[Updated Mar 18, 2025]
A deduction is an amount of money that can be deducted from your taxable income. The deduction will be recorded on your income tax return. When your taxable income is reduced by a deduction, your tax is then also reduced.
The federal government and individual states may let you reduce your taxable income based upon actual expenses that you may have had in specific categories.
"Itemized" means you have a list of deductions. For nonresident aliens, it is a short list. Very short.
While citizens of India have the standard deduction, other nonresident aliens have a small list of deductions they can take. These are called itemized deductions. They are:
State and Local Income Taxes
Gifts to U.S. Charities
A few other deductions that are not common.
There are many, many other deductions and credits that might happen on a resident tax return. But for the nonresident student and scholar, there are not many.
Student Loan Interest
The only other deduction that a student might have is for student loan interest that was paid during the tax year. If you are eligible, the finance/loan company would send 1098-E reporting the amount of the deduction.
A standard deduction is a set amount that may be deducted from your taxable income. This amount varies based upon your filing status and generally increases each year to keep pace with inflation. The amount is not connected to any actual expenses you may or may not have had. You can see by year the amount of the standard deduction.
F and J nonresident aliens are not eligible for the standard deduction EXCEPT for F & J visa nonresident aliens from India. Students from India, see India F1 Students
Recent set amounts for the federal standard deduction (by tax year) filing single:
2024 - $14,600
2023 - $13,850
2022 - $12,950
2021 - $12,550
2020 - $12,400
2019 - $12,200
2018 - $12,000
2017 - $6,350
2016 - $6,300
It is up to each state whether they a have a standard deduction and whether they allow nonresident aliens to use that standard deduction.
Oregon's Publication 17 (2021), page 95, states, “The standard deduction for nonresident aliens is -0-.”
For F and J nonresident aliens there are a few types of deductions that can be put on the nonresident returns.
Any state tax that was withheld from your paycheck during, or state tax that was paid during the year for taxes due with a tax return from a previous year may be deducted. This can be deducted on the 1040NR, Schedule A, Line 1.
IMPORTANT: If a portion of the state tax that is deducted on one year's tax return is then returned in the following year, the amount returned to that following year must be added back as income on the tax return for the year in which the money was refunded.
Deductions allowed on 1040NR (2021)
Gifts to U.S. Charities - Schedule A, Lines 2-5
Casualty and Theft Losses (this is very limited) - Schedule A, Line 6
Other Miscellaneous Deductions - Schedule A, Line 7
See IRS Instructions for 1040-NR: search for "Instructions for Schedule A (Form1040-NR)—Itemized Deductions"
Federal Tax: Oregon allows the federal tax (or portion of) to be deducted.
There may be other deductions allowed on the Oregon state returns if they were taken on Schedule A of a 1040-NR (excluding Oregon tax withheld).
If you do have a taxable portion of a scholarship on the federal form, the amount using for housing can be deducted on the Oregon form.
Oregon also has a few deductions allowed on their form that are not allowed on the federal form. This information is beyond the scope of our training.