US Tax for Students and Scholars: F-1, J-1, OPT and Treaty Rules

US tax for students and scholars has its own rulebook. As an F-1, J-1, M-1 or Q student, or a J-1 professor or research scholar, you are usually a nonresident alien for a number of years, so you file Form 1040-NR instead of Form 1040, you file Form 8843 even if you earned nothing, and you may claim treaty benefits from the US-India or US-Canada treaty. The same visa can also lead to the wrong form, the wrong withholding and an avoidable FICA bill if you or your university payroll gets it wrong.

Who counts in US tax for students and scholars?

A student is anyone temporarily in the United States on an F, J, M or Q visa who substantially complies with the visa. Their days of presence are not counted in the substantial presence test, unless they have been exempt as a teacher, trainee or student for any part of more than 5 calendar years and cannot show they do not intend to reside permanently. Teachers and trainees on J or Q visas are exempt unless they were exempt in 2 of the 6 prior years, with a limited exception where a foreign employer paid all compensation. Immediate family members on F-2 or J-2 visas follow the same exempt status.

How to file as a student or scholar, step by step

1. Confirm your status. Count the calendar years in which you were an exempt student, teacher or trainee, including partial years.
2. File Form 8843 every year. Attach it to Form 1040-NR, or mail it to the IRS at Austin, Texas by the Form 1040-NR due date if you have no return. Without a timely Form 8843 you may lose the right to exclude the days.
3. Decide whether you must file Form 1040-NR. You must if you have taxable income such as wages, taxable scholarship or fellowship, or US dividends. You may skip it if you have no taxable income. An Indian student single with gross income of $15,750 or less for 2025 is also excused under the Article 21(2) exception.
4. Get a taxpayer number. Work-authorized students (on-campus job, CPT or OPT) apply for an SSN; students with taxable scholarship income and no job use an ITIN. See our SSN and ITIN guide.
5. Complete your W-4 and treaty forms. Wages follow Notice 1392 instructions. To claim a treaty wage exemption give your payer Form 8233 with the treaty statement from Publication 519; use Form W-8BEN for scholarships and other income.
6. Collect your forms. W-2 for wages, 1042-S for scholarship or treaty income, and 1098-T from your school.
7. Prepare Form 1040-NR (not resident software for Form 1040). Report wages and taxable scholarship, claim treaty items and itemized deductions, and file Schedule OI. Mail or e-file by April 15, or June 15 if you had no wages subject to withholding.
8. File Illinois. An Illinois return can be required; see below.

Scholarships, stipends and tuition waivers

A scholarship or fellowship is excluded from income only for a degree candidate at an eligible school and only to the extent it pays tuition, required fees, books, supplies and equipment required for courses. Money used for room, board or travel is taxable, and so is any part that is payment for teaching, research or other services. A non-exempt US-source grant to an F, J, M or Q holder that is not pay for services is withheld at 14% (or a lower treaty rate), and the taxable part is treated as effectively connected income. A grant from a non-US source is not subject to US tax.

Treaty benefits for students and scholars from India and Canada

Claim exempt wages with Form 8233; the India teacher statement says the exemption lasts 2 years from the date of last arrival. Form 8833 is not required for treaty claims by students, trainees or teachers. If you later become a resident alien, a treaty exemption may continue only where the treaty's saving-clause exception allows it, usually for 4 to 5 years for students and 2 to 3 for teachers.

FICA, OPT and CPT

Nonresident F-1, J-1, M-1 and Q students are generally exempt from Social Security and Medicare tax on pay for on-campus work, practical training and similar work that carries out the purpose of their visa. Once you are a resident alien for tax purposes, FICA applies even if your visa does not change. If FICA was withheld in error, ask your employer for a refund first. Our FICA guide explains Form 843 claims, and our withholding guide shows how to complete Form W-4 as a nonresident.

Documents you need

• Passport, visa, I-94, I-20 or DS-2019, EAD (for OPT or STEM OPT)
• W-2, 1042-S, 1098-T and any 1099 forms
• Scholarship award letter showing the split between tuition and living costs
• Day counts for each year since your first F or J entry
• Treaty statement copies and your Indian PAN or Canadian SIN (some forms ask for a foreign tax ID)

Deadlines and penalties

Form 8843 and Form 1040-NR for 2025 were due April 15, 2026 (wages with withholding) or June 15, 2026, with extensions to October 15 or December 15, 2026. For 2026, plan on April 15 and June 15, 2027. Late filers lose the right to claim deductions unless the return is filed within 16 months of the due date, and the usual failure-to-file penalties apply to tax due. A missed Form 8843 does not carry a fixed fee in Publication 519, but without it you may be unable to exclude your days from the substantial presence test.

Country and Illinois notes

Illinois gives students no special exemption. You file Form IL-1040 if you are an Illinois resident required to file federally, and a nonresident alien must attach a copy of the federal Form 1040-NR. Living in Illinois to attend school does not by itself make you an Illinois resident under IDOR's guidance, which turns on domicile. Illinois does not tax scholarship income that federal law excludes. Your Indian CA or Canadian CPA handles home filings; see India-Canada education taxes. For treaty detail read the US-India treaty explained and the US-Canada treaty guide, and for your Illinois filing see our Illinois income tax guide.

Worked examples

Sai, F-1 student from Hyderabad. In 2025 he earns $24,000 as a research assistant and has $3,000 of taxable scholarship for housing. As an Indian student under Article 21(2) he uses the standard deduction of $15,750: $27,000 less $15,750 leaves $11,250 of taxable income, in the lowest bracket. He files Form 8843 with his Form 1040-NR and Schedule OI.

Dr. Meera, J-1 research scholar from Pune. Her university pays $60,000 a year for two years. She gives payroll Form 8233 with the India teacher statement. Her pay is exempt from withholding for 2 years from arrival, and she reports the exemption on Form 1040-NR. She also files Form 8843.

Mistakes to avoid

• Using Form 1040 or resident software for a nonresident year.
• Skipping Form 8843 because income was low.
• Leaving taxable room-and-board scholarship off the return.
• Letting FICA stay withheld on OPT pay.
• Claiming education credits, which nonresident aliens generally cannot.

How we can help

Our Aurora-area CPA firm prepares Form 8843 and Form 1040-NR for students and scholars from India and Canada, drafts Form 8233 treaty statements, corrects FICA errors and files Illinois returns. We coordinate with your Indian CA or Canadian CPA. See our individual returns for newcomers and NRIs service.

Frequently asked questions

General information only. It is not tax, legal, accounting or immigration advice for your situation, and rules change; confirm the current rules with the official source or a licensed professional in the relevant country.