Tax Resident versus Tax Non-Resident: 

The U.S. tax system distinguishes between tax residents, subject to the same tax rules as U.S. citizens and permanent residents, and tax non-residents. Most international students and scholars are initially considered tax non-residents, particularly during their early years of studying or residing in the U.S. For example, F-1 students typically fall into the tax non-resident category for the first five years of their physical presence in F-1 status. Your tax residency status affects how taxable income is defined, your eligibility for tax benefits (including tax treaty benefits), and the amount of tax that may be withheld from your income or other taxable earnings. 

Federal & State Tax:

U.S. income taxes operate at both federal (national) and state levels. While the U.S. federal government and states generally follow the same tax calendar, there can be variations in tax regulations between the federal government and different states. For instance, federal taxes are administered by the Internal Revenue Service (IRS), while each state, such as Pennsylvania, has its own set of tax requirements managed by its respective Department of Revenue. 

1. Gather Required Documents: Collect the necessary documents and information, including:
   • W-2, Wage and Tax Statement: reports U.S. earnings 
   • 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding: reports stipend, scholarship, or fellowship income; travel grants; or income covered by a tax treaty
   • 1099: reports miscellaneous income, including freelance earnings or interest on bank accounts 
   • Passport, Form I-20 (for F visa holders), or DS-2019 (for J visa holders)
   • Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) 
   • A copy of last year’s return if you were in the U.S. and filed a tax return
2. Create a Sprintax Account: Set up a Sprintax account or log in to your existing one. You'll receive a Sprintax Access Code to file your federal return and Form 8843 at no cost. Find the code in the International Services Portal or through the monthly newsletter. 
3. Follow Sprintax Instruction: Sprintax will assist in determining your tax residency status. If you are a nonresident, the software will generate your completed federal tax return or Form 8843.
4. State Tax Return (if applicable): Complete your state tax return if required. Sprintax will determine if you need to file a state return and assist you in the process, though there may be a filing cost involved. 
5. File Your Returns: Carefully read and follow the instructions provided by Sprintax for filing and mailing your returns.