[vlstbor]

I am the J1 visa holder and it was told to me that even though I have dependent family members I will be paying tax as a single. This does not sound fair to me and I am wandering is it correct ? Thanks in advance.

[AtlantaTaxExpert]

First, no one EVER said taxation is FAIR. It is NOT, because fairness is ALWAYS a matter of perception and personal circumstance.

That said, what you have been told may or may not be accurate. It depends on your home country and whether there is a tax treaty between that country and the U.S. Since you did NOT identify your home country, I cannot provide good guidance one way or another.

[vlstbor]

Thank you very much! I am coming from Switzerland and there is a tax treaty between US and Switzerland. Could you please help me with finding the needed information. Thanks

[AtlantaTaxExpert]

There is no treaty provision for tax exemption of J-1 visa holders who are teachers/researchers/scholars in the U.S.-Swiss Tax Treaty, so you will be considered either a student or trainee.

This being the case, you will file as a MARRIED non-resident alien and will NOT be allowed to claim either your spouse or children as dependents on yor tax return.

You will pay taxes using the Married Filing Separately Tax Rates, which are almost the same as the SINGLE rate.

When it comes to withholding, your income taxes will be withheld at the SINGLE rate with either ZERO or ONE allowance, no more.

Due to your J-1 visa status, you are exempt from FICA (Social Security and Medicare) taxes for two calendar years. Staring on 1 January of the third calendar year, FICA taxes will begin to be withheld and, in that third calendar year, you can then file as a resident alien if you remain in the U.S. for the enture year.

When you file as a resident alien in that third year, you can file jointly with your spouse and then claim your children as dependents.

[vlstbor]

Yes it does. Thank you very much.