International student and no longer in USA, how do I file?

[tax_is]

I was an international student on F1 visa (visa is still valid) and worked on-campus (as part time) while in college and then after college worked full time for about an year. When I was in college I filed my tax returns (in 2014 and 2015) but din't file while I was working full time i.e. 2016 and 2017. 

I left my full time job and came back to my home country permanently in 2016. 

1.) Should I file tax returns in case I get any money back? 

2.) What if I owe the IRS money and don't file?

[Opus 17 · Accepted solution]

As a student on an F-1 visa for the first 4 years you are considered a non-resident and need to file a form 1040-NR non-resident tax return.  Turbotax does not support non-resident tax returns so if you used turbotax, you did it wrong and you need to file amended returns using form 1040-NR.  Starting your fifth year of being in the US, you use the substantial presence test to determine if you are a resident or not for tax purposes.  https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test

However, if you were not complying with the terms of your Visa (students on F-1 visas generally can't have "full time work" unless it is through their school) then you would file as a resident or as a dual-status alien.  Turbotax doesn't support dual-status either and you may need professional assistance to get your tax filings straightened out.

If you left the US in 2016 but you have US-source income for 2016, then you need to either file a 2016 form 1040 (resident tax return) or 1040-NR (non-resident return) depending on your residency status -- which depends on the kind of work you were doing, the 5 year rule, and the substantial presence test as mentioned above.

If you don't file a tax return, the IRS will keep any money that was withheld from your pay.  They will create a substitute tax return in their computer system based on any income reporting documents they have on file, like W-2s and 1099s.  The substitute return doesn't give you credit for deductions since the IRS doesn't have to give you any deductions that you don't prove in writing.  If the substitute return shows you would get a refund, the IRS won't pay it.  If the substitute return shows you owe tax, the IRS may eventually place a lien against any US assets you have (which may be zero of course).  If you return to the US and get a job and start filing taxes again, the IRS can confiscate all or part of your refund to satisfy the old debt.  There are also penalties and late fees for filing late (or not at all) that would have to be paid if you ever return to the US and start filing taxes again.

[TaxGuyBill]

The first 5 calendar years are exempt, so it is the 6th calendar year that starts counting for the Substantial Presence Test.  It is calendar years, so if a person comes in December, the second 'year' starts in January.

[chk_tax11]

Hi

I was working in the US for 2 years before returning back to Australia (June 2016 - Aug 2018.  How do I make sure that I don't need to file any more taxes in the US and close it all off.

thanks

[iexarchos]

Hi @Opus 17 quick question: my situation is similar- I was an international student, I was on an F-1 visa for almost 10 years working as a PhD research assistant and a postdoctoral scholar subsequently. I left last year (2021) but had income for January. I have been using turbotax for years (since it's been years since I was considered a resident for tax purposes), but I am not sure how to file this year - I do have a W2 and entered the details, but what do I do with the question "income that I made OUTSIDE the US", after I permanently left? Do I declare it (obviously it shouldn't get taxed since I left permanently) or do not declare it at all as it is not relevant to the IRS? Thanks! 

[DaveF1006]

It depends if you were considered a US resident or non-resident for income tax purposes. This is determined in whether or not you meet the substantial presence test in 2021. To meet this test, you must be physically present in the United States (U.S.) on at least: 

1. 31 days during the 2021 year, and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
3. All the days you were present in the current year, and 

• 1/3 of the days you were present in the first year before the current year, and
• 1/6 of the days you were present in the second year before the current year

If you did not meet these requirements, you will need to file a Non-Resident return. If you ned to file as a non-resident, you can do so through sprintax.com.

[iexarchos]

Hi @DaveF1006 First of all, thanks for your response.

I was physically present in the US for more than 31 days in 2021 (January - March, so approx. 90 days)
What do you mean by "current year"? 2022? Or 2021?

If by "current year" you mean 2022, I have not been in the US in the current year at all. But I have been in the US from 2011 until the end of March of 2021. This gives approximately 90 days (January-March) in 2021 (first year before current) and 365 days in 2020 (second year before current). Multiplying by the factors 1/3 and 1/6, respectively, and summing up, this is approximately 91, so less than 183. But this is assuming that "current year" means 2022, and not 2021.

If by "current year" you mean the current year of filing, so 2021, Then I have been 90 days in 2021 + 365*(1/3) in 2020 + 365*(1/6) in 2019, so a total of more than 183 days. So in that case I should file as resident for tax purposes. 

I still have the question of what happens to income I've made AFTER permanently leaving the US (so after March 2021) for which I have been already taxed in its respective country, and this while holding no US visa status whatsoever anymore.

[DaveF1006]

No, when I meant the current tax year, which is 2021. It sounds like you meet the substantial presence test requirements for 2021.

For your income made in the other country, you will need to report it on your 2021 return. You can claim a Foreign Tax credit for the amount of tax you paid in a foreign country.  You first need to report the foreign income first by.:

• Click on Federal 
• Click on Wages and Income  
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• On Foreign Earned Income and Exclusion, click on the start or update button

After this has been reported, then you will need to file to receive a Foreign Tax Credit for the tax you already paid in the foreign country.

1. Federal>deductions and credits>deductions and credits
2. estimate and other taxes paid>
3. Foreign Tax Credit>start or revisit

@iexarchos

[trip32]

Hello, I was on OPT, (non resident alien) and I have already left for my country, before I filed the taxes for 2021, what shall be the repercussions?

[DaveF1006]

Depending on the income you made during the year, there may be a filing and interest penalty. Please read this IRS post for further assistance for determining the amounts of these penalties.

To file a 1040 NR return, contact  sprintax.com, which is our affiliate for filing non-resident returns.

[trip32]

I filed my tax returns before I left the US, I was an international student on F1, and I had earned money in 2021, however, as I filed, it showed that I owed IRS some $$$, I am out of the country, and I have no source of income yet to pay off that debt, what do I do?