F-1 Student Tax Filing: The Most Common 1040-NR Mistakes to Avoid (2025 Tax Return · Updated: Jan 2026)
“I’m an F-1 student — do I really need to file Form 1040-NR instead of Form 1040?”
This is one of the most misunderstood questions for international students preparing their 2025 U.S. tax return (filed in 2026).
In practice, the biggest issues come from residency misclassification, treaty mistakes, and improper deductions—often from using the wrong form (not from fraud).
1️⃣ What’s different for the 2025 tax year?
The core tax rules for F-1 students did not fundamentally change for the 2025 tax year.
However, the IRS has increased automated review of electronically filed returns.
As a result, returns incorrectly filed on Form 1040 instead of 1040-NR — or those claiming the standard deduction improperly — are now flagged much faster than in prior years.
Missing Form 8843 or failing to apply a tax treaty correctly continues to be a frequent trigger for IRS follow-up.
Most F-1 students within their first five calendar years in the U.S. remain nonresident aliens for tax purposes, regardless of total days present.
Also, state tax rules may differ—some states (including New York) may not fully follow federal treaty treatment.
F-1 students often ask, “When do I become a resident for tax purposes?” Here’s the simplest way to visualize it.
| Year in the U.S. | Typical tax status | Common return | What to watch |
|---|---|---|---|
| Years 1–5 (calendar years) | Usually Nonresident Alien (Exempt Individual period) | 1040-NR + Form 8843 | Treaty benefits, standard deduction generally not allowed |
| After the exemption period | May become Resident Alien if Substantial Presence Test is met | 1040 | Different deductions/credits and broader income reporting |
Key point: Your “days in the U.S.” matter, but F-1 rules can delay resident status compared to the usual 183-day idea.
2️⃣ Who must file Form 1040-NR?
For tax purposes, F-1 students are generally classified as Exempt Individuals during their initial years of stay.
This means the usual “183-day rule” does not automatically convert them into U.S. tax residents.
- Typically required: F-1 students within their first 5 calendar years in the U.S.
- Exception: Students who exceed the exemption period and pass the Substantial Presence Test
Being physically present in the U.S. for more than 183 days does not automatically make an F-1 student a tax resident.
| Category | Form 1040 (Resident) | Form 1040-NR (Nonresident) |
|---|---|---|
| Standard deduction | Generally allowed | Generally not allowed |
| Tax treaty | Often limited / uncommon | Often applicable (e.g., certain wage exclusions) |
| FICA (SS/Medicare) | Generally required | May be exempt for eligible F-1 students within exemption period |
3️⃣ Real-world filing example (EA case)
- Profile: F-1 student working as a university teaching assistant
- Income: $18,000 in U.S. wages
- Tax treatment: Filed on Form 1040-NR with U.S.–Korea tax treaty Article 21(1), excluding $2,000 of wages from taxable income
- EA insight: This is a pattern I see every tax season when reviewing amended returns for international students—standard deduction errors and missed treaty lines are extremely common.
4️⃣ Most common filing mistakes
| Mistake | Why it matters | Quick fix |
|---|---|---|
| Using Form 1040 instead of 1040-NR | Wrong tax framework, deductions, and residency assumptions | Confirm residency status first; file 1040-NR if nonresident |
| Standard deduction claimed on 1040-NR | Often disallowed; can trigger IRS corrections | Remove it unless a specific treaty exception applies (rare) |
| Tax treaty not applied (or applied incorrectly) | Overpaying tax or creating mismatch on treaty disclosure | Identify treaty article/amount and report it properly |
| Form 8843 missing | Common compliance issue for students with or without income | File Form 8843 every year during the exemption period |
| Ignoring investment/crypto income | Can create unexpected tax and reporting obligations | Review FDAP vs effectively connected income; report as required |
Investment and cryptocurrency income is often overlooked by F-1 students.
Here’s the key risk: in certain situations, nonresident capital gains can be subject to a 30% flat federal tax rate.
The trigger many students miss is days of presence—some gains become taxable if you meet specific conditions (including a common 183-day presence trap for nonresidents).
If you traded stocks/crypto, don’t assume “I’m nonresident, so it doesn’t matter.”
Nonresident aliens filing Form 1040-NR generally cannot claim the standard deduction.
Although Indian students may qualify for a treaty-based exception, this does not apply to Korean F-1 students.
- ✔️ Correct use of Form 1040-NR
- ✔️ Form 8843 attached or filed separately
- ✔️ Proper treaty analysis (if applicable)
- ✔️ Investment/crypto activity reviewed (don’t guess)
5️⃣ Related resources
6️⃣ Frequently asked questions
- 1) Do I need to file 1040-NR if I had no income?
If you had no income, Form 1040-NR is usually not required — but Form 8843 is still mandatory for many F-1 students. - 2) Can I use TurboTax?
Standard TurboTax does not support Form 1040-NR properly.
Nonresident-specific software (such as Sprintax) is generally more reliable. - 3) What happens if I file incorrectly?
You may need to amend the return, repay refunds, or face complications when documents are later reviewed for immigration purposes. - 4) Do F-1 students pay Social Security and Medicare tax (FICA)?
Often no, if you are properly classified as a nonresident alien within the exemption period and the work qualifies under F-1 rules.
If FICA is being withheld incorrectly, you may need to request a refund through your employer (and/or file the appropriate forms).
This article provides general information based on U.S. federal tax law.
Individual results may vary, and state tax rules may differ.
Professional tax advice is recommended for individual filing decisions.