Do international students get a tax refund?

Often yes. Many international students overpay tax due to incorrect withholding or are unaware of deductions and treaty benefits. In the USA, F-1 students may claim treaty benefits reducing tax liability. Always file a return — even with low income.

What tax form do international students use in the USA?

F-1 and J-1 students file Form 1040-NR (non-resident alien). If you had no US income but received a scholarship, file Form 8843. Use Sprintax or Glacier Tax Prep — these tools are designed specifically for international students.

Are international student scholarships taxable?

Scholarships covering tuition and required fees are generally tax-free. Amounts used for room, board, or personal expenses may be taxable. In the USA, the taxable portion is reported on Form 1042-S. Check your country's specific rules.

H1B Taxes by State (2026)

⚡ Quick Answer

Every state has slightly different rules for H1B tax filing. Below is a guide for each US state, written for visa holders.

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Federal + FICA + state tax + 401(k). 2025 IRS brackets. F1/J1 FICA exemption.

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Every state has slightly different rules for H1B tax filing. Below is a guide for each US state, written for visa holders.

How H1B tax filing works: 5 steps

H1B tax filing is two separate jobs: a federal return to the IRS, and a state return to every state where you lived or worked during the year. Do them in this order.

Confirm your federal residency status. The Substantial Presence Test decides it: you are a US tax resident if you spent at least 31 days in the US this year and 183+ weighted days across three years (all of this year's days, plus 1/3 of last year's, plus 1/6 of the year before). Most H1B holders pass after roughly six months in the country and file Form 1040 — the same form citizens use. First-year arrivals and F1-to-H1B switchers may be dual-status; see 1040 vs 1040-NR for H1B.
Collect your documents. W-2 from every employer (they must issue it by January 31), 1099-INT from US banks, 1099-B from your broker, RSU and ESPP vesting statements, and year-end statements for every Indian account — you need each account's peak balance for FBAR.
File the federal return. Form 1040 for residents, Form 1040-NR for non-residents. The deadline is typically April 15. An extension gives you more time to file, not more time to pay — if you owe, the money is still due in April.
File the state return(s). Full-year in one state means one state return. Moved mid-year? Part-year returns in both states. Live in one state and work in another? Possibly a non-resident return on top. Pick your state below for the exact forms.
File the foreign-account reports. FBAR (FinCEN Form 114) is required if your non-US accounts together exceeded $10,000 at any point in the year — it goes to FinCEN separately, not with your tax return. Form 8938 (FATCA) attaches to the 1040 at higher thresholds. Details: FBAR for H1B Holders.

Form 1040 or 1040-NR: how to decide

Choose Form 1040 (resident) if:

You pass the Substantial Presence Test — for most people on H1B all year, that is automatic.
Consequence: your worldwide income is taxable, including Indian FD and savings interest. You get the standard deduction, and you can use Form 1116 to offset tax India already collected.

Choose Form 1040-NR (non-resident) if:

You arrived too late in the year to pass the Substantial Presence Test.
Consequence: only US-source income is taxable — but most 1040-NR filers cannot take the standard deduction (the India treaty exception covers students, not H1B workers), so itemized state taxes are often all you get.

Dual-status applies in transition years — for example, F1 (exempt from the day count) for part of the year, then H1B. That return has its own rules; start with F1 OPT to H1B Tax Transition.

Filed the wrong form? It happens constantly in the first H1B year, usually because generic tax software defaults to Form 1040. You have 3 years from the original due date to fix it with Form 1040X — see the amendment section on this page.

All 50 states

H1B taxes by state: the three groups

Fifty state guides is a lot. For planning purposes, every state falls into one of three buckets:

Group	States	What it means for your filing
No state income tax (9 states)	Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming	No state return on your salary. You file federal + FBAR and you are done. Your paycheck keeps the state-tax line at zero.
High-tax states (top brackets in the high single digits or above)	California, New York, New Jersey, Oregon, and Hawaii are the usual examples — a few others, like Minnesota and DC, are in the same range	Full state return required. The federal SALT deduction cap means part of what you pay the state may not be deductible on your 1040 — check the cap for your filing year, since the 2025 tax law changed it.
Everyone else	All remaining states	Flat or graduated rates in between. A state return is required — open your state's guide above for forms and quirks.

Two practical consequences. First, the same offer letter is worth different amounts in different states — the federal tax is identical, the state line is not. Second, your employer withholds state tax based on your work location, so if you relocate and never update your withholding, you will be reconciling two states' taxes at filing time instead of on each paycheck.

Worked example: married H1B couple, one child

Take the numbers already on this page and walk through a common setup: you are on H1B, your spouse is on H4, and you have one child born in the US. You file jointly (MFJ).

Standard deduction first. Married-filing-jointly gets a large standard deduction — check the IRS figure for your filing year, since the 2025 tax law raised it and it is now indexed for inflation. To beat it by itemizing, state income tax and property tax only count up to the federal SALT cap no matter how much you actually paid, so the rest has to come from mortgage interest and charitable giving. If you rent, you almost certainly take the standard deduction and stop there.
Child with an SSN: the Child Tax Credit. A credit cuts your tax bill dollar-for-dollar — it is not a deduction. Confirm the current per-child amount on the IRS site; the 2025 tax law changed it.
Same child with only an ITIN: only the much smaller Credit for Other Dependents. The gap between the two credits is worth well over a thousand dollars a year for the identical child. The SSN must be issued by the tax-filing deadline, so if your child qualifies for one, start the application early — waiting costs real money.
Indian FD interest: taxable on the 1040. As a US tax resident your worldwide income is in scope. India's bank already deducted tax at source? File Form 1116 to claim the foreign tax credit instead of paying both countries in full.

Run your own salary through the H1B paycheck calculator to see the federal, FICA, and state split per paycheck.

5 common H1B tax filing mistakes

Filing 1040-NR after you have passed the Substantial Presence Test. Wrong form means wrong deduction rules and often the wrong tax. It is fixable with Form 1040X within 3 years, but an amendment costs prep fees and months of waiting on the IRS.
Skipping FBAR on NRE/NRO accounts. The form itself is simple; the penalties for ignoring it are not. If you are behind, the delinquent-FBAR and streamlined procedures covered on this page are the legal fixes — the streamlined domestic route carries a 5% penalty, the delinquent route can be penalty-free.
Paying tax twice on RSUs and ESPP shares. Your broker's 1099-B frequently shows a $0 or discounted cost basis, but the vested value was already taxed inside your W-2 wages. If you do not adjust the basis when you sell, you pay tax on the same dollars twice. See the RSU taxation guide.
Ignoring the part-year state return after a mid-year move. Move from California to Texas in July and California still expects Form 540NR for the months you were a resident — and it can keep claiming you as domiciled if you hold on to your CA driver's license and voter registration.
Missing the Foreign Tax Credit on Indian income. Indian banks deduct tax at source on NRO interest. Without Form 1116 on your US return, you pay both tax bills in full — pure double taxation that a single form prevents.

H1B tax filing FAQ

Which states have no income tax for H1B holders?

Nine states charge no tax on wages: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. You still pay full federal income tax and FICA, and you still file FBAR if your Indian accounts crossed $10,000 combined — but you skip the state return on salary income entirely.

Do H1B holders pay more tax than US citizens?

No. Once you pass the Substantial Presence Test you file Form 1040 under the same brackets, the same standard deduction, and the same credits as citizens. The differences are procedural: H1B holders pay Social Security and Medicare (FICA) — unlike exempt F-1 students — and carry extra reporting duties like FBAR and Form 8938 on non-US accounts.

What documents do I need to file taxes on H1B?

W-2 from every employer (issued by January 31), 1099-INT and 1099-B from banks and brokers, RSU/ESPP vesting statements, SSN or ITIN for every dependent, last year's return, and peak-balance statements for each Indian account for FBAR. If you moved states, also note the exact dates your residence changed — part-year returns split income by those dates.

How do I file state taxes if I moved states mid-year on H1B?

File a part-year resident return in each state that taxes income, splitting your wages by residence dates. Example: moving from California to Texas means a California part-year return (Form 540NR) for the resident months and nothing in Texas, which has no state income tax. Cut ties with the old state — driver's license, voter registration — or it may continue to claim you as a domiciled resident.

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