Understanding F1 OPT taxes
If you're an international student on an F1 visa working under OPT (Optional Practical Training) or CPT (Curricular Practical Training), your tax situation is different from H1B workers and U.S. citizens in important ways.
The biggest difference: during your first 5 calendar years on F1 status, you are classified as a nonresident alien and are exempt from FICA taxes (Social Security at 6.2% and Medicare at 1.45%). On a $55,000 salary, this saves you approximately $4,208 per year compared to an H1B holder.
However, as a nonresident alien, you cannot claim the standard deduction ($14,600 in 2024), which means your taxable income is higher. You also file using Form 1040-NR instead of the standard Form 1040.
Check whether you qualify as a nonresident with our Substantial Presence Test Calculator, or compare with H1B take-home pay using our H1B Tax Calculator.