Taxes and Withholding

Federal, State, and Local Taxes

All InterExchange participants must pay federal, state and local taxes. They are not exempt. While they are here, participants of the InterExchange Camp 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 counselors are only able to work for four months, all are exempt from these withholdings. Please consult a tax professional to see if counselors are exempt from state unemployment taxes in your state.

Completing the W-4 Form

All exchange visitors must fill out a W-4 (employee withholding allowance certificate).

When filling out the current W-4 form it is recommended that InterExchange Camp USA participants follow Supplemental Form W-4 Instructions for Nonresident Aliens as provided by the IRS.

Please provide guidance on when and how they will receive their W-2, and urge them to file a tax return as required by the IRS.

Filing a Tax Return

All participants are required to file for U.S. income tax by April 15 of the year following the year in which they work. To file for a federal tax return, participants will fill out and send a 1040-NR (non-resident aliens with no dependents) tax form along with copies of their W-2 forms.

Participants can obtain the 1040-NR and instructions from the IRS website. Refund checks are mailed to participants in their home countries.

If your participants have any questions regarding the process, they can view our participant resource page on filing tax returns.

W-2 Forms

Please send W-2 forms to students at their permanent addresses in their home countries. We recommend that you have students address envelopes with their permanent addresses at the time you have them fill out their W-4. You can also distribute these digitally.

For IRS publications please contact your local IRS office or download them on the IRS website.

IMPORTANT: Do not send W-2 forms to the InterExchange New York office. InterExchange is not responsible for sending this information to participants.