All J1 visa holders must pay some taxes. However,
there are certain taxes that you are exempt from.
Taxes
you must pay
Taxes you may pay
Taxes you don't pay
Tax Return Information - this must be filed at the
end of the calendar year
Taxes you must pay
• Income tax: These taxes are imposed by government federal and
state and must be paid. Failure to do so will cause problems. These
taxes are withheld from your salary on a 'pay as you earn'
basis
• Federal Income Tax: Approximately 10-15% of your wages will be
withheld and paid to the federal government. You may be able to
claim a portion of this back at the end of the year.
Taxes
you may pay
• State & City Income Tax: These taxes will depend on what state
and/or city you work. State income tax is usually 5-8% and city
taxes vary. These taxes will also be withheld and you may be able to
get a partial refund at the end of the year
Taxes
you don't pay
• Social Security tax: You are exempt from paying social
security tax. Some employers may make a mistake - you will see this through
deductions under 'FICA'. In this case, show your employer your
sponsorship letter.
• Medicare tax: You are exempt from paying Medicare tax.
Also, deducted under 'FICA'.
• Federal Unemployment Tax: You are exempt from
paying Federal Unemployment tax (FUTA).
