Question 1

What is the US-India Tax Treaty Article 21(2) exemption for Indian F-1 students?

Accepted Answer

Under Article 21(2) of the US-India Income Tax Treaty, Indian F-1 students are eligible to claim a standard deduction exemption equivalent to $5,000 USD on their US Non-Resident Tax Return (Form 1040-NR), which is not available to F-1 students from most other countries.

Question 2

Are F-1 students exempt from FICA (Social Security and Medicare) taxes?

Accepted Answer

Yes. Under Internal Revenue Code Section 3121(b)(19), F-1 non-resident students are exempt from FICA taxes (7.65% total: 6.2% Social Security + 1.45% Medicare) for their first 5 calendar years in the US.

Question 3

Is IRS Form 8843 mandatory for F-1 students with zero income?

Accepted Answer

Yes. Form 8843 (Statement for Exempt Individuals) is legally required for all F-1 students and F-2 dependents in the US, even if they earned $0 income during the tax year.

IRS Code / Rule	Legal Subject	Operational Tax Benefit
Article 21(2) DTAA	US-India Student Treaty Exemption	Grants $5,000 standard deduction equivalent on Form 1040-NR.
IRC § 3121(b)(19)	FICA Tax Exemption	Exempts non-resident F-1 students from 7.65% Social Security/Medicare.
IRS Form 8843	Statement for Exempt Individuals	Mandatory annual filing for all F-1 students (even with $0 income).

F-1 Student Tax Treaty & FICA Guide

F-1 Student Tax Treaty & FICA Calculator

Statutory Regulations & Forms

F-1 Student Resources