The U.S. federal income tax is levied by the Internal Revenue Service (IRS) on the annual earnings of individuals, corporations, trusts, and other legal entities. Federal income taxes apply to all forms of earnings that make up a taxpayer’s taxable income, including wages, salaries, commissions, bonuses, tips, investment income, and certain types of unearned income.

In the U.S., federal income tax rates for individuals are progressive, meaning that as taxable income increases, so does the tax rate. Federal income tax rates range from 10% to 37% as of 2024 and kick in at specific income thresholds.

The income ranges to which the rates apply are called tax brackets. Income that falls within each bracket is taxed at the corresponding rate.

Tax Return #

• Taxpayers file annual tax returns, reporting their income, deductions, and credits to calculate their tax liability. 
• If they have overpaid during the tax year, they will receive that money back from the IRS as a tax refund!
• Tax evasion and non-compliance are subject to penalties, so it is VERY important to meet your tax obligations accurately and on time!

Tax Filing for J-1 Participants #

• ALL J-1 participants are LEGALLY REQUIRED to file their tax return. Failing to due so or filing an inaccurate or false return may lead to legal penalties and being denied entrance to the United States in the future!
• As a J-1 SWT Visa holder, you had at least one source of income in the U.S., maybe more.
• Some or all of this income may be subject to U.S. taxation. 
• Your employer should withhold taxes from your paychecks, which will go towards your federal and state income tax liabilities. 
• Beginning in February, the year after you return home, you are able to file a tax return and may receive a portion of that tax money back! 
• NOTE: If your employer withheld less than 10% of your total wages, you will probably owe on your Federal return. This is why filling out your form W-4  correctly is so important!!