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3) Taxes & Compliance

Resident vs nonresident tax status

In the U.S., taxes are self-reported. This means the government doesn't just send you a bill; they expect you to calculate what you owe and send it to them by April 15th every year. For international students and workers, this is the most dangerous part of your finances. If you file incorrectly, it can actually lead to visa denials or problems when you apply for a Green Card later.

This is where most people get confused. Your immigration status is different from your tax status.

The "Substantial Presence Test": Generally, F-1 students are considered Nonresidents for Tax Purposes for their first 5 calendar years in the U.S. After 5 years, you might become a Resident Alien for tax purposes.
Nonresidents (Form 1040-NR) only pay tax on U.S. income and have different treaty benefits. Residents (Form 1040) pay tax on their worldwide income.
Never use TurboTax if you are a Nonresident student! Standard software often files the wrong form (1040 instead of 1040-NR), which is technically tax fraud in the eyes of immigration.

Free Resource: Resident vs nonresident tax

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