immigration status. It is a blanket exemption and the only qualification is that the person is a non-resident for tax purposes and that the work is authorized (e.g. CPT, OPT, AT).  Refer to IRS Publication 519 for additional information.

Obtaining Reimbursements of FICA Withholdings

If a student or scholars’ employer has mistakenly withheld FICA taxes, the student or scholar must work with their employer directly to request a reimbursement. If the employer will not assist this matter, the student or scholar must file IRS Form 843 and IRS Form 8316 to request reimbursement.

In the event an F-1 or J-1 student, scholar, or researcher is employed by USC and USC withheld FICA taxes in error, contact University Payroll Services at payroll@usc.edu.

Tax Related Forms

Students and scholars who have earned income in the U.S. should expect certain forms from their employer. These forms contain information needed to complete federal and state tax returns. Please keep all tax related forms in a safe place.

Form W-2

This form shows the total income earned and the withheld income tax at the state and federal levels. Workers receive a W-2 from each employer and thus may have multiple W-2s to include in their federal and state tax filings. Information about the Form W-2 for F-1 and J-1 students and scholars employed by USC can be found on the USC Payroll Services website.

Form 1042-S

The purpose of this form is to report U.S. taxable income and U.S. income tax withholding for:

  • Scholarships, fellowships or grants awarded to students or postdoctoral fellows, and compensation for services rendered
  • Income claimed as exempt from US income tax under a tax treaty – treaties are claimed by filing Form 8233

Information about the Form 1042-S for F-1 and J-1 students and scholars employed by USC can be found on the USC Payroll Services website.

Form 1099

This form shows any interest earned on bank accounts, stocks, funds, etc. which students may need to claim. It also reflects any income earned as an independent consultant, or through a temporary/staffing agency.

Form 1098-T

A 1098-T Form is provided to some students to notify them that they may be eligible for federal income tax credits. The majority of international students and scholars are not eligible to claim education expense tax credits on their federal tax forms as they are not US Citizens, Permanent Residents (PR), married to a U.S. citizen or PR, allowed to legally be claimed as a dependent by a US citizen or PR, or have not been in the US long enough to file taxes as a Resident for federal tax purposes.

For more information about eligibility, please review IRS Publication 970. If eligible, please see the USC Student Financial Services website for questions regarding Form 1098-T.

Form 8843 for Non-Resident Aliens

All Non-Resident Aliens (NRA) in F or J visa status and their dependents must file Federal Form 8843 and Statement of Non-Residence every tax season, even if no income was earned.

Tax Forms and Publications

How to File U.S. Taxes

There are a several ways to file U.S. taxes. Please review the different options and select one method.

Non-Resident Alien 

  1. Sprintax Tax Preparation Software
  2. Self-file; refer to:
  3. USC Volunteer Income Tax Assistance (VITA)
  4. Private Tax Specialist for Hire: Gary Engler, Certified Public Accountant (CPA)

Resident Alien

  1. Self-file; refer to:
  2. USC Volunteer Income Tax Assistance (VITA)
  3. Certified Public Accountant (CPA) or Tax Preparation Vendors for Hire, such as Turbo Tax and H&R Block
  4. Private Tax Specialist for Hire: Gary Engler, Certified Public Accountant (CPA)

Amended Returns

When F and J students and scholars submit tax forms to the U.S. government, they are making a legal and recorded statement of status and eligibility which must be correct.  False filings can seriously impact future immigration eligibility and status. If a student or scholar has filed incorrect tax forms, OIS strongly encourages seeking assistance from either a Certified Public Accountant (CPA), tax attorney, or licensed tax firm to make corrections as soon as possible to avoid any penalties. These services will incur a charge to be determined by the service provider.

Sprintax TDS

Pre Employment Tax Documents Software from Sprintax

If you are about to begin your CPT or OPT employment, your employer will likely need you to fill out pre-employment tax documents such as a W-4 and other tax related forms. These tax forms can be difficult to understand and equally difficult to fill out but are important to make sure you are taxed correctly on your pay. Sprintax released a service that can assist to generate your pre-employment tax documents and more ahead of your new job.