Information for Colleges & Universities
The Indiana Department of Revenue (DOR) offers colleges and universities the opportunity to host free tax workshops for international students. These workshops are designed to help students understand their tax obligations and accurately complete their Indiana tax return.
Please note that this is not a “tax service” – our representatives cannot provide, complete, or collect tax forms, or file a tax return on behalf of a student.
If you would like to host a workshop for international students, please complete the request form (select Speaker Request Form link under the microphone icon at the bottom of the page). DOR recommends scheduling the workshops between March 8 and April 9, 2021. All 2021 workshops will be virtual.
Students MUST complete a federal income tax return before filing an Indiana income tax return. Once facilitators are assigned for your event, we will contact you with additional details and electronic copies of the necessary tax forms to provide to your students.
In addition to facilitating student tax workshops, DOR offers an International Student Tax Workshop guidebook that can help you assist your international students file an Indiana tax return.
Information for Students
The first item you need to consider is your Indiana residency. Indiana residency depends on the student’s federal residency status. A determination of resident or nonresident alien status and treaties with the student’s foreign country must be considered.
Those who qualify as Indiana residents must file an Indiana tax return if their wages and other income is $1,000 or more. Nonresidents must pay taxes on any amount of income earned in Indiana.
International students who are nonresident aliens for federal purposes are not Indiana residents and should file Form IT-40PNR to report Indiana income. The IRS green card test and the “substantial presence” test determine a resident alien’s status. Most international students are in the United States on an F, a J, or an M visa.
After all these considerations are taken into account, the federal income tax return must be completed before filing an Indiana income tax return. Most treaty considerations only affect taxes at the federal level. The federal return determines Adjusted Gross Income (AGI), which is used for starting the state tax return.
Example: Frederick Lantz is a nonresident alien student at Indiana University in Bloomington, Indiana. He worked as a teacher’s aide during his junior and senior years at school and did not go home during his four years of study at IU. Fred plans to return to Germany after his studies are completed. He is a nonresident for Indiana tax purposes because he has not established a permanent residence in Indiana. Fred should file his Indiana tax return using the Form IT-40PNR.
An individual may be subject to county tax in Indiana even if they are not an Indiana or US resident.
In general, an individual will be treated as a county resident for county tax purposes based on the following:
* Where the individual maintains a home (if he or she has only one home, this includes those who own or rent);
* If that does not apply, then where the individual is registered to vote;
* If neither of the above applies, then where the individual registers his or her vehicle;
* If none of the above apply, then where the individual spends the majority of his or her time in Indiana during the tax year in question.
Those Indiana nonresident students who first attend college beginning sometime after Jan. 1 of the year will not be considered county residents for that first year.
Likewise, nonresident students attending the fall semester (followed by the spring semester) will be considered residents of the county as of that Jan. 1 and are subject to county tax.
Indiana Tax Forms - You will probably need Form IT-40PNR and Indiana Schedules A, B, C, D, F, H, IN-DEP and CT-40PNR.
If you earned income in another state in addition to Indiana, you may need to file a tax return with the other state (or states) as well. Refer to the revenue department for the state(s) where you worked for more information. If you need to file a tax return with the other state, you may be eligible for a credit for taxes paid to other states on your Indiana tax return.
Submitting Your Return
To submit your return be sure to include only those schedules that you have filled out. Do not staple or paperclip anything. Enclose all W-2s and schedules.
Be sure to add additional postage if your return is more than four pages.
If you are claiming a tax refund, mail your forms to:
Indiana Department of Revenue
P.O. Box 40
Indianapolis, IN 46206-0040
You can pay any taxes owed online through DORpay.
Remember, you will still need to mail your tax return for processing.
If you cannot pay the total amount owed, you may request a payment plan through INtax Pay.
If you are sending a payment, mail your forms to:
Indiana Department of Revenue
P.O. Box 7224
Indianapolis, IN 46207-7224
Can’t pay what you owe?
Students are responsible for paying any tax due, even if the university/employer does not withhold the proper amount of taxes.
Pay as much as you can by the April deadline to reduce the amount of penalty and interest that will be due. As soon as you receive a bill from DOR, call the number on the bill to see what payment options may be available.
If you owe additional taxes when filing your tax return, you may want to consider adjusting your payroll withholding. Contact your employer to make this change. Don’t forget that any adjustments should represent the amount needed for entire calendar year.
Events that may cause a student to owe additional taxes include, but are not limited to:
- Not withholding state or county tax.
- As non-residents, international students owe taxes on any income earned in Indiana during the calendar year.
- County taxes are dependent on residency status as of Jan. 1 of the calendar year.
- Not adjusting state or county withholding to reflect a change in residency status from one year to the next.
- For example: If the student began school in the fall of 2019, then the student may not have had to pay county tax on income earned in that calendar year. However, the student's withholding was not updated to reflect that the student would be subject to county tax in 2020.
- Withholding county or state taxes at the wrong rate.
Selected individuals will receive a letter requesting them to confirm their identities by taking a short quiz either by telephone or online. It is important to open the letter and take the quiz as soon as possible to get your return in a timely manner. See our Identity Confirmation Program for more information.
Don’t forget to change your address with DOR. DOR does not contact customers by telephone or email for important tax matters, so it is important your mailing address is correct.