According to the rules of exchange programs, J-1 participants are not subject to all taxes Americans pay. Work and Travel USA program participants must have a Social Security Card, but they are EXEMPT from Social Security, Medicare and Federal Unemployment tax.

J-1 participants must pay

• Federal income tax.
• State income tax
• Local income tax

J-1 participants do not pay:

• Social Security.
• Medicare (FICA).
• Federal Unemployment (FUTA)

How to Complete a W-4 Form for your J-1 Participants

The IRS provides the following instructions:
•    Do not use the Personal Allowances Worksheet at the top of the W-4—this is for U.S. residents only
•    Check only “Single” marital status on line 3, regardless of actual marital status
•    Claim only one withholding allowance (enter “1” on line 5)
•    Write “Nonresident Alien” or “NRA” above the dotted line on line 6 of Form W-4.
•    J-1 Visitors cannot claim “Exempt” withholding status on line 7

 

 

If you have more questions, please contact IRS: www.irs.gov/businesses