Tag Archives: J1

J1 Taxes Explained


J-1 participants receive compensation from their host organization (employer). They will have to apply for a social security number and pay income tax.

The question frequently asked is, “But exactly which taxes do J-1 participants have to pay?”

J-1 visa holders are considered non-resident aliens and are required to pay federal, state and local income taxes. However, they are generally exempt from paying FUTA and FICA taxes. The logic is that they cannot be “unemployed” (if their program were terminated, their visas would be canceled and they would need to return to their home country immediately). Likewise, they are not able to enjoy social security benefits and are not required to pay into the system. Details on FUTA exemption can be found in 2010 IRS Publication 15, page 36 (section “students, scholars, trainees, teachers”). Details on FICA exemption can be found in IRS Publication 519 (Chapter 1 “Exempt Individual” and chapter 8 “Paying Tax through Withholding or Estimated Tax”, section “Social Security and Medicare Taxes”; “Students and Exchange Visitors”).

How does this effect you as the employer:  As the J-1 visa holder is exempt from paying FUTA and FICA taxes, the employer does not have to pay the matching contribution.

Looking to hire a J1 student to assist you with your seasonal staffing needs?  Visit our employer hiring page for more information by clicking here.

Have a question?  you can always reach the main office at 718-606-1892.

USA Work and Holiday – we have jobs available now

Citizens of Australia can spend up to 1 year working and traveling in the United States on the 12-month Student Work and Travel J-1 visa through the LifExchange/YMCA’s Working Holiday USA program.

Open year round, the Working Holiday program allows tremendous flexibility for you to either work and travel your way through the US and there are positions available for a November start date to those who apply by September 15th.

Current Job Locations:

Why the Working Holiday program?

  • A Once in a lifetime opportunity to travel and work throughout the US
  • Work in a job for all twelve months or split your job between locations
  • Learn valuable skills, gain confidence and independence

Eligibility Requirements?

  • Be a citizen of Australia
  • 18 to 29 years old
  • Be a current full-time University or TAFE student or have graduated in the previous 12-months?

Do you meet these requirements?  Then contact our office for more information.

What is included?

  • Simple and easy application process
  • Guaranteed Job if you pass employer interview
  • J1 visa sponsorship
  • LifExchange/YMCA support throughout your program
  • Access to the LifExchange Tax Service for easy tax refund processing.
  • Pre-Departure Guide
  • A completion certificate
  • and more

Additional/optional inclusions

  • Travel Insurance for the length of the program
  • Competitive airline prices and travel discounts
Form more information fill out the form below and LifExchange representative will contact you within 48 hours