As wage earners, J-1 trainees are required to pay Federal, State and Local taxes (FUTA). These taxes should be taken out of each paycheck automatically. Trainees should complete a W-4 form upon US arrival. J-1 trainees are exempt from paying Social Security and Medicare taxes (FICA). The rules about your trainee's exemptions can be found in the IRS Publication 15, Circular E (408k pdf) and Publication 515 (408k pdf).

J-1 Trainees are required to file a tax return for their previous year's wages by April 15 of each year. They will need to complete the 1040-EZ NR form (100k pdf) to file their Federal Tax return, and they will also need to complete the appropriate Sate and Local tax return forms . More information is available on the IRS website .