International Students & Scholars Office

Frequently Asked Tax Questions by Exchange Visitors


 Q. How do I determine if I am a resident alien for tax purposes?
A.  F-1,  J-1, M or Q students are considered non-residents for tax purposes for five years from the date they first  enter the United States on their student visa. For scholars this period is two years. After this period the substantial presence test must be applied.

The substantial presence test is used to determine if an individual is a resident alien for tax purposes. To meet the substantial presence test and thus be considered a resident alien for tax purposes, an alien must at least:
  1. be physically present for 31 days in the current year, and
  2. be physically present for 183 days during the 3-year period consisting of the current  year and the 2 immediately prior years. The 183 days are calculated as follows:
    1. all days of presence in the current year
    2. 1/3 of days of presence in the year immediately before the current year; and
    3. 1/6 of all days of presence in the year before that.
   CINTAX will calculate this for you!!!

Q. When is my tax return due?
A. Tax returns are due on or around April 15th of each year.  State tax returns are due around this time as well.

Q. When will I receive my W-2 or 1042-S?
A.  Employers will mail W-2s on or before Jan 30th.  Schools mail the 1042-S sometime in February. If you are employed by Iowa State you may access your W-2 online via AccessPlus.

Q. What is CINTAX?
A. CINTAX is a free professional tax preparation program that prepares non-resident tax returns for users. CINTAX is used by Iowa State and many institutions across the United States. International Students and Scholars will receive information about CINTAX via their Iowa State email account around February 1st.

Q. I am on scholarship. What is my tax obligation?
A. If your scholarship is from Iowa State (e.g. athletes) the portion of your scholarship used for room and board as well as "non educational expenses" will be subject to tax. The default rate is 30%. This can be reduced to 14% if you have an ITIN (individual tax identification number). Individuals from countires with tax treaties are able to apply treaty benefits to reduce the amount their scholarship is taxed.

If your schoalrship is provided by an entity outside the United States (such as an organization or government in your home country) you will not pay taxes on your scholarship. Check with your home government to determine if you have any tax obligations there.

Q. What is a tax treaty and how do I determine if I am eligible?
A. Tax treaties allow you to earn some money in the United States without being subject to tax  on those earnings in your home country as well. If you are eligible for a tax treaty provision you'll need to file a Form 8233 with your employer every year. More information can be found here.

Q. Taxes are taken from my paychecks, do I still need to file a tax return?
A. Yes. You must file a tax return because the U.S. tax system is based on self-reporting of income. Your employer withholds only a certain tax amount from your paycheck. Individuals file a return at the end of the year to determine whether they owe additional taxes or overpaid.

Q. I received a Form W-2 from Iowa State University. What should I do?
A. The W-2 shows how much you earned during the year. It also shows how you were taxed during that same year. Enter your W-2 information into CINTAX to complete the 1040NR.

Q. I received Form 1042-S Only. What should I do?
A. Form 1042-S is used by Iowa State University to report scholarships. Enter your 1042-S information into CINTAX and it will complete the necessary forms for you.

Q. I did not work in the United States this year and I did not receive a 1042-S. What should I do?
A.  You only need to file Form 8843 if you did not have U.S. source income.  CINTAX will assist you with this task. All  international students and scholars must file Form 8843, even if they had no income for the year. Dependents in F-2 and J-2 status must also file Form 8843.

Q. I arrived in the U.S. in December, and I didn't work. Do I still have to file Form 8843?
A. Yes. If you were in the U.S. for even 1 day, you must file Form 8843.

Q. I did not earn very much money. Do I still have to file?
A. If you had any taxes withheld from your paycheck you should file IRS Form 1040NR-EZ or Form 1040NR to get a refund of these taxes. You must file Form 8843 regardless of how much you earned.

Q. Which tax form do I use?
A.  Generally, international students and scholars use form 1040-NR or 1040-NR EZ for their federal taxes. "NR" means 'non-resident for tax purposes.' Individuals who are residents for tax purposes use form 1040.

CINTAX will automatically determine which form you need to use.

All international students and scholars must file Form 8843, even if they had no income for the year.

Q. Where do I file my tax return?
A. All forms 1040NR and 1040NR-EZ must be mailed to:
    Internal Revenue Service
    Austin, TX 73301-0125

    State tax forms should be mailed to the address indicated on the instructions for that form.

Q. What if I am married to a U.S. citizen, legal permanent resident or someone who has met the substantial presence test?
A. A nonresident alien who does not meet the substantial presence test and does not have a green card may elect to be treated as a resident for tax purposes if the nonresident is married to a U.S. citizen, legal permanent resident or someone who has met the substantial presence test. This election can be made if:

  1. at the end of the year, one spouse is a nonresident alien and the other is a U.S. citizen or resident, and
  2. both spouses agree to file a joint return and to treat the non-resident alien as a resident alien for the entire tax year.
To make the election, the married couple must attach a statement to the joint return that is filed for the year of the election. The statement should contain the following information:

  1. A declaration that one spouse was a nonresident alien and the other spouse was a U.S. citizen or resident on the last day of the tax year, and that they choose to be treated as U.S. residents for the entire tax year, and
  2. Each spouse's name, address, taxpayer identification number.

Q. What is a dual-status alien?
A. A dual-status alien is a person who is a resident alien and a nonresident alien at different times during the same tax year. This usually occurs in the year a person arrives in the United States or leaves the United States. It may also occur if a person's residency status changes during the year. Returns are for dual-status aliens are generally more complicated. Please speak with an ISSO tax adviser for assistance.

Q. My young children live with me. Can I claim the Child Care Tax Credit?
A. No. Only those students and scholars in non-resident tax status who are from one of the countries that can claim dependents (Mexico, Canada, Korea, Japan and India) can claim the Child Care Tax Credit.

Q. What happens if I do not file?
A. If you have no tax liability, the IRS will not penalize you for not filing (although you must still file Form 8843). However, the terms of  your visa require that you stay in compliance with all Laws of the United States, including income tax filing. If you want to apply for residency at a later date you will be asked to prove that you complied with tax filing laws.

If you have a tax liability, you must file a return as soon as possible. The IRS will charge you interest and penalties on the amount you owe.

Q. My friend filed Form 1040 and received a larger refund. Can I do that too?
A. No. If you are a non-resident alien you must file 1040NR or 1040NR EZ. Not filing the correct form is fraud and can place your visa status in jeopardy. The additional money you might receive is not worth the trouble.

Q. My employer withheld FICA taxes from my paycheck, what can I do to get it refunded?
A.  First, ask your employer for a refund. If they refuse, file Form 843 with the IRS. Attach the following to your claim:
  1. A copy of your Form W-2
  2. A copy of your I-94
  3. A copy of your valid entry visa
  4. Form 8316
  5. A copy of Form 1040NR
  6. A copy of your I-20/DS-2019
  7. A copy of your Employment Authorization Document (if applicable)
  8. If your visa status has changed in the past year you'll need to attach any approval notices
Information about Form 843 and Form 8316 can be found on the IRS website.

Q. How do I prepare my state taxes?
A. Taxs forms and regulations vary from state to state.  In Iowa you will use IA Form 1040. It is similar to the federal tax return.

Q. I worked in another state for part of the year, what do I need to do?
A. In addition to the federal tax return you'll need to complete a tax return for the state where you worked and the state you're in now (if you earned income in that state). For Iowa you'll complete an IA Form 1040 and attach an IA Form 126 or IA Form 130 depending on your situation. You'll need to file similar forms for the other state(s) where you worked during the year.  This can become complicated and time consuming. If you need assistance please contact an ISSO tax adviser.

Q. My American friend told me something different than what is written here.
A. Do not go to your American friends for tax advice. Chances are they do not understand non-resident tax regulations. Although their advice is well intended, it is often misguided. Please contact ISSO for assistance.