Hi,

I recently moved to the US in Sept. 08 on a trainee program (J1 visa). I am employed by a US company and all my source of income has been from this job. Am I exempt from taxes? How does this work? Is there a limit to how much I am exempt on?

Thank you..
Sergio

What is your citizenship?
Normally, trainee on J1 is not exempt from taxes. You may be exempt from SS tax and Medicare tax but you must pay federal and state income taxes.
Exact answer can be given only after knowing your citizenship and if you are a trainee or a research scholar? Check your visa. Read: http://taxipay.blogspot.com/2008/08/us-visas.html