ITIN for International Students: When You Need One

When International Students Need an ITIN

Not every international student needs an ITIN. The key factor is whether you have a US tax filing obligation and whether you are eligible for a Social Security Number. If you have work authorization through on-campus employment, CPT, or OPT, you can apply for an SSN at your local Social Security Administration office. In that case, you use your SSN for tax filing and do not need an ITIN.

However, many international students receive income that creates a tax obligation without giving them SSN eligibility. Here are the most common situations where you need an ITIN:

• Taxable scholarship or grant income that exceeds tuition and required fees (the portion covering room, board, or living expenses is taxable)
• Fellowship or stipend payments that are not tied to services performed and are not covered by a tax treaty exemption
• Prize or award money received from a US institution or organization
• Investment income such as interest, dividends, or capital gains from US-source investments
• Claiming a tax treaty benefit that requires filing Form 1040-NR with a taxpayer identification number

For a broader overview of who qualifies and when, read our parent guide on ITIN for international students. If you are completely new to the concept, start with what is an ITIN.

F-1 vs J-1 Visa: Tax Differences

Both F-1 and J-1 visa holders are considered nonresident aliens for tax purposes during their exempt period. However, there are meaningful differences in how the IRS treats each visa type, and these differences affect when and whether you need an ITIN.

F-1 students are exempt from the Substantial Presence Test for 5 calendar years. During this period, you are treated as a nonresident alien and file Form 1040-NR. If you have work authorization (on-campus job, CPT, OPT), you apply for an SSN. If your only income is a taxable scholarship with no work authorization, you need an ITIN.

J-1 exchange visitors (students, researchers, professors) are exempt from the Substantial Presence Test for 2 calendar years. J-1 scholars and researchers often receive stipends or fellowship payments that are taxable, and many are not eligible for an SSN because their funding does not come through traditional employment. This makes J-1 holders one of the most common groups needing ITINs.

If you are specifically on an F-1 visa, our detailed guide on ITIN for F-1 visa holders covers the nuances of F-1 tax obligations and the ITIN application process.

Scholarship and Fellowship Income

Understanding how scholarship and fellowship income is taxed is critical for international students. The rules determine whether you have a tax obligation and, by extension, whether you need an ITIN. Many students assume all scholarship money is tax-free. That is only partially true.

Tax-free scholarships: Scholarship money used to pay for tuition and required fees (books, supplies, and equipment required for courses) at a qualified educational institution is not taxable. If your entire scholarship covers only these qualified expenses, you may not have a federal income tax filing requirement from that scholarship alone.

Taxable scholarships: Any scholarship amount that exceeds qualified education expenses is taxable. This includes money designated for room and board, travel, living expenses, or optional equipment. If your school provides a full-ride scholarship that covers tuition plus a $15,000 living stipend, that $15,000 is taxable income. You must report it on Form 1040-NR, and you need either an SSN or ITIN to file.

Fellowship and research stipends: Fellowships and research stipends paid to degree candidates for living expenses are taxable unless they are used for qualified tuition and fees. Non-degree candidates receiving fellowship payments have all of it treated as taxable income. J-1 researchers and scholars receiving stipends almost always have a tax filing obligation.

OPT and CPT Tax Obligations

Optional Practical Training (OPT) and Curricular Practical Training (CPT) are work authorization programs that allow F-1 students to gain practical experience in their field of study. Both create tax obligations, but the good news is that if you have OPT or CPT authorization, you are eligible for a Social Security Number. In most cases, you will use your SSN for tax filing rather than an ITIN.

CPT income: Wages earned through CPT are reported on a W-2 form from your employer. Your employer withholds federal income tax from your paychecks. As a nonresident alien during your exempt period, you are exempt from Social Security and Medicare (FICA) taxes. You file Form 1040-NR at the end of the year using your SSN.

OPT income: The same rules apply. Your OPT employer issues a W-2, withholds federal income tax, and you are exempt from FICA taxes during your nonresident years. If you are on STEM OPT extension, you continue to be exempt from FICA as long as you are still within your 5-year exempt period.

When OPT/CPT students need an ITIN: The exception is rare but it exists. If you earned OPT or CPT income but never applied for an SSN (or your SSN application was denied), you would need an ITIN to file your tax return. This can happen when students start working near the end of the year and do not receive their SSN before the tax filing deadline. In that situation, applying for an ITIN allows you to file on time.

How to Apply for an ITIN as a Student

The ITIN application process for students is the same as for any other applicant, but students have specific document advantages that can make the process smoother. Here is the step-by-step process:

Ready to start? Apply for your ITIN online and we will guide you through every step.

Documents International Students Need

The IRS requires identity and foreign status documentation with your Form W-7. International students actually have an advantage here because your immigration documents serve double duty. Here is what you need:

Primary document (required): Your valid, unexpired passport. This is the only document that serves as both identity proof and foreign status proof in a single document. If you apply through a Certifying Acceptance Agent, the agent verifies your passport locally and you keep the original.

Supporting student documents: While not always required, including these strengthens your application:

• Form I-20 (F-1 students) or DS-2019 (J-1 visitors) showing your program dates and institution
• Student ID card from your US institution
• Letter from your school confirming enrollment and your tax filing obligation (some schools provide this specifically for ITIN applications)
• Scholarship or fellowship award letter showing the taxable income that creates your filing obligation
• Form 1042-S if your school has already issued one, showing income paid to you and any tax withheld

What you attach to Form W-7: Your completed Form 1040-NR (or the exception documentation if applicable), your passport copies certified by the CAA, and any supporting documents listed above. We prepare the complete package as part of our service, so you do not need to figure out which documents to include on your own.

Banking as a Student with an ITIN

Having a US bank account makes life significantly easier as an international student. You can receive scholarship disbursements directly, avoid check-cashing fees, build a US financial history, and manage your money without relying on international wire transfers for every transaction. If you have an ITIN but not an SSN, you can still open a bank account at several US institutions.

Major banks accepting ITINs: Chase, Bank of America, Wells Fargo, and Citibank accept ITINs at many branch locations. Walk-in applications tend to work better than online applications for ITIN holders. Bring your ITIN confirmation letter, passport, I-20 or DS-2019, and proof of US address (a utility bill or lease agreement). Policies vary by branch, so call ahead to confirm.

Online-friendly options: Wise (formerly TransferWise) accepts ITINs and offers multi-currency accounts, which are particularly useful for students who send and receive money internationally. The application is fully online and does not require a branch visit.

Credit building: Some banks and credit unions offer secured credit cards to ITIN holders. Building US credit history while you are a student can be valuable if you plan to stay in the US after graduation for OPT or other purposes. A secured card with a small deposit is a low-risk way to start.

For the full list of banks, requirements, and tips for each institution, check our ITIN bank account guide.

Common Student Tax Mistakes

International students frequently make tax errors that can result in penalties, overpaid taxes, or immigration complications. Here are the most common mistakes and how to avoid them:

• Filing Form 1040 instead of Form 1040-NR. Nonresident aliens must file Form 1040-NR. Using the standard Form 1040 (for residents) can lead to incorrect tax calculations and may cause issues with future visa or green card applications. Tax software like TurboTax does not always handle nonresident returns correctly. Use software designed for nonresidents, such as Sprintax or Glacier Tax Prep.
• Not filing Form 8843. Every F-1 and J-1 visa holder must file Form 8843 to declare their exempt individual status, even if they had zero income. This form is separate from your tax return and does not require an SSN or ITIN. Many students skip it because they think no income means no filing, but this form is always required.
• Paying FICA taxes when exempt. During your exempt period (5 years for F-1, 2 years for J-1), you are not required to pay Social Security or Medicare taxes. If your employer withholds FICA taxes from your paycheck, request a correction. If they refuse, file Form 843 with the IRS for a refund.
• Missing tax treaty benefits. Students from countries with US tax treaties may be eligible for reduced tax rates or full exemptions on certain types of income. Failing to claim these benefits means you overpay your taxes. Check IRS Publication 901 for your country's treaty provisions.
• Not reporting scholarship income. The taxable portion of your scholarship (room, board, living expenses) must be reported on your tax return even if no tax was withheld. Not reporting it does not make it non-taxable. The IRS can match 1042-S forms from your school to your return and assess penalties.
• Using the wrong residency status. Your tax residency status can change during your time in the US. After your exempt period ends, you may become a resident alien for tax purposes under the Substantial Presence Test. This changes which forms you file and which deductions you can claim. Misidentifying your status leads to incorrect returns.
• Waiting until the last minute to apply for an ITIN. If you need an ITIN, start the process well before the April tax deadline. IRS processing takes 7 to 11 weeks. You can file for an extension using Form 4868, but getting your ITIN application in early avoids the stress of deadline pressure.
• Ignoring state tax obligations. Most states with an income tax also require nonresidents with state-source income to file a state return. If your school is in California, New York, Massachusetts, or another state with income tax, you likely have a state filing obligation in addition to your federal return.