Tax Assistance | International Programs & Services

Residency and Non-Residency for Tax Purposes

U.S. tax law divides people into residents or non-residents for tax purposes, which is not necessarily the same as residency according to immigration law. Residents for tax purposes follow the same rules as U.S. citizens, but there are special rules for non-residents for tax purposes. There are also special rules that apply specifically to F-1 students and J-1 students and scholars who are non-residents for tax purposes.

There are special rules used to determine tax residency for F-1 students and J-1 students and scholars. In general, international students in F or J status for five years or less (since 2016 or later) and their dependents, file tax forms as non-residents. Research scholars or faculty in J-1 status for two years or less (since 2019 or later) also file as non-residents. International students who have been in F or J status for more than five years, and research scholars and faculty who have been in J-1 status for more than two years are generally considered residents for tax purposes.

All non-residents present in the U.S. under F-1, F-2, J-1, or J-2 nonimmigrant status must file Form 8843 every tax season by June 15, even if no income was earned. If taxable income was earned, the deadline is April 15 - send with your federal tax forms.

Most international students and scholars are expected to pay taxes on any income earned in the United States from the time they arrive in the country. Income can include salary, scholarships, fellowships, and money earned from US mutual funds or US bank accounts.

Taxes are reported by April 15 each year for the 12-month period beginning January 1 and ending December 31 in the previous year. Tax forms are filed with both the federal government, through the Internal Revenue Service (IRS), and in the state where income was earned. Please see Financial Services and Operations for more information regarding tax prep and filing taxes.

Click here for see tutorial video of Glacier Tax.

Filing Form 8843

Form 8843 is not an income tax return. Form 8843 is merely an informational statement required by the U.S. government for certain nonresident aliens (including the spouses or dependents of nonresident aliens).

If an individual meets all qualifications below, you must file Form 8843, regardless of the individual’s age and even if the individual is not required to file a U.S. income tax return (Form 1040NR).

Form 8843 must be filed if an individual is:

present in the U.S. during tax season
a nonresident alien
present in the U.S. under F-1, F-2, J-1, or J-2 status

If you already have an SSN or ITIN, the number must be included on Form 8843, regardless of your age and even if you are not required to file a U.S. income tax return (Form 1040NR).

If you did not work in us and have no income and are only filing Form 8843, each family member must print, sign, and mail their 8843 form in a separate envelope by June 15, 2021, to:

Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA

If you are filing U.S. income tax return (Form 1040NR) Form, 8843 should be attached to an income tax return.

Determine your tax liability

To determine your tax liability, use the IRSSubstantial Presence Test. It calculates the number of days you are in the US, which determines if you are considered a resident—specifically for tax purposes. Being a resident for tax purposes is not the same as being a resident for immigration purposes.

Non-resident tax filing Form 1040NR

F-1 and J-1 students and their dependents are usually considered non-residents (NR) for tax purposes during their first five years in the US. Non-residents file federal form 1040NR, long-form. Scholars are also typically considered NR for their first two years in the United States.

General tax return information on the Financial Services and Operations website lists documents you need to file your taxes. Michigan Tech has licensed GLACIER Tax Prep (GTP) to assist you with your US federal income tax return. The software provides a step-by-step guide. Access it at Financial Services and Operations via log-in with your ISO user name and password. Once you log in, please watch the video tutorial before you enter any information.

If you are considered a non-resident alien please use Glacier tax prep for your Federal tax filling and make sure you file the correct forms (1040NR). It is important to note that failure to file a correct federal income tax return and/or filing a fraudulent federal income tax return are violations of U.S. tax law and may potentially impact current or future immigration status

If you are filing U.S. income tax return (Form 1040NR) Form, 8843 should be attached to an income tax return.

Students seeking tax assistance are encouraged to contact a certified public accountant (CPA) or credentialed tax return preparer. The Internal Revenue Service (IRS) has a search directory which can be found at https://irs.treasury.gov/rpo/rpo.jsf. Eligible students may also choose to utilize the IRS Free File service, found at https://www.irs.gov/filing/free-file-do-your-federal-taxes-for-free.

Resident Alien

International students who are resident aliens for tax purposes are treated and taxed like US citizens by the IRS. Resident alien for tax purposes in the filing years will file federal form 1040, long-form.

Those considered resident alien for tax purposes including spouses and dependents, do not have to file the Form 8843.

Michigan Tax prep

The Volunteer Income Tax Assistance (VITA) program through the College of Business will not be offered this year.

Individual Tax Identification Number (ITIN)

An Individual Tax Identification Number (ITIN) is issued by the Internal Revenue Service (IRS), which is the U.S. tax collection agency. The number is for non-residents who need to file a tax return because of taxable income but are not eligible for a Social Security Number (SSN). You are eligible to apply for an ITIN if your VISA status is F-1/J-1, AND you receive some taxable income from US sources that is not an employment (i.e., a fellowship, scholarship, or grant).

Documents required:

Completed and filled Form W-7. See the Instructions from IRS for reference.
Note: When selecting which supporting documentation to submit, we strongly recommend you to select Passport as this is the best option and you do not need to submit anything else.
Your original passport. IRS requires your original passport for reviewing and they will return it back to you after they have verified your details. Make sure to write your address correctly in Form W-7 because that is the address where IRS will mail your original passport back. The passport must also include a valid visa stamp. Ensure that the date of expiration on your passport is at least 6 months later.
Your individual US federal tax return (Form 1040NR)
Letter of ineligibility/denial from the social security office (please contact IPS for details about this)
Support letter from IPS (please contact IPS for details about this) OR proof of enrollment from Registrar’s office (email registrar@mtu.edu or visit Admin-130)

Mail all of these documents to:

Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

We recommend that you use a courier service that can be tracked (e.g. Fedex, DHL UPS), rather than USPS, because you will have to send your original passport.

Alternately, you can submit your documents in-person at an approved ITIN acceptance agent. The nearest one is located at Marquette.

S PAP INC
d/b/a H & R Block
2800 US 41 West
Marquette, MI 49855
906-228-4810

You can check out the full list of approved acceptance agents here.

If you have further questions, you can check out this compendium from the IRS.

If you have questions, email us at ips@mtu.edu. We cannot offer professional tax advice, but we can refer you to appropriate people who can help you do it correctly.