Resident or Nonresident Alien?
The IRS requires that the trainee provide information to the employer to determine this status. Many trainees are considered resident alien J-1 tax payers due to the length of time they have been in the U.S. on a J-1 visa in the past. To determine the trainee's status, follow these steps:

  1. List the calendar years in which the trainee has previously been in the  United States on a J-1 visa during the last six years.

  2. Add to the list the calendar years the trainee will be with your institution on the current J-1 visa.

  3. Delete the earliest two years.

  4. If the current year is no longer on the list, the trainee will be taxed as a non- resident alien. Go to Step 12

  5. Determine the total number of days the trainee will be in the United States during  the current calendar year. _____

  6. If the trainee will be in the US for less than 31 days in the current calendar year, the status is nonresident alien for tax purposes.  If so, go to Step 12.

  7. If the previous calendar year is still on the list, determine the total number of days during that calendar year the trainee was in the United States. Divide this number by 3. ____

  8. If the list still shows two calendar years ago, determine the total number of days  the trainee was in the US during that year. Divide this number by 6.  ____

  9. Add the resulting numbers in steps 5, 6, an 7. _____(All days in current year, 1/3  days in last year, 1/6 days in two years ago.)

  10. If the result is less than 183, the  trainee is taxed for this calendar year as a nonresident alien.

  11. If the result is 183 or  more, the trainee is taxed for the current calendar year as a resident alien.

  12. If the trainee is still here on next January 1, repeat from step 1.
Tax Treaties
Many YMCA international trainees are from countries, which have negotiated treaties with the United States affecting whether the trainee pays US Federal taxes. Trainees who are claiming US tax exemption for all or part of their US 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. IRS Publication 901: US Tax Treaties can be used to verify a Form 8233 claim.