|
|
|||
|
|
|||
|
Tax Information for ICCP Participants
The following information about tax issues is meant to provide general
guidelines only. Tax law is constantly changing and is subject to interpretation. For specific and updated information, you should contact the IRS, a tax accountant, a tax attorney, or
the US Embassy or Consulate in your country.
United States Taxes
As a nonresident alien participant on a J-1 Visa program, you are
exempt from paying United States Social Security and Federal Unemployment taxes. However, the stipend you earn at camp may be subject to the income taxes of the United States government
and the community and state in which your camp is located. If so, a small amount will be withheld from your pay. This is sent to the Internal Revenue Service (IRS) by your employer until
you apply for a tax return.
What You Can Expect
You are taxed as a nonresident alien on a J-1 Visa. However, you are
eligible for one personal exemption of $2,750, so not all of your stipend is taxable. Upon arriving at camp, you will need to fill out various tax information forms which will determine
how much tax you will have withheld from your pay. You will also have to apply for a U.S. Social Security number at the nearest Social Security office if you do not have one from a
previous stay in the U.S. It is important to get the United States Social Security number as soon as possible because it is needed to complete a United States tax return if you want to
get the withheld tax amount back.
Getting a U.S. Social
Security Number
If you do not already have a Social Security number from a previous stay
in the United States, you will need to apply for one at your ICCP orientation. If you are not attending an orientation and you are a first-time Direct Placement Program participant, you
must apply in person at the nearest Social Security office after you arrive. You will need to show your DS-2019 form, your passport with your J-1 Visa, and the “Sponsor’s Letter” which
is found in the centerfold of this booklet. When filling out the application form you will need to fill in your name exactly as it is printed in your passport. You will need to know your
mother’s maiden name (her family name at birth). You will use your camp address, not your home address. You will mark that you are a “Legal Alien Allowed to Work” (you are not a
student). Remember that dates are written month, day, year in the United States.
Filing a United States
Tax Return United States law requires that every employer 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 2002. The Form W-2 is used with a Form 1040NR to file your United States tax return. Before you leave the United States, you should get a Form 1040NR from the Internal Revenue Service or from this web site under "Forms".
You will have
until April 15 of the following year of your participation to file your income tax return. Instructions on how to fill out the 1040NR 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 United States embassy in your country.
After you send your completed Form 1040NR to the IRS, you can expect to
receive a United States Treasury check in a few months for any overpayment of taxes owed to you. If you have trouble cashing this check, contact the United States embassy.
International Tax
Treaties
Your country may have a tax treaty with
the United States which changes the amount of taxes you pay on income earned in the USA. If it does, you will want to fill out IRS Form 8233 and give it to your camp director. Currently,
tax treaties affect ICCP participants from: Armenia, Austria, Azerbaijan, Belarus, Canada, Georgia, Japan, Kyrgyzstan, Luxembourg, Mexico, Moldova, Sweden, Switzerland, Turkmenistan, Ukraine and Uzbekistan. Individual treaties specify the amount of money you can earn without being subject to tax, the length your stay in the United States may not exceed
to qualify, etc. 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 affect your United
States and home country tax obligations.
Government
Forms and Publications -and Where/How to Get Them
All IRS forms and publications can be ordered in the United States by
calling: 800–TAX FORM (800-829-3676)
IRS Forms: W-4 Employee’s Withholding Allowance Certificate
8233 Exemption from Withholding on Compensation for Independent Personal Services
of a Nonresident Alien Individual
W-2 Wage and Tax Statement
1042 Annual Withholding Tax Return for U.S. Source Income for Foreign Persons
1042S Foreign Person’s U.S. Source Income Subject to Withholding
IRS Publications:
515 Withholding of Tax on Nonresident Aliens and Foreign Corporations
901 U.S. Tax Treaties
519 U.S. Tax Guide for Aliens
USIA and INS Forms:
J-1 Visa issued by US Embassy or Consulate in person’s home country;
stamped in international staff person’s passport
I-94 Form issued at port of entry into US; stapled in passport DS-2019 Form issued by ICCP to international participant which he/she takes to US Embassy or Consulate in home country to apply for J-1 Visa; must be carried with passport. On the web......... |
|||
|
|
