Tax year 2026Checked
What's new for international students' taxes in tax year 2026
The 2026 changes that reach F-1 and J-1 students, each marked with its status on October 14, 2026. We update this page as the IRS releases the final forms.
In short
- The 2026 draft Form 1040-NR adds a yes-or-no question on page 1: whether, at the time you file, you are a US citizen, a US national or an alien lawfully authorized to work in the US.
- The IRS had not published the 2026 Form 1040-NR instructions by October 14, 2026, so no IRS text yet says how an F-1 or J-1 student should answer the new question.
- Students and business apprentices from India who qualify under Article 21(2) of the tax treaty can take the 2026 standard deduction of $16,100, up from $15,750 for 2025.
- From January 1, 2026, a 1% tax applies to money transfers abroad paid in cash or by money order or cashier's check; transfers paid from a bank account or a US-issued card are exempt.
- The IRS generally stopped issuing paper refund checks after September 30, 2025, so give bank details for direct deposit on your 2026 Form 1040-NR.
Contents, 13 sections
For tax year 2026, the most visible change for F-1 and J-1 students is a new question on page 1 of the draft Form 1040-NR. It asks whether, at the time you file, you are a US citizen, a US national or an alien lawfully authorized to work in the US.
Several figures moved as well. Students from India who qualify under the tax treaty can take a $16,100 standard deduction, up from $15,750, and the 10% bracket now ends at $12,400 of taxable income. A 1% tax now applies to money transfers abroad paid in cash or by money order, and the IRS has generally stopped mailing paper refund checks.
Status on October 14, 2026
The IRS has released a draft of the 2026 Form 1040-NR, but not the final form and not the 2026 instructions that explain each line. Each change below carries its status: final, draft, proposed, in force or not yet published. We will update this page when the final forms appear (usually December to February) and date each update.
Which 2026 tax changes affect international students?
The 2026 changes that reach an F-1 or J-1 student are a new question on Form 1040-NR, new dollar figures, new form lines and new rules on remittances and refunds. In the table, the dollar figures are final, the form changes come from a draft, and some rules are only proposed.
| Change | Who it affects | Status |
|---|---|---|
| New question: are you lawfully authorized to work in the US at the time you file? | Every Form 1040-NR filer | Draft form; instructions not yet published |
| Standard deduction $16,100 (2025: $15,750) | Students and business apprentices from India (treaty Article 21(2)) | Final |
| Brackets: 10% up to $12,400, 12% up to $50,400 | Anyone with wages or a taxable scholarship | Final |
| Line 12b: charitable deduction for people who do not itemize | Non-itemizers who give cash to charity, if Form 1040-NR filers qualify | Draft line; who may use it not yet published |
| Line 13a: tips and overtime deductions (Schedule 1-A) | Single filers with qualified tips or overtime and an SSN valid for work | Law in force; 2026 instructions not yet published |
| Lines 24b and 32b (Form 1062, Schedule 3-A) | Almost no students | Draft lines; Schedule 3-A rule proposed |
| 1% tax on transfers abroad paid in cash, money order or cashier's check | Anyone who sends money abroad that way | In force from January 1, 2026; regulations proposed |
| Paper refund checks phased out | Anyone owed a refund | In force after September 30, 2025 |
| Social Security wage base $184,500 | Workers who are not exempt from FICA | Final |
| Form 8843: only the years change | F, J, M and Q students who exclude days of presence | Draft form |
| Crypto brokers report cost basis on Form 1099-DA for assets bought after 2025 | Students who sell crypto | In force |
| Minimum penalty for filing over 60 days late with tax due: $535 | Filers who owe tax | Final |
| Some ITINs expire December 31, 2026 | ITIN holders | In force |
| OPT Fair Tax Act would end the FICA exemption for OPT pay | Students on OPT | Bills introduced; not law |
Key facts
- New question on the 2026 draft Form 1040-NR
- Lawfully authorized to work in the US at the time you file (instructions not yet published)
- 2026 standard deduction (India Article 21(2) students only)
- $16,100 (2025: $15,750)
- 2026 brackets, single filer
- 10% up to $12,400; 12% up to $50,400
- 2026 Social Security wage base
- $184,500 (F, J, M and Q nonresident students are generally exempt)
- Remittance tax
- 1% on transfers abroad paid in cash, money order or cashier's check, from January 1, 2026
- Form 1040-NR due, if you had 2026 wages subject to withholding
- Thursday, April 15, 2027
- For
- F-1, J-1, M-1 and Q students who are nonresident aliens for 2026 and will file Form 1040-NR or Form 8843 in 2027.
- Not for
- Resident aliens for 2026, who file Form 1040, and dual-status filers. Some changes below reach them too, but this page does not cover their rules.
What is the new work authorization question on Form 1040-NR?
The 2026 draft Form 1040-NR adds a yes-or-no question to page 1. It reads: "At the time you file your return, are you a U.S. citizen, U.S. national, or an alien lawfully authorized to work in the U.S.?"
The question sits under a new heading, "Other Information", below the digital asset question, and the 2025 Form 1040-NR has nothing like it. The same question is on the 2026 draft Form 1040 and on a draft revision of Form 1040-X, so it is not only on the nonresident return. You can read it on page 1 of the 2026 draft Form 1040-NR.
The form says "see instructions", and the IRS had not published the 2026 Form 1040-NR instructions by October 14, 2026. No IRS text yet says what "lawfully authorized to work" means for an F-1 student with an on-campus job, with CPT, or whose OPT has ended.
We do not suggest an answer until the IRS explains the term, and we will add its wording here when it does. You answer the question only when you file in 2027, and the IRS usually publishes the instructions between December and February.
Two more points are clear. The question is about your status at the time you file, not during 2026. It also has nothing to do with Social Security and Medicare tax: your exemption from those depends on your visa and your nonresident status, not on this answer.
Did the standard deduction and tax brackets change for 2026?
The 2026 standard deduction for a single filer is $16,100, up from $15,750 for 2025, and the 10% rate now covers the first $12,400 of taxable income. Both come from Rev. Proc. 2025-32, so they are final.
Most nonresident aliens still cannot take the standard deduction. Students and business apprentices from India can, under Article 21(2) of the US-India tax treaty, as the IRS explains in Nonresident: Figuring your tax. For everyone else, the main deduction is state and local income tax, itemized on Schedule A (Form 1040-NR).
These are the 2026 rates for a single filer, from the IRS Working Families Tax Cuts page and Rev. Proc. 2025-32:
| Taxable income over | Not over | Tax |
|---|---|---|
| $0 | $12,400 | 10% |
| $12,400 | $50,400 | $1,240 plus 12% of the amount over $12,400 |
| $50,400 | $105,700 | $5,800 plus 22% of the amount over $50,400 |
| $105,700 | $201,775 | $17,966 plus 24% of the amount over $105,700 |
Rates of 32%, 35% and 37% start above $201,775, $256,225 and $640,600. On Form 1040-NR these rates apply only to income connected with a US trade or business, such as wages, OPT pay and the taxable part of a scholarship. Dividends and similar income not connected with a US business are generally taxed at a flat 30%, or a lower treaty rate, on Schedule NEC.
Worked example: Arjun, F-1 PhD student from India, $30,000 of assistantship wages in 2026
Arjun is an illustrative F-1 PhD student from India who qualifies under Article 21(2). He earned $30,000 of W-2 wages as a research assistant at his university in 2026 and has no other income.
| Step | Amount |
|---|---|
| Wages (2026 draft Form 1040-NR, line 1a) | $30,000 |
| Standard deduction (line 12a) | $16,100 |
| Taxable income: $30,000 minus $16,100 | $13,900 |
| 10% of the first $12,400 | $1,240 |
| 12% of the remaining $1,500 | $180 |
| Federal income tax | $1,420 |
Without the standard deduction, and with no itemized deductions, all $30,000 would be taxable: $1,240 plus 12% of $17,600 = $3,352. The deduction saves him $1,932. On its own, the $350 rise in the standard deduction for 2026 saves him $42 (12% of $350). The IRS Tax Table, which you use below $100,000 of taxable income, can differ from these figures by a few dollars. State tax is left out.
The treaty claim itself is explained in the India tax treaty for F-1 students. To see what the 2026 brackets do to a paycheck, try the 2026 take-home calculator.
Can I claim no tax on tips or overtime on Form 1040-NR?
A single nonresident with a Social Security number valid for work can claim the tips and overtime deductions if they meet the other tests. The 2025 Form 1040-NR instructions say a qualifying nonresident enters the Schedule 1-A amount on line 13c; on the 2026 draft that line becomes 13a.
| Deduction | Limit | What a Form 1040-NR filer should know |
|---|---|---|
| Qualified tips | $25,000 | Voluntary tips only, in a job on the Treasury list of occupations that customarily receive tips; mandatory service charges do not count |
| Qualified overtime | $12,500 | Only the extra half of time-and-a-half that federal law (FLSA section 7) requires (IRS) |
| Car loan interest | Not available | Nonresident aliens generally are not eligible |
Both the tips and the overtime deduction shrink once modified AGI passes $150,000. Three more conditions narrow them. First, you need a Social Security number that is valid for employment and was issued before the return's due date (including extensions); an ITIN does not qualify (Form 1040 instructions).
Second, if your Social Security card says "Valid for work only with DHS authorization", the SSN counts only while that authorization is valid. Third, a married person must file a joint return to claim these deductions, and Form 1040-NR has no joint filing status.
The deductions reduce federal income tax only. Tips and overtime are still wages for Social Security and Medicare, unless you are already exempt as an F-1, J-1, M-1 or Q-1 nonresident. F1TaxReturn does not claim Schedule 1-A deductions, so if you have qualified tips or overtime to claim, you need another way to file.
What else changed on the 2026 forms?
Several lines on the 2026 draft Form 1040-NR are split into lettered parts, so some line numbers you used in 2025 have moved. On most students' returns the new lines stay empty.
| 2025 Form 1040-NR | 2026 draft | What it is |
|---|---|---|
| "Digital Assets" heading | "Other Information" heading | The digital asset question, plus the new work-authorization question |
| Line 12 | Lines 12a and 12b | 12a: itemized deductions, or the standard deduction for certain residents of India; 12b: charitable deduction for non-itemizers |
| Line 13c (Schedule 1-A, line 38) | Line 13a (Schedule 1-A, line 44) | Schedule 1-A deductions, such as qualified tips and overtime |
| Line 24 | Lines 24a to 24c | 24b: amount from Form 1062, an election for sellers of qualified farmland; not relevant to students |
| Line 28 checkbox | Removed | The box for choosing not to claim the additional child tax credit |
| Line 32 | Lines 32a to 32c | 32b subtracts the amount from Schedule 3-A |
| Line 37 | Line 37 | Where to pay tax you owe: a new IRS web page (see below) |
Line numbers on a draft can change before the final form, so check them again when the final 2026 Form 1040-NR is released. The line-by-line guide is how to fill out Form 1040-NR.
New line 12b is titled "Charitable contribution deduction for non-itemizers". The IRS's 2026 estimated-tax form for nonresident aliens, Form 1040-ES (NR), says you can deduct up to $1,000 of cash gifts to charity without itemizing, with certain limits. Which Form 1040-NR filers may use line 12b is not yet published. Nor is whether a student from India who takes the standard deduction can also claim it.
If you itemize on Schedule A (Form 1040-NR), charitable gifts now count only above 0.5% of your AGI (Publication 505 (2026)). The cap on deducting state and local tax rises to $40,400 for a single filer, far above a typical student's state tax.
Schedule 3-A, "Federal Public Benefit", matters only if you claim the additional child tax credit on line 28 or the refundable adoption credit on line 30. A single F-1 student without a qualifying child uses neither. Treasury and the IRS proposed the rule behind it in August 2026, and it is not final.
If you owe tax, line 37 of the 2026 draft sends you to www.irs.gov/ModernPayments instead of www.irs.gov/Payments. The IRS says it still accepts checks and money orders for now, but we recommend paying electronically.
Form 8843 has not changed for 2026 except the years: line 4a now asks for your days of presence in 2024 to 2026 (2026 draft Form 8843). The IRS had not posted 2026 drafts of Schedule OI or Schedule NEC by October 14, 2026. Line-by-line help is in Form 8843 for tax year 2026.
Crypto brokers now report sales on Form 1099-DA. From 2026 they must also report cost basis for digital assets bought after 2025 and held in the same custodial account (Form 1099-DA instructions). How a nonresident is taxed on those sales is in stocks and crypto on an F-1 visa.
Do I pay the new 1% remittance tax when I send money home?
Most students do not pay the 1% remittance tax. Since January 1, 2026, it has applied only to transfers abroad paid with cash, a money order, a cashier's check or a similar physical instrument.
Transfers paid from a bank or credit union account, or with a debit or credit card issued in the US, are exempt (proposed regulations, REG-114499-25). So a student who sends money home from a US bank account pays no remittance tax, even through an online transfer service. The law's card exception names only cards issued in the US. Under the proposed rules, though, a transfer paid by any debit or credit card is not taxed, wherever the card was issued, because no card is a taxable payment method.
Under the proposed rules, buying a money order or cashier's check with money from your bank account does not make the transfer exempt. The sender pays the tax, and the transfer company collects it and reports it on Form 720 (Form 720 instructions). Nothing about it goes on your Form 1040-NR. The tax is aimed at transfers sent out of the US. More detail is in the 1% remittance tax.
Will the IRS still mail my refund as a paper check?
The IRS generally stopped issuing paper refund checks to individuals after September 30, 2025, under Executive Order 14247, with limited exceptions (IRS questions and answers). In the 2026 filing season, a return without bank details could still get a paper check, but only after a delay.
Such a return was still accepted, but the IRS held the refund and sent a CP53E notice. The filer then had 30 days to add bank details in an IRS Online Account; the IRS would not take them by phone. If the filer did not respond and nothing else was wrong, the IRS said it would issue a paper check after 6 weeks. We could not confirm that a student with only an ITIN, or one living abroad, can open an IRS Online Account. Giving bank details on the return is the safer course.
Watch out
Leaving the bank lines blank does not lose your refund, but it delays it. Put your routing number on line 35b and your account number on line 35d of the 2026 draft Form 1040-NR, and keep a US bank account open until your refund arrives.
Line 35e, for a refund check mailed to an address outside the US, is still on the draft. That does not show the IRS will mail checks abroad in 2027. Timing and options are in your 1040-NR refund.
Did Social Security and Medicare tax change for students in 2026?
Social Security and Medicare tax rates did not change for 2026: Social Security is 6.2% of wages up to $184,500 (SSA), and Medicare is 1.45% of all wages. Nonresident alien students in F-1, J-1, M-1 or Q-1 status still pay neither on pay for work that serves the purpose of their visa.
That exemption covers on-campus jobs, CPT, OPT and STEM OPT (IRS). If you are no longer exempt, for example because you became a resident alien, the most Social Security tax one employer can withhold from your 2026 pay is $11,439. If FICA was taken from your pay in error, see FICA refunds for F-1 students.
Two bills would end the exemption for OPT pay. S. 2940, the OPT Fair Tax Act, was introduced in the Senate on September 30, 2025. It was referred to the Finance Committee. Its House companion, H.R. 8972, was introduced on May 21, 2026 and went to the Ways and Means Committee.
As of October 2026, neither bill had passed either chamber, so OPT wages earned in 2026 remain exempt for nonresident alien students. How OPT pay is taxed is in OPT and CPT taxes.
What changed in state taxes for 2026?
California, Illinois and New York have announced 2026 changes that reach students. None of the four states F1TaxReturn covers had published its final 2026 forms by October 14, 2026. Their 2026 returns are expected to be due Thursday, April 15, 2027.
| State | What changed for 2026 | Status |
|---|---|---|
| California (Form 540NR) | Standard deduction $5,900 for a single filer (2025: $5,706), which nonresident aliens can take; personal exemption credit $158 (2025: $153); every rate band raised for inflation, with the 1% band now ending at $11,456 of taxable income (2025: $11,079) (FTB Tax News) | Announced; 2026 forms not yet published |
| Illinois (IL-1040) | Personal exemption $2,925 (2025: $2,850); rate still 4.95% (IDOR) | Published |
| New York (IT-203) | Rates on a single filer's taxable income up to $215,400 drop by 0.1 percentage point, to 3.9% to 5.9% (2025: 4% to 6%), with another 0.1 point in 2027 (NY Tax Department; 2026 rates in IT-2105-I (2026)) | Enacted; 2026 rates printed in the 2026 estimated tax instructions; IT-203 instructions not yet published |
We have not found a 2026 Massachusetts change that affects a typical student. Whether you need a state return at all is covered in state income tax for international students.
Did the filing deadlines change for 2026 returns?
The deadline rules did not change for tax year 2026. Your Form 1040-NR is due Thursday, April 15, 2027 if you had 2026 wages subject to US income tax withholding, or Tuesday, June 15, 2027 if not. A Form 8843 filed by itself is due Tuesday, June 15, 2027.
Two dated items are new this season. First, some ITINs expire on December 31, 2026. The IRS says this applies to ITINs "not included on at least one tax return filed in the last 3 consecutive tax years (2023, 2024, or 2025)" (Form 1040-C instructions). You renew one with Form W-7 sent with your return; see SSN vs ITIN.
Second, the minimum late-filing penalty rises for returns due in 2027. On a return more than 60 days late, the penalty is at least $535 or 100% of the tax due after withholding and credits, whichever is less (Rev. Proc. 2025-32). For returns due in 2026 it was $525 (IRS). If the IRS owes you a refund, there is no late-filing penalty, because the penalty is a percentage of tax you owe. Every date is in tax deadlines for 2027.
What to do next
- From December, check the IRS Form 1040-NR page for the final 2026 form and instructions. We will update this page when they appear.
- Wait for the 2026 instructions before you answer the work-authorization question. Do not file on a draft form; the IRS marks every draft as not for filing.
- If you are from India, check that you qualify under Article 21(2), and plan on a $16,100 standard deduction.
- Keep a US bank account open until your refund arrives, and put its routing and account numbers on your return.
- Pay for transfers home from a US bank account or a US-issued card, so the 1% remittance tax does not apply.
- If your ITIN is one of those that expire on December 31, 2026, renew it with Form W-7 sent with your 2026 return.
- Mark your deadline: Thursday, April 15, 2027 if you had 2026 wages subject to US income tax withholding, or Tuesday, June 15, 2027 if you did not.
F1TaxReturn prepares Form 1040-NR and Form 8843 for free, and you print, sign and mail them. It prepares 2026 returns once the IRS publishes the final 2026 forms and instructions, and it asks the work-authorization question directly instead of guessing. Create an account.
Questions students ask
How do I answer the work authorization question on the 2026 Form 1040-NR?
Did the standard deduction change for nonresident aliens in 2026?
Do I pay the 1% remittance tax when I send money home?
Can I claim no tax on tips or overtime on Form 1040-NR?
Will I get a paper refund check if I leave the bank lines blank?
Do F-1 students now pay Social Security and Medicare tax on OPT?
Sources
This guide is checked against these 30 documents, most recently on .
- Form 1040-NR (2026), draft, IRS
- Form 1040 (2026), draft, IRS
- Form 1040-X (Rev. December 2026), draft, IRS
- Form 8843 (2026), draft, IRS
- Draft tax forms, IRS
- Instructions for Form 1040-NR (2025), IRS
- Revenue Procedure 2025-32 (2026 inflation adjustments), IRS
- Working Families Tax Cuts: individuals and workers, IRS
- Nonresident: Figuring your tax, IRS
- Schedule 1-A, Additional Deductions: what to know about the new form, IRS
- Questions and answers about the new deduction for qualified overtime compensation, IRS
- Instructions for Form 1040 (2025), valid SSN for the Schedule 1-A deductions, IRS
- Form 1040-ES (NR) (2026), U.S. Estimated Tax for Nonresident Alien Individuals, IRS
- Publication 505 (2026), Tax Withholding and Estimated Tax, IRS
- Treasury and IRS propose rules on refundable tax credits (Schedule 3-A), August 2026, IRS
- Excise Tax on Remittance Transfers, proposed regulations (REG-114499-25), Treasury and IRS (Federal Register)
- Instructions for Form 720 (Rev. June 2026), IRS
- Questions and answers about Executive Order 14247, Modernizing Payments To and From America's Bank Account, IRS
- Understanding your CP53E notice, IRS
- Contribution and benefit base, Social Security Administration
- Foreign student liability for Social Security and Medicare taxes, IRS
- S. 2940, OPT Fair Tax Act, all actions, Congress.gov
- H.R. 8972, introduced in the House, US Government Publishing Office
- Instructions for Form 1099-DA (2026), IRS
- Instructions for Form 1040-C (Rev. January 2026), ITIN expiration, IRS
- Failure to file penalty, IRS
- Tax News, October 2026 (2026 tax rate schedules, standard deduction and exemption credit), California Franchise Tax Board
- Informational Bulletin FY 2026-15, What's New for Illinois Income Taxes, Illinois Department of Revenue
- Personal income tax expenditures, fiscal year 2027 report (2026 rate reduction), New York State Department of Taxation and Finance
- Instructions for Form IT-2105 (2026), estimated tax (2026 rate schedules), New York State Department of Taxation and Finance