For tax filing purposes, most J-1 visa holders are considered Nonresident Aliens, (NR). As NR, exchange visitors and students must pay federal, state and local taxes. J-1 visitors must file annual income tax reports with the Internal Revenue Service (IRS), which is the U.S. government agency responsible for collecting federal taxes, as well as to their state of residence. Students with F-1 visas, are also subject to NR declaration and have particular filing requirements. Most of the information being provided pertains to J-1 visas. If you hold a student visa, please contact us for any questions.

Most J-1 exchange visitors will complete Form 1040NR during the first two years declaring taxes under a J-1 visa. Students under F-1, will file 1040NR for 5 years. Scholars under J-1 visa in the US for over 2 years, it is likely that you will qualify as “Resident Alien for Income Tax Purposes” in your third year declaring taxes. Should you qualify to file taxes as a Resident Alien, you will file Form 1040, which is the standard form used by most U.S. citizens and legal resident aliens.

You will need the W-2 form to complete your tax return. Your host organization is legally required to send you a W-2 form showing all earned income paid to you during the current calendar year by January 31. Contact your host organization's human resources department or your supervisor if you have not received form W-2 by that date. Instead, or in addition to the W-2, you may receive IRS form 1042-S. Form 1042-S is usually distributed after March 15. Hence, you will need to until you receive this form to prepare your taxes.

Yes. Even if you were in the U.S. for one day as a J-1 exchange visitor and did not earn any U.S. income, you still need to file Form 8843, the Statement for Exempt Individuals and Individuals With a Medical Condition.

If your country has a Tax Treaty with the U.S, you may be exempt from paying federal taxes. The tax treaty may apply for a limited number of years. During the applicable time you may benefit by being exempt from federal taxes. But be careful, although you may not owe federal taxes, your income might be subject to state taxes

U.S. residents and some nonresidents also pay Social Security and Medicare withholding taxes. If you are a J-1 visa holder, you may be exempt from paying these taxes. General speaking, if you carry out your job functions in accordance to the purpose of your visa, you will be exempt from social security taxes.

All J visa holders must file a return. If the J-2 has not earned money in the United States, file Form 8843. If money has been earned, then also file Form 1040NR. The J-2 who earned money may also be responsible for Social Security and Medicare taxes.

If you underpaid total taxes to the government during a tax year, you will have to pay additional taxes to the IRS. You can pay online using a credit or debit card, choosing one of the payment processors on the IRS website.

You will receive a refund, which means you get money back from the IRS for taxes that you overpaid to the government. J-1/J-2 filers generally file paper returns. Based on our experience, refunds can take from 3 months to over a year. Also, up to this writing, the IRS does not accept electronic income tax filings for most J-1/J-2 income tax payers.

The IRS will mail a check to the address shown on your tax return. They will not send an electronic payment to a foreign bank account.

Most taxpayers must file state taxes in addition to filing federal taxes. You may need to file a State Income Tax return. Find the website for each State’s Department of Revenue in our page about Estimating and Paying Taxes.

Often a research scholar leaves the US during the year. This means that he/she will not be available to file taxes during the tax season, (January to April). In these cases, the taxpayer can leave a Power of Attorney to the Preparer to sign and file taxes on their behalf. Also, MCS can send the filing papers via e-mail or a secure method for you to print and send from a foreign location.

When the IRS receives the W-2 or 1042-S form from an employer but cannot match it to a tax return, because it has not been filed; the service creates a tax return that assumes unreported revenue. You then become liable for the tax on this created return. Should you wish to return to the U.S. for employment purposes in the future, you will discover you owe unpaid tax plus interest and penalty.