Federal, State, and Local Taxes
All InterExchange students must pay federal, state and local taxes. Students are not exempt. While they are here, students of the InterExchange Work & Travel USA program are exchange visitors in the non-resident alien tax category. Please consult a tax professional for the most recent tax regulations.FICA and FUTA Withholdings
Under IRS Code Section 3121 (B)(19), all non-resident aliens on J-1 Visas are exempt from paying FICA (Social Security) and FUTA (federal unemployment taxes) taxes during their first two calendar years in the U.S. Since all of our students are only able to work for four months, all are exempt from these withholdings. Please consult a tax professional to see if students are exempt from state unemployment taxes in your state.Completing the W-4 Form
All students must fill out a W-4 (employee withholding allowance certificate).Recommendations From the IRS
When filling out the current W-4 form it is recommended that InterExchange Work & Travel USA participants follow Supplemental Form W-4 Instructions for Nonresident Aliens as provided by the IRS.Please urge them to file a tax return after they receive their W-2!![](https://iex-website.s3.amazonaws.com/images/handbooks/work-travel-usa/hosts/w-4-form.jpg)