This article is for information only and is not tax advice.
Your refund is only the tax that you overpaid. It is not the total tax that you paid during the year. The refund is the difference between the tax already paid and your total tax.
For example, your employer withholds 2,000 USD during the year and your total tax is 1,500 USD. Your refund is 500 USD, not 2,000 USD.
What can make a nonresident alien refund low?
A nonresident alien is not taxed in the same way as a resident, and the deductions are limited. The following table lists common causes.
| Cause | Explanation |
|---|---|
| No standard deduction | A nonresident alien cannot claim the standard deduction or a personal exemption. The exception is a student or business apprentice from India under the tax treaty. |
| Few deductions and credits | A nonresident alien generally cannot claim the Earned Income Tax Credit, the Hope Credit, or the Lifetime Learning Credit. Few deductions apply. |
| Little tax withheld | Your employer may have withheld less than your total tax. This is common with more than one job. |
| No treaty benefit | A tax treaty can reduce your taxable income. Your refund is lower if you do not qualify for a treaty, or if the treaty details are wrong. |
| Higher income | Higher income increases your total tax. The US tax rates are progressive. |
| Social Security and Medicare tax | FICA tax is not part of your income tax refund. You claim it separately if you qualify. |
| Debts | The IRS can use part of a refund to pay certain past-due debts. The IRS sends a notice if it does this. |
What should I check if I think my refund is wrong?
Go back through the steps and check the following items:
In Step 3 Let's talk money, check that the income and the tax withheld match your income documents. These include Form W-2, Form 1042-S, and Form 1099.
Check your tax treaty details, if a treaty applies to you.
Check the dates and the details of your time in the US in Step 1 Residency.
Check your answers about estimated tax payments and previous-year returns in the additional tax filing information.
Correct any wrong detail, then review the Step 7 Summary again.
What if all my information is correct?
Then the refund on the Step 7 Summary is the refund that you will receive. Sprintax calculated it from your information and the rules for nonresident aliens.
Why is my refund different from the refund of another person?
Income, treaty benefits, days in the US, and withheld tax differ between people. Two people can receive different refunds even with the same job.