F-1 Student Taxes: Form 1040-NR and 8843 Guide From Nepal

For F-1 student taxes, the key fact is this: most F-1 students are nonresident aliens for US tax purposes during their first five calendar years in the US, so they file Form 1040-NR if they earned US income, plus Form 8843, and they file Form 8843 by itself even if they had no income at all. F-1 nonresident students are generally exempt from Social Security and Medicare (FICA) tax on authorised work such as on-campus jobs, CPT and OPT. For the 2026 tax year, a return with wages is due on 15 April 2027.

Last checked: 20 October 2026. Based on IRS guidance for the 2025 tax year, the latest published; check the 2026 forms when they come out.

F-1 student taxes: key facts

Why most F-1 students are nonresident aliens

For tax, “resident” has nothing to do with your visa or green card plans. The IRS uses the substantial presence test, which counts days you were in the US. But some people are “exempt individuals” whose days do not count.

The IRS says a student temporarily in the US on an F, J, M or Q visa who substantially complies with the visa’s requirements is an exempt individual. Substantial compliance means you have not done things immigration law prohibits that could cost you your status, such as unauthorised work.

The limit: you are not an exempt student if you were exempt as a teacher, trainee or student for any part of more than five calendar years. The count is calendar years, not 12-month periods. Arriving in August 2026 uses up 2026 as one full year. The IRS allows an exception if you show you do not intend to live permanently in the US and you have substantially complied with your visa.

So a typical Nepali student who arrives in 2026 is likely to be a nonresident for 2026 through 2030, even while on OPT. After that, the substantial presence test may make you a resident for tax, with different forms and rules. IRS Publication 519 explains this in detail.

Form 8843: file it even with no income

Form 8843 is how you tell the IRS why your days in the US should not count towards the substantial presence test. The IRS says that if you qualify to exclude days as a student, you must file a fully completed Form 8843.

• If you file Form 1040-NR: attach Form 8843 to it.
• If you do not need to file a tax return: the 2025 Form 8843 instructions say to mail it to Department of the Treasury, Internal Revenue Service Center, Austin, TX 73301-0215, by the due date (including extensions) for filing Form 1040-NR.
• One form per person. Each exempt individual files their own.

This is the form many first-year students forget, because they had no job. It costs nothing to file and keeps your tax record clean.

Form 1040-NR: who must file and when

According to the IRS Instructions for Form 1040-NR:

• A nonresident alien engaged in a US trade or business during the year must generally file. Working in the US, including on campus or on OPT, counts.
• A nonresident student on an F, J, M or Q visa does not have to file Form 1040-NR if they have no income subject to tax under section 871. They still file Form 8843.
• Even if you do not have to file, the IRS says you should file if you can get money back, for example federal income tax withheld from your pay.

Due dates. If you were an employee and received wages subject to US income tax withholding, file by the 15th day of the 4th month after the tax year ends. Otherwise, file by the 15th day of the 6th month. For the 2025 tax year those dates were 15 April 2026 and 15 June 2026. For the 2026 tax year they are 15 April 2027 and 15 June 2027.

What you need: your passport and I-20, I-94 travel history, Form W-2 from each employer, any Form 1042-S you receive, and your SSN or ITIN. See our guide to student tax ID numbers.

Software warning: make sure any software you use prepares Form 1040-NR. A resident Form 1040 is the wrong form for a nonresident alien.

Social Security and Medicare (FICA) exemption

The IRS says F-1, J-1 and M-1 students who are nonresident aliens are exempt from Social Security and Medicare taxes on wages for services that USCIS allows and that serve the purpose of the visa. That includes:

• On-campus jobs and assistantships within the allowed hours.
• Off-campus work authorised by USCIS.
• Practical training on or off campus, which covers CPT and OPT.

The exemption does not cover F-2 dependants, unauthorised work, or work not connected to the visa’s purpose. It ends once you become a resident alien for tax.

Check every pay slip. If Social Security or Medicare was withheld by mistake, the IRS says to ask your employer for a refund first. If you cannot get it all back, file Form 843 with Form 8316 and supporting documents.

State income tax: a separate return

Federal forms go to the IRS. State income tax is separate and set by each state. Depending on where you lived and worked, you may need a state return as well. The IRS does not run state taxes, so check your state’s department of revenue website, or ask your international student office, which may share state filing guidance.

For students from Nepal

• No US–Nepal tax treaty. Nepal is not on the IRS list of countries with a US income tax treaty, so treaty benefits that some other nationalities claim (for example the student standard deduction available under the US–India treaty) do not apply to Nepali citizens.
• Money from home is not US income. Funds your family sends from Nepal for fees and living costs are not wages. But keep records, as they support your F-1 status and future visa applications.
• Keep copies for years. A clean tax record helps if you later apply for an H-1B or other status. See the H-1B lottery explained.
• Sending money home? Our guide to sending money to Nepal covers the remittance side.

Common mistakes

• Not filing Form 8843 in a year with no income.
• Filing a resident Form 1040 instead of 1040-NR.
• Not noticing FICA was withheld on campus or OPT pay.
• Counting five years as 60 months instead of five calendar years.
• Forgetting a state return.
• Missing the deadline because you thought students are exempt from filing.

What to do next

1. Count your calendar years in the US on F, J, M or Q status.
2. Collect your W-2 and any 1042-S forms in early 2027.
3. File Form 1040-NR with Form 8843 by 15 April 2027 if you had wages, or Form 8843 alone if you had no income.
4. Check your pay slips for Social Security and Medicare.
5. Check your state’s filing rules.

Frequently asked questions

Do F-1 students need to file taxes with no income?
You do not need Form 1040-NR if you had no taxable US income, but you still file Form 8843 to claim the student exemption from the substantial presence test.

When does an F-1 student become a tax resident?
Usually after five calendar years as an exempt student. From the sixth year, the substantial presence test may apply unless an IRS exception fits.

Do F-1 students on OPT pay Social Security tax?
Generally no, while they are nonresident aliens. The IRS lists practical training among exempt work.

What is the deadline for Form 1040-NR in 2027?
15 April 2027 if you had wages with US income tax withheld in 2026; otherwise 15 June 2027.

Is there a tax treaty between the US and Nepal?
No. Nepal is not on the IRS list of US income tax treaty countries.

Related guides

• Sending Tuition Fees Abroad from Nepal: SWIFT, Flywire, Docs
• US Cost of Living for Students by City (2026-27)
• Education Loan in Nepal for Study Abroad: How It Works (2026)

Sources

• Exempt individual who is a student – IRS
• Publication 519, US Tax Guide for Aliens – IRS
• Instructions for Form 1040-NR – IRS
• Instructions for Form 1040-NR (PDF) – IRS
• Form 8843 and instructions – IRS
• Foreign student liability for Social Security and Medicare taxes – IRS
• United States income tax treaties A to Z – IRS

Last checked: 20 October 2026. This is general information, not tax or legal advice. For your own situation, use your school’s tax resources or a qualified preparer.