Income Tax Basics

Taxes are a financial charge imposed by a governing body upon a taxpayer to collect funds. Income taxes are a financial charge imposed on the income earned by an individual. Not all income comes from being employed in the U.S. Taxable income can also be from a fellowship, grant, or scholarship. Income can be taxed at the local, state, and federal/national level. Those residing in Texas will not have their income taxed at the local or state level, but their income is subject to taxation by the U.S. federal government. The Internal Revenue Services (IRS) is the unit of the U.S. federal government responsible for administering and enforcing tax laws.

It is the taxpayer’s (that’s YOU!) responsibility to meet their tax obligations to the IRS. Most taxpayers meet their tax obligations through the following process:

A portion of your income is withheld by the employer or organization that is providing the income.
The withheld portion of your income is given directly to the IRS on your behalf.
Each year, you file a tax return to summarize your tax obligations and payments for the prior tax year. If you paid too much in taxes during the tax year, the IRS would owe you a refund. If you paid too little in taxes during the tax year, you would owe the IRS the remainder of your obligation.

Paying federal income taxes and filing the appropriate paperwork with the U.S. government is required by law. Failure to comply can result in serious immigration, financial, and legal consequences.

Most international students in F-1 and J-1 status and their F-2/J-2 dependents are considered NONRESIDENTS for tax purposes and therefore DO have to file a tax form with the U.S. government for each tax year they are in the U.S. even if they earned NO income.
Most international students in F-1 and J-1 status are NOT PERMITTED to electronically file their tax return with any software other than Sprintax.
Most international students in F-1 and J-1 status are NOT PERMITTED to utilize the tax filing software products most advertised in the U.S. because these products typically only apply to residents for tax purposes.
Each spring, ISS purchases tax software called Sprintax to help international students determine their tax residency status and to file their tax return. Sprintax is NOT the same as the Glacier Nonresident Alien Tax Compliance System (https://www.online-tax.net/glogin.asp) administered by Texas A&M University.

Check out Sprintax’s Nonresident Taxes Explained
Check out Sprintax’s Ultimate Guide to Nonresident Taxes in the U.S.
Check out Sprintax’s U.S. Tax Season Survival Guide for F-1 Students
Check out Sprintax’s Ultimate Tax Guide for F-1 Students on OPT

GLACIER

GLACIER Nonresident Alien Tax Compliance (GLACIER) is a system that allows Texas A&M University to collect information and make decisions regarding how much you may be required to pay in federal income taxes if you receive any taxable income from the University. You do NOT file your tax return through GLACIER. If you receive taxable income from Texas A&M University, the information you input into GLACIER determines how much of your income should be withheld for tax payment purposes. For assistance with how to enter your information into GLACIER Nonresident Alien Tax Compliance (https://www.online-tax.net/glogin.asp), please ask your employing department's payroll office or visit https://uas.tamu.edu/tax/instructions.html. ISS does not have access to this system and therefore we are not the best resource for advising on how to use it.

All international students receiving taxable income from Texas A&M University will receive an email from support@online.tax.net explaining that they are required to create and maintain an account in GLACIER. If the student is receiving taxable income from multiple units at Texas A&M University, they may even be required to set up multiple GLACIER accounts. Taxable income can be from a variety of sources, such as employment, fellowships, grants, scholarships, etc. Prizes, awards, and payment for participating in research can all be considered taxable income as well and will require the student to create a GLACIER account. Having taxable income does not necessarily mean the student is employed by Texas A&M University. If a student is emailed about creating an account in GLACIER, they should so as soon as possible. It is best to create the GLACIER account and submit the required documents even if the student does not yet have an SSN or ITIN.

In GLACIER, the student will be instructed to enter either their SSN or their ITIN. If the student has both, they should enter their SSN. The ITIN is no longer valid once the individual receives an SSN. After the student enters their SSN or ITIN into GLACIER, the University will be able to apply any applicable tax treaties and exemptions to the student’s taxable income. This means the student should be taxed at the correct rate by the University. Each individual student’s tax scenario is unique. It is not a guarantee that a student will be eligible for any tax treaties or exemptions, but if they are eligible, the University must have an SSN or ITIN in order to apply them.

F-1 students can only obtain a Social Security Number (SSN) if they have employment. F-1 students must have either an offer of on-campus employment or authorization to work off-campus before even applying for an SSN. Without employment, F-1 students cannot obtain an SSN.
F-1 students can only obtain an Individual Taxpayer Identification Number (ITIN) if they do not have, and are not eligible to obtain, an SSN and they need a tax processing number issued by the U.S. government for federal tax withholding and filing purposes. ITINs do not serve any purpose other than federal tax reporting.

If the student does not have an SSN or an ITIN, they will be asked to select from the following options.

I do NOT have a U.S.-issued SSN or ITIN; I would like to apply for an SSN
- If this option is selected, the student will not receive instructions for applying for the SSN. Instructions for this process can be found on the ISS website at https://iss.tamu.edu/Current-Students/Social-Security-Number. The GLACIER process will be on hold until the student applies for, receives, and enters their SSN.

I have applied for an SSN, and I have not yet received the number
- If this option is selected, the GLACIER process will be on hold until the student receives and enters their SSN.
I do NOT have a U.S.-Issued SSN or ITIN; I would like to apply for an ITIN
- If this option is selected, the student will not receive instructions for applying for the ITIN. Instructions for this process can be found on the ISS website at https://iss.tamu.edu/Resources/Tax-Information/Individual-Taxpayer-Identification-Number-(ITIN). The GLACIER process will be on hold until the student applies for, receives, and enters their ITIN.
I have applied for an ITIN, and I have not yet received the number
- If this option is selected, the GLACIER process will be on hold until the student receives and enters their ITIN.

Until the student’s SSN or ITIN is reported in GLACIER, the student’s income will be taxed at 14%. No tax treaties or exemptions can be granted without the SSN or ITIN, so the University is required to apply the highest possible tax rate. This 14% tax withholding will either be deducted from the income that is distributed to the student and/or charged to the student’s tuition and fee bill through the international withholding tax.

The GLACIER system will ask the student to enter their SSN or ITIN within 10 days after the GLACIER account is created. However, the University is aware that it may take much longer than 10 days for a student to receive an SSN or ITIN. The student should report their number in GLACIER as soon as they receive it so the University can begin granting any applicable tax treaties and exemptions and the student can be charged the proper amount of tax withholding. If the SSN or ITIN is entered into GLACIER on or prior to mid-December, and it is determined that the student should have been charged at a rate lower than 14%, it may be possible for the University to credit the student. Alternatively, the student should receive a refund of unnecessary tax withholding when they file their tax return with the Internal Revenue Service (IRS) in the spring. The student will need to have an SSN or ITIN to file the tax return. After a student has an SSN or ITIN entered in GLACIER, the University should be able to calculate their proper tax withholding for all future tax years.

Students receiving taxable income because they are employed by Texas A&M University will also be required to maintain an account in Workday. These students will be asked to enter their SSN into Workday once they have it. There is no specific deadline for entering the SSN into Workday, but it should be entered as soon as the individual receives it.

Residents vs. Nonresidents for Tax Purposes

U.S. tax law divides people into residents and nonresidents for tax purposes. Residency for tax purposes is determined by the Substantial Presence Test – a complicated calculation that considers how long you have been in the U.S. and in what status. Sprintax will calculate the Substantial Presence Test for you. Residents for tax purposes follow the same rules as U.S. Citizens and are taxed on world-wide income. Nonresidents for tax purposes follow different rules and are taxed on U.S.-sourced income. Nonresidents for tax purposes are not eligible for many of the tax benefits available to residents for tax purposes, including the ability to use most of the tax products marketed in the U.S. and the ability to benefit from many tax credits.

Residency for taxes ≠ Residency for immigration ≠ Residency for tuition.

F-1/F-2/J-1/J-2 students/dependents are typically considered nonresidents for tax purposes during the first 5 tax years they are in the U.S.

This is because F-1/F-2/J-1/J-2 students/dependents are exempt from being subject to the Substantial Presence Test. Being exempt from the Substantial Presence Test DOES NOT MEAN they are exempt from paying taxes or filing tax returns. Being exempt from the Substantial Presence Test means that F-1/F-2/J-1/J-2 students/dependents are automatically categorized as nonresidents during their first 5 tax years in the U.S. Nonresidents for tax purposes in F-1/F-2/J-1/J-2 student/dependent status are required to file at least one tax form each year EVEN IF THEY HAD NO INCOME!

F-1/F-2/J-1/J-2 students/dependents who are nonresidents for tax purposes must Form 8843 for each of their first 5 tax years in the U.S.

If you live in the U.S. for any length of time during a given tax year (even 1 day!), you must file at least Form 8843 during the following year. The purpose of Form 8843 is to verify that you are indeed exempt from the Substantial Presence Test, and you should be considered a nonresident for tax purposes. Form 8843 is a technically tax STATEMENT and not a tax RETURN. If you received any taxable income during the tax year, you would need to file a tax return in addition to Form 8843. Sprintax will assist you with this! Remember – taxable income can be from fellowships, grants, and scholarships in addition to employment.

Common Tax Forms

There are 3 basic categories of tax forms that international students may encounter in the U.S.

Forms that you (the taxpayer) must complete and submit to the entity that is providing your taxable income (such as your employer, school, bank, etc.) so they can calculate the correct amount of federal income tax that should be withheld from your taxable income.
Forms that you (the taxpayer) will receive from the entity that is providing your taxable income (such as your employer, school, bank, etc.) to summarize your prior year tax history. These forms show you how much taxable income you earned and how much federal income tax you paid already because it was withheld from your income.
Forms that you (the taxpayer) must complete and submit to the U.S. government (the Internal Revenue Services, or IRS) each year to summarize your tax situation for the previous tax year (January 1 – December 31).

Here is a very basic overview of the most common tax forms you may encounter as an international student. If you receive a form not listed below, you may email hello@sprintax.com to determine how the form may impact your tax filing requirements.

Category 1: Tax forms that you complete and submit to your employer/school/bank

You may be asked to complete these forms. These forms are not required for everyone!
You do not submit these forms directly to the IRS
These forms are not part of the tax return filing process

Form W-4, Employee's Withholding Allowance Certificate

Completed by the employee and submitted to the employer so the employer can determine how much federal income tax to withhold from the employee’s pay during the tax year
This is one of the first forms you will complete as a new employee

Form W-8BEN, Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding, and the Affidavit of Unchanged Status

Some banks require these forms for foreign national account holders
If your bank asks you to complete these forms, bring the forms along with your immigration documents in person to the bank so a personal banker can assist you.

Form W-9S, Request for Student's or Borrower's Taxpayer Identification Number and Certification

Should be completed and submitted to provide your taxpayer identification number (SSN or ITIN)

Category 2: Tax forms that you receive from your employer/school/bank

You may receive some or all of these forms. These forms are not applicable for everyone!
If you receive a form, review it to make sure your information is accurate (name, SSN, etc.)
You do not have to complete anything on these forms but will use the information on them to complete your tax return.
Copies of these forms are submitted to the IRS as part of the tax return (if you receive them).

W-2 (Wage and Tax Statement)

This is an income statement, NOT a tax return.
Form W-2 provides a summary of the total amount of wages earned during the year and the amount of money withheld for any taxes (federal, state, and local).
You would only receive this document if you had employment during tax year (January 1 – December 31).
Should be issued by no later than January 31^st.
The information on this form is used to complete your tax return.
You will not have to complete or add any information to this form.
If you were employed by Texas A&M University, visit https://uas.tamu.edu/tax/faq/w-2.html for additional W-2 FAQs.

1042-S (Foreign Person’s U.S. Source Income Subject to Withholding)

This is an income statement, NOT a tax return.
Form 1042-S documents taxable scholarship income and scholarship or wage income that is exempt from withholding because of a tax treaty.
You would only receive this form if you received a taxable scholarship, fellowship, or grant, or if you had any withholding exempted by a tax treaty, during the tax year (January 1 – December 31).
Should be issued by no later than March 15^th.
The information on this form is used to complete your tax return.
You will not have to complete or add any information to this form.

1099-INT or 1099-DIV (Income from Interest or Dividends)

This is an income statement, NOT a tax return.
These forms are issued by your bank or financial institution to show the income you earned from your bank accounts and other investments.
- Note: Bank interest is not considered taxable income for those who are still nonresidents for tax purposes.
The information on these forms is used to complete your tax return.
You will not have to complete or add any information to these forms.

1099-MISC (Miscellaneous Income)

This is an income statement, NOT a tax return.
Form 1099-MISC is used to show "independent contractor" income. Sometimes students who work in off-campus jobs for CPT, OPT, or Academic Training are given this form to document their job income instead of receiving Form W-2.
If the income shown on the 1099-MISC is very large, you may owe taxes when you file your return because taxes were not withheld from "independent contractor" income.
The information on this form is used to complete your tax return.
You will not have to complete or add any information to this form.

1098-T (Tuition Statement)

This is a tuition statement, NOT a tax return.
Form 1098-T is issued by educational institutions in the U.S. to show the educational expenses for each tax year (January 1 – December 31).
This form helps residents for tax purposes to take advantage of education tax credits.
Nonresidents for tax purposes are not permitted to utilize this form but should keep it for their records.
The information on this form is used to complete your tax return IF you are a resident for tax purposes.
You will not have to complete or add any information to this form.
If you are were a resident for tax purposes during the previous tax year, visit https://uas.tamu.edu/tax/faq/1098-t.html for additional 1098-T FAQs.

Category 3: Tax forms that you may have to complete and submit to the IRS

You may not have to complete all these forms.
You DO submit these forms directly to the IRS
These forms are part of the tax return filing process

Nonresidents for Tax Purposes

Sprintax will help you complete these forms!
Form 1040NR, U.S. Nonresident Alien Income Tax Return
Form 8843, Statement for Exempt Individuals and Individuals with a Medical Condition
- Does NOT require an SSN or ITIN
- If you are ONLY filing Form 8843 because you earned no taxable income, then technically you are filing a tax STATEMENT with the IRS and NOT a tax RETURN

Residents for Tax Purposes

Form 1040, U.S. Individual Income Tax Return

Tax FAQs

Here you will find answers to the tax-related questions most frequently asked by international students.

I am an international student and I have no U.S. income. Do I need to file taxes?

I will be outside the US before I can file my taxes. Do I still need to file?

What kinds of taxes are refunded with my tax return?

When you file a federal tax return with the U.S. government, you might be issued a refund for federal income taxes that you already paid during the prior tax year (January 1 – December 31). If you did not pay any federal income taxes during the prior tax year, you will not receive any refund. If you paid the correct amount of federal income taxes during the prior tax year, you would not receive a refund. If you did not pay enough in federal income taxes during the prior tax year, you could even owe the U.S. government for the remainder.

I did not file any tax forms last year. What should I do?

International students in F-1/J-1 student status, and their F-2/J-2 dependents, are required to file at least one tax form for each tax year they are in the U.S. as a nonresident for tax purposes regardless of whether they earned any income from U.S. sources. Form 8843 is required of all international students in F-1/J-1 status and their F-2/J-2 dependents for the first five tax years they are in the U.S. If you had no income from U.S. sources during a tax year, the only form you should have filed would have been Form 8843. You can access prior year versions of this form at https://www.irs.gov/forms-pubs/about-form-8843. If you did have income from U.S. sources during the prior tax years, you likely should have filed a tax return (such as Form 1040NR) in additional to Form 8843. Sprintax can assist you with filing your Form 8843 and/or your tax return for prior years. This service will result in an additional fee that is not included with the ISS access code.

I filed my tax forms incorrectly last year. What should I do?

International students in F-1/J-1 student status, and their F-2/J-2 dependents, are considered nonresidents for tax purposes for the first five tax years they are in the U.S. If you filed a tax return as a resident when you should have instead filed as a nonresident for tax purposes, Sprintax can assist you with filing an amended tax return for the impacted tax years. This service will result in an additional fee that is not included with the ISS access code.

Do I need a Social Security Number (SSN) or Individual Tax Identification Number (ITIN) to file taxes?

An SSN or ITIN is not required if you are only filing Form 8843. An SSN or ITIN is required if you need to file a tax return because you received taxable income from U.S. sources during the tax year (January 1 – December 31).
SSN

If you have on campus employment or you have been employed through Curricular Practical Training (CPT), Optional Practical Training (OPT), or Academic Training, then you qualify for an SSN based upon employment.
If you are a J-1 student or the dependent of a J-1 student, you may qualify for an SSN without an employment offer.
More SSN information is available at http://iss.tamu.edu/Current-Students/Social-Security-Number.
If you are eligible for an SSN, then you do not qualify for an ITIN.

ITIN

If you have taxable income that is not based on employment and you are not eligible for an SSN, then you may qualify for an ITIN.
If you are a dependent who is being claimed on a tax return and you are not eligible for an SSN, then you may qualify for an ITIN.

More ITIN information is available at http://iss.tamu.edu/Current-Students/Taxes/ITIN.

As a nonresident for tax purposes, can I file jointly with my spouse or claim dependents?

Typically, nonresidents for tax purposes cannot file jointly or claim dependents, but there are some exceptions:

If either you or your spouse is a resident for tax purposes, you may file jointly and claim dependents.
If you are a citizen of Canada, India, Mexico, and South Korea, your tax treaty may permit you to claim your dependents even if you are filing as a nonresident for tax purposes. Sprintax will help you figure out if the tax treaty applies to you or not

I will not be able to file my tax return by the deadline. What should I do?

If you need additional time to complete the federal tax return, you will need to file Form 4868 with the IRS by no later than the tax return filing deadline to request an extension. For assistance with this process, please consult with Sprintax or visit https://www.irs.gov/forms-pubs/about-form-4868.

My question is not answered here. Where can I get help?

If you have additional tax-related questions, please review the following additional resources:

Review all content on the ISS Tax Information webpage.
Contact SPINTAX for assistance with your tax questions.
Review the IRS website at https://www.irs.gov/.
- Visit https://www.irs.gov/uac/contact-my-local-office-internationally if you are outside the U.S.
Review the Texas A&M University Tax Compliance and Reporting webpage at https://uas.tamu.edu/tax/index.html.
Find more information about U.S. state income tax processes at http://www.taxadmin.org/state-tax-forms.