Foreign Visitor Tax Guide: Section Six

Section Six: F-l and J-l Students

6.1 General Provisions
F-1 and J-1 students, including medical residents and clinical fellows, are generally considered nonresident aliens for tax purposes for their first five (5) years in the U.S.

F-1 and J-1 category students who have been in the U.S. for more than any part of five (5) consecutive years are generally considered to be resident aliens for tax purposes. F-1 and J-1 students become eligible to use the substantial presence test after five (5) years as nonresident aliens. For example, a J-1 student who arrived in the U.S. in 1998 files nonresident alien tax returns (IRS Form 1040NR) from 1998 through 2002. The student passes the substantial presence test (described in Section 4.4 of this guide) in 1997. The J-1 student is considered a resident alien for tax purposes in 2003 (see Section 3.3).

All F-1 and J-1 students who have been in the U.S. for more than any part of five (5) years will be treated as resident for tax purposes unless they establish to the satisfaction of the IRS that they are complying with the terms of their student status and do not intend to permanently reside in the U.S., and they provide to the university a written statement from the IRS substantiating their continued nonresident status.

All J-1 students who are paid as university employees or independent contractors must be prepared to provide verification that they have work authorization on an annual basis, i.e., every year that they are present at ASU.

6.2 Possible Sources of U.S. Income
F-1 students and J-1 Exchange Visitor (students) may be employed on and off-campus under certain circumstances. Off-campus work requires specific work authorization. Practical training for F-1 students and academic training for J-1 students is allowed, sometimes before graduation. Practical training is possible for up to twelve (12) months for F-1 students. Academic training for undergraduate and pre-doctorate training is possible for up to eighteen (18) months for J-1 students.

Post doctoral J-1 students may receive up to 36 months academic training. Students should check with the ASU Office of International Students and Foreign Exchange Visitors should check with the ASU Office of International Programs to see if they are eligible for any of these types of employment.

6.3 Tax Implications
Refer to Sections 2.4 and 2.6 of this guide to determine whether federal income tax, FICA tax, and/or state and local income tax apply to the type of payments being made to the foreign visitor.