View Full Version : J-1 Visa from China to California, you.S
stephenyan
Sep 30, 2009, 10:42 AM
Hello,
I'm a j-1 visa holder and also a China citizen. I'm doing an internship in a U.S. company located in California. I receive wages from the company biweekly.
I have 15% of wages directly deducted as tax including federal, state tax and CA al/EE SUI.
Is is a normal case? In my opinion, J-1 visa holder can exempt all tax in the first two yeas,
Thank you in advance.
AtlantaTaxExpert
Sep 30, 2009, 01:45 PM
The J-1 visa you have is NOT the one that is exempt from taxation.
The tax-exempt J-1 visa is held by teachers, scholars, professors and researchers, and must be allowed for in a tax treaty between the visa holders home country and the U.S.
Your J-1 visa is the visa for trainees and students. Holders of your J-1 visa are liable for state and federal income taxes, and, in the case of California, unemployment/disability insurance (that is what CA al/EE SUI is for).
You are exempt from FICA (Social Security and Medicare) taxes for the first two calendar years you are in the U.S. under the J-1 visa. This is a matter of U.S. tax law and is not a treaty provision.
stephenyan
Sep 30, 2009, 10:22 PM
Thanks for your response. I get your point.:):):)
The J-1 visa you have is NOT the one that is exempt from taxation.
The tax-exempt J-1 visa is held by teachers, scholars, professors and researchers, and must be allowed for in a tax treaty between the visa holders home country and the U.S.
Your J-1 visa is the visa for trainees and students. Holders of your J-1 visa are liable for state and federal income taxes, and, in the case of California, unemployment/disability insurance (that is what CA al/EE SUI is for).
You are exempt from FICA (Social Security and Medicare) taxes for the first two calendar years you are in the U.S. under the J-1 visa. This is a matter of U.S. tax law and is not a treaty provision.
AtlantaTaxExpert
Oct 1, 2009, 07:58 AM
Glad to help!