1.Came from overseas, previously worked and saved some money, now a student with no employment; income being only the interest from bank.

2.How to pay tax on this since I do not have W-2, no withholding etc.

3. If someone goes back home overseas, now out of status but still has funds in US banks, how would he pay tax on it if he is no longer here and out of status. To come here he 'd need a visa.

4. One student was in USA 7 -8 yrs ago, he some how did not file his tax, he had paid more than required, now he is back again as a student; is there a way to get the money back?

5. Is it possible for students on F1 visa to earn revenues through websites. Would it be illegal to be paid by companies like google for the online business where all the student does is build website which brings in money.

6. Where can we get these kind of infos?

Thanks in advance.

If you are on F1, then you are non-resident for 5-years of F1. For 2008, you must file tax return if your income is $3500 or more. To F1 students bank interest is not taxable income.

Even if you are not required to file tax return you must file Form 8843. Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

MukatA's info is accurate.

To answer the rest of your questions:

1 & 2) As noted, bank interest for a student under an F-1 visa is NOT taxable income to the student. If it were taxable, you would pay the tax with the tax return.

3) He would file a non-resident return and pay the tax with the return. If necessary, the bank can withhold taxes before paying the interest.

4) He can file the tax return from 8 years ago, but, more than likely, he has forfeited the refund due to the three year statute of limitations. The IRS may waive the statute because he was out of country, but probably not.

5) A student CAN earn revenues as noted, but doing so would violate the provisions of his visa IMHO. Now, if the business is established prior to the student arriving in country, then there should be no problem. But starting and running a business clearly violates the intent of the visa.