If you resided in the U.S. for an internship during the previous calendar year and have received compensation for your position , you must submit a tax return to the Internal Revenue Service (IRS), the American Finance Office, and to the respective governmental authority of the Federal State. In this case, it is quite possible that you will qualify for a tax refund if the payroll tax was overpaid.
Due to U.S. tax treaties with different nations, J1 visa trainees and interns are generally exempt from taxes from the category of the Federal Insurance Contributions Act (FICA) tax. These include Federal Unemployment, Medicare, and Social Security Taxes. However, these charges are often automatically deducted from your monthly check by your employer.
The general rule that everyone who works in the U.S. must pay taxes even if they permanently reside outside the U.S. applies. Anyone residing in the US with a J, F, Q, or M visa, and has any sort of income, is required to pay U.S. taxes.
Therefore, all J1 trainees and J1 interns who receive an income during their internship must expect to pay Federal, State, and Local Taxes. However, you have the option to claim taxes paid in the U.S. depending on your income. Please apply for a tax refund. Please note that all those who have worked in the U.S. are required to fill out Form 1040NR or Form 1040NR-EZ and thus apply for a tax refund. Even if your internship was unpaid,
If your internship or traineeship took place during two calendar years, you may have to submit two annual reports.