Completing Form W-4

Here are special instructions for non-resident aliens completing form W-4:

1. In box 3 participants should check “Single” regardless of actual marital status.
2. On line 5 participants should claim only one exemption (unless the trainee is from Canada, Mexico, American Samoa, Japan, Korea, or India, in which case a tax treaty may allow additional personal exemptions).
3. On line 6 the trainee should indicate that an additional $7.60 per week is to be withheld. If the pay period is every two weeks, request that $15.30 be deducted from each paycheck. This $7.60 per week is due to a nonresident alien being unable to claim the standard deduction on the tax return.

Tax Status and Withholding

Generally, J-1 summer work and travel participants are considered non-resident aliens for tax purposes. Participants are subject to federal, state, and local taxes. They are not, however, subject to FICA (social security tax) and FUTA (unemployment) taxes. For complete information, refer to IRS Publication 515.

Tax Treaties

Many participants are from countries, which have negotiated treaties with the United States affecting whether they pay U.S. Federal taxes. Participants claiming an exemption for all or part of their U.S. income must give the employer a completed IRS Form 8233 each calendar year.

The employer must verify the exemption exists before adjusting any withholding amounts. Tax treaties constantly change. Refer to IRS Publication 901 to verify a form 8233 claim.