Its that time of the year when people all over the U.S are filing their taxes. International students and H1B workers are no exception. They must also file taxes along with over 130 million Americans. However, the guidelines on filing taxes for international students and H1B workers are a little different than the rest of the population. The IRS states that if you are a non resident alien engaged in a trade or business in the United States, then you must file taxes. If you were a nonresident alien student, teacher, or trainee who was temporarily present in the United States on an “F,”"J,”"M,” or “Q” visa, you are considered engaged in a trade or business in the United States. International students in non resident alien status must file taxes even if they do not have any income from U.S. sources.

Also read: Credit Cards for International Students - 5 tips to keep you from drowning in debt

Should international students file taxes?
If you were an international student in the United States in 2009, and you are a non resident alien, then you must file taxes.

Which tax form should international students use?
If you were an international student in the United States in 2009, and you are a non resident alien, then you must use form 1040NR.

Should H1B visa workers file taxes?
If you were a H1B visa worker in the United States in 2009, and you are a non resident alien, then you must file taxes.

Which tax form should H1B visa workers use?
If you were a H1B visa worker in the United States in 2009, and you are a non resident alien, then you must use form 1040NR.

Can international students or H1B workers be considered resident aliens?
Yes, international students or H1B workers can be considered resident aliens under one of two conditions. According to the IRS, a person is considered a resident alien if they have a green card or they pass the substantial presence test. Everyone knows what a green card is but what is the substantial presence test? It basically means that you have been in the United States for over 31 days during 2009 and over 183 days during 2009, 2008 and 2007. The 183 number must be calculated using a special formula. To see if you pass the substantial presence test, see page 3 of this IRS publication. Almost all international students who have been in the United States since 2008 will likely pass the substantial presence test and be considered resident aliens for tax purposes.

OK. I am considered a resident alien. What tax form should I use?
If you have a green card, or pass the substantial presence, then you should use IRS tax form 1040.

Its important that you file your taxes on time as there are penalties for filing late. The quickest way to file is online. There are many websites that’ll file your federal return for free. To see a list of websites that eFile, go here.

I hope this will clear up some confusion regarding international student tax file issues and H1B tax issues. As always, post your comments or questions below.

Further reading: The Truth About Indian IT Consulting Firms Revealed