10 Understanding Tax Documents for Domestic and International Students: What You Need to File Your Taxes
Filing taxes requires specific forms and documents that help determine your taxable income, deductions, and credits. Whether you’re a domestic or international student, understanding which forms to use and how they differ is essential for ensuring a smooth tax filing process. In this section, we’ll break down the essential tax forms, explain their purposes, and guide you through the documents you’ll need for tax filing.
Disclaimer
Tax Forms for Domestic Students
As a domestic student (a U.S. citizen or permanent resident), the forms and documents you’ll need to file your taxes depend on your income, whether you’re claimed as a dependent, and if you have any special tax situations such as scholarships, grants, or student loans.
Common Forms for Domestic Students:
- Form W-2 (Wage and Tax Statement):
- Purpose: This form is issued by your employer and reports your total earnings and how much federal, state, and local taxes were withheld from your paycheck.
- Who needs it: If you’ve worked part-time or had a work-study job, you will receive a W-2 from your employer.
- How to use it: You’ll need this form to complete your tax return, as it provides the income and tax information necessary to calculate your tax liability.
- Example: If you worked on campus or in a local café, you’ll get a W-2 showing your earnings and taxes withheld during the year.
- Form 1098-T (Tuition Statement):
- Purpose: This form is provided by your college or university and reports tuition payments, scholarships, and grants received during the tax year.
- Who needs it: All students who paid for tuition and related expenses.
- How to use it: Use this form to claim education-related tax credits, such as the American Opportunity Tax Credit (AOTC) or the Lifetime Learning Credit (LLC).
- Example: If you paid $6,000 in tuition for the year, your 1098-T will show this amount, which can help you qualify for up to $2,500 in tax credits.
- Form 1099-INT (Interest Income):
- Purpose: This form is issued by your bank or financial institution if you earned more than $10 in interest during the year.
- Who needs it: If you have a savings account or any other interest-bearing account.
- How to use it: The interest reported on this form must be included as taxable income on your return.
- Example: If you earned $15 in interest from your bank, your 1099-INT will reflect this, and it must be reported when you file your taxes.
- Form 1098-E (Student Loan Interest Statement):
- Purpose: If you’ve begun repaying student loans, this form will show the amount of interest you paid on those loans during the year.
- Who needs it: Students who are repaying federal or private student loans.
Additional Documents for Domestic Students:
- Social Security Number (SSN): Required to file your taxes and claim any tax credits.
- Receipts for Qualified Education Expenses: If you paid for textbooks, supplies, or equipment, keep receipts to claim education credits.
- Bank Account Information: Needed for direct deposit of your tax refund.
Tax Forms for International Students
International students studying in the U.S. may be subject to different tax rules depending on their visa status and residency for tax purposes. Most international students fall under non-resident tax status, but this may change if you’ve been in the U.S. for an extended period.
Common Forms for International Students:
- Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition):
- Purpose: This form is used by international students on F-1 or J-1 visas to explain their non-resident status for tax purposes. Even if you didn’t earn any income, you’re still required to file this form.
- Who needs it: International students (F-1 or J-1 visa holders) who didn’t work or had no U.S. income but are exempt from being treated as U.S. residents for tax purposes.
- How to use it: This form is filed alongside your tax return (or separately if you have no income) to declare that you’re exempt from residency status.
- Example: If you’re a student from India and had no income in the U.S., you’ll still need to file Form 8843 to maintain your non-resident tax status.
- Form W-2 (Wage and Tax Statement):
- Purpose: Like domestic students, if you worked on campus or had a job, you’ll receive a W-2 from your employer reporting your earnings and tax withholdings.
- Who needs it: International students who worked in the U.S.
- Example: If you worked as a research assistant and earned $8,000, your W-2 will show your income and tax deductions.
- Form 1040-NR (Non-Resident Alien Income Tax Return):
- Purpose: This form is used by international students classified as non-residents for tax purposes. It’s similar to the standard 1040 form but designed for non-resident taxpayers.
- Who needs it: International students who have U.S.-source income, such as wages from employment or taxable scholarships.
- How to use it: Use this form to report your U.S. income and claim deductions or credits. It’s filed with the IRS to calculate your tax liability or refund.
- Example: If you worked part-time on campus and earned $5,000, you’ll use the 1040-NR to file your tax return and report that income.
- Form 1098-T (Tuition Statement):
- Purpose: Similar to domestic students, international students receive a 1098-T for tuition payments and scholarships, though eligibility for certain education tax credits may differ.
- Who needs it: International students who paid for tuition and received scholarships or grants.
- Example: If you paid $7,000 in tuition, your 1098-T will show this amount, and you can include it in your tax filings. However, you may not be eligible for U.S. education credits.
Additional Documents for International Students:
- Individual Taxpayer Identification Number (ITIN): If you’re ineligible for a Social Security Number (SSN), you’ll need an ITIN to file taxes and claim any tax treaty benefits.
- Scholarship or Fellowship Documentation: If you received scholarships that cover living expenses, room and board, or other non-tuition expenses, those amounts may be taxable.
- Passport and Visa Information: Important for confirming your visa status and residency when filing taxes.
How to File Taxes as an International Student
International students generally file as non-residents, but those who’ve been in the U.S. for more than five years may be considered residents for tax purposes under the Substantial Presence Test.
- Non-Resident Filing: If you’ve been in the U.S. for fewer than five years on an F-1 or J-1 visa, you’ll file using Form 1040-NR.
- Resident Filing: If you meet the Substantial Presence Test, you may need to file as a resident, using the standard 1040 form. This allows you to claim deductions and credits available to U.S. residents.
- Tax Treaties: Some countries have tax treaties with the U.S., allowing international students to exclude part or all of their income from U.S. taxation. This varies by country and type of income, so check the treaty between your home country and the U.S.
