Spirit Cultural Exchange Spirit Cultural Exchange Spirit Cultural Exchange Spirit Cultural Exchange
  • TRAVEL
    • Intern & Train in the US
      • Available Positions
    • Teach in the USA
      • Available Positions
    • Work & Travel in the US
    • Volunteer in Ecuador
  • HOST
    • Host a BridgeUSA Intern or Trainee
    • Host an International Teacher
    • Host Work & Travel
  • BLOG
  • GET STARTED
    • Get Started – Travel
    • Get Started – Host
    • Get Started – Recruiting Partners
  • LOGIN
Spirit Cultural Exchange Spirit Cultural Exchange
  • TRAVEL
    • Intern & Train in the US
      • Available Positions
    • Teach in the USA
      • Available Positions
    • Work & Travel in the US
    • Volunteer in Ecuador
  • HOST
    • Host a BridgeUSA Intern or Trainee
    • Host an International Teacher
    • Host Work & Travel
  • BLOG
  • GET STARTED
    • Get Started – Travel
    • Get Started – Host
    • Get Started – Recruiting Partners
  • LOGIN
Nov 22
IRS

U.S. Tax Resources for Spirit Participants on a J-1 Visa

  • General

As you settle into your Host Company, School, or Employer, you may notice that a portion of your income is deducted on each paycheck to cover a variety of taxes. We know that this can be confusing and overwhelming but there are many resources available to help!

While going through this process, it’s important to protect your personal information and financial details. It is very common for scammers to call/email and pretend to be with the U.S. government or Social Security Administration to try and collect your information. You should only share your information with trusted sources.

We encourage you to review the information below before you take steps to file your tax returns.

Filing Taxes

What is a Tax Return?

Each paycheck contains a deduction that is used to cover the amount you are expected to owe to the state and federal government for taxes. However, that expected amount is not always accurate and you will need to review your financial documentation to confirm if you have paid too much, the right amount, or not enough. This process, and the information you will submit to the U.S. and state governments is called your tax return.

Each year, tax returns must be filed by April 15th, also known as Tax Day!

What taxes am I responsible for paying?

Generally, for the first two tax years in the U.S. on a J-1 visa, you are not required to pay Social Security and Medicare taxes, as well as federal unemployment taxes. You can expect to pay Federal Income Taxes, State Income Taxes, and in some cases, state unemployment taxes. This is generally 20-30% of your income.

Paying Taxes

You can expect to pay taxes on 20-30% of your paycheck

If you are a participant in Spirit’s Teacher Program, your tax burden will typically change as you enter the 3rd tax year of your program. We encourage you to speak with the Human Resources and/or Payroll Department of your school to confirm your revised tax burden.

The taxes for J-2 dependents with approval to work in the U.S. are generally handled differently but can expect to pay all Social Security, Medicare, and federal unemployment taxes.

How do I file a Tax Return?

You may start to see lots of ads on TV for services who will help guide you through the tax filing process. However, most of those services are NOT familiar with handling tax preparation for J-1 visa holders and should not be used.

Tax Preparation Companies

Most tax preparation companies are not familiar with taxes for J-1 visa holders

First, you will need to collect the W-2 provided by your company, school, or employer. The W-2 document summarizes your income and taxes from the past calendar year with that specific company or organization. You should not expect your W-2 until January. Some W-2s will be available online, but other times it will be sent via email. Talk to your Host Organization if you have any questions about receiving your W-2!

*If you participated in Spirit’s Work and Travel program and had a 2nd job, you will need to collect W-2s from all companies you worked with. This does NOT apply to Intern/Trainee or Teacher participants, as those programs do not permit additional employment.

Once you receive your W-2s, Spirit suggests utilizing a company called Sprintax who has experience with assisting J-1 participants through the tax filing process. You will receive an email from Spirit in January with information about how to use this service.

Spirit Tax Email

Spirit will send you an email in January with more tax information

To help you through this process, Spirit will provide FREE federal tax filing services through Sprintax. You will be responsible for covering the fees associated with filing your state taxes (generally, this is $19.99).

Important Terms to Know

As you go through the tax return process, there will be many new terms/words used. Some of the most common tax related terms are:

  • Adjusted Gross Income (AGI): This is a combination of your income with adjustments made for certain deductions. This number may be different than your annual salary or pay rate.
  • Deductions: This is a value of money that you can subtract from your gross income due to certain qualifying expenses. The amount of available deductions varies by your level of income.
  • Dependent: Someone you support, generally this is a child under the age of 18.
  • Electronic filing: This is when you submit your tax return to the IRS digitally, rather than through a paper filing, which is done through the mail.
  • Federal Insurance Contribution Act (FICA) Tax: The amount of your income contributed towards Social Security (a fund that pays retired individuals a certain amount each month) and Medicare (a health insurance option available to individuals over a certain age).
  • Filing Status: This refers to your status as either single, married (filing jointly with your spouse), married (filing separately from your spouse), or head of household.
  • Tax Bracket: Your tax bracket applies a certain tax rate based on your level of income. Typically, your tax rate (or the percentage paid in taxes to the government) increases based on your income.
  • Withholding: Amount held from your wages each paycheck to cover your taxes. If you have had too much of your income withheld throughout the year, that extra money will be returned to you. For a longer list of helpful definitions, click here.

Filing Taxes

If you have additional questions about taxes, we encourage you to speak with your Human Resources/Payroll Department or speak directly with Sprintax. Taxes can be very complicated and it is important to only take advice from trusted and experienced sources.

  • Facebook
  • Twitter
  • Pinterest
  • LinkedIn
  • E-Mail

Related Posts

  • Have questions about applying to Spirit’s Teacher Program?April 13, 2023
  • Ice Skating Safety TipsDecember 27, 2022
  • Tips for U.S. WinterDecember 12, 2022
  • Our 2022 Summer Photo Contest Grand Prize WinnerAugust 9, 2022

Comments are closed.

Recent Posts

  • White Sox Game with Spirit Interns and Teachers!
  • Spirit’s Independent Teacher Program 101
  • Wisconsin Dells CSG Forum Engages Host Employers in the Community
  • Spirit Celebrates National Teacher Appreciation Day!
  • Have questions about applying to Spirit’s Teacher Program?

Categories

  • General (78)
  • Interns & Trainees (34)
  • Spirit Participants (65)
  • Spirit Staff (82)
  • Teacher Program (20)
  • Volunteer Abroad (124)
  • Work & Travel (624)

Get In Touch

spirit exchange logo
137 North Oak Park Avenue,
Suite 304

Oak Park, Illinois
60301 USA

CONTACT US

Covid-19 Resources

Quick Links

  • About Us
  • Recruiting Partners
  • Work at Spirit
  • Privacy Policy, Terms And Conditions
  • LOGIN

Recent Blog Posts

  • White Sox Game with SpiritWhite Sox Game with Spirit Interns and Teachers!

Follow Us

Visit Us On TwitterVisit Us On FacebookVisit Us On YoutubeVisit Us On LinkedinVisit Us On Instagram

Sign Up to Get Tips on J-1 Visa Programs

Copyright 2020 Spirit Cultural Exchange. Website by Nicole Sankowski Design
  • Privacy Policy/Terms & Conditions

Spirit Cultural Exchange collects personal data about visitors to our website to provide program services and provide a personalized experience. By clicking the button below you are agreeing to the information practices in Spirit's Privacy Policy, Terms and Conditions.

Cookie settingsOk, I agree
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT