Sad reacts only!
You are familiar with the fact that if you go to the State with a Work and Travel program you have to pay taxes that are deducted from your earnings. And if in the past you could apply for federal and state tax refunds, at present you can only recover state and local taxes (if any).
Last year, US President Donald Trump introduced the Tax Cuts and Jobs Act, a law on tax cuts, and the bill affected the J-1 visa, meaning students visiting the United States through the program Work and Travel.
Many of the changes included in the bill came into effect on January 1, 2018, and yet many J-1 participants are still confused with what their changes mean. It is absolutely essential that all visa holders J-1 understand the tax obligations because failure to comply with US tax laws may result in fines, sanctions and even complications for future visa applications.
The essential change to the "Tax Cuts and Jobs Act" that refers to non-resident tax payers is called "personal exemption". Prior to the introduction of the bill, every non-resident working in the US can recover the fees paid for earnings of up to $ 4,050. However, as of January 1, 2018 the personal exemption was reduced from $ 4,050 to $ 0! Elimination of personal exemption means that for most J-1 visa holders federal refunds are eliminated.
Reducing the personal exemption does not affect the partial refund of the state tax and local tax (if it exists).
For more information about the United States tax deductions law and for help in compiling the state tax recovery dossier, please contact us by filling out the form below: