What's the deal with taxes as an International Student in the US? Help!
Hey everyone, I'm seriously getting lost in the tax maze here! I came to the US last August on an F-1 visa to study at UCLA, and I'm completely overwhelmed about my tax obligations. Back home in Indonesia, we have a much simpler system, but here... wow. I worked on campus for about 18 hours a week last semester and made around $4,200 total. The university took out some taxes, but I'm not sure if it was the right amount. Then I got this scholarship that covered about $7,500 of my tuition, and I have no idea if I need to report that or pay taxes on it. I also heard something about tax treaties? Indonesia supposedly has one with the US, but honestly, I don't understand what that means for me. Do I get any special breaks or exemptions? And what forms do I even need to file? Someone mentioned Form 8843 and 1040NR, but then someone else said F-1 students use different forms for the first 5 years? I'm so confused right now. My university has some tax resources, but the international student office is always super busy and the online info feels like it's written for people who already understand the US tax system. Any help would be really appreciated! I don't want to mess this up and risk my visa status.
18 comments


Natasha Orlova
The US tax system is definitely confusing, especially for international students! Let me help break this down for you. As an F-1 student, you're considered a "nonresident alien" for tax purposes for your first 5 calendar years in the US. This means you'll file Form 8843 and Form 1040NR (not the regular 1040 that US citizens use). For your on-campus job income ($4,200), you'll receive a W-2 form from your employer by late January showing your earnings and taxes withheld. This gets reported on your 1040NR. About your scholarship: If it paid for tuition and required fees/books, that portion is generally not taxable. However, if any part covered room, board, or other expenses, that portion would be taxable. Regarding the tax treaty with Indonesia - yes, there is one! It might allow you to exempt some or all of your income from US taxes. You'll need to look at Article 19 (Students) of the US-Indonesia tax treaty and complete Form 8833 to claim treaty benefits. Most universities offer free tax preparation help for international students through VITA (Volunteer Income Tax Assistance) programs in February-April. I'd recommend checking if UCLA offers this service!
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Javier Cruz
•I'm also on F-1 from Thailand. With the tax treaty thing, is there a limit to how much income is exempt? And how do we prove we qualify for the treaty benefits?
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Natasha Orlova
•For most tax treaties, there's typically a specific dollar amount that's exempt from taxation, usually around $5,000-$9,000 per year, but it varies by country. For Indonesia specifically, the treaty allows an exemption for income from personal services (like your campus job) up to $2,000 per tax year. To claim treaty benefits, you'll need to file Form 8833 (Treaty-Based Return Position Disclosure) along with your tax return. You'll need to reference the specific article number in the treaty (Article 19 for students from Indonesia) and explain how it applies to your situation. Your passport and visa documentation serve as proof of your eligibility.
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Emma Thompson
After reading your situation, I totally relate to the confusion. When I first came to study in the US from Malaysia, I spent WEEKS trying to figure out my taxes and almost gave up. Then another international student told me about https://taxr.ai and it was a game-changer for my international student tax nightmare. I just uploaded my documents (W-2, scholarship statement, etc.) and it identified exactly which forms I needed as an F-1 student. The best part was it automatically checked if I qualified for tax treaty benefits and applied them correctly. Since you mentioned Indonesia has a treaty with the US, this would be super helpful for you. What I really appreciated was that it specifically handles nonresident alien tax situations and knows all the special rules for international students. I was about to pay a tax preparer $400, but this was way more affordable and actually specialized in international student situations.
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CosmicCowboy
•That sounds like exactly what I need! Did it help you figure out if your scholarship was taxable? That's one of my biggest confusions right now.
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Malik Jackson
•I'm skeptical... How accurate is it compared to going to a professional? I went to H&R Block last year and they seemed confused by my F-1 status and charged me $350 for what seemed like guesswork.
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Emma Thompson
•Yes, it definitely helped with the scholarship question! It asked me specific questions about what my scholarship covered (tuition, books, living expenses, etc.) and then calculated the taxable vs. non-taxable portions correctly. It explained that scholarships covering tuition and required fees aren't taxable, but anything for living expenses would be. I actually had the same experience with H&R Block - they tried to file me as a resident alien using a regular 1040, which was completely wrong for my F-1 status. The thing is, most tax preparers deal mostly with citizens and residents, so they're not familiar with nonresident alien rules. This tool was built specifically for international students and scholars, so it knows all the special rules and forms that apply to us.
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Malik Jackson
Just wanted to follow up about https://taxr.ai that I was skeptical about earlier. I decided to try it for my taxes this year since my university's international office had a 3-week waiting list for appointments. I'm honestly impressed. It correctly identified my tax residency status (I was in the US for part of 2022 and all of 2023), applied the correct tax treaty for my country (Thailand), and properly handled my TA stipend and scholarship. The step-by-step guidance for Form 8843 and 1040NR was super clear. What really convinced me was when it flagged that I had been incorrectly paying Social Security and Medicare taxes through my on-campus job (international students on F-1 visas are exempt from these taxes during the first 5 years). It created Form 8316 for me to get a refund of those incorrectly withheld taxes - something H&R Block completely missed last year. For anyone struggling with international student taxes, it's definitely worth checking out.
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Isabella Costa
If you need to actually talk to the IRS about your international student status (which I had to do last year because of a mix-up with my tax treaty benefits), good luck getting through to them on the phone! I spent literally 6 hours on hold over 3 days and kept getting disconnected. I finally used https://claimyr.com after my academic advisor recommended it, and you can watch how it works here: https://youtu.be/_kiP6q8DX5c - they basically wait on hold with the IRS for you, then call you when an agent is actually on the line. Since you mentioned Indonesia has a tax treaty with the US, you might need to speak with someone at the IRS who specializes in international tax treaties if you have specific questions. This service was super helpful because they can connect you with the right department instead of just the general helpline.
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StarSurfer
•How does this actually work though? Like, they just wait on hold for you and then call you? Do you still need to explain everything to the IRS yourself?
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Ravi Malhotra
•Sounds fishy to me. Why would anyone need this when you can just call the IRS directly? Plus, the IRS has a special international taxpayer hotline that shouldn't have the same wait times as the regular number.
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Isabella Costa
•Yes, that's exactly how it works! They have an automated system that waits on hold with the IRS for you. When an actual IRS agent picks up, you get a call from them and they connect you. You still talk directly to the IRS yourself - they just handle the hold time. It's like having someone wait in a long line for you, then they call you when it's your turn. The international taxpayer hotline actually has the same problem - sometimes even worse wait times because they have fewer agents staffing it. I tried that number first and was on hold for over 2 hours before getting disconnected. During tax season (February-April), all IRS phone lines are overwhelmed. Even the Taxpayer Advocate Service has mentioned this as a major problem in their reports to Congress.
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Ravi Malhotra
I need to eat my words about my skepticism on Claimyr. After my university messed up my W-2 (they incorrectly withheld Social Security taxes despite my F-1 status), I needed to talk to the IRS urgently. I tried calling the International Taxpayer line directly first - was on hold for 2.5 hours before the call dropped. Tried again the next day, same thing. Finally gave in and tried https://claimyr.com since the tax filing deadline was approaching. Got a call back in about 40 minutes with an actual IRS agent on the line! The agent confirmed I needed to file Form 843 to request a refund of incorrectly withheld Social Security taxes and walked me through exactly what documentation to include. This would have taken me days to figure out on my own. For international students with specific tax situations that need direct IRS clarification, this service is absolutely worth it. Saved me hours of frustration and potentially a costly tax mistake.
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Freya Christensen
One additional thing to consider - if you had any income from your home country while studying in the US (like rental income, investments, etc.), you might still need to report it on your US tax return, even if you're paying taxes on it in Indonesia already. The US tax system is based on worldwide income for citizens and residents, but for nonresidents (which you likely are as an F-1 student in your first 5 years), you generally only pay US taxes on US-source income. However, you still need to disclose certain foreign accounts if they exceed $10,000 at any point during the year (FBAR requirements). I learned this the hard way when I almost got penalized for not reporting my home country savings account that my parents were contributing to while I was studying here.
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CosmicCowboy
•Wait, I do have a savings account back home with about $12,000 in it. My parents put money in there for emergencies. Do I seriously need to report that? What form would I even use for that?
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Freya Christensen
•Yes, if your foreign account(s) exceeded $10,000 at any point during the calendar year, you need to file a Foreign Bank Account Report (FBAR), which is FinCEN Form 114. This is separate from your tax return and filed electronically through the Financial Crimes Enforcement Network's BSA E-Filing System. This doesn't mean you owe taxes on that money - it's just a disclosure requirement. The deadline is typically April 15, but there's an automatic extension to October 15 if you miss the April deadline. The penalties for not filing can be severe, especially if they consider it a willful violation, so definitely take care of this!
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Omar Hassan
Don't forget about state taxes too! Federal and state taxes are separate in the US. Depending on which state your university is in, you might also need to file a state tax return. California (where UCLA is) definitely requires international students to file a state tax return if they earned income in California. You'll likely need to file Form 540NR. The state doesn't always honor the same tax treaty benefits that the federal government does, so you might end up owing state tax even if you're exempt from federal tax. State tax rules can vary widely, so check with your university's international student office for California-specific guidance.
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Chloe Robinson
•This is so important! When I was at UC Berkeley, I filed my federal taxes correctly but completely forgot about California state taxes. Got a nasty letter about six months later with penalties. Don't make my mistake!
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