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Tax Returns for International Students in the UK and US: The Free Money You’re Leaving on the Table

19/06/2026

Tax Retun — Tax Returns for International Students in the UK and US: The Free Money You're Leaving on the Table

By a tax professional with 10+ years of experience helping international students recover thousands in overpaid tax

Why International Students Almost Always Overpay Tax
UK Tax Returns for International Students: What You Need to Know
US Tax Returns for International Students: The F-1 and J-1 Visa Reality
The Biggest Mistakes I See Students Make Every Single Year
How Much Money Are We Actually Talking About?
Step-by-Step: How to Claim Your UK Tax Refund
Step-by-Step: How to File Your US Tax Return as an International Student
The Best Tools and Services to Help You File
Treaty Benefits: The Secret Weapon Most Students Don’t Know About
Frequently Asked Questions

Why International Students Almost Always Overpay Tax

Let me tell you about a student I helped a few years ago, he was a postgraduate from Nigeria studying at the University of Manchester. She’d worked part-time at a coffee shop for two years, earning around £9,000 a year. She came to me in a panic thinking she owed HMRC money.

She didn’t. She was owed £847.

This story plays out hundreds of thousands of times every year in both the UK and the US. International students overpay tax almost as a rule, not an exception. The reasons are surprisingly mundane: employers use emergency tax codes when you first start work, student visa rules mean you’re often treated as a “non-resident” for tax purposes which actually helps you in many cases, and tax treaties between your home country and your study country often reduce or eliminate tax on certain income types.

The system is not designed to remind you that you’re owed money. You have to come and claim it.

I’ve spent over a decade untangling tax situations for international students across both sides of the Atlantic, and what I can tell you with complete confidence is this: if you’ve worked, had a scholarship, received a stipend, or even just been enrolled and not worked then there’s a very good chance money is sitting in a government account with your name on it.

Let’s go get it.

UK Tax Returns for International Students: What You Need to Know

Your Residency Status Actually Works in Your Favour

Here’s the thing the UK tax system doesn’t advertise: international students arriving partway through a tax year which runs 6 April to 5 April are often entitled to the full Personal Allowance which is currently £12,570 for the 2024/25 tax year and even if they only arrived in, say, October.

What does that mean in practice? If you earned £8,000 from a part-time job between October and April, you should pay zero income tax. But if your employer put you on an emergency tax code (BR or Month 1/Week 1), you might have paid 20% on everything and that’s £1,600 you’re owed back.

I see this constantly. Emergency tax codes are the number one source of student overpayments in the UK, and most students don’t even know what a tax code is.

When Do You Actually Need to File a Self Assessment?

Not every international student needs to file a Self Assessment tax return. HMRC uses PAYE (Pay As You Earn) for most employed workers, so if you only had one PAYE job, your refund might be claimable via a simpler P800 process. However, you do need to file a Self Assessment if:

You earned over £1,000 from self-employment (tutoring, freelancing, Deliveroo, etc.)
You had income from abroad (overseas scholarships, overseas part-time work)
You received rental income
You earned over £100,000
HMRC writes to you asking you to file

If you’re unsure, HMRC’s Check if you need to send a Self Assessment tax return tool is genuinely useful.

Scholarships and Stipends: Are They Taxable?

This is where it gets nuanced, and honestly where most students and even some university finance offices get confused.

Scholarships and bursaries that cover tuition fees are generally not taxable. Full stop. The money going toward your tuition is exempt.

Living cost stipends are more complicated. If you’re a research student receiving a stipend, the first £20,545 (as of 2024/25) of research council stipends are tax-exempt. Anything above that is potentially taxable. But if you’ve been paying income tax on a stipend that falls under this threshold, you may be owed a refund.

The NI Number Situation

You need a National Insurance number to pay UK tax and to reclaim overpaid tax. If you haven’t got one yet and you’ve been working, your employer should have paid your National Insurance contributions anyway but you’ll need your NI number to interact with HMRC directly. Apply at gov.uk/apply-national-insurance-number as soon as you start working.

US Tax Returns for International Students: The F-1 and J-1 Visa Reality

You Are Almost Certainly a “Non-Resident Alien” And That’s a Good Thing

I’ve had this conversation so many times I could have it in my sleep. A student comes to me having filed their US taxes as a resident (using Form 1040) because someone at their university told them that’s what everyone uses. They paid tax on global income, missed out on treaty benefits, and sometimes even triggered an IRS audit flag.

International students on F-1 and J-1 visas are almost always classified as Non-Resident Aliens (NRAs) for tax purposes, especially in their first five years in the US. This means you file Form 1040-NR, not the standard 1040.

Here’s why this matters enormously:

Non-resident aliens are only taxed on US-source income. You don’t report your part-time job back home that paid into a foreign bank account. You don’t report the money your parents sent you. You don’t report foreign investments. Resident aliens and US citizens must report global income which is a fundamentally different and usually much more expensive tax situation.

The Substantial Presence Test: Know Your Status

The IRS uses the Substantial Presence Test to determine if you’re a resident or non-resident alien. For F-1 and J-1 students, there’s an exemption: your days in the US on a student visa are exempt from the count for up to 5 years. This is called the “exempt individual” status.

FICA Taxes: A Refund Most Students Don’t Know About

This is the one that makes people’s jaws drop when I tell them.

FICA taxes are Social Security and Medicare taxes is a combined 7.65% taken from your paycheck. Here’s the thing: non-resident alien students on F-1 or J-1 visas are exempt from FICA taxes.

But employers get it wrong all the time. I’ve seen students who worked on campus for three years, with FICA taxes incorrectly withheld every single paycheck. At a salary of $15,000 a year, that’s about $1,147 per year in taxes you weren’t supposed to pay per year.

To claim these back, you need to file Form 843 (Claim for Refund and Request for Abatement) along with Form 8316. You can go back and amend up to three years of prior returns.

If you’ve been working in the US on an F-1 or J-1 and you’ve had FICA taken out of your paycheck, check your pay stubs right now. Look for “Social Security” and “Medicare” deductions. If they’re there, you have a claim.

Tax Treaties: Your Country Might Have a Deal

The US has tax treaties with over 60 countries that specifically benefit international students. These treaties can reduce or eliminate tax on scholarships, stipends, fellowships, and wages sometimes entirely.

For example, students from China are covered under Article 20 of the US-China tax treaty, which exempts up to $5,000 of wages from US tax per year. Students from India have treaty benefits that can eliminate tax on fellowship income. Students from the UK have specific provisions around dividends and royalties.

The trick is that these benefits are not automatic. You have to claim them on your 1040-NR using Form 8833 (Treaty-Based Return Position Disclosure). This is the paperwork that unlocks the benefit, and it’s the paperwork most students never file because they don’t know it exists.

The Biggest Mistakes I See Students Make Every Single Year

After doing this long enough, the mistakes become predictable. Here are the ones that cost students the most money:

1. Filing as a resident when you’re a non-resident (US) Using Form 1040 instead of 1040-NR is probably the single most expensive mistake F-1 students make. You become taxable on global income, lose treaty benefits, and pay more. Always confirm your residency status before filing.

2. Not filing at all because you think you don’t owe anything (both countries) In the UK, HMRC won’t automatically issue your refund if you overpaid through PAYE. You need to contact them or file. In the US, you still need to file Form 8843 even if you earned zero income it’s a required informational form for non-resident alien students.

3. Missing the deadline and incurring penalties (US) US tax returns are due 15 April (or the following Monday if it falls on a weekend). You can request a 6-month extension using Form 4868, but any tax owed is still due on 15 April. The penalties for late filing are real and compound quickly.

4. Not claiming your Personal Allowance correctly (UK) If you started work mid-year in the UK, your employer may have prorated your allowance or applied an emergency code. When you file or contact HMRC, make sure the full annual Personal Allowance is applied.

5. Forgetting about prior years In the UK, you can claim overpaid tax going back four tax years. In the US, you can amend returns going back three years. If you’ve been in your country of study for multiple years and never checked, you could be sitting on a four-year refund stack.

6. Using the wrong tax prep software (US) TurboTax and H&R Block are designed for US residents and citizens. They will often push you toward filing a 1040 when you should be filing a 1040-NR. I’ve had students come to me with audits triggered by exactly this error. Use software specifically designed for non-residents (more on this below).

How Much Money Are We Actually Talking About?

Real numbers from real students I’ve worked with (details changed for privacy):

Student	Country of Origin	Study Country	Situation	Refund Recovered
PhD student, 3 years	India	UK	Emergency tax codes, stipend overpayment	£2,100
Master’s student, 1 year	China	US	FICA incorrectly withheld, treaty not claimed	$1,840
Undergrad, 4 years	Nigeria	UK	4 years of emergency code + P800 not processed	£3,450
MBA student, 2 years	Brazil	US	Filed 1040 instead of 1040-NR, global income taxed	$4,200
Exchange student, 1 semester	Germany	US	Filed nothing, FICA withheld, treaty applicable	$620

The range is wide, but the pattern is consistent: students who’ve never had their tax situation reviewed are almost always owed something. The average refund I see for UK students is between £500–£2,000. For US students, it’s typically between $500–$3,000 depending on how many years and whether FICA was wrongly withheld.

Step-by-Step: How to Claim Your UK Tax Refund

Step 1: Get your P60 and/or P45. Your P60 is your end-of-year tax summary from your employer. If you left a job, you’ll have a P45. These show how much you earned and how much tax was deducted.

Step 2: Check your tax code. Look at your payslips. If your tax code is BR, 0T, or has “W1” or “M1” after it, you were likely on an emergency code and overpaid. The standard code for most people under £100k is 1257L.

Step-by-Step: How to File Your US Tax Return as an International Student

Step 1: Confirm you need to file. If you were in the US on F-1 or J-1 status at any point during the tax year, you almost certainly need to file something. At minimum, Form 8843 (Statement for Exempt Individuals). The US tax year is 1 January to 31 December.

Step 2: Gather your documents. You’ll need: Form W-2 (from US employer), Form 1042-S (for scholarship/fellowship income or treaty-exempt income), your passport, your visa, Form I-20 or DS-2019, and your Social Security Number or ITIN.

Step 3: Check your FICA withholding. Look at box 4 (Social Security tax withheld) and box 6 (Medicare tax withheld) on your W-2. If there are amounts here and you were on F-1 or J-1, you may be owed those back.

Step 4: Determine your treaty eligibility. Check the IRS website for treaties with your home country at irs.gov/businesses/international-businesses/united-states-income-tax-treaties. Note any specific articles that apply to students.

Step 5: File Form 1040-NR (plus 8843, and 8833 if claiming treaty). The deadline is 15 April. If you had no US income at all, Form 8843 alone is due by 15 June.

Step 6: Submit and track. File electronically if possible (Sprintax and Glacier Tax Prep support 1040-NR). Paper filing is slower and more prone to processing delays.

The Best Tools and Services to Help You File

For US Tax Returns (Non-Resident Alien)

Sprintax This is the gold standard for international students in the US. Many universities actually pay for student access check with your international student office first, it might be free. Sprintax handles 1040-NR, Form 8843, treaty benefits, and FICA refunds. They also have a review service where a tax professional checks your return.

Glacier Tax Prep A strong alternative to Sprintax. Some universities have institutional licenses. Good for students with straightforward situations. Less polished interface but reliable output.

Stilt Tax Good resource for F-1 students specifically, with useful blog guidance even if you file elsewhere.

⚠️ Avoid TurboTax, H&R Block, and FreeTaxUSA for international student returns unless you are 100% certain you’ve become a resident alien. These platforms don’t support 1040-NR properly and the errors they produce can trigger audits.

For UK Tax Returns

HMRC Personal Tax Account Free, official, and genuinely decent for straightforward cases. Create a Government Gateway account and you can check your tax position, update your details, and claim refunds online.

TaxScouts An affordable UK tax filing service that pairs you with a qualified accountant. Good for Self Assessment returns with some complexity. Flat-fee pricing around £169 for a standard return.

GoSimpleTax Self-service Self Assessment software with a clean interface. Works well for students with mixed income sources. Around £47 for a full filing.

RIFT Refunds Specialises in tax refunds and works on a no-refund-no-fee basis. Great if you’re not sure whether you’re owed anything you only pay if they find money for you.

Treaty Benefits: The Secret Weapon Most Students Don’t Know About

I’ve saved this section for near the end because it’s the most powerful and the most overlooked piece of the puzzle.

Both the UK and the US have extensive networks of double taxation treaties (also called tax conventions) with other countries. These treaties exist to prevent the same income being taxed twice — but they often go further than that, specifically carving out exemptions for students and trainees.

Key US Tax Treaties for Common Student Nationalities

China (PRC): Article 20 exempts up to $5,000 of wages per year. One of the most valuable treaties for students given the large Chinese student population in the US.
India: Article 21 provides exemptions on certain scholarships and fellowship grants.
UK: Article 20 provides student exemptions for visiting students maintaining tax residence in the UK.
Germany, France, Netherlands: Various provisions exempting scholarship income and reducing withholding on investment income.
South Korea: Article 21 provides strong protections including wage exemptions for students.

To claim treaty benefits on your US return: report the income on your 1040-NR, then subtract the treaty-exempt amount on a separate line (line 1j on the 2024 form), and attach Form 8833 explaining which treaty article you’re relying on.

UK Tax Treaties

The UK’s treaty network is the most extensive in the world over 130 treaties. For international students, the key benefit is typically avoiding double taxation on home-country income. If you’re earning money from your home country while studying in the UK rental income, dividends, freelance work, a treaty may mean you only pay tax in one country on that income.

The UK-India treaty, UK-China treaty, and UK-Nigeria treaty are particularly relevant given student population volumes.

Don’t Leave Before You Leave

One thing I always tell students: don’t forget to tie up your tax affairs when you leave.

In the UK, if you’re leaving partway through the tax year, you can often claim a refund immediately by submitting form P85 by leaving the UK and getting your tax right. This is separate from a Self Assessment and can get money back in your hands before you even board the plane.

In the US, if you’re leaving mid-year, file your 1040-NR for the partial year by the April deadline. Make sure to file Form 8843 for any year you were present, even if you’ve already left by the filing date.

The paperwork follows you. But so does the money if you claim it.

Frequently Asked Questions

Q: I never worked in the UK/US. Do I still need to file anything?

In the UK: No. If you had no UK income and no Self Assessment requirement, you don’t need to file.

In the US: Yes. All F-1 and J-1 visa holders must file Form 8843 regardless of whether they earned income. It’s a short informational form that confirms your exempt individual status and takes about 10 minutes to complete.

Q: Can I claim a UK tax refund if I’ve already left the country?

Yes. HMRC can process refunds to overseas bank accounts or send cheques to foreign addresses. The process is slower and you’ll need to provide bank details carefully. The HMRC Personal Tax Account is the easiest way to manage this remotely, though you’ll need a UK phone number to set it up initially.

Q: My university gave me a scholarship that covered living expenses. Is that taxable in the US?

Potentially, yes. The portion of a scholarship that covers tuition, fees, and required course-related expenses is generally tax-free. The portion that covers room and board, travel, or general living expenses is taxable as income. You should receive Form 1042-S showing the taxable amount. Treaty benefits may reduce or eliminate the tax on this check your home country’s treaty with the US.

Q: How do I get an ITIN if I don’t have a Social Security Number?

An Individual Taxpayer Identification Number (ITIN) is issued by the IRS for people who need to file US taxes but aren’t eligible for an SSN. Apply using Form W-7, attached to your tax return. You’ll need certified copies of your passport (or original documents). Many universities and Acceptance Agents can certify documents for you. Processing takes 7–11 weeks.

Q: I used TurboTax and I’m now worried I filed as a resident when I shouldn’t have. What do I do?

File an amended return using Form 1040-X to correct the error, attaching your correct 1040-NR. Do this as soon as possible. If you’ve already received a refund under the incorrect filing, you may need to repay a portion but in many cases, the correct 1040-NR will result in a similar or even larger refund once treaty benefits are factored in. Consider using a tax professional who specialises in non-resident returns to handle the amendment.

Q: I’m a PhD student on a stipend in the UK. Is my stipend taxable?

Research council stipends (from UKRI, for example) are generally exempt from income tax up to the UKRI doctoral stipend rate (£20,780 for 2024/25). If your stipend exceeds this, the excess may be taxable. Stipends from other sources like university funds, industry sponsorship may be treated differently check with your university’s finance department and HMRC if uncertain.

Q: What happens if I don’t file my US taxes and I want to come back to the US later?

This can cause serious problems. Unfiled returns can result in IRS penalties, and when you apply for a visa extension, change of status, or green card in the future, you’ll typically be asked to provide evidence of tax compliance. Even if you owed nothing, missing Form 8843 filings can create complications in future immigration applications. It’s worth going back and filing missing years if the IRS accepts late filings and the penalty for missing 8843 (informational only, no tax attached) is generally waived on first request with a reasonable cause explanation.

Q: Are there free options for filing US taxes as an international student?

Your university international student office is the first place to check many have arranged free Sprintax or Glacier Tax Prep access for enrolled students. Also check whether your university has a VITA (Volunteer Income Tax Assistance) site that specifically handles non-resident alien returns. Regular VITA sites often don’t handle NRA returns, so ask specifically. Sprintax also has a free option for 8843-only filing if you had no US income.

Tax laws change. Always verify current rates, thresholds, and filing requirements with HMRC (UK) or the IRS (US) or consult a qualified tax professional familiar with international student situations before filing. This article reflects rules applicable for the 2024/25 (UK) and 2024 (US) tax years and only usable an educaional content.