Question 1

Do F-1 students have to file a U.S. tax return?

Accepted Answer

It depends on your circumstances. Many F-1 students who are nonresident aliens for tax purposes need to file Form 8843 even if they had no U.S. income, and those who received taxable U.S. income may also need to file a federal income tax return. Whether a return is required depends on your tax residency, the type and amount of income you received and other individual facts. State filing requirements are determined separately.

Question 2

Do students on OPT file Form 1040 or Form 1040-NR?

Accepted Answer

OPT status alone does not decide which form you file. The choice depends on whether you are a resident alien or nonresident alien for U.S. income tax purposes, which is determined under federal tax rules such as the substantial presence test and the exempt-individual rules that may apply to students. Many people on OPT in their first few calendar years in the U.S. are nonresident aliens and file Form 1040-NR, but this should be confirmed using your actual U.S. presence history.

Question 3

Does STEM OPT change my tax filing status?

Accepted Answer

Moving to STEM OPT does not by itself change your tax status. What matters is your overall time in the United States and how many calendar years you have been treated as an exempt individual. Over time, a person on STEM OPT may meet the substantial presence test and become a resident alien for tax purposes, which can change the return to be filed. Each year should be reviewed on its own facts.

Question 4

What is Form 8843?

Accepted Answer

Form 8843, Statement for Exempt Individuals and Individuals With a Medical Condition, is an informational statement used by certain individuals, including applicable F-1 students, to explain why days spent in the United States are excluded from the substantial presence test. It is not an income tax return and does not calculate tax, but it may need to be filed even when you had no U.S. income.

Question 5

Do F-1 students pay Social Security and Medicare taxes?

Accepted Answer

Some F-1 students who are nonresident aliens for U.S. tax purposes may qualify for an exemption from Social Security and Medicare taxes on certain authorized employment.

Eligibility depends on your tax residency, immigration status, type of employment and individual circumstances.

If Social Security or Medicare taxes appear to have been withheld incorrectly, we can review the situation with you and explain the options that may be available. Whether any amount can be recovered depends on the facts.

Question 6

I received both a W-2 and Form 1042-S. What should I do?

Accepted Answer

Receiving both forms is common. A W-2 typically reports wages, while Form 1042-S may report items such as scholarship or fellowship income, or wages for which a treaty benefit was claimed. Both generally need to be considered when preparing your return so that income and withholding are reported correctly. We can review the documents together to help ensure the return reflects them appropriately.

Question 7

Do international students have to file state tax returns?

Accepted Answer

Possibly. State income tax rules are separate from federal rules, and many states require a return when you earned income or had tax withheld in that state. Some states do not have a personal income tax. Requirements depend on where you lived and worked during the year and the state's own rules.

Question 8

What happens if I previously filed Form 1040 but should have filed Form 1040-NR?

Accepted Answer

If a prior return was filed using the wrong form, it may be possible to correct it, generally through an amended return. Correcting an incorrect filing can matter because resident and nonresident returns apply different rules. The appropriate steps depend on the year involved and your circumstances, so the prior return and supporting documents should be reviewed first.

Question 9

Can Indian students receive U.S.–India tax treaty benefits?

Accepted Answer

The U.S.–India income tax treaty contains provisions that may be relevant to some students and trainees from India, such as provisions relating to certain payments and the standard deduction. Whether a treaty benefit applies depends on the specific provision, your tax residency, the type of income and other facts. Not every Indian student automatically qualifies, so treaty positions should be reviewed individually.

Question 10

Can ACB Consultants help if I have income or financial matters in both India and the United States?

Accepted Answer

Yes. We can help review relevant U.S. filing requirements and coordinate India–U.S. tax matters where both countries are involved, such as income earned in India or financial connections across both countries. Where a matter requires a licensed U.S. professional or legal or immigration advice, we will let you know so you can obtain appropriate advice.

U.S. Tax Filing for F-1 Students, OPT & STEM OPT

Tax Questions for F-1, OPT & STEM OPT

1040 vs 1040-NR

Form 8843

W-2, 1042-S and 1099 Income

FICA Taxes

State Tax Returns

Tax Treaty Considerations

Do You Need to File Form 1040 or Form 1040-NR?

Documents You May Need

Social Security & Medicare Taxes on F-1 and OPT Income

Tax Support for Indian Students & Professionals in the U.S.

Common Situations We Help With

How We Help

Understand Your Situation

Determine Filing Requirements

Prepare Your Tax Return

Filing Support

Frequently Asked Questions

Need Help With Your U.S. Tax Filing?