Tax Refund USA?
If you choose to participate or you already have participated in the Work and Travel USA program, when you receive your checks from the employer, there will be deducted taxes. Respectively you are obliged to file a tax declaration, no matter what and how much tax you have paid. When you arrive back home, you can receive your already paid taxes back. We offer you several services for your tax refund:
Normal – Tax deducted is refunded to you in your bank account. As for the period of refunding - depends on the tax administration.
Fast – Your taxes are refunded to you in your bank account in period of several days.
If you think to travel next year, we offer you to pay your fee for the program with your taxes from the last season.
Types of taxes, which will be deducted from your check:
It is normal to deduct only Federal Income Tax and State Income Tax.
The Federal Tax is the same size in all the US state. It's size is decided annually by Congress and is consistent with the overall fiscal policy of the state. This kind of Tax is obligatory for all physical and legal persons carrying out activities in the US. All activities related to Federal tax carried out by a single tax administration (IRS). Recovery and payment on this tax is carried out by the Federal budget.
This tax is different for each state. In most cases the state tax has a lower rate compared to the federal tax. There are several states that do not hold state tax – Alaska, Florida, Nevada, Texas, South Dakota, Washington, Wyoming, New Hampshire, Tennessee. The rate for this type of tax is determined by the legislature of each state. The state tax is obligatory for all, regardless of their residence status in the US.
Some employers are not very familiar with the provisions of J-1 visa and they have wrongly deducted your Social Security Tax and Medicare Tax, like any regular American. Revenue thereof coming into the federal budget, their size is the same for all states. In some cases this type of deductions named „ FICA”.
It is possible that you have been withheld some other taxes, like local tax, insurance contributions to state service and other, which are very small and will not be reimbursed. The good news is, that they are used to increase your federal tax refund.
The procedure is not complicated, actually it does not take a lot of effort from you. As a beginning, you should bring us a copy of these documents:
last paychecks or W-2 forms, from all employers
Social Security Card
DS-2019 ( if more taxes are withheld from Federal Tax и State Tax)
In WATA you will get full services – consultation, calculation, filling in and submission of the declaration