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 Hi! :)
Are You a person who is planning to go for a work experience to USA?
If yes, then You landed on a right page.
If You already came back from USA, here you'll find more useful information.
If You only plan to visit USA and don't want to read all this information right now, it is useful for You to subscribe to our newsletter.
You'll get helpful tips and news necessary in America, also, our free consultation about taxes.
You only started to plan Your trip to United States? How do you feel: confused, happy, frightened or all together?
We want to ease this process for You, so we will give You some tips and information that will be useful in USA. This information mostly concerns US taxes and documentation needed in America.
Special taxation for J-1, F-1, M-1 and Q-1 visa holders If You go to America with one of these visas, below You'll find information about taxes, which You should and should not pay. Taxes You Do Pay
Federal Income Tax - this tax is paid to the Federal (National) Government by all income-earning individuals. It is paid from your income: salaries, wages, tips, etc. Approximately 10-15 % of your salary will be withheld for Federal income tax.
State and Local/City Income Taxes - States and Cities may charge extra income tax according to local laws. State income tax rate is approximately 5-8 % and Local/City tax rate is 1-3 % of your income.
Generally, 15-20 % of your income may be withheld for tax purposes. According to USA tax law that‘s the way how it suppose to be. But good news is that after coming back home from USA, You will get a Tax Refund of all overpaid taxes.
Federal and State taxes are always refunded if overpaid. Local/City taxes are refunded from New York, Maryland and Indiana states.
Taxes You Don't Pay
Social Security, Medicare (SS/MED), Federal Unemployment Tax (FUTA). You must have Social Security card and SS number, but you are EXEMPT from paying SS/MED and FUTA taxes. Sometimes, employers make a mistake and withhold these taxes. You can tell if this happened by looking at your payslip. If you see any deductions under the word "FICA" or "FUTA", "Social Security" or "Medicare", then the employer has made a mistake. If your employer is withholding SS/MED taxes, please inform us about this problem by e-mail: info@stconsulting.info and we will send You an example of explanatory letter showing your employer, that You should not pay these taxes. Take this letter to employer and ask him for a refund of these taxes withheld by mistake. If you will not manage to arrange the refund of SS/MED taxes with your employer before you leave United States, you will use Student Tax Consulting service of SS/MED Tax Refund after coming home. However we strongly advise to explain your employer that you shouldn't pay SS/MED taxes before starting to work. Main documents, while working in US
Social Security (SS) Card
When you come to US, apply at local Social Security Administration office for SS card. Once you receive SS Card make sure your name and SS number are printed correctly. If you notice a mistake, contact nearest SS Administration office for necessary corrections to be made.
If for any reason you do not receive your SS Card until the end of your stay in United States, visit nearest SS Administration office to find out SS number that was assigned to you.
!!!Don't leave United States without written evidence stating your Social Security number!!!
Without SS number you won't be able to get a Tax Refund.
Keep Your SS Card in a safe place and only give the records provided on this card, to people you know well and trust. SS Card is main document in United States (almost like passport in your home country), keep it from stealing, don't sell it or give someone else to use.
Form W-4.
Important!!!
Before you begin your summer job, each employer will ask you to complete Form W-4 (Employee's Withholding Allowance Certificate) to ensure that won't be overtaxed. Your employer will keep this form while you are working and will use the information on this form to determine how much taxes should be withheld from your paycheck.
Below you will find instructions on how to fill your Form W-4. Those instructions are published in the IRS Publication 515 (rev. 04/2008), page 23 - "Withholding of Tax on Non-resident Aliens and Foreign Corporations".
Remember that you are classified as a "non-resident alien"! Therefore, instructions on actual Form W-4 do not apply to you.
Please follow instructions below or those given in your Sponsor's Handbook when completing Form W-4. Also see example on how to fill-in W-4. - Check only "Single" marital status on line 3 (even if you are married or divorced).
- Claim only one withholding allowance on line 5, unless a resident of Canada, Mexico, Japan, or South Korea, or a U.S. national.
- On line 6 please write NRA.
- Do not enter anything on line 7. Make sure you enter correct address on Form W-4. Use the address in your home country (not address in USA) as this address will be used by your employer to send you W-2 forms in the beginning of next year.
If you plan to use Student Tax Consulting Tax Refund service, please enter Student Tax Consulting address on Form W-4 (instead of your home address). In this case W-2 forms will be sent directly to us and Your Tax Refund process will be faster.
Form W-2
Ask your employers to send Form W-2 to the address in your home country. Form W-2 will be send after the end of the year (e.g. if you are working in USA in summer 2009, you will get your W-2 form in February of 2010).
Also, in case you will have to contact employer regarding W-2 form, write down the following information of each of your employers: company name and address, phone and fax number, e-mail of contact person and internet address.
Earning Statement (payslip)
Your wages will be paid by transfer to your American bank account or as a bank check, which you will have to cash. In any case you will get earning statement (probably printed), to show your wage summary: salary, tips, taxes, etc. for one period (week, or two weeks) and totals for all the time that you are working. Make sure your name and SS number are correct on those earnings statements. If you notice a mistake, contact your manager for necessary corrections to be made. It is important because this will help to process your Tax Refund faster and avoid unnecessary delays in claiming your refund!
Keep and bring back home your last one (or at least one before last) earning statement or its copy from each employer!
Check if it is the last statement by comparing your work end date with the date "Period End" on statement.
Form I-94
Form I-94 is alien's arrival/departure record. This form will be given to you on the plain before landing in US and taken away at the time of check-in to international flight on your way back to your home country. Make a copy of this form before you leave America, it might be needed for Social Security and Medicare Tax Refund. |
