US Taxes on OPT / F-1

On STEM OPT (F-1 visa), you’re a nonresident alien for tax purposes for the first 5 years in the US, unless you’ve met the Substantial Presence Test (183+ days weighted across 3 years). For most people in their first few years on OPT/CPT, you file as a nonresident alien — Form 1040-NR, not the standard 1040.

Important: Nonresident aliens are NOT subject to FICA taxes (Social Security + Medicare) while on F-1 OPT. If your employer has been withholding these, you can claim a refund. Check your pay stubs.

Basic US tax structure

• Federal income tax — progressive brackets, paid annually. Employer withholds estimated amounts via W-4 each paycheck.
• State income tax — New York State + NYC city tax. Also withheld by employer.
• FICA (Social Security + Medicare) — typically exempt on OPT.

What you need to file

• Form 1040-NR — federal return for nonresident aliens
• Form 8843 — statement for exempt individuals (F-1 students/OPT)
• W-2 from employer — shows income and withholdings
• NY state return (IT-203, the nonresident/part-year version)

Key dates

• January 31: W-2s due from employer
• April 15: Federal and NY state filing deadline (can request extension to October 15)
• June 15: Special deadline for nonresidents with no US source income withheld

Resources

• Sprintax or Glacier Tax Prep — software specifically for nonresident alien returns (TurboTax doesn’t handle 1040-NR correctly)
• IRS Publication 519 — US Tax Guide for Aliens
• If you’ve been in the US across calendar years and are approaching the 5-year mark, consult a tax professional about when you cross to resident alien status

See also: personal-finance-basics