Taxes for J-1 Exchange Visitors
INCOME TAX
Earnings from J-1 Employment are usually subject to federal, state, and local income taxes. An employer is required by law to withhold these taxes from paychecks. All J-1s who have earned income from US sources must prepare and submit income tax forms by April 15. Even if an EV departs the USA, s/he is still obliged to file tax returns.
By April 15, federal income tax forms must be submitted (filed) with earning statements from employers covering the prior calendar year to determine whether one owes more taxes or is due a refund. If financial support is being provided from home country sources and the EV does not have US income, s/he does not have to report or “file” income taxes. Persons who earned income from a job in the US will receive a W-2 form that must be included with the documents submitted to the Internal Revenue Service with a “tax return” form. You will receive Form 1042-S instead of Form W-2 for the amount of your income that is exempt from taxes because of a tax treaty.
If an EV qualifies under a tax treaty between the United States and his/her home government, earnings, or some portion of earnings, may not be taxable. However, exemption from taxation because of a tax treaty is not automatic. Please consult the International Tax Coordinator, Linda Dunbar, in the Office of International Students and Scholars for more information.
SOCIAL SECURITY TAX
J-1 visa holders are subject to Social Security and Medicare withholding if they are residents for tax purposes. Generally, J-1 professors and researchers become residents and subject to these taxes after 2 years. Students generally become residents for tax purposes after 5 years. However, students who work for the university they attend are not subject to Social Security Tax. For those EVs who have had several visits to the United States, the determination of residency for tax purposes can be complicated. If you are employed by OSU, the determination will be made by the International Tax Coordinator in the Office of International Students and Scholars.
For more information, see Internal Revenue Service Publication 519, “US Tax Guide for Aliens” at http://www.irs.gov/publications/p519/index.html.
NOTE OF CAUTION:
J-1 visa holders are eligible for employment within the regulations of the Exchange Visitor Program. Working without proper authorization for employment is a SERIOUS violation of J-1 status and could affect all future attempts to apply for visas to the United States. Remember that before starting any kind of employment, J-1 Exchange Visitors must first consult the J-1 Responsible Officer or Alternate Responsible Officer in the Office of International Students and Scholars. Written approval/authorization for employment is necessary in advance of starting work.