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Taxes
Before you leave home, leave your address and phone number in your home country with your employer. They will need to send you the W-2 form necessary for your taxes in the new year.
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The following information regarding tax issues is meant to provide general guidelines only. Tax law is constantly changing and is subject to interpretation. For more specific and up to date information, you should contact the IRS, a tax accountant, a tax attorney, or the US Embassy or Consulate in your home country.
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European Student Services (ESS) provides tax advice especially for exchange program students. Visit their website at
http://www.ess.ie. Remember that even if they assist you, it is your responsibility to ensure that the forms are completed correctly. Check the forms for errors yourself.
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for additional information on taxes, go to the following categories
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Will I have to pay US taxes?
The US tax office known as the Internal Revenue Service (IRS) refers to
J-1 visa holders as 'nonresident aliens'. As a participant on a J-1 Visa program, you are exempt from paying U.S. Social Security and Federal Unemployment taxes. However, the wages you earn may be subject to the US Federal, state and local income taxes. State and local taxes vary depending on the state and town. If you are subject so taxes, they will be withheld from your pay. Your employer sends this to the Internal Revenue Service (IRS) until you submit a tax return.
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Can I get a refund of the taxes that I pay?
As a nonresident alien on a J-1 Visa, you are eligible for one personal exemption of $3,000, which means you will be entitled to a refund of any taxes paid on wages of $3000 or less. Upon arriving at your job, you will need to fill out various tax information forms which will determine how much tax you will have withheld from your pay.
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Filing a U.S. Tax Return
U.S. law requires every employer to provide each employee with a Form W-2 showing the income earned and taxes withheld during the calendar year. These forms are sent out before the end of January of the following year. You can expect your Form W-2 to be mailed in January 2005. The Form W-2 is used with a Form 1040NR-EZ to file your U.S. tax return. You can download the Form 1040NR-EZ from
www.irs.gov.
You will have until April 15 2005, to file your income tax return. Instructions on how to fill out the 1040NR-EZ and where to send it are found in IRS Publication 519. You can expect anything you read from the IRS to be extremely confusing. You can find help from the IRS Officer at the U.S. Embassy in your country.
After you send your completed Form 1040NR-EZ to the IRS, you can expect to receive a U.S. Treasury check in a few months for any overpayment of taxes owed to you. If you have trouble cashing this check, contact the U.S. Embassy in your home country. Refunds can also be direct deposited to bank accounts in the USA.
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International Tax
Treaties
Your country may have a tax treaty with the United
States that changes the amount of taxes you pay on income earned in the
U.S. If it does, you will want to fill out IRS Form 8233 and give it to
your host site director. Currently, tax treaties effect International
YMCA participants from: Armenia, Austria, Azerbaijan, Belarus, Canada,
Georgia, Japan, Kyrgyzstan, Luxembourg, Mexico, Moldova, Sweden,
Switzerland, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.
Individual treaties specify the amount of money you can earn without
being subject to tax, the length of time your stay in the US may not
exceed to qualify for treaty benefits. International treaty language is
very confusing. You may want to check with your Consulate in the United
States to find out how these treaties may effect your U.S. and home
country tax obligations. |
IRS Forms
All IRS forms and publications can be ordered in the United States by calling 1-800-TAX FORM (1-800-829-3676). They can also be downloaded at:
www.irs.gov.
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Form |
Function |
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1042 |
Annual Withholding Tax Return for US Source Income of
Foreign Persons |
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1042S |
Foreign Person's US Source Income Subject to Withholding |
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8233
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Exemption from Withholding on Compensation for
Independent Personal Services of a Nonresident Alien Individual |
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843 |
Request for Social Security Refund |
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941 |
Employer's Quarterly Federal Tax Return |
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W-2 |
Wage and Tax Statement |
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W-4
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Employee's Withholding Allowance Certificate |
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Publication |
Subject |
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515 |
Withholding of tax on Nonresident Aliens and Foreign
Corporations |
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519 |
US Tax Guide for Aliens |
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901 |
US Tax Treaties |
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