I'm an international student (F1) arrived in the United States on 08-28-2012. I have not changed the immigration status since my arrival in the United States. I was using sprintax until last year. I'm curious to know if I can apply as a US resident for tax purpose or wait until next year?
As a F-1 visa holder, you are considered as "exempt" meaning not counting days for five years starting from the date of your first arrival in the United States. After the five years period, you will start counting days by using the Substantial Presence Test to see if you qualify to be treated as a US resident for tax purposes.
In your situation, you are considered as a nonresident from 2012-2016 filing a Form 1040NR. Starting from 01/01/2017, you will start counting your days. If you meet the Substantial Presence Test in 2017, you will be considered a US resident for tax purposes and file a Form 1040 for your tax year of 2017
For more examples, see :https://www.irs.gov/individuals/international-taxpayers/alien-residency-examples
As a F-1 visa holder, you are considered as "exempt" meaning not counting days for five years starting from the date of your first arrival in the United States. After the five years period, you will start counting days by using the Substantial Presence Test to see if you qualify to be treated as a US resident for tax purposes.
In your situation, you are considered as a nonresident from 2012-2016 filing a Form 1040NR. Starting from 01/01/2017, you will start counting your days. If you meet the Substantial Presence Test in 2017, you will be considered a US resident for tax purposes and file a Form 1040 for your tax year of 2017
For more examples, see :https://www.irs.gov/individuals/international-taxpayers/alien-residency-examples
Would the same apply if the person has been in the US over 5 years but on two separate visas?
For example, one F-1 visa for bachelor's degree (5 years) and a second F-1 visa for a graduate degree at a different school (2 years) with a year in between the two visas
The five years exempt (not counting days) on F-visa is only allowed once in Lifetime. Therefore, you are considered as a US resident after your first five years expired.
Per IRS, as a student you are exempt for 5 calendar years. This is a lifetime exemption. So once you used up the 5 years, you cannot be exempt again on a F1 or J1 student visa.
For more information, click here: https://www.irs.gov/taxtopics/tc851
@afdengo
@LinaJ2020 I see. So yeah, I am considered a resident for tax purposes in 2020. I have a follow-up question.
What happens if my employer has not been withholding my social security and medicare taxes? How do I work with them to get this corrected?
I assume being a resident, I am no longer exempt from those taxes, and the non-exemption started on 01/01/2020?
Correct, if you are considered a resident alien, then you should complete form W-4 and give it to your employer in order to get withholding taken from your wages. If you're wondering how to complete this form, don't worry. TurboTax has a special withholding calculator that you can use to help you claim the correct allowances and so on, so you do not over or under withhold. Once you've completed the questions, you can download the form.
Here is the link to the calculator.
@ReneeM7122 I understand. I was caught by surprise by the fact that I am considered a resident during 2020. So I am just wondering what happens when the employer doesn't withhold those FICA taxes when it should. How do I work with my employer to get it corrected?
It might not need to be corrected. If your received Form 1099 from your employer, then you're responsible to pay FICA taxes with your tax return. If you received W-2 with 0 in Social Security wages, your employer might be exempt form the Social Security taxes.
@npierson7 Yeah, but it's not the case. In my first paycheck they took those out, then I told them to correct them because I was exempt. Then I turned non-exempt last year and just found out this week. So do I just need to contact them to have this corrected?
Hey all,
I did figure this out. After 5 years you are no longer exempt.
if you’re employer has not been withholding FICA taxes, when you do your taxes you will end up having to pay this.
contact your payroll department so they don’t continue withholding these taxes. Other than that, just know that when you file, you count as a resident alien and owe FICA taxes
Yes, then you need to contact your employer and update your status.
@afdengo I see. So they didn't need to issue an updated W-2? Did you contact them about your non-exemption when you found out?
Hi, I arrived in the US as an au pair (J1 visa) in April 8th 2018, I left the country for 3,5 months in 2020 (May 4th to August 20th) and then came back with an F1 visa. I am currently on a F1 visa. How do I calculate my substantial presence test? Knowing that I have taxes to pay for last year and my 4 months as an au pair.
You will apply the five years life time rule. Since you were on J-visa for two years before the F-visa ( 2018-2019), you will apply three more years for exempt ( not counting days 2020-2022) before you can start counting days to be considered as a resident.
Starting from January 1st, 2023, if you stay more than 183 days in the US, you will be a US resident for tax purposes.
For the year of 2019 and 2020, you are still considered as a nonresident and cannot use TurboTax to file. I will suggest you to visit Sprintax.
What form does an international student on an F1 visa who entered the US in 2016 and received taxable scholarship income reported on a 1042-S form for 2019 & 2020 but NEVER completed a 8843 form, use. The total number of days in 2016 = 125 day, 2017 = 365, 2018 = 346, 2019 = 365, 2020 = 366. Per the IRS website, since the student did not complete the 8843, they are not suppose to be exempt but it is not clear on the IRS website. The student overpaid taxes and needs to file a 2019 & 2020 tax form ,but which one? If they failed to file the 8843 and are not exempt for the days in the US, then would the student file a 1040 for both 2019 & 2020? The student just received an ITIN April 2021 to be file tax forms. Not sure how to calculate the substantial presence test since the student never filed the 8843. When could this student request "first-year choice" per IRS website? Thank you.
You are considered as a nonresident in 2020 and required to file a Form 1040-NR. As a F-1 visa holder, you will be exempt from counting days for five years, 2016-2020. Starting from January 1, 2021, if you meet the Substantial Presence Test SPT, you will be considered as US resident and file a Form 1040.
As TurboTax does not support nonresident filing, you are advised to contact Sprintax.
First year choice usually applies to taxpayers who switch from F-visa to H-visa during the same year. This choice will allow them to file as dual status. For more information, click here: https://www.irs.gov/individuals/international-taxpayers/alien-tax-status-first-year-choice
@anuenue
Hi @LinaJ2020 , tax year 2020 will be my 6th year as a student (2010 and 2011 as J1, while 2017, 2018 and 2019 as F1), hence, I will exceed the 5-year life time rule for students and trainees. On the other hand, there is an exception to the 5-year rule for students as long as they meet the requirements set by IRS here:
If I have changed status in 2020 from F1 to H-1B on October 1, 2020, can I still file for the exception for the days in the US in 2020 that I was on F1 (January 1 - September 30, 2020), given that I have transitioned away from F1 and I am no longer a student at the end of 2020?
If I can exempt the days on F1 I will not meet the substantial presence test and I can file as a nonresident alien. If I can not exempt the days under F1 as I have changed visas in 2020 and I am no longer a student, I have to file as a resident.
Thanks
According to this IRS link, you are eligible to be an exempt individual for 5 calendar years (2017through 2021) so you can file exempt for 2020, even though it is a part of a year.