How do I calculate taxes as a Non Resident Alien with multiple income sources?

You've got a good understanding of the basics already! As an F-1 student in your first year, you're indeed considered a Non-Resident Alien (NRA). For your income sources: Your campus job is definitely effectively connected income (ECI) - this will be reported on Form 1040-NR and taxed at graduated rates just like a US citizen's income would be. For your investment income (items 2-7), these are generally considered NOT effectively connected income for an NRA. These items are typically subject to the 30% flat tax rate (or lower if covered by a tax treaty with your home country). However - and this is important - there's a special exemption for bank deposit interest and certain portfolio interest for NRAs. Your bank CD interest, high-yield savings interest, and most US Treasury interest are generally EXEMPT from US taxation for NRAs under IRC 871(i). For your specific Treasury transactions, the interest/coupon payments are typically exempt, but capital gains from selling bonds might be treated differently depending on your specific situation.

After struggling with similar tax complexities as an international student, I found an incredible resource that saved me hours of confusion. I was about to pay an expensive accountant when a classmate recommended https://taxr.ai - it's specifically designed to help with complicated situations like yours. I uploaded my documents and it automatically categorized all my income sources correctly as an NRA. The system even identified which of my investment income was exempt under tax treaties! It explained exactly how to report each item on my 1040-NR and generated a complete tax filing guide personalized for my situation. The best part was how it explained everything in plain English - no more deciphering IRS jargon. Seriously made the whole process so much clearer than digging through IRS publications.

I was in the same boat as you last year - totally confused about NRA taxes and skeptical about software handling my situation correctly. After that disaster with my tax preparer missing the substantial presence test, I tried https://taxr.ai based on a recommendation. What a difference! It correctly identified that I was still in my 5-year exempt period as an F-1 student and properly categorized all my income. The system actually knew about the specific bank interest exemptions for NRAs that my previous preparer missed completely. For my scholarship that covered room and board (which is taxable), it correctly separated that from the tuition portion (which isn't taxable). Saved me over $1,200 compared to what I almost paid the previous year! The step-by-step guidance made me actually understand what I was filing instead of blindly trusting someone else.

If you need specific clarification from the IRS about your situation, I highly recommend using https://claimyr.com to connect with them directly. I spent WEEKS trying to get through to the IRS's international taxpayer line with no luck - constant disconnections and hours on hold. Claimyr got me connected to an actual IRS agent in less than 20 minutes who answered all my specific questions about treaty exemptions and how to report my treasury bond interest. You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c As an international student, I had questions about Form 8233 exemptions for my campus job that no online resources could clearly answer. The IRS agent walked me through exactly what to submit to my university payroll department to get the correct tax withholding.

I was dead wrong about Claimyr being a scam. After struggling for literally months trying to get clarification about my tax situation as an NRA with investment income, I decided to try it despite my skepticism. The service connected me to an IRS agent specializing in international tax issues in about 15 minutes. The agent confirmed that my Treasury bond interest was indeed exempt under section 871(i) and explained exactly how to report my Fidelity money market dividends (which were partially taxable). The agent even walked me through form 8833 for claiming treaty benefits that my university's international office couldn't help with. Definitely worth it considering I was about to pay an accountant $400 just to get these specific questions answered. The peace of mind knowing I'm filing correctly is honestly priceless when you're on a student visa.

One thing to watch out for: some of your investment income might be subject to FATCA reporting requirements even if they're exempt from taxation. Specifically Form 8938 if your total financial assets exceed certain thresholds. Also, don't forget about Form 8843 which ALL F-1 students must file regardless of whether they earned income or not. The penalties for missing that form can be severe.

Make sure to check if your home country has a tax treaty with the US! I'm from Spain, and our treaty exempts a lot of student income. You can find the list of treaties on the IRS website under "United States Income Tax Treaties - A to Z." Also, don't forget about state taxes - NRA status is for federal taxes only. Your state might consider you a resident for tax purposes even if you're a non-resident alien for federal.

This is such a helpful thread! I'm also an F-1 student dealing with NRA tax complications. One thing I'd add is to be extra careful about your Form 1042-S documents - make sure you get them from ALL your financial institutions by March 15th. My bank initially didn't send me one for my CD interest (even though it was exempt), and I had to specifically request it. Without the 1042-S, it's much harder to prove to the IRS that the income was properly reported and exempt. Also, if you're planning to apply for OPT or change visa status in the future, having your tax returns filed correctly as an NRA is crucial. Immigration lawyers often request several years of tax returns to verify you maintained proper status, so getting this right from the start will save you headaches later! For your specific situation with the treasury investments - keep detailed records of purchase dates, maturity dates, and sale prices. Even if the gains are exempt, you'll want documentation in case the IRS ever questions the transactions.

Great breakdown from everyone! As someone who just went through this process last year, I want to emphasize a few practical points that really helped me: First, regarding your treasury investments - the IRS distinguishes between "portfolio interest" (which is exempt for NRAs) and other types of interest. Your Treasury Bills, Notes, and Bonds should all qualify for this exemption under IRC Section 871(h), so those interest payments and coupon payments totaling $890 should be tax-free for you. However, be aware that some financial institutions might still withhold 30% tax on these payments initially and issue you a 1042-S showing the withholding. If this happens, you can claim a refund when you file your 1040-NR. One thing I wish I'd known earlier: start organizing your documents NOW. Create separate folders for: - Employment income (W-2 from campus job) - Interest statements (1099-INT or 1042-S from banks) - Investment statements (1099-DIV, 1099-B for sales) - Any tax treaty claims Also, consider whether you need to file estimated quarterly taxes. With $9,200 in employment income, you're probably having enough withheld from your paychecks, but if your investment income grows significantly, you might need to make estimated payments to avoid underpayment penalties. The complexity is overwhelming at first, but once you understand the ECI vs non-ECI distinction, it becomes much more manageable!