USA Tax Filing Guide for F1 Nepali Students explains how to determine federal tax residency, collect Forms W-2 and 1042-S, file Form 8843 when required, choose Form 1040-NR or Form 1040 correctly, use an SSN or ITIN, review FICA withholding and check separate state obligations. F-1 immigration status does not by itself determine every tax form.
Information checked on 24 July 2026 using current IRS guidance. Tax years, thresholds, deadlines and forms change; this educational checklist is not individual tax advice.
F1 tax filing requirements at a glance
| Tax requirement | What to verify |
|---|---|
| Tax year | Use the forms and instructions for the correct calendar year |
| Residency | Apply the green card and substantial presence tests |
| Presence statement | File Form 8843 when required to exclude student days |
| Income return | Choose Form 1040-NR or Form 1040 from tax status |
| Income records | Reconcile W-2, 1042-S, 1099 and scholarship documents |
| Tax ID | Use the existing SSN or obtain an ITIN only when eligible |
| Other taxes | Check FICA, state and local filing separately |
Separate immigration status from tax residency
F-1 is an immigration classification. Federal tax residency is determined under tax rules, principally the green card test and substantial presence test.
A student can be a nonresident alien for tax purposes during one period and later become a resident alien without changing the visa label.
Understand the substantial presence test
The test generally uses physical-presence days over the current and two prior calendar years with statutory weighting. IRS instructions provide the current calculation and exceptions.
Keep complete United States arrival and departure dates rather than estimating from semesters.
Understand the F student day-count exception
A student temporarily present in F status who substantially complies with the status can be an exempt individual for the substantial presence calculation. Exempt means certain days are not counted; it does not mean income is automatically tax-free.
IRS guidance generally limits the ordinary student exemption to parts of five calendar years, with a possible facts-based closer-connection rule afterward.
Count calendar years correctly
Any part of a calendar year can count toward the five-year student period. A December arrival can therefore use one calendar year even though the student was present only briefly.
Include earlier F, J, M or Q exempt-individual years when the IRS rules require them.
File Form 8843 when required
Nonresident F students who exclude days from the substantial presence test generally file Form 8843. IRS training material notes that the form may be required even when the student had no income.
Each qualifying individual, including a dependant when applicable, completes a separate Form 8843 using the current-year instructions.
Choose Form 1040-NR for a nonresident return
A nonresident alien student with taxable United States income, taxable scholarship or certain treaty-reportable income may need Form 1040-NR. The IRS notes there is no general minimum-dollar filing trigger for a nonresident with taxable income.
Attach Form 8843 when required and use the instructions for the correct tax year.
Choose Form 1040 only when tax-resident
A resident alien generally uses the resident Form 1040 system and reports income under the rules that apply to United States tax residents.
Do not select Form 1040 only because commercial software defaults to it. Confirm residency first.
Collect Form W-2 wage statements
Employers issue Form W-2 for wages and withholding. Check the legal name, SSN, employer, wages, federal withholding, Social Security and Medicare amounts.
Request correction from the employer when the form is wrong rather than changing the reported amount without support.
Collect Form 1042-S
A school or payer may issue Form 1042-S for certain scholarship, treaty or nonresident income and withholding. It can arrive on a different schedule from Form W-2.
Do not file before confirming whether all expected income documents have arrived.
Review Form 1099 and other income
Bank, investment, contractor or platform income can produce Forms 1099 or other reporting. The tax treatment depends on residency, source and activity.
A 1099 does not make unauthorised work lawful, and an immigration violation is not cured by reporting the income for tax.
Classify scholarship and fellowship amounts
Tuition, required fees and qualified educational amounts can be treated differently from room, board, stipends or service compensation. Review the award terms and IRS scholarship guidance.
Keep the university bill, award letter and payment statement with Form 1042-S when issued.
Do not assume a tax treaty benefit
Tax treaty eligibility depends on a current treaty between the United States and the student’s country of tax residence, the article, income type, time limit and required form.
Check the IRS treaty list and tables for the filing year. Do not copy a benefit claimed by an Indian or other nationality student into a Nepali return.
Use the SSN when one has been assigned
Use the same Social Security number on wage and tax returns. An SSN remains the tax identifier even if employment authorisation later ends.
Match the name to SSA records and ask the employer to correct a wrong number.
Use an ITIN only when appropriate
An ITIN is for a person with a federal tax reason who does not have and is not eligible for an SSN. Apply on Form W-7 under current instructions, commonly with the tax return unless an exception applies.
An ITIN does not authorise work, change immigration status or provide Social Security benefits.
Do not apply for both numbers casually
If eligible for an SSN, use the SSA process rather than Form W-7. If an SSN application is pending, IRS instructions say not to file Form W-7 merely to obtain another number.
If an SSN is issued after prior ITIN use, follow IRS instructions to consolidate records and use the SSN.
Review Social Security and Medicare withholding
Many nonresident F-1 students are exempt from FICA taxes on authorised employment performed to carry out the purpose of the status. The exemption can end after tax residency changes or when work is not authorised or connected.
Check residency and employment before requesting a refund. First ask the employer to correct improper withholding, then use the applicable IRS process if needed.
Check federal income tax withholding
Federal income tax can still apply even when FICA does not. Compare wage withholding and scholarship withholding with the final return.
A refund is the return of excess tax paid; it is not guaranteed and should not be estimated from a classmate’s result.
Check state and local returns separately
State tax residency and filing rules do not necessarily follow federal nonresident-alien rules. A student may need a state return even when the federal form is 1040-NR.
Use the official revenue-department instructions for every state where the student lived or earned income.
Use the correct filing deadline and address
Deadlines can differ based on the form and whether wages were subject to withholding. Mailing addresses also differ by form, payment and location.
Read the current-year IRS instructions instead of reusing a prior-year date or address.
Choose tax software carefully
Many popular consumer products prepare resident Form 1040 returns but not nonresident Form 1040-NR. Confirm the supported return type before entering sensitive data or paying.
Use a preparer experienced with foreign students when income, residency, treaty or multi-state issues are complex.
Keep records after filing
Keep the signed return, Form 8843, income forms, proof of filing, payment and refund records. Preserve the day-count calculation and immigration documents used for residency.
These records help with later corrections, visa questions and the year tax residency changes.
Avoid tax refund scams
No preparer can lawfully guarantee a large refund or invent treaty benefits, education credits, dependants or expenses. Review every line before signing.
Never let a preparer keep the refund, use a false address or file a resident return without explaining the residency analysis.
F1 tax warning signs
- Immigration F-1 status is treated as automatic tax nonresidency
- Form 8843 is ignored because the student had no income
- Resident Form 1040 is chosen by software default
- A treaty benefit is copied from another nationality
- ITIN is requested despite SSN eligibility
- FICA exemption is claimed without checking tax residency
- State returns and all income documents are omitted
F1 tax filing workflow
- Choose the tax year. Download current IRS forms and instructions.
- Determine residency. Calculate presence and exempt-individual years.
- Collect records. Gather W-2, 1042-S, 1099 and scholarship documents.
- Choose the tax ID. Use the SSN or a valid ITIN process.
- Prepare federal forms. Complete Form 8843 and the correct return.
- Check other taxes. Review FICA, state and local obligations.
- File and retain. Use the current deadline, address and proof.
Frequently asked questions
Does exempt individual mean tax-exempt?
No. It means certain days may be excluded from the substantial presence test; taxable income can still require a return.
Must an F-1 student with no income file anything?
A nonresident F student may still need to file Form 8843 to exclude presence days.
Which income tax return does a nonresident use?
A nonresident alien generally uses Form 1040-NR when a federal income return is required.
Can an ITIN be used as work permission?
No. An ITIN is only a federal tax-processing number.
Are F-1 wages always exempt from FICA?
No. The result depends on tax residency, authorised employment and other IRS conditions.
Official sources
- IRS: foreign students and filing
- IRS: Form 8843
- IRS: Form 1040-NR
- IRS Publication 519: Tax Guide for Aliens
- IRS: F-1 Social Security and Medicare tax
USA tax preparation support in Nepal
For a visible review of the United States study route, Form I-20 funding and employment questions to take to the DSO, use MKS Education study in the USA guidance. For GRE, GMAT, SAT, IELTS or PTE preparation connected to the academic plan, compare current support at MKS Prep. For an individual return, use current IRS instructions or a qualified international tax professional.