General Tax Information

All J-1 interns/ trainees must register tax and income information with the Internal Revenue Service (IRS). This information is based on your earned income during a calendar year. You must these earning to the IRS by April 15 of the following year.

Taxes are collected at the federal, state, and local levels. Every individual in the United States who earned income during the calendar year must pay a federal tax. State and local taxes vary depending on where you live in the U.S.

If your host company is paying you during your internship, a certain amount of money will probably be withheld from each paycheck for taxes. This amount is an estimate of the taxes you owe, based on your wages and your answers to Form W-4, which you will complete when you start your internship. The money withheld from your paycheck will be paid to the IRS. Because this is only an estimate of the amount owed, you will need to determine if the correct amount was paid by completing the appropriate paperwork. If you underpaid, you will need to send the IRS a check to make up the balance. If you overpaid, the IRS will send you a tax refund.

If your internship was unpaid, you do not need to pay taxes; however, you will still need to submit documentation to the IRS.

The staff at CDS are not tax professionals and are therefore unable to provide you with any information beyond what is included on these pages. While we will try to help you as much as possible, we cannot be held liable for any mistakes that may occur when filing your tax returns.

Starting your Internship: Form W-4, Form I-9, and Tax Exemptions

All J-1 interns/trainees must complete two tax forms and return them to their supervisor or human resources representative at the start of their internship. These are:

1. Form W-4 (Employee’s Withholding Allowance Certificate)
2. Form I-9 (Employment Eligibility Verification)

Form W-4

Form W-4 is used to estimate the amount of taxes you will owe. Refer to our sample Form W-4 and follow the instructions below when completing it.

J-1 Intern Requirements

Box 1	Enter your contact information, including your U.S. address. All future tax information will be sent to this address, so use a long-term address if possible.
Box 2	Enter your Social Security Number. If you have applied for one but have not yet received it, write “Applied For”.
Box 3	Mark “single”, regardless of your true status.
Box 4	Do not mark.
Box 5	You may only claim one allowance. Enter 1.
Box 6	Enter $0.00 or more if you want an additional amount withheld from your paycheck
Box 7	Leave blank — non-residents may not claim “exempt” status. Sign and date the form.
Boxes 8–10	Your employer will complete these sections

Form I-9

Form I-9 verifies your identity and confirms that you are eligible to work in the United States. You will only need to complete section one; your employer will complete the rest. When submitting this form to your employer, you will need to present your passport and Form I-94.

Tax Exemptions: FICA and FUTA

J-1 interns/trainees do not pay taxes on Social Security and Medicare (FICA) or Federal Unemployment (FUTA). There is no form for claiming these exemptions. It is your responsibility to remind your host company about this. Your host company should attach a statement to their Forms 940 (FICA tax return) and 941 (FUTA tax return) stating that J-1 visa holders are not subject to FICA and FUTA withholding.

If FICA or FUTA taxes are withheld in error by your host company, you must contact a human resources representative for assistance. The host company can issue a refund and correct Forms 940 and 941. If the host company is unwilling to provide a refund, you will need to complete IRS Form 843, “A Claim for Refund and Request for Abatement”, and submit it along with supporting documentation and evidence to the Internal Revenue Service Center in Philadelphia.

Filing Your Taxes

All J-1 interns/trainees must file a U.S. tax return, even if your internship or training program was unpaid. A tax return is a report detailing your annual income and your status as a taxpayer. Tax returns are due by April 15 for wages earned in the previous calendar year.(For example: If you worked from February 2012 to November 2012, you must file your taxes by April 15, 2013. If you worked from June 2015 to July 2016, you must file your taxes twice. The first filing would include June – December 2015 and would be due on April 15, 2016. The second filing would include January – July 2016 and would be due on April 15, 2017).

Tax Documents for Unpaid Interns/Trainees

Interns earning no income must only complete only one form: Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition). If your spouse came with you on a J-2 visa, s/he must also complete his/her own, separate form. This form must be sent to the IRS by April 15.

Tax Documents for Paid Interns/Trainees

When you started your internship, you and your host company filled out Form W-4. The answers from this form determined the estimated amount of taxes you would owe annually. A proportion of this amount was deducted from each pay check and paid directly to the IRS. Since this was only an estimate, you must now determine the exact amount of taxes owed for the year based on your final annual income; several IRS forms (see below) will help you with this process.

Collect the Necessary Forms

You will need to collect the following forms before filing your taxes. Not all forms will apply to you; therefore, you may not receive all of the forms listed below. Most J-1 interns/trainees will only receive Form W-2.

• Form W-2: This form lists all taxable income, as well as federal, state, and local taxes already withheld. Your employer is required to send this form to all paid employees, including J-1 visa holders, by January 31. Be sure that the address they have on file is current. If you will be leaving your host company before January 31, be sure your employer has an up-to-date mailing address.
• Form 1042-S: This form lists all tax reportable fellowship and scholarship income you may have received, amongst other items.
• Form 1099-INT: This form lists any interest you may have received on funds saved in U.S. bank accounts.
• Form 1099-G: This form lists any tax refunds previously received.

Complete and File Your Tax Return

Once you have collected the necessary forms, you will use this information to complete several documents related to federal, state, and local taxes. You may want to have a tax professional prepare and file your tax return for you. This service can cost anywhere from $60 to $300. Alternatively, you might consider purchasing IRS-approved tax software, such as TurboTax, which will help you calculate and file your taxes electronically, including state and local taxes. CDS is unfortunately unable to offer in-depth tax assistance due to laws and regulations.

You will need to complete the following forms when filing your taxes

Form 1040NR-EZ or Form 1040NR

You will need to complete either Form 1040NR-EZ (U.S. Income Tax Return for Certain Nonresident Aliens With No Dependents) or Form 1040NR (U.S. Nonresident Alien Income Tax Return) and submit it to the Internal Revenue Service by April 15. Interns/trainees should complete Form 1040NR-EZ if they meet the following requirements:

• no dependents (spouse, children, etc.);
• cannot be claimed as a dependent on another person’s U.S. tax return;
• received only wages, compensation, and/or a scholarship or fellowship grant; and
• received less than $50,000 of total income and had no “away from home” business/travel expense or other general deductions.

If you do not meet these requirements, you will need to complete Form 1040NR.

Form 8843

Form 8843 (Statement for Exempt Individuals and Individuals with a Medical Condition) is an information statement required by the IRS of anyone who resided in the United States on the J-1 or J-2 visa. This form should be submitted to the IRS with Form 1040NR-EZ or Form 1040NR.

State and Local Forms

You may also be required to file taxes at the state and local levels. You will need to contact the appropriate office in your state to receive these forms. When requesting forms, be sure to specify that you are a nonresident.

Once you have completed all forms, you will need to submit them to the IRS and your local tax authorities before April 15. Be sure to photocopy all forms before sending them.

The information provided here should be used only as a guideline. CDS cannot be held liable for any mistake that may occur when you file a return with the Internal Revenue Service, or with state and local tax agencies.