Thousands of people travel to the US on J-1 visas every year.
But did you know if you go to the US on a J-1 visa you have a tax-filing requirement? It’s the law!
With that in mind, we have put together this post that outlines all J-1 Scholars need to know about tax when in the US. Continue reading “The Ultimate J-1 scholar tax guide” »
The camp counselor program allows you to share your culture and ideas while working in a camp setting in the US.
To take part in the camp counselor program, you need a J-1 cultural exchange visa. This visa allows non-immigrant aliens to temporarily live in the US to participate in the summer camp.
Generally, J-1 camp counselors are considered nonresidents for tax purposes. You must fill out important tax documents when you arrive at the camp, and your camp director can help you with this. Continue reading “Tax guide for summer camp counselors on J-1 visa” »
It has never been easier to file your nonresident US federal tax return.
We are thrilled to announce that Sprintax – the best online solution for nonresident federal and state tax returns – is now live for Federal E-Filing.
This means that, by completing the easy Sprintax questionnaire, you can file your 2023 federal return directly with the IRS online.
Sprintax is now approved by the IRS to submit Federal tax returns electronically (E-Filing).
In short, this means you no longer need to download, print and mail a physical copy of your tax return to the US tax office. Instead, you can now file your federal tax return without ever having to leave the comfort of your own home.
By E-Filing your tax return, you can ensure that your taxes are processed by the IRS faster than if you filed a paper tax return.
When you complete the Sprintax questionnaire and proceed through the order breakdown and payment stage, you will be ready to submit your 2023 US tax return.
If you wish to E-File your taxes, you must firstly confirm that you have not previously E-Filed your tax return before.
You can then click the ‘Proceed with E-File’ button to move to the next step.
To E-File your tax return you must first electronically sign your tax return using the information requested on the screen.
Before you can sign your return, we must verify your identity. To do so, we will ask you to provide information from your previous federal tax return.
If you filed a federal tax return last year, you can either provide your prior year adjusted gross income or your self-selected 5-digit pin.
You can find your adjusted gross income on line 11 of your 2022 1040NR. Please ensure the information you provide here is correct.
If you did not file a tax return for tax year 2022, please enter ‘0’ as your prior year adjusted gross income.
If you filed an amended tax return for tax year 2022, please enter the adjusted gross income listed on the return you filed originally.
You will be required to select any 5-digit number (other than 00000) to electronically sign your tax return. Ensure you keep a record of this pin in a safe place.
You will need to acknowledge that this pin is your signature and that and that you are now authorizing transmission of your return.
Next, you must read the disclaimer and consent statements and confirm your agreement and that you have reviewed the information that you have entered and examined your tax return.
You will also need to confirm that the social security numbers of each person on the return are correct.
You must then sign the above consent disclosure by entering your date of birth.
Finally, simply click ‘E-File My Return’ to electronically send your tax return to the IRS.
No. You can only E-File your federal tax return with Sprintax.
However, if you are required to file a state tax return, Sprintax will help you to prepare the documents you need.
When you complete our questionnaire, our software will provide you with your completed state tax return.
To file your tax return, simply download, print and sign your documents and mail them to the tax office.
At present, E-Filing is only available for the 2021 tax year and later years.
However, Sprintax can help you to prepare the tax documents you need for prior tax years.
No.
You will not be able to file online if:
If you are not eligible to E-File your taxes, don’t worry. You can still download your completed forms from Sprintax and mail them to the IRS
Note: If your W2 forms do not have a control number you must enter any 5 digit number instead.
No. If you would prefer not to file your taxes online, you can file by mail instead. Simply download your tax return, print it, sign it, and mail it to the IRS.
It is important to file your tax return before the 15 April 2024.
If you owe the IRS money and you don’t file your tax return by the deadline, you may incur late filing fines and penalties from the IRS. You may also jeopardize your future US visa applications.
What’s more, 70% of Sprintax users receive a tax refund. By not filing, you risk missing out on your tax refund.
The average federal refund is $1,004. Do you really want to leave that kind of money in the US? Of course not!
Every nonresident in the US has a tax filing requirement.
If you earned income in the US, you will be required to file a federal tax return. You may also have a state tax filing requirement.
Nonresident aliens who are in the US on a J or F visa must file a Form 8843 “Statement of Exempt Individuals and Individuals with a Medical Condition” even if they received no income in the US.
No matter what nonresident tax document you need to file, Sprintax can help you.
Get started with your US nonresident tax return here.
Sprintax will cater to all of your nonresident tax filing requirements.
To file your US federal tax return online with Sprintax, simply create your account or login here.
Next, we will ask you a couple of easy questions about your time in the US and the income you earned.
Our software will then automatically apply any treaty benefits or tax relief you are entitled to – minimizing your tax bill!
You will then have the opportunity to either E-File or download your completed documents.
It’s that easy!
Are you going to the US to work for the winter season?
If so, it’s likely that you have many questions on the types of winter work jobs available, the Winter Work and Travel program, H-2B visas, tax residency status, claiming your tax back afterwards, and more!
In this article, we will delve deeper into the above topics to answer frequently asked questions. Continue reading “Tax information for nonresident winter workers in the US” »
(Last updated: 22 Jan 2024)
Each year, thousands of au pairs move to the US to live with host families.
We’ve put this handy guide together to fill you in on everything you need to know about foreign au pairs and tax in the US.
Continue reading “A Complete Tax Guide for Au Pairs in the U.S.” »
Tax filing might not be the most exciting aspect of international student life in the US.
After all, tax returns for international students probably weren’t high on your list of priorities when moving to the US!
However, the importance of completing these forms correctly cannot be underestimated – the way you handle your international student tax affairs will have a major impact on future Green Card and visa applications.
With this in mind, we’ve created this handy tax guide for international students and scholars in the US on an F-1 visa.
We’ve covered everything you need to know about tax returns, refunds, and how to stay in the taxman’s good books! So, let’s get started!
![IRS form 8843 instructions [2024]](https://blog.sprintax.com/wp-content/uploads/2020/01/how-to-file-form-8843-1500x844.jpg)
There are 3 things that every US international student and J-1 visa holder needs to know about American tax:
Regardless of whether you have earned income during your time in the US, if you are a nonresident in the US, you will still need to file what’s known as a Form 8843 “Statement for Exempt Individuals and Individuals With a Medical Condition”.
This blog post will focus on exactly what you need to do in order to file this form and remain compliant with the IRS.
NOTE: If you are considered a resident for tax purposes, you are not required to file IRS form 8843.
Continue reading “How to file Form 8843 – instructions for nonresident aliens” »
The deadline for filing your 2023 US tax return is April 15, 2024, and it’s never too early to start preparing.
There’s no doubt that, whether you have filed a tax return before, or this is your first year with a filing requirement, the tax season can be a real headache.
In this blog, we’ll look at 5 things every nonresident alien in the US can do to ensure their tax season runs as smoothly as possible.
Continue reading “How to prepare for the 2023 US tax season” »
As a nonresident in the US, IRS Form 1040-NR is one of the most important tax forms you will need to familiarize yourself with when tax season comes around.
After all, the 1040-NR is the form you will use when filing a tax return with the IRS.
In this blog, we’ll analyze whether or not you need to file 1040-NR, and share our top tips on how to file your tax return correctly.
(Updated for 2024)
Capital gains tax (CGT) is a tax imposed on profit earned from the sale of specific assets.
For nonresident aliens, these assets often include investments like stocks, real estate, cryptocurrency and personal property.
So, while living in the US, you may be subject to capital gains tax when you sell these assets and earn a profit.
Many nonresidents in the US find it challenging to manage their CGT responsibilities. That’s why we’ve put together this guide which will outline everything you need to know to correctly file your capital gains tax return before the deadline.
Continue reading “Will I pay Capital Gains Tax in the US as a nonresident?” »
Are you currently in the US on a J-1 visa? Or perhaps you are planning to visit the US on a J-1 visa in the future.
A J-1 visa is a non-immigrant visa that allows eligible participants to go to the US for a specific time period to engage in a cultural or educational exchange.
J-1 programs fall under many categories, including Au Pair, Summer Work and Travel, Intern, Student, Research Scholar, and more!
No matter what J-1 visa you are on, you are sure to make great memories in the US, exploring the country and gaining invaluable life, training and employment experience.
Although taxes are probably the last thing on your mind as you enjoy your adventure, it is important to stay compliant with the IRS. After all, each J-1 program participant has a tax filing requirement. And if you do not have a clean tax record, you may encounter complications when applying for future US visas.
In this article, we will share important information on your J-1 tax obligations as well as other tips to consider before you leave the US.
Most J-1 visa holders are considered to be ‘nonresident aliens’ for tax purposes in the US.
Your tax residency status will be determined by what’s known as the Substantial Presence Test. This test determines an individual’s tax residency status based on the number of days spent in the US.
If you meet the Substantial Presence Test, you will be considered a resident of the US for tax purposes and if you don’t you will be considered a nonresident and therefore will only be taxed on income earned in the US.
It is important to understand your tax obligations as a J-1 visa holder.
Regardless of your tax residency status, everyone in the US on a J-1 visa has a tax filing requirement and must file a tax return to account for their time in America.
Even if you didn’t earn any income during your time there, you will still be required to file tax documents.
You must file a US tax return to be compliant with the IRS and avoid any fines or penalties.
The tax deadline in the US is usually 15 April. This means if you are working in the US on a J-1 visa in 2023, you must file your tax return before the tax deadline in April 2024.
When filing your tax return you will need a Form W-2 along with Form 1040NR if you earned income, or Form 8843 if you did not earn anything.
Learn more about filing your J-1 tax return here.
Form W-2 details important information regarding the income you earned throughout your employment in America and the taxes withheld.
You’ll need this document when filing your tax return and you will typically receive it from your employer by the end of January.
Form 1040NR is the form that is used by nonresidents in the US to file a tax return.
There are a number of documents you will need to have close by when you sit down to file your J-1 tax return. These include:
Read our ultimate US tax return guide for J-1 visa holders to learn more.
This form certifies that you have been approved for a J-1 visa program and contains details about the program such as the J-1 visa category and the start and end dates of the program.
It is important not to disregard your DS-2019 as you will need it for future visa applications.
When you arrive in the US, it’s a good idea to open a bank account as soon as you can. It will make your life easier when you are being paid by an employer.
It is advised that you visit your bank before leaving America to discuss the closing of your account. Some banks may require you to be present to close your account while others can be closed online.
It is important to note that the process of receiving your J-1 tax refund is more straightforward if you have a US bank account.
If it is a requirement to close your bank account in person before leaving the US, alternative options to receive your tax refund include by check, advancing the amount owed to a future tax return, or by Wise. Find out more about the options you have to get your hands on your American tax refund here.
By doing so, you will avoid maintenance or other fees building up in your bank account, which may affect your ability to obtain future American visas.
Don’t forget to cancel any direct debits you might have set up during your time in America.
Another tip is to notify your bank that your address will be changing. This will ensure any confidential letters are no longer posted to that address.
Most J-1 visa holders have to get a SSN or Individual Taxpayer Identification Number (ITIN) when they arrive in the US.
SSNs or ITINs serve as tax identification numbers and they are used for tax filing purposes.
Many people ask “does J-1 SSN expire?”
The answer is no, a SSN is a lifelong personal identification number. Therefore, if you visit the US in the future on another visa or for a work opportunity, you can still use the same SSN.
With that in mind, it is important to take note of your SSN or ITIN and not disregard your identification number as you will need it when filing your tax return and if you are working in the US in the future.
It is very important to understand the J-1 visa grace period.
The J-1 visa 30-day grace period refers to the time you have to depart the US following the completion of your J-1 program.
Generally people on a J-1 visa use this time to travel to different locations in the US.
Amongst all of the planning and excitement to visit the top places on your list, it is important not to stay in the US past the grace period.
Keep in mind that you must only travel within the US during this period. For instance, if you decide to travel to Canada, you will no longer be able to enter the US on your J-1 visa.
During the grace period you cannot work in the US, and staying in the US past this period is another factor that could affect your chances of obtaining future visas to the US.
Eligibility to extend J-1 visas varies depending on what J-1 visa category applies to you.
In most cases, J-1 Summer Work and Travel visas are not eligible for extensions. This visa is specifically designed for students to work and travel in the US during the Summer period.
If you are taking part in this J-1 visa program you could explore other visa options to allow you to stay longer in the US.
Whereas, some other J-1 visa categories may be eligible for an extension. For instance, if you are in the US on a J-1 visa under the ‘Student’ or ‘Research’ category you may be eligible for an extension if the program requires additional time to complete.
Overall, eligibility to extend your visa in the US depends on the specific J-1 visa category that applies to you and other eligibility factors.
We understand that filing your tax return yourself can be stressful and time-consuming.
So why not let Sprintax guide you through the process!
Our tax software will support you from start-to-finish – guaranteeing that you are fully tax compliant in the US and ensuring you receive your maximum J-1 tax refund.
Filing with Sprintax is a simple online process. To get started, simply create your account by completing the short form here.
Tipping is very common in the US, especially in the hospitality industry.
And for those that receive them, tips can account for a significant portion of an employees’ overall pay.
In fact, employers in various states in America are entitled to pay staff working in particular industries below the minimum wage rate, because they receive tips.
If you’re a nonresident employee who receives tips from customers in the US, it is important to understand that this income is taxable and must be reported to the IRS. Continue reading “I am a nonresident working in the hospitality industry in the US. Should I pay tax on my tips? How do I do this?” »
Welcome to Sprintax’ comprehensive tax guide for J-2 visa holders in the US!
As a J-2 visa holder, it’s essential that you get to understand at least the basic aspects of your tax obligations and rights while living and working in the US.
After all, by not filing correctly, you risk incurring fines from the IRS. What’s more, if you’re taxes are not up-to-scratch, you may also encounter complications when applying for a visa or Green Card in future.
This guide will provide you with a clear understanding on such topics as your tax residency status, tax exemptions, FICA taxes, tax treaties, W-2 forms, and how to file your tax return at the end of the year.
Continue reading “Comprehensive Tax Guide for J-2 Visa Holders” »
(Last updated: 13 July 2023)
What this article will cover:
Many nonresidents are unaware that income earned from investments in the US is subject to tax from the IRS.
What’s more, if you have earned investment income, you may be required to file a tax return.
With this in mind, if you are unfamiliar with the process of managing this tax responsibility, you may be feeling daunted by the task of filing correctly.
In this guide we will discuss everything you need to know to include investment income on your US tax return.
In the US, investment income is considered to be passive income. This means that it is not effectively connected with trade or business inside the US.
This is an important detail as it indicates that the income is taxed differently to regular US-sourced income.
Essentially, investment income is made from interest payments, dividends, or capital gains realized on the sale of stock or other assets.
For example, Cryptocurrency is one of the most popular areas where investment income is earned in the US.
So, if you made a profit during the tax year on any cryptocurrency (which you traded from a US exchange or broker) while you were living within the US, you will have to declare it on a tax return.
Yes, if you earn investment income as a nonresident in the US, you will be taxed on it.
However, many nonresidents are not aware of this tax on investment income in the US. Usually, any share of investment profit you make will be charged at the regular Capital Gains Tax (CGT) rate of 30%.
Dividends received from your investments will also be taxed at 30%.
However, if your home country has a tax treaty with the US, you may be able to claim a reduction in taxes paid.
If you earned income through Robinhood, eToro or a similar system, it’s likely you’ll receive a 1099-B form.
You will receive your 1099-B form from your broker or banker. The information on your 1099-B form will need to be outlined on your 1040NR tax return.
This form outlines gains and losses throughout the year for the trader.
Information on the form such as the date the share was acquired and sold will be needed to complete it.
Sprintax Returns can help you complete your 1040NR form so that your investment income is reported properly.
Once you receive your 1099 form from your broker or banker, you will need to complete your tax return 1040NR with the information from the 1099-B, 1099-Int or 1099-Div forms you received.
Remember, it’s vitally important you report your investment income tax on your tax return. Doing so will keep you compliant with the tax authorities.
Тhis will outline the number of transactions made toward one company.
The very first date you bought the stocks
The last date you sold the stocks
The total amount on which you bought the transactions reported.
1d – Proceeds
The total amount on which you sold the transactions reported.
Typically, to estimate your wash sale you have to subtract the wash sale amount from the cost basis amount from the broker’s report and enter the result in the cost basis field on Sprintax 1099-B to arrive at the correct gain.
Note that this is not something that Sprintax will calculate for you, it is an amount that you will calculate by yourself and then be used by the software to prepare your return.
You do not fill anything here as you do NOT have taxes withheld on the 1099 forms.
Enter ‘0’ if you are not allowed to continue without filling the boxes.
Box 14 – State name
The state you lived in while buying and selling the stocks.
Box 15 – State identification no.
Enter ‘0’ as you do NOT have a state identification number.
Payer’s details
You should enter the details of the company you traded with. For example – Robinhood.
If you do not have their tax identification number – you can put a ‘0’ in each box.
When you are using Sprintax, you will be asked if your income is effectively connected to an US business or trade.
If your only US business activity is trading in stocks, securities, or commodities (including hedging transactions) through a US resident broker or other agent, you are NOT engaged in a trade or business in the United States and you can select ‘No’ for this question.
That’s easy – Sprintax Returns!
Sprintax Returns was created specifically with nonresidents in the US in mind, aiming to ensure they complete the often tricky tax-filing process correctly and on time.
Our specialist software was designed to help you e-file both federal and state taxes.
We will guide you through the entire process – helping you to claim every tax relief you’re due to minimize your investment tax bill.
With Sprintax Returns, you can:
Simply create your Sprintax Returns account here or login to get started!