US Tax Filing (2021 Tax Season)
written in partnership with Sprintax - our trusted tax partner for all Exchange Visitors
All Exchange Visitors are required by law to file tax documents before the tax deadline. (April 18th). Participants who worked while in the US on a BridgeUSA (J1 Visa) program are required to file a tax return. Participants who were in the US but did not earn an income need to file a Form 8843.
All Exchange Visitors must file a federal tax return. During this process, participants will report their income and taxes paid during their work/training period, and it will be calculated if participants have overpaid the taxes due to the Federal government, paid the correct tax amount, or underpaid Federal taxes. In the event a participant overpaid, they will receive a tax refund. If they have underpaid, they will owe taxes to the government. Depending on where an Exchange Visitor lived and worked, the participant may need to file a state return as well.
Failure to comply with US tax obligations will result in a breach of IRS regulations and will jeopardize a participant’s chances of a successful US visa application in future.
Exchange Visitors must be aware that common tax preparation software (e.g., TurboTax) typically is not suitable for Exchange Visitors because it does not support filing with a Form 1040NR (non-resident). We only recommend filing with Sprintax because they are legitimate and reputable. If participants use such software, it may make them appear to be filing erroneously as U.S. residents and doing so, intentionally, or unintentionally, may make the Internal Revenue Service (IRS) suspect them of tax fraud. Exchange Visitors must be cautious of individuals or companies offering to file tax forms on their behalf but will not report themselves as the preparer. These are called “ghost preparers”.
Who must file tax forms for 2021 tax season?
If a participant was physically in the U.S. in J status anytime between January 1 - December 31, 2021, they are obligated to send at least one form, Form 8843, to the IRS (U.S. tax agency), even if they had no income. If an Exchange Visitor earns any US income, they will need to file a federal tax return with the IRS by law. Depending on the individual circumstances, you may also need to file a state tax return(s).
Tax filing deadline:
April 18th, 2022 is the last day for residents and non-residents who earned U.S. income to file Federal tax returns for 2021. State tax returns may have a different filing deadline and each state’s tax department must be consulted for confirmation of filing date.
Resident or non-resident for Federal tax purposes:
Generally, most BridgeUSA Intern/Trainees, Summer Work and Travel, and Camp Counselors are considered non-residents for tax purposes. The above Exchange Visitor categories are automatically considered non-residents for 2 out of the last 6 calendar years in the US. If a participant has been in the US for longer than 2 years for the last 6 years period, the Substantial Presence Test will determine their tax residency. Sprintax will confirm a participant’s tax residency when they use their service.
How to file:
Sprintax is a resource available for nonresidents that provides online Federal and State tax preparation software for non-residents in the U.S. Participants can create a user account by visiting the Sprintax website and creating a UserID and password. If a participant has an existing account on Sprintax, they can log in using existing credentials. After logging into Sprintax, it will ask a series of questions about the time spent in the United States and immigration status, looking back over a period of years. Sprintax will then determine the participant’s tax status. If it determines that the participant is a "nonresident alien" (NRA) for Federal tax purposes, they can continue to use it to respond to a series of guided questions. Sprintax will complete and generate the forms needed to send to the IRS. If it determines the participant is a resident alien for Federal tax purposes, the participant won't be able to continue using the software and will need to consult a different tax filing service.
What documents will participants need to file?
Passport
DS-2019
Social Security or Individual Taxpayer Identification Number (if applicable) - This is not needed if the participant had no income and will only file Form 8843.
W-2 - This form reports wage earnings for the year. If the participant had more than one employer, they should get a W-2 from each employer. The W-2 is issued by the end of January for the previous year (by January 2022 for the 2021 tax year). Participants must ensure all employers have an up-to-date email and mailing address on file.
U.S. entry and exit dates for current and past visits to the U.S. - In addition to passport stamps, participants can review or print their U.S.travel history here.
1099 (if applicable) - This form reports miscellaneous income. It can be interest on bank accounts, stocks, bonds, dividends, or earnings through freelance employment.
1042-S (if applicable) - This form is used to report: 1) Income covered by a tax treaty; 2) Awards/Prizes; 3) Stipend, scholarship, fellowship income and travel grants (not tuition reduction or exemption). If a participant received this type of income, the 1042-S will be mailed to them by March 15th by the payer. Note: Only NonResident Aliens receive this form. If the tax status changes to a Resident Alien, the participant will not get a 1042-S.
How will participants know if they need to file a state tax return?
After finishing the federal return, Sprintax will inform the participant if they need to complete a state tax return. If so, Sprintax will give the option to use Sprintax for an individual fee.
Questions?
Sprintax has 24/7 live chat help, numerous blogs and FAQs, and can be reached via email at hello@sprintax.com.
Sprintax educational tax videos and blog:
Participants can access the Sprintax YouTube account where there are a number of educational videos on non-resident taxes to provide further clarity on the subject of using Sprintax and non-resident tax. There is also a Sprintax Blog which goes through tax related topics. Participants can also access the recording of a Sprintax webinar covering nonresident tax for J-1 participants here.
Scams
Exchange Visitors may be vulnerable to scams and should read the common tax scams and how to report them. USA.gov provides further information at here.
DISCLAIMER: WWCE is NOT permitted to assist nonresidents with any IRS tax form preparation or tax related questions. The information provided is intended for your benefit. Any questions or concerns should be directed to Sprintax, a certified tax preparer or a local IRS field office.