J-1 Summer Work and Travel Taxes: What Is Withheld and What You File

Taxes touch a Work and Travel season three times. You fill in Form W-4 when you arrive, as InterExchange tells its J-1 participants. Tax comes out of your paychecks all summer. After the season you file your return. This page walks through each step and the IRS forms behind it. The money hub covers the rest of your finances.

The short version

1. Expect federal income tax to be taken from your pay.
2. Show your employer the pay stub line if Social Security or Medicare tax was taken.
3. Wait for your W-2, which your employer mails by January 31.
4. File Form 1040-NR, the federal return for nonresidents.
5. File a state return too if your state requires one.

Do you owe US tax on J-1 wages?

Yes, you owe US income tax on your wages. Wages earned by a nonresident alien who works in the US are taxed in the US, whoever the employer is. Your pay for a Summer Work and Travel job is part of that rule.

A nonresident alien is taxed only on income from sources in the US. A US resident alien is taxed like a US citizen, on worldwide income. Which one you are depends on a day count, explained below.

Social Security and Medicare are the exception. They are called FICA taxes. Most J-1 students do not pay them. The next section shows what that means on your pay stub.

What is and is not taken from your paycheck

Wages are taxable in the US, and the employer must withhold on them. InterExchange tells its participants the employer withholds a prorated amount each pay period. The table shows what to expect on a J-1 pay stub.

Your employer should also tell you about other deductions before you arrive. Pre-arrival information must list deductions from wages, including those for housing and transport. Pay and wages shows how minimum wage works. The program rules require at least the higher of the federal, state or local minimum wage.

Income that is not wages

Other US income is treated differently. Interest, dividends, rents, royalties and non-employee pay face 30% gross withholding for a nonresident J-1. A tax treaty can lower that rate. Wages follow separate rules: the employer withholds under the special rules in Chapter 9 of IRS Publication 15.

Pay for personal services is wages even when it is called a grant. A grant that requires you to perform personal services does not count as a scholarship. The IRS treats it as compensation for personal services, considered to be wages.

If Social Security or Medicare tax was taken by mistake

Check your first pay stub. If you see FICA, FUTA, S.S. or Social Security deductions, InterExchange tells its participants to notify the employer and ask for a refund. The IRS gives the same first step: contact the employer who withheld the tax. An exempt J-1 can ask the employer to stop withholding and refund amounts already taken.

1. Show your employer the pay stub line.
2. Ask the employer to stop the withholding and refund what was taken.
3. If the employer will not refund it, you can file Form 843 and Form 8316 with the IRS.

Form 8316 is the IRS request for a refund of Social Security tax withheld by mistake from a nonresident on an F, J or M visa. The FICA refund page goes deeper.

The exemption has limits. It applies only if USCIS authorizes the work and the work matches the purpose of the J-1 visa. It ends for F-1, J-1 or M-1 students who become resident aliens. It does not apply to spouses and children in F-2, J-2 or M-2 status. A J-1 who moves to another work visa type, other than F, M or Q, owes Social Security and Medicare tax.

Are you a resident or a nonresident for tax?

IRS Publication 519 sets the rule. You are a US resident for tax if you meet the green card test or the substantial presence test. The substantial presence test is a mechanical count of your days in the US. A J-1 alien is treated as a resident if they meet it.

Students fall in the exempt-individual category, and days in that category do not count for this test. Do not count days for which you are an exempt individual. The term does not mean you are exempt from US tax.

A J-1 student can exclude days of US presence for up to five calendar years. Students who stay in the US longer than five calendar years generally become resident aliens for tax. A teacher or trainee has a two-year limit, which can extend to four calendar years under conditions. A Summer Work and Travel season lasts up to four months.

A nonresident files Form 1040-NR. A J-1 who is a resident for the whole year reports worldwide income on Form 1040 instead.

Which forms you handle, who files, and when

Four forms matter most. Two come from your employer or from you at the start, and two you send to the IRS.

A student or grantee who files a Form W-4 must file an annual US income tax return to take the deductions claimed on that form. So treat the W-4 as the start of your tax year paperwork.

Do I always file a return?

A nonresident student or trainee on a F, J, M or Q visa may not need to file if there is no income subject to tax under section 871. A paid season means a return, because a participant who earns US income must file. If no return is required, you still mail Form 8843 on its own by the 1040-NR due date.

When to file

The general rule is this. If you receive wages subject to withholding, file no later than April 15 of the year after your tax year. If you are not that kind of employee, file by the 15th day of the 6th month after the tax year ends. InterExchange’s guide gives the usual mailing deadline as April 15 of the year after your employment.

For a summer season worked in 2025, those rules gave the dates below. The IRS pages used here are the 2025 tax-year editions; for a later season, apply the same rule to the next year.

After your exchange: W-2, return and refund

Your return comes after you have gone home. Take it in order.

1. Wait for your W-2. Your employer mails it by January 31.
2. If it has not come by February 15, contact the host employer at once.
3. File your federal return on Form 1040-NR, which nonresidents use for US income. The form is only available online on the IRS website.
4. File a separate state return if your state requires one. State forms differ by state. The IRS keeps a list of state tax agency websites where you can look up your state’s rules.
5. Keep all your paperwork, in a safe place and as electronic copies.

State returns are filed apart from the federal one. Many of the states tax the income of their residents, so look up where you worked.

You can file from abroad. Follow the tax return guide for filing step by step.

Your exchange visitor visa status

An alien in J-1 status, called an exchange visitor, is treated as a US resident for federal income tax if they meet the substantial presence test. Your visa status and your tax status are two separate questions. Your days as a student are not counted while you are an exempt individual.

Taxpayer numbers: SSN and ITIN

A taxpayer identification number for a J-1 alien is either a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). An ITIN is a 9-digit number the IRS issues if you need a US taxpayer identification number for federal tax purposes. It is issued for federal tax purposes only. Your sponsor’s pre-arrival information can include how and when to apply for an SSN, if applicable.

Learn how to apply for a Social Security number when you arrive.

Tax treaties

The US has bilateral income tax treaties with over 65 countries, and many give specific benefits for J-1 aliens. Under a treaty, residents of the other country are taxed at a reduced rate or are exempt on certain items of US-source income. Treaty benefits for students and trainees usually last 4 to 5 years from entry.

Without a treaty, you pay tax on the income at the same rates as in the Form 1040-NR instructions. Read your own country’s treaty text in IRS Publication 901 before you claim a benefit on your return.

Income without withholding is different. Self-employment income can require estimated payments. A nonresident alien is not liable for self-employment tax, but a resident alien is.