3) Taxes & Compliance

A Deduction lowers the amount of income you are taxed on. A Credit is like a gift card that pays your tax bill.

• Tax Treaties: Many countries (like India, China, or South Korea) have special treaties with the U.S. that allow students to earn $2,000–$5,000 completely tax-free.
• Education Credits: If you are a Resident Alien for tax purposes, you might qualify for the American Opportunity Tax Credit (AOTC), which can give you back up to $2,500 for tuition costs.
• Standard Deduction: Nonresidents don't get the Standard Deduction, which is why their tax bills are often higher than Americans'.

Free Resource: Official IRS Guide: Foreign Student Tax Treaties