Do I Have to Pay Taxes or File a Tax Return?
Yes. You are legally required to pay the following taxes:
Income tax is paid by all income-earning individuals to the federal government. It is paid on income from salaries, wages, and tips. Approximately 25% of your salary will be held for federal income tax, a portion of which you may claim back as a refund at the end of the year.
State and City Income Taxes:
States and cities levy income taxes according to local tax codes. These codes vary from state to state and city to city. To find out about the taxes that are imposed by your state and city, ask your host company. These tax codes may define “resident” and “non-resident” differently than federal codes. As with your federal tax, you may be able to claim a refund for a portion of these taxes at the end of the year.
Note: No Medicare tax or Social Security tax should be withheld from your pay as you are classified as a “Non-Resident alien”. For additional information, please refer to IRS Publication: 519. You may view this publication online at http://www.irs.gov/publications/p519/index.html. If Social Security and Medicare taxes were withheld from your paycheck, contact your host employer for reimbursement. If you are unable to get a refund from the employer, file a claim for a refund with the IRS.
How do I file my tax return?
Since filing taxes can be a lengthy and complicated process, it is highly recommended that you use a local tax preparation service (such as H&R Block or Jackson-Hewitt) or an online service that specializes in Non-Resident Alien tax returns such as www.taxback.com, www.taxact.com or www.cintax.com.