Published: February 19, 2026 Intermediate

Filling Taxes in the United States for International Students or Worker

This article is my personal understanding of the IRS publications and help reader understand the tax system in the US.

By
Umar Masood
15 min read
#tax #blog #personal

Resident vs. Non-Resident Tax Filing in the United States

A Detailed Guide for Pakistani International Students (F & J Visas)

⚠️ IMPORTANT DISCLAIMER
I am not a CPA, tax attorney, or licensed tax professional.
This article is for educational discussion only and does not constitute legal or tax advice.
Even if I were qualified in taxation, I would not be responsible for any decisions you make based on this article.
You are solely responsible for verifying all information directly from the IRS and/or a licensed professional before filing your taxes.

1. How Tax Filing Works in the United States

The United States follows an annual income tax system. Individuals must report their income and determine whether they owe additional taxes or qualify for a refund.

The IRS describes the system as:

“The United States income tax system is a pay-as-you-go tax system.”
— IRS Publication 17

Taxes are typically withheld from wages throughout the year (via W-2 payroll withholding), but a tax return must still be filed to:

  • Reconcile what was withheld vs. what is owed
  • Claim deductions or treaty benefits
  • Comply with federal law
  • Maintain proper immigration documentation

The typical filing deadline is April 15 (unless extended).

2. Who Is Responsible to File Taxes?

Whether you must file depends on your income and tax status.

The IRS states:

“You must file a return if your gross income for the year was at least the amount shown on the Filing Requirements tables.”
— IRS Publication 501

For international students:

  • If you earned income (W-2 job, 1099 contract work, assistantship, etc.), you likely must file.
  • Even if you earned no income, most F-1 and J-1 students must file Form 8843.

Relevant reference:

3. Resident vs. Non-Resident for Tax Purposes

Immigration status and tax residency are not the same.

The IRS determines tax residency using the Substantial Presence Test (SPT).

From the IRS:

“You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year.”
— IRS Publication 519 – U.S. Tax Guide for Aliens

However:

“Students temporarily present in the United States under an F, J, M, or Q visa are considered exempt individuals for purposes of the substantial presence test.”
— IRS Publication 519 – U.S. Tax Guide for Aliens

4. $5,000 Tax Treaty Benefit for Pakistani Students (Non-Residents Only)

The United States has a tax treaty with Pakistan.

Under Article 21 (Students and Trainees) of the U.S.–Pakistan Income Tax Treaty, eligible Pakistani students may exclude up to $5,000 of income from U.S. taxation.

This applies only if:

  • You are filing as a Non-Resident
  • You meet eligibility requirements
  • You properly claim the treaty benefit

This $5,000 effectively acts as a “rebate” — meaning that portion of your income becomes non-taxable.

Important: If you file as a Resident for tax purposes, this treaty benefit generally cannot be claimed.

IRS reference:

  • IRS Publication 901 – U.S. Tax Treaties
  • U.S.–Pakistan Income Tax Treaty (Article 21)

5. Standard Deduction (Residents Only)

The standard deduction reduces taxable income.

From the IRS:

“The standard deduction is a specific dollar amount that reduces the amount of income on which you're taxed.”
— IRS Publication 501

For example (verify current year values):

  • Standard deduction for single filer ≈ $15,750 (for 2025)
  • Standard deduction for Married Filling Jointly = $31,500

Important distinctions:

  • Non-Residents cannot claim the standard deduction (with limited exceptions).
  • Residents can claim the standard deduction.

In simple terms:

  • Non-Resident → Uses treaty rebate (if eligible)
  • Resident → Uses standard deduction

6. Complete Tax Calculation Examples

Below are structured examples to illustrate the difference. For 2025, the tax chargable is as follows (taken from IRS)

2025 Federal Income Tax Rates

Single Taxpayer

Tax Rate Taxable Income From Up To
10% $0 $11,925
12% $11,926 $48,475
22% $48,476 $103,350
24% $103,351 $197,300
32% $197,301 $250,525
35% $250,526 $626,350
37% $626,351 And up

Married Filing Jointly or Qualifying Surviving Spouse

Tax Rate Taxable Income From Up To
10% $0 $23,850
12% $23,851 $96,950
22% $96,951 $206,700
24% $206,701 $394,600
32% $394,601 $501,050
35% $501,051 $751,600
37% $751,601 And up

Example 1 – Non-Resident Pakistani Student (2025 Rates)

Assumptions:

  • W-2 income (on-campus job): $18,000
  • 1099 income (freelance/contract): $2,000
  • Total income: $20,000
  • Filing as Non-Resident (Form 1040-NR)
  • Eligible for $5,000 treaty benefit

Step 1: Total Gross Income
$18,000 + $2,000 = $20,000

Step 2: Apply Treaty Benefit
$20,000 − $5,000 = $15,000 taxable income

Step 3: Apply 2025 Tax Brackets (Single Rates Apply to Non-Residents)

  • 10% on first $11,925
  • 12% on income above that (up to $48,475)

Calculation:

10% of $11,925 = $1,192.50
Remaining income = $15,000 − $11,925 = $3,075
12% of $3,075 = $369

Total Federal Tax = $1,192.50 + $369 = $1,561.50

Total Federal Tax ≈ $1,562

This assumes no additional credits.

Example 2 – Resident for Tax Purposes (2025 Rates)

Assumptions:

  • W-2 income: $18,000
  • 1099 income: $2,000
  • Total income: $20,000
  • Filing as Resident (Form 1040)
  • Eligible for 2025 Standard Deduction ($15,000 for Single filer)

Step 1: Total Gross Income
$20,000

Step 2: Apply Standard Deduction
$20,000 − $15,000 = $5,000 taxable income

Step 3: Apply 2025 Tax Brackets

All $5,000 falls in the 10% bracket.

10% of $5,000 = $500

Total Federal Tax = $500

7. How to File

If Filing as Non-Resident

Most universities recommend Sprintax because:

  • It is designed specifically for Non-Residents
  • It supports treaty claims
  • Many universities provide discount codes

Forms typically filed:

  • Form 1040-NR
  • Form 8843
  • Possibly Form 8833 (treaty disclosure)

If Filing as Resident

You may use:

  • IRS Free File
  • TurboTax
  • FreeTaxUSA
  • e-file.com
  • A CPA

Form filed:

  • Form 1040

Always confirm your residency status before choosing software.

Useful IRS References

Final Responsibility Statement

This article is provided for informational purposes only.

I am not responsible for:

  • Errors in interpretation
  • Changes in IRS rules
  • Your filing decisions
  • Penalties, audits, or immigration consequences

Before filing:

  • Read IRS Publication 519 carefully.
  • Confirm your visa-year count.
  • Verify treaty eligibility.
  • Consult a licensed CPA if unsure.

You are fully responsible for your tax filing and its consequences.