As wage earners, intern/trainees are required to pay Federal, State and Local income taxes. These taxes are taken out of each paycheck automatically. When you arrive in the US and complete the paperwork for the Human Resources/Payroll office at your host company they will ask you to complete a W-4 form which helps to determine exactly how much will be deducted from your paycheck for taxes.
To confirm your filing status with the IRS please take the substantial presence test to understand your tax filing status (non-resident or resident).
Most intern/trainees are exempt from paying Social Security and Medicare taxes (FICA). If you notice that Social Security and Medicare taxes are being withheld from your paycheck please bring it to the attention of your supervisor or the Human Resources department at your host company. The rules about your exemption, along with detailed information about taxes for Non-Resident Aliens can be found at IRS website.
All program participants and any accompanying dependents may be subject to the requirements of the Affordable Care Act in regards to health insurance.
Intern/Trainee program participants are required to file a tax return for their previous year's wages by April 15 of each year. Some program participants may be eligible for a tax refund.
Pan Atlantic is not a licensed tax advisor and we cannot provide official tax advice. Please contact a professional tax advisor or the IRS to determine your specific tax situation.
In order to file taxes on your own, you will need to complete the 1040NR EZ form (or 1040EZ if you are considered a resident) to file your Federal Tax return, and you will also need to complete the appropriate State and Local tax return forms . More information on these forms is available at the IRS website.
Software solutions to assist with filing your taxes are available. Sprintax is an option to assist with online completion of required tax forms. There is a fee for using this software.
Some software, such as TurboTax, may not be designed for use by non-residents. Please carefully review the instructions, limitations, and costs before making a final decision about a software solution.
You may contact the your local IRS office with any questions. To locate the nearest IRS office click here.