How do U.S. Taxes Apply to me as a J-1 SWT participant?

Table Of Contents

What taxes do I pay #

The taxes that Summer Work and Travel participants are expected to be paying are as followed:

  • Federal Income Tax
  • Local or City Income
  • State Income Tax

The taxes listed below are ones that Summer Work and Travel are not expected to pay:

  • Medicare Tax (FICA)
  • Social Security Tax (S.S.)
  • Federal Unemployment Tax (FUTA)

What is my tax rate #

Generally, these participants are considered nonresident aliens for tax purposes. Please find the summary of the relevant tax rates and rules:

  1. Federal Income Tax:
    • Nonresident aliens are taxed only on income earned from U.S. sources.
    • The federal income tax rate varies based on the amount of income earned. For 2024, the tax rates for nonresident aliens range from 10% to 37%, applied to different income brackets.
  2. State and Local Taxes:
    • Many states and localities impose their own income taxes, and rates vary significantly by location.
    • Participants will need to check the specific rates and rules for the state and city where they work.

How do I pay my taxes #

Sometimes, your employer has not withheld enough taxes during the course of your employment and you OWE taxes. In this case, you have the following options:

  • Pay right away when you file with the money being directly debited from an account with a U.S. account and routing number. 
  • File without paying and set up a payment plan with the IRS to settle your account later.  This can be paid with a debit or credit card and often you may be able to pay in lower installment amounts until the entire debt is paid. 

*Note – If you opt to pay later, you will probably still need to pay your tax filing service and you may be subject to interest and penalties from the IRS. 

Will I qualify for a tax refund #

The participant’s tax liability depends on the amount withheld from each paycheck. If insufficient tax is withheld, the participant may owe taxes and must cover the rest of the tax amount. On the other hand, if the withholding exceeds the amount that the participant is supposed to be paying, the participant becomes eligible for a tax refund and will receive the excess amount.

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