If you're working, studying or visiting the US, choosing the correct tax filing software is important. The software you should use depends on whether you are considered a resident or nonresident for U.S. tax purposes.
TurboTax and Sprintax serve different types of taxpayers.:
- TurboTax is designed primarily for U.S. residents and citizens filing Form 1040;
- Sprintax specializes in nonresident tax filing, including Form 1040-NR and Form 8843.
Step 1: Determine Your Tax Residency Status
Your immigration status does not automatically determine your tax residency status. Instead, the IRS uses rules such as the Substantial Presence Test (SPT).
You are generally considered a nonresident for tax purposes if:
- You are an F-1 or J-1 student in your first 5 calendar years in the U.S.
- You are a J-1 non-student Visa holders, (such as teacher, trainee, intern etc) in your first 2 calendar years in the U.S.
- You do not meet the IRS Substantial Presence Test.
You are generally considered a resident for tax purposes if:
- You pass the IRS Substantial Presence Test, or
- You hold a Green Card.
You will be considered a United States resident for tax purposes if you meet the Substantial Presence Test for the calendar year. To qualify, you must be physically present in the U.S. for at least:
- 31 days during the current year, and
- 183 days during the 3-year period, which includes the current year and the two years immediately preceding it. The 183 days are calculated by counting:
- All the days you were present in the current year,
- 1/3 of the days you were present in the first year before the current year, and
- 1/6 of the days you were present in the second year before the current year.
If you are on an F, J, M, or Q visa, you may be exempt from the Substantial Presence Test under certain conditions:
- F-1, J-1 (student), and M visas are exempt from the Substantial Presence Test for five calendar years over a lifetime.
- Holders of other J visas and the Q visa are exempt for two years out of every six proceeding years.
If the total equals 183 days or more, and you were physically present for at least 31 days in the current year, you may be considered a resident for tax purposes.
Step 2: Determine Which Tax Form You Need
File Form 1040-NR if you are a nonresident alien
Most international students and scholars who are still classified as nonresidents for tax purposes must file:
- Form 1040-NR, and/or
- Form 8843
Form 8843 is a statement that can report your exempt status for tax residency determination purposes.
If you are an alien individual, file Form 8843 to explain the basis of your claim that you can exclude days present in the United States for purposes of the substantial presence test because you:
- Were an exempt individual.
- Were unable to leave the United States because of a medical condition or medical problem.
File Form 1040 if you are a resident alien for tax purposes
If you meet the Substantial Presence Test or otherwise qualify as a resident alien for tax purposes, you generally file:
- Form 1040
Resident aliens are taxed similarly to U.S. citizens and generally report worldwide income.
Step 3: Choose the Correct Software
Use Sprintax if you are filing Form 1040-NR
Sprintax is designed specifically for:
- International students;
- Scholars;
- Researchers;
- Teachers;
- Nonresident foreign professionals;
- Other nonresidents.
Sprintax supports:
- Form 1040-NR;
- Form 8843;
- Tax treaty benefits;
- ITIN applications;
- Nonresident state tax returns.
Use TurboTax if you are filing Form 1040
TurboTax is appropriate for:
- U.S. citizens;
- Green Card holders;
- Resident aliens for tax purposes;
- International students who have already become residents for tax purposes under IRS rules.
For example, many F-1 students become residents for tax purposes after exceeding their exempt years and meeting the Substantial Presence Test.
What Happens If You File the Wrong Form?
This is a common issue for international students and first-time filers. Filing the wrong form can lead to:
- Incorrect refunds;
- Improper tax credits;
- IRS notices;
- Delays with immigration applications or future visa processing.
If you filed Form 1040 but should have filed Form 1040-NR
You generally need to:
- Prepare the correct Form 1040-NR
- Prepare Form 1040-X (Amended U.S. Individual Income Tax Return)
- Attach the corrected tax documents
- Mail the amended return to the IRS
Choosing between Sprintax and TurboTax comes down to one key factor: your U.S. tax residency status. Nonresident aliens generally file Form 1040-NR and should use Sprintax, while resident aliens for tax purposes typically file Form 1040 and can use TurboTax.
Because immigration status and tax residency are not always the same, international students and scholars should carefully review the IRS residency rules each tax year. Filing the wrong form can create tax complications, delays, or IRS correspondence, but amended returns can usually correct the issue when addressed promptly.
Understanding your residency status first is the best way to ensure you file the correct tax return, claim the appropriate benefits, and use the software designed for your specific situation.