March 13, 2012

Are Temporary Exchange Visitors Subject to U.S. Taxes?

The answer is YES!

As tax day (April 17, 2012) approaches, most J-1 visa sponsors are bombarded by questions regarding taxes for the J-1 exchange visitors that they sponsor. Unfortunately most J-1 visa sponsors are not tax experts and are unable to answer the specific questions sent to us.

For those seeking more information, the IRS website (www.irs.gov) is by far the best resource for retrieving information about taxes for non-resident aliens participating in the J-Visa Exchange Visitor Program.

Important things to know:
(1) Exchange Visitors on J-1 visas are required to pay any Federal, State, and City (if applicable) taxes.

(2) Exchange Visitors on J-1 visas under the trainee and intern categories are exempt from paying Social Security and Medicare taxes.

(3) If they are paid in the U.S. during their active J-1 programs, J-1 exchange visitors must file a tax return in April.


Here are a few IRS links that are particularly useful:
Foreign Students and Scholars (Trainees & Interns are included in this category)
http://www.irs.gov/businesses/small/international/article/0,,id=96431,00.html

Taxation of Nonresident Aliens
http://www.irs.gov/businesses/small/international/article/0,,id=96477,00.html

Foreign Student Liability for Social Security and Medicare Taxes
http://www.irs.gov/businesses/small/international/article/0,,id=129427,00.html

7 comments:

  1. Whether somebody pursuit of his vital thing, hence he or she desires to be accessible that at length, hence that thing is maintained over here.vietnam visa

    ReplyDelete
  2. Hi, having read this awesome written piece I’m also pleased to fairly share my familiarity here with colleagues.
    hajj package

    ReplyDelete
  3. The blog is quite awesome that has provided me the best knowledge. Nigerian Visa Services

    ReplyDelete
  4. Exchange Visitors on J-1 visas under the trainee and intern categories are exempt from paying Social Security and Medicare taxes.

    BISE Abbottabad Board Inter Date Sheet 2015

    ReplyDelete
  5. This comment has been removed by the author.

    ReplyDelete
  6. More information about J-1 visa, follow this link

    ReplyDelete