- All summer work/travel participants must pay state, federal and local taxes (approximately 10-14%).
- You will complete forms obtained from the Internal Revenue Service (IRS) to get most of the taxes refunded to you at the end of the calendar year that you worked.
- Taxes you will not have to pay*:
- Social Security
- Medicare
- Federal Unemployment
*After receiving your first paycheck, make sure the 3 above taxes have
not been taken out of your paycheck. If you see any deductions under words “FICA”, “SS” or “Soc Sec”, or “Medicare” or “Med”, or “FUTA”, then the employer has made a mistake. You should speak to the employer about this since the law is different for J-1 students and the employer may be unaware that you are exempt from these three taxes. Go to
http://www.irs.gov for IRS Publication 519 which explains this exemption.
W-4 Form: Employee’s Withholding Allowance Certificate
- You will complete a W-4 form when you begin your job to avoid being over-taxed
- Instructions from IRS Publication 515 “Withholding of Tax on Nonresident Aliens and Foreign Corporations”:
- Check only “single” marital status on Line 3 (even if you are married or divorced)
- Claim only one withholding allowance on Line 5
- Write “Nonresident Alien” or “NRA” on the dotted line on Line 6
- Do not claim “Exempt” withholding status on Line 7
Tax Refunds
- Income earners in the USA are required to file a tax return after the end of the calendar year.
- Your tax return reflects your earnings for the previous year, the amount of taxes you paid, and the total amount of taxes owed/refunded to you.
- To file your tax return, you will need your W-2 Form and Form 1040NR-EZ
- Your employer will send you a W-2 Form (required by law to mail to you by February 15). Make sure you provide your employer with your correct address in your home country before you leave the USA.
- After you receive your W-2 Form, complete a 1040NR-EZ tax form. You can obtain the 1040NR-EZ form (with instructions) at the US Embassy in your home country or by visiting http://www.irs.gov
- You must file your tax return no later than April 15.
- Once you have completed the form, mail it to:
- United States Internal Revenue Service Center
- Philadelphia, PA 19255 USA
