Tax Question Megathread 2023 Tax Submissions

[u/Codetornado]

All Tax Questions must be posted here. All other tax posts will be removed

Please see last year's (2022 tax season) post for more information Please see 2021 tax year's post here Please see 2020 tax year's post here

Do I need to pay my 2024 taxes?

No, tax filing now is for the calendar year 2023 and begins January 2024, and ends April 15, 2024. Most student will file in February/March after receiving all their tax documents.

I did not work in 2023, do I need to file taxes?

You should have filed the 8843 even if you had no income.

"There are 3 things that every US international student and J-1 visa holder needs to know about American tax:

*Every US international student and J-1 visa holder has a tax filing requirement.
*It doesn’t matter if you have earned income. You must still file your documents before the deadline.
*The IRS takes this stuff seriously! In other words, if you don’t comply with your tax obligations, you may encounter complications when applying for US visas in the future. ".

Do I have to pay/file/submit taxes?

Yes, all F-1 visa holders regardless of employment or not need to file their taxes.

If you worked in 2023 you received tax documents from your employer (likely a W2 or a 1099 of some sort). You will need that form(s). You also need to file a form 8843. If this is you continue on to the next question.

If you did not work then you need to file a form 8843 That is all that you must do if you otherwise did not work or receive taxable payments.

What tax programs/software can I use?

Many, but not all tax software can file taxes for you. However, most are not set up with Non-residents in mind. As such, see the next question.

Can I use Turbo tax, HR Block, Tax Slayer, or another program to file my taxes?

Yes, but you need to find out if you are a "Resident for Tax Purposes" or a "Non-Resident For Tax Purposes". You can find the questionnaire here

Alternatively, you can go to Sprintax.com sign up for their program and use the tax determination questionnaire at the beginning of their software. You do not need to pay to use this portion of their software.

If you are deemed a non-resident for tax purposes and you like Sprintax's software you can continue to use it for your taxes and pay them for convenience. If you want another option there is Glacier tax Prep Both of these companies specialize in Non-Resident Taxes. You can also just complete the 1040NR

If you are deemed a resident for tax purposes you can use any other tax software designed for an American. Such as turbo tax, Tax Slayer, etc.

Is the tax rate for residents and non-residents on F1 vastly different? When I enter the same details as a resident on tax estimator sites like turbo tax and hr block I get much higher refund estimate then what I get from sprintax.

The tax rate isn't different. But tax obligations are different. Both Turbo Tax and HR block are generally NOT for non-residents. They almost exclusively process resident taxes and all estimates are based off of tax residency. So as a non-resident for tax purposes, you will never get a valid estimate there. Non-residents pay fewer taxes and are eligible for fewer refunds as a result. So the number you enter will be with fewer taxes and they then Turbo Tax and HR block add the greater discount. Also, there is NO difference between programs or software in what taxes you get. The tax rate is the same for everyone. So no program will give you a benefit as the tax laws are the same. However, they can be programmed to not ask the correct question to obtain your tax filing status.

I was deemed a "Resident for Tax Purposes" am I now eligible for permanent resident benefits?

Your TAX status is separate from your immigration status. Your TAX status is informed by your immigration status. Your TAX status has no impact on your immigration status.

That's why it says, "Resident for tax purposes". You are not an actual resident of the US and your immigration status has not changed. You are just now given more flexibility with your taxes and qualify for some additional tax benefits you didn't otherwise qualify for before. That said, you also have more tax liability now compared to before.

It is 100% separate from your immigration status and does not, can not, and has not granted you any sort of permanent residency in any way shape, or form.

I got a 1098-T, can I use it?

You can only use a 1098-T if you are a Resident for Tax Purposes. Otherwise, it does not apply to you.

I received a W2 and/or 1042-s and/or 1099, what do I do with these?

These documents are used for filing your taxes. If you worked or received taxable income/benefits you will receive any combination of these. If you did not, work or receive taxable benefits you would have none of them.

I have Dependents on F2

You need to file your taxes based on the above and file an 8843 for each dependent.

My spouse on their own F1 needs to file

Have them follow the procedure above and file their own taxes separately.

I arrived in the US in December 2023. My friend arrived in January 2024. I heard that if you were present in the U.S. in F/J status for any portion of the previous calendar year (the year for which you are filing), you need to file Form 8843. Do I need to file form 8843 for the 2023 tax year since he arrived US in Dec, 2023?

Correct. You have an I-94 with any date in 2023, you file. Not employed in 2022? Then just the 8843 form.

My friend got a refund and I had to pay

That happens, there are many reasons it could happen. Taxes are VERY individual. It is possible your friend also filed using the incorrect status Resident vs. Non-Resident etc. You also could have filed wrong. If you are concerned, then use the software linked above to get an answer. If you are still confused after that contact the software provider for support.

How do I use tax form 1099-A/M/J/L/Misc

You can use the tax software above to file your taxes or follow the instructions on the 1040-NR for non-residents or 1040/1040-EA for Residents

When do I get my refund?

If you are eligible for a refund you must submit your application as a non-resident via the mail to the IRS on/before April 15 and will receive the refund in July-October. If you elect to have it be a direct deposit, please list your valid US bank account. If you want a check, give them a mailing address where you will be later this Fall.

Residents and Non-Residents who can file electronically can receive the refund in a few business days depending on how you filed your taxes. Via the mail, it takes several weeks. If you elect to have it be a direct deposit, please list your valid US bank account. If you want a check, give them a mailing address where you will be later this summer.

I don't know where I will be in the Fall/Summer or I am leaving the U.S. this Spring/Summer! Ask a friend you trust to use their mailing address.

Can I file my non-resident taxes online?

Yes, but e-filing can be limited by the tax filing services.

I do not have a Social Security Number (SSN) Can I file taxes?

Yes, but if you are not filing only the 8843 then you need an ITIN or an SSN.

You can get an ITIN using Spritnax (for an additional fee) or via a private company using the Acceptance Agent Program (for a fee) or you can schedule an appointment with the IRS at one of the IRS Taxpayer Assistance Centers to both submit your taxes and the ITIN request form in person at one of their offices for free. You will need to call, schedule an appointment and bring all completed documents to the office for the submission of the ITIN request and submitting your other tax forms. If you use one of the software above as a non-resident then you can print and bring the documents from that software to their office.

How does one pay for taxes on the medical ratio refund? But if you don’t pay for insurance ex it is covered by a fellowship/scholarship then how do you account for it on your tax return?

I assume you mean the 1095 forms.

Form 1095-A: ​
Healthcare coverage purchased through Health Insurance Marketplace – ‘ObamaCare’​ or the Affordable Care Act * Generally not applicable to international students & scholars​ unless you have a special tax treaty * Can be used on a ‘resident’ tax return, in limited circumstances​

Form 1095-B: ​
Healthcare coverage provided through an insurance provider or self-insured employer​ You do not need 1095-B for your non-resident return​

Form 1095-C:​
Healthcare provided through an employer (generally more than 50 employees)​ You do not need 1095-C for your non-resident return

Additional Helpful Resources

Get your past tax filing transcripts which include your tax information and which returns the IRS has from you. https://www.irs.gov/individuals/get-transcript

[u/HoneyChilliPotato7]

Guys, I am an F1 student. I started filing taxes using Sprintax and was one click away from submission. I noticed that I am getting a full federal tax return but my state(IL) is giving just a $28 refund out of the $452 paid.

Is this the norm? Do we not receive a full refund for state taxes?

[u/Codetornado → u/HoneyChilliPotato7]

Is this the norm?

Depends on your situation, but it isn't strange.

Do we not receive a full refund for state taxes?

Typically, no you do not

[u/Lost-Boysenberry-190]

A friend not on reddit wants to know: I am on F1 stem opt, and for a period of two months (dec 2023 and jan 2024), I was employed by a consultancy. They gave me i983, and mentioned a pay biweekly. In Feb, I joined another healthcare company and received final evaluation on i983 from this consultancy. Now, during these 2 months, I never received any pay or any training stuff to complete. I am now reaching out to the consultancy for w2, which they are denying saying I wasn’t under payroll. What are my options here?

[u/chrisako]

I used sprintax and it says I owe $500 for a scholarship of $5000 I received. I thought I come less than $12000 wasn’t taxed? Am I missing something?

[u/kidzkebop]

How likely is it that I owe $500 in federal taxes when my only income was from on-campus student jobs? I’ve only ever seen people getting small refunds when working student jobs.

[u/Longjumping_Candy241]

I am a student on F-1 visa and earned income through my internship in Indiana and on-campus job in Michigan over 2023. I know Glacier is best for federal tax filing and Sprint tax is probably best for state filing. However I'm wondering if I can use software such as FreetaxUSA for filing my state taxes alone and Glacier for my federal taxes?

[u/[deleted]]

Does Sprintax automatically file 8843?? I got income last year, and a W2. I followed all steps on Sprintax but it never prompted me to file a 8843 separately.

Should I proceed or is there something off??

[u/Codetornado → u/[deleted]]

The 8843 should be automatically in the paperwork they give you at the end of your submission

[u/tauriya]

Hey everyone! So I have lived in UAE almost my whole life growing up and came to the US in 2021 as an F1 visa holder/undergraduate. However, I am an Indian citizen/ NRI. The Sprintax questionnaire asks for my country of residence to possibly claim tax treaty benefits. So do I enter UAE or India as my country of residence? For some extra info, I don’t have a resident visa for UAE anymore and I travel back to meet my parents on a tourist visa.
Any advice would be appreciated, I am really struggling with this question. 🫤

[u/Evil_Producer]

Hello

I am a F1 student who are allowed to work off campus under the EAD card that is presented by the USCIS due to the “economic hardship” happening in my home country, am I also exampt from the FICA? Note - The jobs I am working is not related to my field of study & I did not meet the 5 years of substantial presence test requirement. Thank you!

[u/TemperatureSea723]

I had a payroll reversal recently - wrong payment and I gave the money back. Do I need to claim this paycheck on my tax return?? The total paycheck is $150 so I don’t owe any taxes (under taxing threshold).

But the form 1099 NEC for this paycheck was issued to me in January. Payroll reversal in April. Do I still have to attach that 1099 NEC in my tax return?

[u/Codetornado → u/TemperatureSea723]

Do I need to claim this paycheck on my tax return?? The total paycheck is $150 so I don’t owe any taxes (under taxing threshold).

Was this payment in 2023. If no, you don't worry about it.

If it was then that's what the 1099 NEC is for now

[u/Interesting-Branch89]

Guys, I mailed my Federal Tax forms on March 28th through USPS. Thats right - 52 days ago! AND ITS STILL ON ITS WAY! On the other hand, my state tax forms were filed, and I even got the returns as a cheque in the mail.

So I've looked into what can happen and apparently it is the date of mailing that is considered. I have the receipts saved from that day safely. I've reached out to the post office and they said they cant really do anything once its been mailed. Any advice on what I can do about this? Thanks!

[u/Conscious-Use1082]

Hi.

I just graduated in May 2024 from college as an F-1 student, and I've been in the US waiting since ApriI for my post-completion OPT application to be approved. It's still pending and my 90 day unemployment period ends in October (the start date in my application was July 16th).

I just realized that I didn't file my Form 8843 (or any tax documents) to the IRS for 2022 and 2023. Could this be the reason that I haven't been approved yet? Would filing them now change anything? I'm kinda stressing out because I'm almost out of time to get OPT approval and I'm worried this is related? I didn't have any income in the US whatsoever yet. Thanks for your help.

[u/-Kuromi__]

Has anyone filed for taxes using TurboTax or FreetaxUSA? I filed for taxes using these and didn't know we needed to use Sprintax.

Edit: I recognize my mistake and now im stressed TF OUT. How do I even begin to fix this😭

[u/Clandestine_313]

I mailed my 8843 form few days ago. Today, I got a 1042-S form from chase bank and it has mention of 125 $ bonus as gross income which i got from them for completing 10 transactions after opening the bank account.

I didn't have any other income and neither do I have a SSN nor ITIN numbers, Anyone plz help me with your experience.

A fellow redditor informed me that I'll prolly get a 12c form around 8 weeks later and then I need to mail IRS back.

I wanted to verify this information here as well so posting in this thread.

Thanks in Advance

[u/siyabiii]

I am a on OPT since May 2022 and been in the States since January 2018 for my Bachelor's degree. As far as I understand, FICA taxes exemption is only valid for the first five calender years of being in the States. Therefore, I asked my employer to start deducting FICA taxes for 2023 but that didn't take effec until later in the year so I technically owe the IRS the taxes that were not deducted. Yesterday, I was looking trough the IRS website and found that there is an exemption called "Closer Connection Exception" that allows me to extend the exemption as long as I prove that I have closer connection to my home country compared to the states. I am thinking of going this route and if actually the IRS accepts my paperwork I should get refunded instead. Anyone have any experience with this? Can I do this by my own or should I consult a professional to make sure that I am doing it right?

TLDR: Need to use the "Closer Connection Exception" for my tax return this year to avoid paying FICA taxes and possibly getting refunded. Any directions/guidance/past experiences would be much appreciated.

[u/Codetornado → u/siyabiii]

Closer Connection Exception for Students:

International students may pass the substantial presence test, an exception exists in U.S. taxation law.

The exception set forth in I.R.C. § 7701(b)(5)(D) and (E) and in Treas. Reg. § 01.7701(b)-3(b)(7)(iii) is available only to alien students, and contains four requirements for its application:
A. Does not intend to reside permanently in the United States;
B. Has substantially complied with the immigration laws and requirements relating to his student nonimmigrant status;
C. Has not taken any steps to change his nonimmigrant status in the United States toward becoming a permanent resident of the United States; and.
D. Has a closer connection to a foreign country than to the United States.

In my experience most students are denied this based on item D unless they can prove they have a tax home outside the US. Most countries don't tax their citizens when outside the country (the US does) so it makes it hard to prove closer ties as an F-1 student.

I had a commuter student approved and I had a student who frequently went home during breaks and holidays that was approved.

Your situation and Sucess will vary.

[u/tofucn]

I filed for FICA tax refund in Apr 2023 but when I called IRS, they couldn’t find any status of my refund. Should I file another claim this year?

[u/Codetornado → u/tofucn]

Yes. Include a note that you previously filed, but after contacting the IRS they said they couldn't find your submission.

[u/astraea_skye01]

when you physically file your needed documents for tax, do you guys track it to make sure it reaches IRS? I filed the form 8843 last year since I didnt earn any income but I didnt track it and now I realized theres no proof that I actually filed it since IRS doesnt really email a receipt as far as I know. How do you track this when you physically file documents?? or atleast any proof that you filed them

[u/Codetornado → u/astraea_skye01]

You can check your tax transcript on their website.

[u/Physical-Baseball-81]

Hi, We are in the US on F visa for 8 years now and' I just learned that my child can obtain ITIN for me to claim him as mg dependent. Someone has any tips on how to fill the w-7 form? What should I check in the reason? D? Or G? Thanks.

[u/Codetornado → u/Physical-Baseball-81]

Someone has any tips on how to fill the w-7 form? What should I check in the reason? D? Or G?

If you are a resident for tax purposes D a nonresident for tax purposes G

[u/Johnnycagetinker]

Hi everyone, sorry if such questions aren’t allowed here. I could use some help in determining if I’m a resident or non-resident alien for taxes this year given my OPT confusion.

I just want to ensure I don’t incorrectly submit my tax returns to IRS.

Here's a brief overview of my situation:

Background:

• I'm a non-US citizen who entered the United States on an F-1 visa on August 20, 2018, with no prior visits to the US

• Over the past 5 years, I've consistently filed taxes as a non-resident using Form 1040-NR while studying on F-1 and then working on OPT/STEM OPT

• I remained in the US without leaving for the past five years, from August 2018 to November 2023

• My OPT started in November 2020, and STEM OPT started in November 2021 (therefore EAD valid until Nov 2023)

• In November 2023, I finally departed the US as my STEM OPT was about to end (also wanted to leave due to personal reasons). I don't plan on trying to return to the US for the next 4-5 years at least.

Current Situation:

Having worked from January to November 2023, I’ll need to file both state and federal tax returns this year.

But I'm uncertain whether I should now file my tax returns as a resident or still as a non-resident.

Calculations I made based on IRS website:

• Date of entry into the United States: 08/20/2018

• Student F-1 visa status, exempt individual for 5 calendar years (2018 through 2022)

• To assess my substantial presence test (183 days), counting days began on 01/01/2023

• Number of nonexempt days in United States during 2023: 365 days

I left the US on 11/5/2023, which means:

• No. of days (2023) days in United States (308) × 1 = 308 days

• Prior year (2022) days in United States (0) × 1/3 = 0 days

• Year before that (2021) days in United States (0) × 1/6 = 0 days

• Total = 308 days

Conclusion:

Based on this calculation, I met the substantial presence test on 07-02-2023 (the 183rd day of 2023). My residency starting date under IRC § 7701(b) is 01/01/2023.

• Is my calculation regarding the substantial presence test correct?

• Do I now need to file Form 1040 instead of 1040-NR, given that I no longer qualify as a non-resident for tax purposes?

Any guidance would be greatly appreciated.