An Introduction to U.S. Taxes
All international students and scholars and their dependents present in the U.S. are required to file an individual income tax form–even if they have no U.S.-source income of any kind–based on their physical presence in the U.S.
During the tax year individuals who work in the U.S. or have other U.S.-source income have taxes withheld from their earnings. By April 15th of the following year, one has to file an "income tax return" with the federal tax authorities and possibly also with the tax authorities in the state(s) in which one was employed. A tax return reports your income and calculates your actual tax for the year. The form is used to request a refund if more tax was withheld than is required or is used to pay additional taxes that are owed if too little was withheld from your paychecks. The Internal Revenue Service (IRS) is the United States government agency responsible for the collection of federal income taxes.
All individuals who receive income in the U.S. are required to pay tax, unless you qualify for certain deductions, allowances, or exemptions based on an income tax treaty. The amount of tax you will have to pay will depend upon your particular situation.
The information in this tax guide is intended to provide basic information about U.S. tax filing requirements to international students and scholars at Portland State University. It should not be relied upon as advice or instruction on how to prepare your own individual tax return. The staff at the Office of International Student and Scholar Services (OISSS) are neither qualified nor permitted to answer individual questions regarding tax liabilities. Tax workshops early each year are offered which can help guide you through the process, although you are solely responsible for your tax return.
Who must file tax forms?
All international students and scholars and their dependents who are present in the United States are required to file an individual income tax form if they were in the U.S. during the tax year, even if they have no U.S.-source income of any kind. Which tax form(s) you must complete will depend on your source of income and your resident or non-resident tax status (see below).
What is a “tax year”?
A tax year is the same as a calendar year – January 1 to December 31. For tax purposes, when counting your presence in the U.S. you must count a calendar year even if you were not present in the U.S. for the entire year. You must count a year even if you were present for only one day during that year.
Social Security and ITIN numbers
Anyone employed in the U.S. should have a Social Security Number (SSN). Those who are not employed, but still need a tax ID number, may apply for an Individual Tax Identification Number (ITIN). A SSN or ITIN is not required for anyone who is only required to file form 8843. Anyone filing tax forms other than 8843 must have a SSN or ITIN.
Who is considered Resident or Non-Resident for Federal Tax Purposes?
Generally, most international students & scholars who are on F, J, M or Q visas are considered nonresidents for tax purposes. International undergraduate students on J-1 & F-1 visas are automatically considered nonresident for their first five calendar years in the US, whilst Scholars/Researchers on J visas are automatically considered nonresidents for two out of the last six calendar years in the US. If you’ve been in the US for longer than the five or two year periods, the Substantial Presence Test will determine your tax residency.
How do you file if you have returned to your home country?
You are required to file a tax return for each tax year you are physically present in the U.S. For most students and scholars this will mean you will have to file a tax return after you have returned to your home country. All forms are available online and should be filed in the same manner. You can use Sprintax to file your taxes.
Make sure all employers, scholarship providers or financial institutions (banks and others) you had in the U.S. have your home country address so they can send you the documents you will need to complete your tax return (W-2, 1099, etc). Many employers (including PSU) and financial institutions now make these forms available to you via online accounts. The forms will be available by the end of January each year.
No U.S. Source Income
If you were NOT paid from a U.S. source or did NOT earn income in the United States during 2023. . .
IRS Form 8843
All J-1 scholars (and J-2 dependents) who were physically present in the United Status in 2023 must complete IRS form 8843. The form is very short and simple – only one page front and back. You will need to complete the sections about the dates you were in the U.S., sign the form, and mail it to the address in Austin, Texas in the form instructions.
Please see our step-by-step instructions on how to complete Form 8843.
Form 8843 is available on the IRS web site (www.irs.gov), Form 8843.
All tax forms must be filed by April 15, 2024.
Paid U.S. Source Income
If you were paid from a U.S. source or earned income in the United States during 2023. . .
IRS Publication 519 – U.S. Tax Guide for Aliens
IRS Publication 519 is the main information and instruction publication for Non-Resident Aliens. International students and scholars filing as a non-resident alien should refer to this publication for information about their tax filing status, requirements, forms and instructions. In addition, each form you are required to complete will have its own set of instructions. In many cases, these instructions will be all you need.
OTHER COMMON TAX FORMS
Below is a list of common tax documents with a brief definition. This is not an exhaustive list. You may receive a form not listed here, or you may not use any of these forms. These are simply the most common.
| 1040NR | Form to file your federal tax return. (NR = nonresident) |
| OR40-N | Form to file your state tax return |
| W-2 | Income statement showing how much you earned and how much was withheld in taxes. Your employer will provide you this form by the 31st of January for the prior year’s income. |
1099-INT | Form for reporting interest income, usually from your bank. Non-residents are not taxed on this interest; however, you may need to include this form with your tax return. |
1042-S | If you receive scholarships, the giving organization will send you this form. Scholarship money used for tuition, fees, and books is not taxable. Only scholarship money used for room and board is taxable.
You will also receive a 1042-S if you have previously indicated to your employer that you will be utilizing the benefits of a tax treaty for the current tax year. |
1098-T | Tuition statement from PSU. This is not an income statement and you will not need it to file your nonresident tax forms. |
| 1095-A or B | Proof of insurance coverage in compliance with the Affordable Care Act. Keep this form for your records but you do not need it to file your tax forms. |
How to File Your Tax Return Using Sprintax
Like previous years, we have teamed up with Sprintax to provide you with an easy-to-use tax preparation software designed for nonresident students and scholars in the US. We (and all other university staff) are not qualified or allowed to provide individual tax advice.
After you login to Sprintax, you will be asked a series of questions about the time you have spent in the US over recent years. Sprintax will then determine your tax status. If it determines that you are a "nonresident alien" (NRA) for federal tax purposes, you can continue to use the software to respond to a series of guided questions. Sprintax will then complete and generate the tax forms you need to send to the tax authorities.
However, if Sprintax determines that you are a resident alien for federal tax purposes, you won't be able to continue using the software. You can use any other software that prepares regular resident tax forms.
Get Started: Instructions for Students(PDF)
SPRINTAX
TAX WEBINARS WITH SPRINTAX (2024)
Sprintax offers a series of free open webinars on nonresident Taxes. Webinars will cover the same topics on each occasion:
- An overview of non-resident tax for students and scholars
- Who must file a US tax return
- Explanation of various income forms
- FICA, ITIN, Form 1098-T
- Consequences for not filing/misfiling taxes
- State tax
- Overview of Sprintax software
The sessions listed below reflect only a small number of available upcoming workshops offered by Sprintax. Session times will be updated throughout Tax Season 2024. Please keep checking this site for most updated times. Sprintax has an online blog as well!
SPRINTAX workshops
Date Time Registration link
Wed,
Jan. 24th 12:00 pm - 1:00 pm https://register.gotowebinar.com/register/2897634686455286101
Thurs,
Feb. 8th 10:00 am - 11:00 am https://register.gotowebinar.com/register/3968938343420748896
Tues,
Feb. 20th 9:00 am - 10:00 am https://register.gotowebinar.com/register/5881467351681317206
PORTLAND ARTS TAX
The Arts Tax is a tax for the city of Portland which helps fund Portland school teachers and art focused non-profit organizations in Portland. The tax is $35.00 for each person -- unlike other state and federal taxes, everyone pays the same amount. The Arts Tax is also filed separately from other state and federal taxes. If you are a resident of Oregon and live in Portland city limits, you are required to pay the tax. The City of Portland will send you a letter to pay the tax. You will use the return envelope they provide to send them a check or money order.
Do I have to pay it?
You need to pay the Portland Arts Tax if you are considered an Oregon resident for state tax purposes (Note: This is different than "residence" as an immigration status. See the IRS website for an explanation.) If you are filing state taxes as a nonresident of Oregon, then you do not need to pay the Portland Arts Tax.
For more information, please refer to the City of Portland, Revenue Division website