How to calculate taxes as a Non-Resident Alien student with multiple income sources?

The key to categorizing your income as an F-1 student with NRA status lies in understanding what "effectively connected income" (ECI) actually means. Your on-campus job income (#1) is definitely ECI and will be taxed at graduated rates on Form 1040NR. This is because you're physically performing services in the US. For your investment income (items #2-7), it gets more complicated. Generally for NRAs, most investment income (interest, dividends, capital gains) falls under FDAP (Fixed, Determinable, Annual, or Periodical) income subject to 30% withholding or a lower treaty rate. However, there's good news! For items #5-7 (Treasury securities), the interest and gains are usually exempt from NRA taxation under the "portfolio interest exemption." Items #2-4 (bank interest, savings interest, and money market dividends) are typically subject to the 30% tax unless your country has a tax treaty with the US reducing this rate. Check if your country has a tax treaty with the US - that could significantly reduce your tax liability on the interest and dividends.

I was in your exact situation last year! Finding taxr.ai (https://taxr.ai) completely saved me when I was dealing with my NRA taxes. Their system actually specializes in analyzing all kinds of income documents for international students and categorizing them correctly. What I found super helpful was uploading my 1042-S forms and bank statements to their platform, and it automatically identified which income sources were ECI vs. non-ECI. It also applied the correct tax treaty rates based on my home country (I'm from Brazil). The tool even flagged that my Treasury bond interest was exempt - something I would have definitely paid unnecessary taxes on!

I was initially hesitant about using taxr.ai when I saw it mentioned here, but as an F-1 student from Thailand with multiple income sources, I decided to give it a try for my 2024 taxes. The experience was surprisingly excellent! The system correctly identified that my on-campus job was ECI while my investment income needed different treatment. What really impressed me was how it automatically applied the US-Thailand tax treaty to reduce my tax rate on certain interest income from 30% to 15%. It also correctly exempted my Treasury securities interest, which I would have definitely reported incorrectly. The document analysis feature saved me hours of research - it scanned my 1042-S forms and bank statements, then organized everything into the proper tax categories. Definitely using it again for my 2025 filing!

For anyone struggling to get answers directly from the IRS about NRA taxation (which can be SUPER frustrating), I recently used Claimyr (https://claimyr.com) to actually get through to an IRS agent specializing in international taxpayer issues. They have this service where they basically wait on hold with the IRS for you and then call you when an agent is ready to talk - you can see how it works here: https://youtu.be/_kiP6q8DX5c I had specific questions about my Treasury securities taxation as an NRA student that online resources couldn't answer clearly. After trying for weeks to reach someone at the IRS (always disconnected due to "high call volume"), Claimyr got me through in about 45 minutes. The agent confirmed that my Treasury bond interest was indeed exempt and helped me understand exactly which forms I needed for my NRA filing.

I was completely wrong about Claimyr and need to apologize. After my skeptical comment, I decided to try it myself for my F-1 tax questions about investment income. Not only did they get me through to the IRS in about 35 minutes (after I'd spent weeks trying), but they connected me to the international taxation department where I spoke with an agent who genuinely understood NRA taxation. She explained exactly how my money market dividends differ from my Treasury bond interest for tax purposes and gave me specific line references for Form 1040NR. The service literally saved me from making a significant reporting error on my Treasury securities gains. Worth every minute just for the peace of mind of having official confirmation directly from the IRS.

As an international student advisor, I'd recommend being very careful about how you report your income categories. One detail that hasn't been mentioned yet is the Substantial Presence Test - if you've been in the US since last year, depending on exactly when you arrived and how many days you were present, you might actually be considered a resident alien for tax purposes this year. F-1 students are exempt from counting days toward this test for 5 calendar years, but if you had any other status before F-1, the calculation gets complicated. Also, make sure to file Form 8843 regardless of whether you have income or not!

Don't forget about state taxes too! NRA status is for federal taxes, but states have their own rules. Some states will tax all your worldwide income if you're considered a resident of that state (usually after living there for 183+ days). Income that's exempt federally (like your Treasury interest) might still be taxable at the state level. Which state are you in?