Most F-1 students are nonresident aliens for their first five calendar years in the US. That means you file different forms than your American classmates, and many students file the wrong one.
What to file each year
| Situation | Form(s) | Due |
|---|---|---|
| F-1 student, no US income | Form 8843 only | June 15 |
| F-1 with on-campus job, CPT or OPT wages | Form 1040-NR + Form 8843 + state return | April 15 |
| After 5 calendar years in F-1 status | Test residency; usually Form 1040 as a resident | April 15 |
Key points for students
- Money from parents for tuition and living costs is a gift, not income. It is not reported on your 1040-NR. (Form 3520 applies only once you become a US resident for tax.)
- FICA exemption: nonresident F-1 students, including on OPT, are generally exempt from Social Security and Medicare tax. If your employer withheld it, ask for a refund, then file Form 843.
- India treaty benefit: Indian students may claim the standard deduction on Form 1040-NR under Article 21(2) of the US-India treaty, a benefit most nonresidents do not get.
- Scholarships: the taxable part (such as room and board) is reported on Form 1042-S and may be withheld at 14%.
- Do not use resident tax software. Filing a Form 1040 by mistake can cause refunds to be clawed back and visa questions later.
Switching from OPT to H-1B
The year your H-1B starts is often a dual-status year: nonresident before October 1, resident after (if you meet the substantial presence test). Options include a dual-status return, a first-year choice election, or, if married, electing to be treated as resident for the full year to file jointly. Each produces a different tax bill, so we model them before filing.
Once you are a resident, your Indian bank accounts (NRO, NRE, savings, fixed deposits) count for FBAR and Form 8938.
How VG CPA PC helps
Form 8843 and 1040-NR filing, FICA refunds, treaty claims, dual-status returns, and first-year FBAR setup for new H-1B employees.
Talk to an advisorFrequently asked questions
Do F-1 students have to file a US tax return?
Yes. Every F-1 student files Form 8843, even with no income. Students with wages or taxable scholarships also file Form 1040-NR.
Do I report money from my parents on my 1040-NR?
No. Support from parents for tuition and living costs is a gift, not income.
Do OPT students pay Social Security and Medicare tax?
Generally no, while they are nonresident aliens. If FICA was withheld, ask your employer for a refund first, then file Form 843.
Can Indian students take the standard deduction?
Yes. Article 21(2) of the US-India tax treaty lets eligible Indian students claim it on Form 1040-NR.
What happens to my taxes in the year I switch to H-1B?
It is often a dual-status year. You may file a dual-status return or make an election to be treated as a resident; we compare both.
Updated November 2026. General information based on US federal tax law as of November 2026, not legal, immigration or Indian tax advice for your situation. Indian (FEMA, RBI, income tax) points should be confirmed with your Chartered Accountant in India. Please speak with an advisor before acting.