J-1 víza dane v USA - všeobecný prehľad
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Each year, tens of thousands of individuals come to the US on J-1 student visas.
All J-1 participants are legally required to file taxes.
Many J-1 visa holders find US tax terminology confusing, but it’s not as daunting as it appears. A basic understanding of your tax obligations can be very helpful!
To assist with this, we’ve written a blog post addressing common questions from J-1 participants in the US.
J-1 visa taxation in the US
J-1 visa holders in the US are required to pay taxes on any income they earn from US sources during their stay.
The amount of tax you owe depends on several factors, including your earnings, the tax rate in your state, and whether your home country has a tax treaty with the US.
There are different tax rates for J-1 visa holders based on income levels. All non-residents must pay 10% on income up to $11,600 (2024 Tax Brackets). If you earn more than this, you must pay 12% on the income between $11,601 and $47,150.
As nonresident aliens, J-1 participants must pay federal, state, and local taxes on various types of income, including:
- Wages and compensation
- Salaries
- Tips
- Other income not usual for J-1 visa participants (Interest, dividends, etc)
Tax residency for J-1 visa participants
Determining your U.S. tax residency status on a J-1 visa is crucial for filing a compliant tax return.
Most J-1 visa holders in the US are classified as nonresident aliens for tax purposes. This classification is based on the substantial presence test, which the IRS uses to determine if an individual who is neither a US citizen nor a permanent resident should be taxed as a US citizen or a nonresident alien for a given year.
The key difference is that US citizens are taxed on their worldwide income, while nonresident aliens only report their US-sourced income.
When you prepare your tax return with Tax Wizard, we will automatically set your tax residency based on provided information. Be aware, 99.9% of J-1 visa participants are considered as non-residents for Tax purposes in the US.
How to file nonresident tax return in the US?
To file your J-1 tax return, remember that the deadline for the 2024 tax year is April 15th. Every J-1 participant must fulfill their tax filing obligations.
If you earn income in the US, you are required to file a tax return. It’s crucial to file correctly to avoid fines, penalties, or jeopardizing future US visa or green card applications.
When preparing your US tax documents, you will need:
- Passport
- US entry and exit dates for current and previous visits
- W-2 form
- Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
The 1040NR form can be particularly challenging for nonresidents, so take your time and follow the instructions carefully. Many sections may not apply to you, and most of the required information will be your personal details, earnings, taxes paid, and any refund amounts (if applicable).
Forms to Fill Out for J-1 Visa Holders
If you earned income from US sources during the year, you will likely need to file Form 8843 and Form 1040NR to complete your tax return. You will need to provide your name, current address, Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and other personal information.
Form 1040NR is your US tax return, which you can file along with a copy of your W-2 at the end of the tax year. Additionally, you will need to submit a Form W-2 (Wage and Tax Statement with your tax return. These forms report wages paid and taxes withheld by your employer, who must send them to you by January 31st.
Tax Exemptions for J-1 Visa Holders
General Exemptions
J-1 visa holders are exempt from certain taxes, such as Social Security and Medicare (FICA tax). Your tax obligations may also be influenced by tax treaties between the US and your home country. However, as a nonresident J-1 participant, you cannot claim the American Opportunity Tax Credit (AOTC).
Exemptions for Different Roles
The tax exemptions are the same for J-1 students, teachers, and trainees. The only available deduction, if there is no tax treaty benefit, is for state and local taxes paid during the year, capped at $10,000.
Tax Rates
For the 2024 tax year onwards, nonresidents must pay 10% income tax on earnings up to $11,600. If you earn more, you must pay 12% on the amount between $11,601 and $47,150.
Tax Treaty Benefits
Most J-1 participants, such as those in work & travel programs or au pairs, cannot benefit from tax treaties. However, students, teachers, researchers, scholars, and trainees may qualify for certain tax treaty benefits if they meet the requirements.
Consequences of Not Filing a Tax Return
Failing to file your tax forms after your J-1 program can result in penalties and interest. The late filing penalty is 5% of the additional taxes owed for each month your return is late, up to a maximum of 25%. If you file more than 60 days after the due date, the minimum penalty is $485 (after December 31, 2023) or 100% of your unpaid tax, whichever is less. Non-compliance may also affect future US visa applications.
Tax Refunds for J-1 Visa Holders
J-1 participants may be eligible for tax refunds. The average federal J-1 tax refund is $665. You may also be entitled to a state tax refund, depending on where you lived and worked. Tax Wizard can help determine if you’re due a refund. You can use our free tax calculator on our website.
Direct Deposit for J-1 Tax Refunds
IRS as well as state tax agencies can issue the refund only to US located bank accounts or sending the check to your address. We encourage everyone to use the direct deposit option if available (if you still have your US bank account or you can set up free Wise account – check our Blog for Wise account set up).
Tax Wizard is a great resource for J-1 visa holders. We specialize on all nonresident tax scenarios including Work and Travel USA, Camp counselor & other types of J-1 or other nonimmigrant visa.
We are approved IRS e-file provider of all types of US tax returns including state returns.
With Tax Wizard, you can:
- Electronic filing of both Federal & State tax return
- Registration is easy & paperless
- We take care about every aspect of your US tax filing process (you don’t have to send any documents physically anywhere)
- Refer your friend and get a cash bonus for your registered friends
- Dedicated customer support through the whole tax return process