2018 Tax Reform and it’s effects on the taxation of Non-resident Aliens (including Foreign Students, J-1 and other Exchange Visitors)

piggy-bank_shutterstock_71773846In 2017 President Trump signed into the law called “Tax Cuts and Jobs Act” which affects taxation of Summer Work & Travel participants, Trainees, Interns and others temporarily working in United States. From 2018 major part of all Non-resident Aliens should pay Federal taxes from the first dollar of their earnings. It means that they have to pay more Federal taxes comparing to previous years. For most States tax calculation rules remained unchanged.

Until 2018, Non-resident Aliens working in USA could earn up to $4050 without paying Federal taxes. From 2018 this personal tax exemption was reduced from $4050 to $0. This means that Tax Refunds for 2018 will be very small or even negative and Non-resident Aliens will have to pay the debt to US Government.

Everyone who worked in USA must file Federal and State Tax Returns in order to fulfill their Tax Return obligations and stay in compliance with US Tax Law. Tax Returns for tax year 2018 must be filed on or before 15th of April, 2019. Failure to file may result in penalties and interest due as well as may cause problems when entering the country in the future.

How can I find out my tax refund amount?
You are welcome to use our free online calculator and find out your tax refund amount.

When will you charge your fees?
Service fees will have to be paid at the time when your Federal and State(s) Tax Returns are prepared and ready to be mailed out to US Tax Authorities. Our service fee includes both Federal and State(s) Tax Returns.

How will I get my Tax Refund?
You can choose to receive your Tax Refund to your American bank account or by government check(s) to your home address. If you choose to get your Tax Refund by check(s), make sure you will be able to cash USA government check(s) in your country. If you do not have a bank account in the United States or you are not able to cash your Tax Refund check(s), please contact us for advise and help!

Why I have a debt?
Debt means that you paid less taxes than you had to. Even if you are a student who went to work for a summer with J-1 visa, you have to pay taxes. USA Tax Refund is possible only if you overpay taxes and this happens when your employer deducts more taxes from your earnings than he had to. You are not exempt from paying taxes. So, if your employer deducted less taxes than he had to – it turns out that you owe taxes and have to pay the debt.

What to do if I have a debt?
We strongly recommend you to file your Income Tax Returns and pay the debt in order to avoid penalties, interests and possible problems entering US in the future. You can do it on your own or use our services and let AmberTax do the job for you.

How can I pay the debt?
You can pay your debt using a credit/debit card directly to USA Federal and/or State Tax Agencies. If for some reason you are unable to do it on your own – AmberTax can handle it for you.

If you have more questions – please contact Ambertax at [email protected].

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