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You just completed your first semester in America. New country, new experiences, exciting opportunities. Then someone mentions taxes. "You need to file by April 15." Wait, what?
The U.S. tax system treats you differently than everyone else. It has separate tax forms, filing rules, and deadlines. While normal Americans file Form 1040. You can't use that and cannot claim standard deduction. You probably can't. They e-file in minutes. You're stuck with paper forms.
International students and scholars get their tax advice from American friends who have no idea about how nonresident aliens pay taxes in U.S. "Just use TurboTax like everyone else." "Obviously, you can claim the standard deduction." All of this advice is dead wrong for nonresidents, but first-time filers don't know any better.
So they file the wrong forms, claim deductions they're not allowed to take, and create compliance messes that follow them for years. By the time they discover the mistakes, penalties have piled up, and fixing the problems costs serious money.
Getting it right isn't actually complicated once you know the basics of nonresident alien tax filing. You just need to understand your status, use the correct forms, and avoid common nonresident tax filing mistakes that trip up thousands of people every year.
Understanding Your Tax Obligations as a First-Time Nonresident Alien Filer
Before you can file taxes, you need to understand what makes you a nonresident alien and why this matters more than you think when nonresident aliens pay taxes in U.S.
Who Qualifies as a Nonresident Alien
You're a nonresident alien if you meet both conditions:
- You don't have a U.S. green card AND
- You don't pass the Substantial Presence Test
The Substantial Presence Test
This test determines if you've been in the U.S. long enough to be considered a resident for tax purposes. You pass if you were physically present:
- At least 31 days during the current year AND
- 183 days during a 3-year period that includes:
- All days in the current year
- 1/3 of the days in the first preceding year
- 1/6 of days in the second preceding year
Exempt Days for Students and Scholars
Here's the game-changer for most first-time filers: certain visa holders get exempt days that don't count toward the Substantial Presence Test:
- F-1 students: First 5 calendar years exempt
- J-1 scholars: First 2 calendar years exempt
- M-1 vocational students: All days exempt
- Q visa holders: All days exempt
This means if you're an F-1 student in your first year, you're automatically a nonresident alien regardless of how many days you spent in the U.S.
Key Tax Forms and Dates
Using the wrong forms or missing deadlines creates problems that follow you for years. Here's exactly what you need to know for proper nonresident alien tax filing.
Form 1040-NR: U.S. Nonresident Alien Income Tax Return
This is the main tax return for nonresident aliens and is completely different from Form 1040 that U.S. citizens use. The form reports all U.S. source income and calculates total tax liability. Unlike resident returns, Form 1040-NR cannot be e-filed in most cases and must be mailed as a paper form to the specific IRS address shown in the instructions.
Form 1040-NR-EZ: Simplified Nonresident Return
Some first-time filers qualify for this shorter version if they meet specific requirements. To use this simplified form, filers must be single with no dependents, cannot itemize deductions, and must have only wages, tips, scholarships, or fellowship income.
Form 8843: Statement for Exempt Individuals
This form is required for F, J, M, and Q visa holders and must be filed even if the individual has zero income. Form 8843 reports the visa holder's days of presence in the United States, explains exempt individual status, and establishes exemption from the Substantial Presence Test.
Form W-7: Application for IRS Individual Taxpayer Identification Number
If a nonresident alien does not have a Social Security Number, Form W-7 must be filed to apply for an Individual Taxpayer Identification Number (ITIN) needed to file tax returns. The application requires original documents or certified copies to verify identity and foreign status.
Form 8833: Treaty-Based Return Position Disclosure
If a nonresident alien is claiming certain treaty benefits, Form 8833 is required for specific treaty positions. Failure to file this form when required results in a $1,000 penalty. The form explains exactly what treaty benefit is being claimed and must be attached to Form 1040-NR when filed.
Schedule OI: Other Information
Schedule OI is always required with Form 1040-NR and serves as a critical component of the nonresident alien tax filing process. This one-page form collects basic information, including visa type and entry and exit dates, days present in the United States, and tax home country information.
Important Filing Deadlines for 2025 Tax Year:
- April 15, 2026: Form 1040-NR due date
- June 15, 2026: Form 8843 due if you had no income
- October 15, 2026: Extended deadline if you file Form 4868
Filing Your Taxes: Step-by-Step Process
Filing as a first-time nonresident alien involves more steps than regular tax filing, but following this process makes understanding how nonresident aliens pay taxes in U.S manageable.
Step 1: Verify Your Nonresident Alien Status
Count all days present in the U.S. during 2025, 2024, and 2023, then apply the Substantial Presence Test formula to determine your status. Identify exempt days based on your visa type and verify you don't hold a green card, as this affects your tax classification.
Tip: Keep copies of airline tickets, passport stamps, and I-94 records. You might need these to prove your presence dates if the IRS questions your status.
Step 2: Gather All Income Documentation
Collect Form W-2 from any jobs, Form 1042-S for scholarships, fellowships, or grants, Form 1099 for interest, dividends, or other income, pay stubs showing year-to-date totals, and bank statements for all U.S. accounts to ensure complete income reporting.
Tip: Even if you think you didn't receive certain forms, check your online accounts. Many employers and schools provide forms electronically that you need to download.
Step 3: Research Your Country's Tax Treaty
Download IRS Publication 901 and find your country in the treaty table to review specific provisions for students and scholars. Identify any income exemptions you qualify for and gather all documentation needed to prove treaty eligibility when filing.
Tip: Common treaty benefits for students include scholarship exemptions, reduced rates on certain income, and standard deduction eligibility. India's treaty allows standard deduction for students - most countries don't have this provision.
Step 4: Get Your Taxpayer Identification Number
Apply for a Social Security Number if you have work authorization by visiting the Social Security office with the required documents. If you lack work authorization, prepare Form W-7 to apply for an ITIN and file it with your tax return.
Tip: ITIN processing takes 6-12 weeks. Plan ahead if you need to apply for ITIN for the first time. You can still file your return on time by mailing everything together.
Step 5: Choose Between Form 1040-NR and 1040-NR-EZ
Use Form 1040-NR-EZ if you meet all requirements for a simpler, faster filing process, or use Form 1040-NR if you don't qualify for the EZ version. When uncertain, use the regular Form 1040-NR as it works for everyone. Never use Form 1040.
Tip: The EZ form saves time but has strict limitations. If you're claiming treaty benefits or have any complexity, use the regular 1040-NR.
Step 6: Complete Form 8843 (If Required)
Download Form 8843 from IRS.gov for F, J, M, or Q visa holders, then fill in personal information, enter all dates you entered and left the U.S., list your visa type and university, sign and date the form—it takes about 15 minutes.
Tip: File this even if you had no income. It's required to maintain your exempt status and affects future year calculations. Due June 15, which is later than your regular tax return.
Step 7: Fill Out Form 1040-NR
Work through the form systematically: Page 1 includes personal information, filing status, and income; Page 2 covers adjustments and tax calculation; Page 3 lists credits and payments; Page 4 shows refund or amount owed.
Tip: Work in pencil first or use the fillable PDF. Make sure all calculations are correct before creating your final version to mail.
Step 8: Report Your Income Correctly
Enter wages from W-2 Box 1, scholarships and fellowships from Form 1042-S, and apply any treaty benefits if eligible. Remember not to report foreign source income, as nonresident aliens pay taxes in U.S only on U.S. source income on Form 1040-NR.
Tip: If your scholarship covers tuition and books, it may not be taxable. Amounts for room, board, and living expenses are usually taxable. Check your 1042-S carefully.
Step 9: Calculate Your Tax
Use graduated tax rates for wages and don't claim the standard deduction unless your tax treaty explicitly allows it. Apply any allowable credits and verify if your treaty reduces your tax liability based on specific treaty provisions for your country. Understanding available nonresident tax deductions is crucial for accurate filing.
Tip: Most nonresident aliens can't claim the standard deduction. Only claim it if your specific tax treaty explicitly allows it. The India treaty allows $14,600 standard deduction for students in 2025 - most other countries don't have this benefit.
Step 10: Complete Schedule OI
Enter your visa type, list all dates of entry and departure from the U.S., provide the number of days present in the U.S., specify your country of tax residence, and include passport information on this required one-page form.
Tip: This one-page form is required for all 1040-NR filers. Forgetting it is one of the most common mistakes and delays processing.
Step 11: Attach Form 8833 (If Claiming Treaty Benefits)
Explain which treaty article applies to your situation, describe the specific income covered by the treaty benefit, show detailed calculations of the benefit amount, and attach the completed form to your return when filing.
Tip: Not all treaty benefits require Form 8833. Check the instructions carefully. $1,000 penalty applies if you don't file it when required.
Step 12: Mail Your Tax Return
Check Form 1040-NR instructions for the current mailing address, as different addresses apply to different situations. Use certified mail for proof of filing and keep the tracking number and receipts as evidence of timely submission.
Tip: The IRS address for nonresident returns is different from the address for Form 1040. Using the wrong address causes significant delays. Double-check the instructions.
4 Key Mistakes to Avoid While Filing Taxes
These four errors destroy more first-time nonresident alien tax filing attempts than anything else. Learn from others' expensive mistakes and avoid common nonresident tax filing mistakes.
Mistake #1: Filing Form 1040 Instead of 1040-NR
This is the biggest, most costly mistake first-time filers make. Thousands of nonresident aliens file the wrong form every year when they nonresident aliens pay taxes in U.S.
Why it happens:
- Your American friends tell you everyone files Form 1040
- You use TurboTax or H&R Block software designed for residents
- You don't understand the difference between forms
- You follow online advice meant for U.S. citizens
How to avoid it:
Always use Form 1040-NR if you're a nonresident alien. Don't use consumer tax software - it's designed for residents and will guide you wrong. When friends give advice, remember they're filing as residents with completely different rules.
Mistake #2: Claiming Standard Deduction When You're Not Eligible
Most nonresident aliens cannot claim the standard deduction, but thousands do it anyway because they don't know better about available nonresident tax deductions.
Why it happens:
- You see the standard deduction printed on tax forms
- Your friends who are residents claim it
- You assume everyone gets it
- You read general tax advice that applies to residents
How to avoid it:
Don't claim the standard deduction unless your specific tax treaty explicitly allows it. Read your country's treaty in IRS Publication 901. When in doubt, don't claim it - better to leave money on the table than incorrectly claim nonresident tax deductions.
Mistake #3: Not Filing Form 8843
Thousands of F, J, M, and Q visa holders skip Form 8843 every year because they don't know it exists or think it's optional. This is one of the most serious nonresident tax filing mistakes.
Why it happens:
- Nobody tells you about it
- Your university doesn't mention it
- You had no income, so you think you don't file anything
- Friends who are on H-1B don't file it (different rules)
What happens without it:
Your exempt days might not count as exempt. This could make you a resident alien when you should be a nonresident. Changes your entire tax situation for current and future years when nonresident aliens pay taxes in U.S.
How to avoid it:
File Form 8843 every single year you're in the U.S. on F, J, M, or Q visa. File it even with zero income takes 15 minutes. Due June 15 (later deadline than main return). No excuse for skipping this.
Mistake #4: Reporting Foreign Source Income
First-time filers often report income they shouldn't because they think "complete disclosure" means reporting everything. This is a common nonresident tax filing mistake.
Why it happens:
- You read that U.S. residents report worldwide income
- You don't realize nonresidents have different rules
- You want to be thorough and complete
- You're being honest and transparent
How to avoid it:
Only report U.S. source income on Form 1040-NR. Leave foreign income off your return completely. Nonresidents aren't taxed on foreign source income, so there's no reason to report it when nonresident aliens pay taxes in U.S.
How NSKT Global Can Help
NSKT Global specializes in tax preparation for first-time nonresident alien filers, helping international students and scholars navigate U.S. tax requirements. We understand the complexities of how nonresident aliens pay taxes in U.S and help you avoid common nonresident tax filing mistakes.
Our services include comprehensive tax status determination with Substantial Presence Test evaluation and treaty eligibility assessment. We prepare accurate Form 1040-NR returns for your nonresident alien tax filing with proper income sourcing, treaty benefit optimization, and all required schedules including Forms 8843 and 8833.
We provide ITIN application support through Form W-7 preparation and document guidance. Our tax treaty benefits maximization ensures you claim all available nonresident tax deductions through thorough country-specific analysis and proper documentation.
Whether you're an F-1 student filing for the first time, a J-1 scholar navigating U.S. tax requirements, or dealing with complex scholarship arrangements, our specialized expertise ensures you file correctly and avoid costly mistakes that can follow you for years.
Frequently Asked Questions
Q: Do I really need to file if I only earned $2,500 working on campus?
If you earned any U.S. source income, you must should file Form 1040-NR. Additionally, if you're on F, J, M, or Q visa, you must file Form 8843 regardless of income level.
Q: My American roommate said I should just use TurboTax like everyone else. Is that right?
No, TurboTax and similar consumer software are designed for U.S. residents and don't handle nonresident returns correctly. You need software specifically for Form 1040-NR or professional help. Following resident advice leads to wrong forms and serious problems.
Q: Can I get a standard deduction if I am a nonresident alien?
No, as a nonresident aliens you do not get to claim any standard deduction as one of your nonresident tax deductions. The major exception is students from India due to the U.S.-India tax treaty. Check if your country's treaty allows it in IRS Publication 901. When in doubt, don't claim it.
Q: What happens if I already filed Form 1040 by mistake?
You need to file an amended return using Form 1040-NR-X as soon as possible. Include a detailed explanation of the error and correct your return. The sooner you fix this, the better your chances of avoiding penalties.
Q: How doI choose between Social Security Number and ITIN to file taxes?
Get an SSN if you're authorized to work (on-campus job, CPT, or OPT). Apply at the Social Security office. If you're not authorized to work but need to file taxes, apply for ITIN using Form W-7 filed with your tax return
