Tax Returns for Visa Holders: What You Need to Know When Filing 2024 Taxes
By George Dimov in International
Filing tax returns for visa holders in the United States can feel overwhelming, especially when trying to balance both tax compliance and immigration requirements.
Whether you’re a student, professional, or permanent resident, understanding your tax obligations is crucial for maintaining your status and avoiding costly mistakes.
Your Tax Obligations as a Visa Holder in the U.S.
The United States tax system differs significantly from many other countries, particularly in its requirement for visa holders to file returns regardless of income source. Many newcomers to the U.S. are surprised to learn that they must report their worldwide income to the IRS, not just what they earn within U.S. borders.
This requirement stems from the U.S. government’s need to ensure tax compliance across all resident categories and prevent potential tax avoidance through offshore income.
Your tax obligations as a visa holder extend beyond mere income reporting. They form a crucial part of your immigration record and can impact future visa applications, permanent residency petitions, and even citizenship applications. Missing or incorrect tax filings can raise red flags during immigration proceedings and potentially jeopardize your ability to remain in the United States.
Who Needs to Pay U.S. Taxes as a Visa Holder?
One of the most complex aspects of tax returns for visa holders involves determining whether you’re classified as a resident or non-resident alien for tax purposes. This classification affects everything from the forms you’ll file to the deductions and credits available to you.
Residency Status and Tax Obligations
The IRS determines your tax filing requirements based on your residency status, not your citizenship or visa type. The Substantial Presence Test serves as the primary method for determining your tax residency status. This mathematical formula considers your physical presence in the United States over a three-year period:
- You’re present in the U.S. for at least 31 days during the current year
- The sum of days over three years meets specific thresholds:
- Current year days × 1
- Previous year days × 1/3
- Two years ago days × 1/6
- Total must equal or exceed 183 days
While the calculation might seem straightforward, various exceptions and special rules can affect the outcome, particularly for students, teachers, and other specific visa categories.
For example, if you’re an H-1B visa holder who arrived in the U.S. in July, you might assume you’re a non-resident alien because you’ve been here less than half the year. However, the Substantial Presence Test might actually classify you as a resident alien for tax purposes, requiring you to report your worldwide income from January through December.
Types of Tax Returns for Visa Holders
Different visa categories file different tax forms:
- Resident aliens typically file Form 1040
- Non-resident aliens file Form 1040-NR
- Students and scholars may need Form 8843
The type of return you file depends on your residency status and can change from year to year. Many visa holders make the mistake of filing the same forms they used in previous years without reassessing their current status. This oversight can lead to incorrect filings and potential issues with both the IRS and immigration authorities.
Immigration Visa Status and Taxation
Your specific visa category plays a significant role in determining your tax obligations. Each visa type carries its own set of rules, exceptions, and potential benefits under tax treaties. Understanding these nuances can help you minimize your tax liability while maintaining full compliance with U.S. law.
Non-Immigrant Visa Tax Requirements
Different visa categories come with varying tax implications. For instance, F-1 students often benefit from tax treaty provisions that other visa holders can’t access. Meanwhile, H-1B workers typically face full U.S. taxation on their worldwide income from day one, though they may qualify for certain deductions unavailable to other non-immigrants.
Common visa types and their tax implications:
F-1 Student Visa
- Generally non-resident for first 5 calendar years
- May qualify for tax treaty benefits
- Must report worldwide income if meeting resident status
Consider an F-1 student from India working on campus. While their U.S. wages are typically taxable, a tax treaty between the U.S. and India might exempt a portion of their income from taxation. However, this same student doing Optional Practical Training (OPT) might face different tax obligations despite maintaining F-1 status.
H-1B Work Visa
- Usually considered resident aliens for tax purposes
- Required to report global income
- Subject to standard U.S. tax rates
J-1 Exchange Visitor
- Non-resident for first 2 calendar years
- Special tax treaty provisions may apply
- Different rules for teachers vs. students
Green Card Holders and Taxes
Permanent residents face more comprehensive tax obligations than most non-immigrant visa holders. The U.S. government considers green card holders to be permanent tax residents, which means they must:
- File U.S. tax returns reporting worldwide income
- Pay U.S. taxes on global earnings
- Comply with foreign account reporting requirements
The responsibilities of a green card holder closely mirror those of U.S. citizens when it comes to tax obligations. This includes reporting income from foreign sources, such as rental properties, investments, or business interests abroad.
Dual-Status Tax Year
A dual-status tax year occurs during major transitions in your immigration status. This complex filing situation requires careful attention to timing and proper allocation of income between your resident and non-resident periods. You may have a dual-status tax year when:
- You receive your green card mid-year
- Your visa status changes
- You meet the Substantial Presence Test partway through the year
Key Deadlines for Tax Returns for Visa Holders
Understanding and meeting tax deadlines is crucial for maintaining both tax compliance and immigration status. The IRS sets specific deadlines for filing tax returns for visa holders, and missing these deadlines can result in penalties and complications with your immigration status.
Standard deadlines:
- April 15 for resident alien returns
- April 15 for non-resident alien returns
- June 15 extension available for visa holders abroad
Missing deadlines can result in:
- Late filing penalties
- Interest charges
- Potential visa renewal issues
Filing Guidelines for Visa Holders
Preparing tax returns for visa holders requires careful attention to detail and proper documentation. The process involves multiple steps and considerations to ensure accuracy and compliance.
Required Documents
Before beginning your tax return, gather these essential items:
- Form W-2 from U.S. employers
- Form 1099s for independent contractor work
- Foreign income statements
- Bank statements from all countries
- Previous year’s tax returns
- Visa documentation
Essential Tax Forms
Common forms for tax returns for visa holders:
- Form 1040 or 1040-NR
- Form 8843 for excluded presence days
- Schedule B for foreign accounts
- Form 8938 for foreign assets
- FinCEN Form 114 (FBAR) if needed
Tax Benefits and Deductions for Visa Holders in U.S.
The benefits and deductions available to you vary based on your visa status:
- Standard deduction (resident aliens only)
- Foreign tax credits
- Education credits
- Treaty-based reductions
- State tax deductions
Understanding which benefits apply to your situation can significantly impact your tax liability. For example, resident aliens can typically claim the same deductions as U.S. citizens, while non-resident aliens face more restrictions.
5 Common Filing Mistakes
When preparing tax returns for visa holders, be careful to avoid these frequent errors:
- Incorrect residency status determination
- Missing foreign income reporting
- Overlooking tax treaty benefits
- Forgetting state tax obligations
- Incomplete foreign account disclosure
Tax Refunds for Visa Holders
Many visa holders qualify for tax refunds, but the process requires proper documentation and patience. Understanding the refund system can help you set realistic expectations and avoid common pitfalls.
Eligibility Requirements
You may receive a refund if:
- Too much tax was withheld
- You qualify for refundable credits
- You paid estimated taxes exceeding your liability
Processing Timeline
Typical refund processing times vary:
- E-filed returns: 3-4 weeks
- Paper returns: 6-8 weeks
- International addresses may take longer
Maintaining Tax Compliance
Tax compliance is particularly important for visa holders as it directly affects their immigration status and future opportunities in the United States.
Immigration Impact
Proper tax filing affects:
- Visa renewals
- Status adjustments
- Naturalization applications
- Travel permissions
Record Keeping
Maintain these records for at least three years:
- Tax returns and supporting documents
- Visa documentation
- Income statements
- Bank records
- Travel history
Professional Assistance
While some visa holders can manage their own tax returns, certain situations warrant professional help. Consider seeking expert tax assistance if you:
- Have income from multiple countries
- Own foreign assets or businesses
- Changed visa status during the tax year
- Need tax treaty interpretation
- Face IRS notices or audits
Next Steps for Tax Returns for Visa Holders
Follow these steps to ensure proper tax compliance:
- Determine your tax residency status
- Gather required documentation
- Review applicable tax treaties
- Consider state tax obligations
- File on time or request extensions
- Keep copies of all submissions
Tax returns for visa holders require attention to detail and understanding of both U.S. tax law and immigration requirements. Professional assistance can help ensure accuracy and protect your immigration status through proper tax compliance.
Remember that tax laws and requirements can change annually, so staying informed about current regulations is essential for maintaining compliance and maximizing your tax benefits.
If you need personal assistance in navigating your tax filing status, reach out to us today for a no-obligation consultation.
Hi Dimov,
I am a J-1 visa student from Europe. I am currently doing an Internship in NYC, USA. I have a 1099-MISC, as my contract is “Self Employment”. I need help with filing for taxes in the US, as I am leaving soon.
Can you help me?
Best,
Emilie Jakobsne
Hi Emilie,
Thank you for your message! How many years have you been on J-1 visa? This is important as it determines if you will be file as a resident alien or nonresident alien.If you are nonresident alien, you are not subject to self-employment tax. We are specialized in 1099-MISC deductions and we will maximize your deductions. Please let us know if you have any questions. Looking forward to working together!
Hello, my name is Fabrice Machia. I used to be based in US on a G4 visa but left recently. I have done a few investments while there on some apps such as Fundrise, Robinhood, vanguard…, and was wondering how to fill my taxes. I also have a few US bank account
thanks for letting me know
Fabrice
Hi Fabrice – I just sent you a private message with some basic instructions.
Hi ! I am J1 visa holder. I have been working as a visiting fellow and exempted from paying federal taxes through agreements. But this exemption was found only after 8 months of my enrollment. Federal taxes were deducted for first 8 months. Then onwards, the federal taxes were not withheld. So how could I reclaim the federal taxes already withheld, since I am exempted from paying taxes from the beginning? I have been working in J1 visa from dec 2018 – until now. Appreciate your help !
Hi ! I am J1 visa holder. I have been working as a visiting fellow and exempted from paying federal taxes through agreements. But this exemption was found only after 8 months of my enrollment. Federal taxes were deducted for first 8 months. Then onwards, the federal taxes were not withheld. So how could I reclaim the federal taxes already withheld, since I am exempted from paying taxes from the beginning? I have been working in J1 visa from dec 2018 – until now. Appreciate your help !
Hi! This is a great question. There are a few things you can do:
–Tell your employer to refund you the FICA tax and amend your W2 (provide W2C). We also own a payroll company and do this sometimes if it is discovered that one of our clients’ employees is exempt from FICA.
–Ask your employer to amend your W2 with a W2C and petition for the refund on your actual return.
–Dispute the W2 with the IRS
Let us know if you need assistance with any of the three listed options & we will be happy to assist. We do serve all 50 states. As always, none of this is professional advice until you have hired us.
Hi. I’m a J1 Holder since March 2019. Previously, I held an OPT and completed taxes for period 2018 with a 1040 NR form. which form should I complete for 2019? a 1040 NR or a 1040 ?
Hi dimovtax,
I am on an L-1 visa working for a multinational company in the US. Can i collect a 1099-MISC and file taxes?
Hi! Just sent you a private message with a few details.
I am international student from Jamaica, i want to apply for an ITIN for my son who has a F2 visa.
Hi! Just saw your email. Please check my response from hello@direction.dev
Hi, I am a J1 (Au pair) I need to be sure about which form do I need to complete (1099, 1040 or which one)
Hi,
Thank you for your message! The tax forms you need to file depends on how many days you spent in the US and what your income sources are. Please contact us if you are interested for more information!
Hi! My name is Sena and I have been in the US since 2017 as F-1 student. I started college this past school year And because of that I was able to obtain my SSN and work on campus. I have filed my tax returns for this year, but when I did, I was told that I pass for the substantial test and are considered a resident for tax purposes. So I filled out the 1040 form. I’m wondering if I had done that wrong and need to amend my tax return? Would the fact that I have been in the US since 2017 as a student qualify me as a resident for tax purposes?
Hi! I just responded to your message over email. Did you receive my response?
Hello. How can I get my taxes from 2019?
Thank you for your message! Are you a resident or nonresident in 2019?
Hi , i am on L1 visa and moved in Oct 2021. Will I be taxed under the normal tax rate for Federal tax ?
Hi Ann,
I just responded to your message over email. Did you receive my response?
Hi,
I am on J2 dependent VISA and working remotely as freelance in a company outside the US, specifically Japan. I will be here a 2 to 3 years until my spouse (J1 visa) finishes her program. Will my foreign income be exempted from tax (State, Federal and Local Taxes)?
Thanks in advance.
Hi Bjorn,
Thank you for your message! I just responded to you via email.
Hi,
I am a Canadian Citizen and working in USA on TN Visa. My Employer is doing a Federal Income Tax Withheld from my Salaries. I usually commute daily to my office in USA. But in 2021, I worked from my home in Canada and commute to office for only 5 days. What could my tax situation? Do I get any refund on Withheld Income Tax or not? Please advise.
Hi Zulfiquar,
Thank you for your message! We have many clients who are Canadian citizens. We are happy to assist. I just responded to you via email.
Hi,
My wife has an L-1 but it’s working abroad(out of US) for a foreign company, was supposed to move here to US but we changed our minds.
If she visits me and works from US for a couple of months, does she need to fill in taxes documents?
Thanks
Hi!
Thank you for your message!A few questions:
– Is she working on W2 or on 1099 (or another income source)?
– Are you filing jointly or separately?
Thank you for your fast answer.
She lives in Portugal, works there, for a Portuguese company. Despite she has an L1-B , there’s no income through US companies.
Does she need to fill in any Tax form if she were in US for ~2months?
I was thinking of filling in separately, should we do otherwise?
Many thanks for your advise
Hi Enrique – these are excellent questions – I will email you now
Hi! I was an Au pair (J1 visa) from July 2019 to august 2021. I’m doing my 1040 form now because I was a resident for tax purposes last year… I always did the federal taxes the last two years but I never filed the state taxes. Nobody told me about state taxes. How could I file them now? Years 2019 and 2020. Thank you!
Sure, we can file these & you may be eligible for a refund if you had sufficient withholdings on your W2. Please share with a secure drive to hello@direction.dev if you need our help with filing. We will need the W2s as well as the tax returns as filed for federal.
Much appreciated & Looking forward to serving!
Thank you for your quick response! I don’t have a W2… Au pairs don’t get a W2. The first 2 years I was a non resident and this year I am filling as a resident because of the substantial presence test (I am already in my home country so I even added what I earned in my home country last year). I don’t have any paper to prove my income, is that a problem? Thank you!
That is not a problem – you can self-report your earnings. Reach out to us if you need help with that. Since we are in peak tax season, I cannot answer any more questions unless you have hired us. We can continue after April 18th of 2022 if you just wanted to chat. Otherwise, please message me at hello@direction.dev and we can complete this work for you at our rates as quoted. Much appreciated!
Hi, I used to be on a g4 visa so i did not file taxes. Then i got married, got a green card and a tax-paying job. For the year 2021 irs is saying i meed to pay 12k in taxes to make up for this time i was not eligible for paying taxes. My husband and i are married filing jointly. Is this charge correct? Should we file separately instead? Thank you for your help!
Hello,
What is your estimated costs on tax preparation with an investment property?
Thanks
Hi, I’m an agent for fashion models. We book the models on one day or short term gig jobs. We have several foreign models and we sponsor their O-1 Visa’s. One thing they need to know is how to fill out payroll tax paperwork properly. When they work as a model for Target and Walmart for instance these productions have their own payroll’s to process payment. I was under the impression that as long as the foreign model has a valid Visa they can do these payroll jobs and fill out the normal w4 paperwork. There are some that say since the 0-1 Visa is though our agency these Visa holders can only be paid by our agency. Do you have any insight on this? Also, we need a good tax person that specializes in Visa holders to suggest to them. We are located in Los Angeles, CA. Most of our work is here or NY. -Thank You!
I am working on a J1 visa and want to know when do I file for my tax returns and how much tax can I get back. Is it a set percantage?
Hi,
Thank you for your comment. We just replied to you in the email. Please feel free to get back to us there!
Hello,
I am on an L1A visa, and I am the 50% owner of the LLC. Do I have to file taxes as an employee or self- employment taxes? Also, are payroll taxes applicable to me?
Hi,
Thank you for your comments. We just replied to you in the email. Happy to help.
Hi.
I had a F1 visa and filed taxes as international students from 2019-2022. In 2023 I got a TN visa. When can I start filling taxes as a resident alien?
Hello,
I am on a G4 visa but I got a 1099K form to file, this was for personal transactions on a specific event. can I file this form as a g4 visa holder? thank you so much!
Hello,
I am on an F-1 visa, and I worked as a freelance illustrator for a while when I had my OPT in 2022. I barely did get any sales/income during my OPT as it was short-term. Do I file taxes as self-employment? I like to know what kind of tax documents I have to fill in.
Thank you.
Hi, I have been in USA since November 2021 on J-1 visa as a researcher. DO I have any tax obligations? Someone told me that J-1 visa holders do not have to pay any taxes
Thank you
Hi! I’m in the US with a J1 visa and have to file taxes. But … I’m completely lost. I filled out the 1040-NR form based on the W-2 form. But what know ???? ? I even don’t know if I have to fill out that form. There are so many confusing websites with too much information.
Hi!
I am a J-1 visa holder, this is my second year under the same visa in the US. I have no US income however I have a scholarship from my home country. Do I count as a Resident Alien because of the consecutive days I have been in US? Do I have to pay taxes for my scholarship here in the US, even though it is not US-based income? I f I have to file taxes as a Resident Alien, am I subjected to an exemption because of my visa category?
Thank you in advance,
Hi Senem,
Thank you for your message! We have many clients who are on J1 or F1 visa and we are fluent with this type of tax return. We just replied to you in the email. Thank you!
Dimov Tax’s blog post offers valuable insights into tax returns for visa holders. It discusses the tax implications and considerations that visa holders should be aware of. The post provides essential information for individuals navigating the complexities of tax filing as visa holders.
Hello. Can I get help on how to file forms 8843 and 1040-NR as a J1 visa holder?
Considering the below situation, is it okay to file an amendment for my 2022 return with the first-year election and the 6013(g) election in the same year, and as full-year resident aliens?
– I and my wife filed the 2022 tax with 1040NR as nonresident aliens.
– I met my Substantial Presence Test in 2023 (entered the US with L1B visa in Oct 2022 and have not left since then, changed to E2 in Aug 2023), while my wife did not meet the test as she was an F1 student until July 2023.
– I would like to submit an amendment for the 2022 tax filing by making the first-year election for 2022.
– I believe this also makes us eligible to make the 6013(g) election for my wife in 2022, and we can file jointly for 2022, making both of us resident aliens for the full year (She had income in 2022 from an internship as F1 CPT)
– I have income from Korea in 2022 before coming to the US.
Hello, Mr. Dimov, I am filing 1040NR and I am trying to figure out what is the relevant tax rate for capital gain on financial securities under the US tax treaty with Bulgaria (my understanding is that since I have been physically present in the US more than half of the year, I need to pay tax on my capital gains in the US even though I am an exempt individual and therefore a non-resident for general income taxation). Thank you.
That is a great question and we can go over tax treaty questions after the season. I will send you an email shortly.
Hello Mr Dimov. I am a J1 research scholar from Greece and I have been in the USA since November 2023. I did not have any tax withholding from my salary in 2023. The respective article for the UA-Greece tax treaty (chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.irs.gov/pub/irs-trty/greece.pdf) in the article XII mentions strictly exempt for professors or teachers. Should I still be considered tax exempt as a J1 research scholar?