US Tax FAQs

For J1 Exchange Visa Holders

If you've worked in the US, it's a good idea to have your tax affairs up-to-date to avoid any unnecessary problems with visas in the future. The US tax authorities are very strict, so even though tax is probably the last thing on your mind when you're working the slopes of Colorado or sunning yourself in California, we still want to make sure you know a few useful facts.

Everyone who works in the US pays up to four types of tax on their earnings: Federal Tax, State Tax, Federal Insurance Contributions Act (FICA) Tax, and Local Tax. Apply for your US tax refund today.

If you're a US non-resident and earn more than $3650 this year in the US you are required by law to file a tax return.

Taxback.com can file returns for all types of taxes for you and get back part, or all of what you paid. Our J Visa customers get an average US tax refund of $800.

To find out how much money you could get back try our FREE online refund calculator now.

How do I know if I'm a resident or non-resident for tax purposes?

If you are not a US citizen, you are considered a non-resident for tax purposes unless you pass one of two tests:

1. Green Card Test. This one's pretty obvious – if you have a green card, and have permission to live permanently in the US as an immigrant – you're a resident for tax purposes.
2. Substantial Presence Test. This one's a little trickier. You will be considered a US resident or “resident alien” for tax purposes if you pass the “substantial presence test” for the calendar year. To do this you must have been physically present in the US for at least:
   • 31 days during the current year AND
   • 183 days during a 3-year period including the current year and the two years before that. You can count all of the days you were present in the current year; 1/3 of the days you were present in the year before that and 1/6 of the days you were present in the year before that.

However, as with anything – there's always a catch. In this case, if you're working in the US on an F, J, M or Q student visa, you are exempt from the substantial presence test until you have been in the US for 5 years. If you're on a work and travel, teacher, researcher, or trainee J visa, or a trainee Q visa, you are exempt from the substantial presence test for two years.

When can I get my tax back?

If you worked in the US between 2008 and 2005: You can apply for your refund immediately so download your US tax forms to apply for it today.

If you are working in the US in 2009: You will be able to apply for your tax refund at the end of 2009 so make sure you hold on to all your documents. If you leave your job or the US, use our FREE online refund calculator to see what you can claim back.

The US tax year is from January to December and tax returns should be filed by April 15 the following year. However, US tax law allows up to three years for tax returns to be filed.

If you owe money on your taxes and are late in filing your US tax return, you will incur late penalties and interest on the money you owe.

Do I have to file a Tax Return?

Yes. US tax law requires anyone who works in the country to file a tax return. When you accepted a visa to work in the US you agreed to follow the country's tax regulations and therefore must file a tax return. You might want to return to the US in the future and so it's a good idea to have your tax returns correctly filed to avoid any problems. Taxback.com saves you tax hassles now and in the future by ensuring your tax return is filed according to US tax regulations.

To make things confusing, US tax law changed 2006. Now, non-residents who earn under a certain threshold don't have to file a tax return. But remember - if you earned less than the threshold, you could claim all of the tax you paid back so it's worth filing one anyway. Try our FREE online tax refund calculator.

The thresholds are as follows:

2008 US tax year – $3500
2007 US tax year – $3400
2006 US tax year – $3300
2005 US tax year – $3200

I was a camp counsellor – do I need to file a return? Yes. Like any non-resident who works in the US you are required by law to file a tax return if you earned more than the thresholds above.

I missed the April 15th deadline - is it too late?

No. US tax returns should be filed by April 15 of the following year but you can still claim your tax refund up to three years after the deadline. Don't forget - US tax law requires any non-resident who worked in the US and earned more than $3400 to file a tax return so download your US tax forms now – better late than never!

If you owe the tax office money, tax authorities impose late filing penalties and interest on the amount you owe after the April 15 deadline so the sooner you apply the better. Use our FREE Online Tax Estimator to check your tax situation.

How much money will I get back?

Taxback.com will get you back as much overpaid tax as is legally possible. That amount depends on factors like:

• Your visa
• Your earnings
• What state you worked in
• How long you worked for

The average refunds we get for our clients are:

J work and travel visa: $520	J or Q internship visa: $899
J, F or M student visa: $1005	J researcher visa: $877
Green card holder: $1118	H1B/H2B/H3 visa: $731

Try our FREE online tax refund calculator to see how much cash you could get back.

How does taxback.com work?

Here's how our easy three-step service works:

1. Register online or use our FREE tax refund calculator and then download the TaxPack for US tax returns.
2. Scan and send us your documents and signed forms. We'll estimate your refund and give you an online tracking account. If you're missing any documents we can get replacements for you.
3. Chill out while we file your tax return and get you the maximum possible legal refund.

How long will it take to get my US tax refund? Where is my refund?

As soon as we have it, you'll have it, because we contact you immediately when we receive your cheque from the IRS to organise the easiest way for you to get it.

You can watch the step-by-step progress of your application on your online account. It'll go something like this:

When we get your documents it takes us just 12 working days to get your US tax return ready for the IRS. This includes:

• Receiving and checking the documents
• Estimating your refund
• Completing your forms
• Shipping them to our US Certified Public Accountant (CPA)
• Nick and his team check your application so it is 100% compliant with US tax regulations. This is done within three days. Nick personally signs your forms to say they're ready to go to the IRS.

Once at the tax office the speed of your application depends on the office and its workload. The Federal tax office typically takes about four weeks but during busy periods it can take up to 8 weeks. State tax offices vary from 3 months for California State Tax up to a sluggish 9 months for Georgia State Tax. Our tax team will keep chasing the tax office to see how your application is progressing.

Snail mail means your cheque takes up to 10 days to reach us by international post but as soon as it arrives we'll post it online so you can see it and contact you to sort out the best way to get your cash to you.

The total estimated time for your US income tax refund is 10-12 weeks.

How do I know what's happening with my tax return?

You can follow the progress of your US tax return on your online tracking account. It allows you to see every step of your application. As soon as we have your refund we'll contact you to sort out the best way to get your money straight to you.

Rather talk to a human being? We have our own taxback.com staff available to talk to you in 21 taxback.com offices in 18 different countries. Click here to find your local office number or use our Live Chat.

What are the advantages of using taxback.com?

Thousands of people choose our service because:

• We get you the maximum legal refund
• FREE online refund estimations
• Every customer gets a Personal Online Tracking Account – you can follow your tax return every step of the way
• All our US tax returns are legal and meet the strict requirements of US tax law. Our Certified Public Accountant (CPA) in Chicago reviews and personally signs everything we file to make sure of this.
• Document retrieval service
• 24-hour customer support and tax refund help
• Free phone, free fax, free post, free online tax help with our live chat!
• No language barriers - our services are available in: Bulgarian, Chinese, Chinese-Taiwanese, Croatian, Czech, Dutch, English, French, German, Hungarian, Italian, Japanese, Korean, Latvian, Lithuanian, Polish, Portuguese, Romanian, Russian, Serbian, Slovak, Spanish, Thai, Turkish, and Ukrainian.
• Money sent worldwide and in your local currency. You can get your refund in: Australian Dollars, Brazilian Reals, Bulgarian Lev, Canadian Dollars, Czech Koruna, Euro, Hong Kong Dollar, Indonesian Rupiah, Japanese Yen, Latvian Lat, Lithuanian Litas, Moldovan Lei, New Zealand Dollars, Norwegian Krona, Pakistan Rupee, Peruvian Nuevo Soles, Philippine Peso, Polish Zloty, Romanian Lei, Russian Rubles, Singaporean Dollar, Slovak Koruna, South African Rands, South Korean Won, Swedish Krona, Thai Baht, Turkish Lira, UK Pounds, Ukrainian Hryvna, US Dollars.

How much will it cost?

First of all, our FREE Online Tax Estimation costs you nothing - just a few minutes to fill it out. We'll email your refund estimation straight to your personal email with no obligation to use our service.

When you send us your documents and signed forms, we'll evaluate your refund and what additional services you need such as document retrieval or a temporary social security number. Then we'll let you know how much it will cost to file your return for you.

For US tax refunds we charge 10% of the refund received, subject to a minimum processing fee of $75 for refunds up to $750.

Why the minimum fee?

This fee covers all the things that make filing your application with us so easy:

$25 for our CPA and his team in the US who ensure the compliance of your tax return.

$50 covers all our services for you such as:

• Customer support 24/7 by phone and Live Chat
• Online tracking service – in seven languages
• Free phone and free fax
• Local staff to meet you and guide you through the process in 18 offices worldwide
• Tax technicians
• Researchers to identify new legal developments to maximise your refunds
• Quality team

Can I file my taxes electronically?

Electronic filing, known as e-filing, is only available to US nationals and residents. If you are a non-resident you can scan and submit your documents electronically to us but you cannot send your documents directly to the IRS electronically. The 1040NR tax return form, the form for non-residents such as J and F visa holders, is not available in electronic format and so cannot be e-filed – it's just not something the IRS can do.

There is no legal way to e-file your 1040NR, so as a J visa holder, you need to make sure your tax agent is submitting your return by paper. Otherwise your return is being filed against US tax law and could lead to problems with entry into the US in the future.

To make life a little easier for you, taxback.com allows you to scan and send* us your documents electronically, and we'll post printed versions to the IRS for you. We can do this because our CPA and his team review every application and sign and submit them by paper to the IRS. We make sure your return is compliant with US tax laws.

If you're a Greencard holder or permanent US resident we can legally e-file your tax return for you.

* If you would rather post documents to us then click here to find your nearest office.

What's the deal with compliance and the CPA?

The US tax authority is very strict about tax returns being filed correctly. If you file your tax return incorrectly, you could claim for taxes you're not entitled to. If you receive that refund and the tax department finds out through their ongoing review process, they'll consider the overpaid amount to be stolen from the US tax payer. This would be permanently marked against your social security number and could impact on the US government's decision to grant you a visa in the future.

That's why we have a Certified Public Accountant (CPA) - Nick Kolligris. Nick has been a CPA since 1994 and is an accredited professional trusted by the IRS to approve whether applications are compliant with US tax regulations. Nick and his team check every US tax return we file before they are sent to the IRS to make sure they're totally legal and compliant. He puts his personal signature and professional reputation on every return he approves so you can be sure that your tax return will meet all the requirements and won't lead to problems in the future.

What is a W2 form?

To claim your tax refund, we'll need your W2 form. The W2 form is the official government form that you'll receive from your employer(s) in January after the tax year ends. The W2 form shows the amount of money you earned and the amount of tax you paid for that employer.

In most cases we can use your W2 form or your final cumulative payslip to claim your U.S tax refund. However some US states only accept applications with the W2 form so if you've misplaced yours or you never received it, our document retrieval team can obtain one for you.

You don't need to wait for your W2 form to arrive to start applying for your refund. Jump-start the process now by downloading a US TaxPack and sending in your forms so we can start preparing your tax return today.

What is a final cumulative payslip?

A final cumulative payslip is the payslip you receive with your final pay cheque. It shows your total earnings and the amount of tax you paid for that employer.

We can use either your final cumulative payslip or your W2 form to file your US tax return. If you don't have your final cumulative payslip, our document retrieval team can organise a W2 form for you when the tax year ends.

What is a 1042-S form?

If you've worked as a trainee, student, teacher or researcher in the US on a J or F visa, you might have received a 1042-S form instead of a W2 form. You should receive the 1042-S by mid-March of the following tax year. It outlines non-employment income such as scholarships, fellowships or grants and any income exempt from tax because of a tax treaty. We can use either the W2 or 1042-S to apply for your tax refund.

Oops - I lost my documents/Help - I never got my documents – what do I do?

We know it's easy to lose documents in the move back home or to not even receive them in the first place. That's why we have a dedicated document retrieval team who deal with employers all over the world and can organise replacement documents for you.

You'll find a declaration form authorising us to do this in your US TaxPack, or if you no longer have it, click here to download another one.

Help - I never received my Social Security Card! What should I do?

If you never received your Social Security Card we can still file your US tax return. To do this we'll need to organise a temporary number for you. This is called an Individual Taxpayer Identification Number (ITIN) and is issued by the IRS. To apply for your ITIN we'll need some more documents so Chat Live with one of our customer representatives about what you need to do.

Could I owe money to the US tax authorities?

If you worked in the US temporarily, it's unlikely you'll owe any money to the tax authorities.

However, if you had more than one job at once and didn't inform your employers you may have overpaid tax. As you know, if you're a non-resident who worked in the US and earned more than threshold you have a legal obligation to file a tax return. Let us sort out your tax affairs now to avoid any problems with future visits to the US.

Use our FREE online tax refund estimator to find out about your tax situation. Don't have your details right now? Download a US TaxPack to fill out when you do.

If you owe money and don't file your return before the April 15 deadline you will get penalties and fines put onto the amount you owe. Apply now to minimise any penalties and get your tax affairs up-to-date.

I had more than one job in the US but only paid tax in one - should I file my return and will I get a refund?

Yes – you should always file your tax return. You could get a refund depending on your earnings and visa etc. Download the US tax forms now. Fill them out, email them to us and we'll get as much money back for you as we legally can.

I worked illegally in the US/ I was an undocumented worker in the US - should I file a tax return?

Yes. If you earned more than $3400 in the US you have to file a tax return – regardless of your immigration status. Plus, depending on your earnings and how much tax you paid, you may be due a refund and we can get that back for you. Use our FREE online tax refund calculator now!

Am I eligible to use an international tax treaty?

We check if you're eligible for an international tax treaty when we file your USA tax return. It's all part of our process in making sure we get the maximum legal refund for you. Whether you can use an international tax treaty depends on things like:

• Your nationality
• Your visa
• Length of time in the US
• Your occupation

For example: A German non-resident working in the US on a J internship visa would be entitled to a tax treaty if they were in their first or second year working in the US and had not been to the US in the previous five years.

Can I claim my US tax refund myself?

Every tax office in the world is set up to accept applications directly from taxpayers, so yes, you can file your return yourself. The reality is though once you submit it, there's no updating process and no feedback until you get a yes or a no, which is frustrating and very worrying.

Preparing your US tax return involves getting all the tax forms – the federal ones, the state ones and the additional ones for other local or FICA taxes you've paid. Then you've got to try and put the information together properly – and it's not as easy as it looks.

The US tax system is very complex and filing their return on their own is a challenge that most US residents don't even attempt. In 2006, 63% of US residents had their taxes prepared by a paid preparer. If you're a non-resident beware – the process is even more specialist than resident taxes so why would you do it yourself?

At the end of the day ask yourself -
Would I wire my own house?
The reality is no, I wouldn't. I'd use an electrician.
It's a technical professional piece of work, so I'd get a technical professional to do the job properly. I don't want to risk my house blowing up!

It's the same for tax. Our taxback.com customers rely on us as technical professionals to file their US returns and get their tax back. And we can't get enough of it – last year we filed over 50,000 US tax returns. Our customers tell us they knew trying to file it themselves would lead to stress and a possible loss of money in refunds. They'd rather focus on their university courses, their day-job or even organising their next trip to the US.

Filing your refund yourself won't make your house explode, but it can result in a legal mess, a loss of money and worse – misfiling may affect your ability to go to the US again.

Let us put our 11 years of experience filing US tax returns to good use by doing all the work for you. It makes sense to use an expert.

Just use our FREE online refund calculator to see how much tax you could get back.

What taxes can you file for me?

Taxback.com can file your Federal, State, FICA and local tax for you. Download your US tax forms now.

I worked abroad in other countries - can you help me to claim refunds from these countries?

Absolutely! We've been organising tax refunds for people working all over the world since 1996. If you've worked in any of the following countries click on them to apply for your refund!

Australia tax refund	Austria tax refund	Belgium tax refund
Canada tax refund	Denmark tax refund	Germany tax refund
Gibraltar tax refund	Guernsey tax refund	Holland tax refund
Ireland tax refund	Japan tax refund	Luxembourg tax refund
New Zealand tax refund	Norway tax refund	UK tax refund

Our research team is constantly developing tax return services for new markets so if you've worked in a country not mentioned above, email our team on newtaxes@taxback.com to see what we can do for you.

Can you guarantee that I'll receive the refund amount you estimated for me?

No, but we do guarantee to get you the most money back that we legally can.

Our estimate is based on your documents and our experience in filing thousands of tax returns every week since 1996. Naturally, the US tax authority has the final decision in your tax refund based on their systems and tax codes.

When our tax technicians prepare and file your return, they check for any allowances or benefits you could get and ensure we apply for the maximum rebate possible. Our Certified Public Accountant (CPA) Nick Kolligris and his team of accountants double check all that work to make sure there isn't anything else we can get for you and that the application is totally legal.

What's the difference between filing my tax return and getting my tax refund?

We file your US tax return in order to organise your tax refund.

A tax return is the annual submission of tax forms documenting your earnings, taxes paid, deductable expenses, appropriate international tax treaties for your personal circumstances and allowances that you send to the tax office for review. They review it according to the information submitted by your employer and the current laws that apply to your case.

If you get a tax refund, this means the tax office review found you had overpaid tax and were due some back.

Our estimate of your refund is based on our prediction of what the tax office will decide when they review your tax return - providing they have the same information as us.

In the US, you are required by law to file a tax return if you are a non-resident who earned more than $3,400 in 2007. Download a US TaxPack now.

So when we organise your tax refund there are two immediate benefits – you get the maximum legal refund and you have met your compliance obligations to file a return. This way you comply with your visa and you have a clean record in case you apply for another US visa in the future.