Taxes

Anyone working in the U.S. MUST pay U.S. income tax. As a foreign student working in the U.S., you will also be required to pay certain taxes, but will be exempt from (not have to pay) other taxes. If your employer has questions regarding your tax status, show him/her this handbook.

Tax You Don't Have to Pay

You must have a Social Security Card, but you are EXEMPT from (don't have to pay) Social Security, Medicare and Federal Unemployment tax. Sometimes, employers make a mistake and withhold these taxes. You can tell us if this has happened by looking at your Salary/Wage Statement (also known as check stub or pay slip). If you do see any deductions under the work "FICA" or "FUTA", the employer has made a mistake. You can call ERDT to assist you.

Taxes You Do Pay

Income Taxes
In the U.S., income taxes are imposed by the federal, state, and local governments. The Internal Revenue Service (IRS) collects personal income taxes, usually on a "pay-as-you-go" basis. This means that your employer generally withholds income tax from your salary and pays it directly to the government. You must pay U.S. income tax. Failure to pay any taxes you owe could cause problems for you in the future if you apply for any visas to return to the U.S.. Please make sure that these taxes are being withheld from your paycheck.
Federal Income Tax
Income tax is paid to the federal (national) government by all income-earning individuals. It is paid on income from salaries, wages and tips. Approximately 10-15 percent of your salary will be withheld for federal income tax, a portion of which you may be able to claim back as a refund at the end of the year.
State and City Income Taxes (depending on the state & city)
States and cities may charge extra income tax according to local laws. Ask your employer about local taxes. If applicable, state and city income taxes will be withheld from your paycheck. You may be able to claim a refund for a portion of these taxes at the end of the year.

W2 Forms

At the end of the calendar year, your employer will send you a W2 form, detailing your total wage the amount of each tax that was withheld. The employer should send the W2 to your permanent address in your home country. You must receive 2 forms from each of your employers, since you are required to submit copies of the W2 form with your tax returns. Be sure that you give your home-country address to all employers so they can send you this form. If you have not received your W2 form by February after you have returned home, you should contact your employer(s) for replacement. You can also contact ERDT for assistance.

Tax Return Forms and Tax Refunds

When you receive your W2, you will fill out your tax return forms. The U.S. tax year begins January 1st and ends December 31st. There are separate forms for federal, state, and city tax forms. These are available from banks and post offices in the U.S.; federal tax forms are also available from U.S. Embassies in your home country. Request state and city forms from your employer. You must complete either tax form 1040NR-EZ or 1040NR which are specifically for non-resident aliens (the category in which you should file). You can also visit the web site www.irs.gov for more information.

The deadline for filing tax return forms in April 15 of the calendar year after your employment in the U.S.. You will use the charts in the tax return forms to determine the amount of tax you owe. If too little tax was withheld from your paychecks, you must pay the balance back to the government. If too much was withheld by the government, you qualify for a refund. The earlier you file, the sooner you will receive any refund. You will be in your home country by the time you need to file your tax return.

TaxBack.com

As part of your ERDT program, you are entitled to a free tax refund estimation from www.taxback.com. The average refund due for J visa holders is $700 and www.taxback.com can organize this for you.

Taxback.com will get you the fastest, maximum legal refund possible due to their extensive knowledge of the U.S. tax system and tax treaties with your country. They ask you to be aware of tax companies that offer to e-file your tax return because this is not legal for non-residents.

It is a totally transparent service and you can receive your refund in your local currency or U.S. dollars by bank transfer or check. Taxback.com representatives speak over 25 languages, have 24 hour support, live online chat, and free phone numbers. They may even have an office in your home country.

To find out more and get your free refund estimation, check out www.taxback.com.