Paying Tax

SantryRed

Hi all,

I went on a J1 over the summer, and whilst there worked legally for company. I was treated as a self employed person, so responsible for filing my own tax return at the end of the year. Has anyone any experience in this?

The reason I ask is how do I go about doing it. If I wasn't to pay the tax due, would it effect my credit rating if I was to move back, or could I be refused at the border?

Also, I was told that if you earned under $3,700 in a year, which I did, then you don't have to file any tax returns?

Could any one please advice?

Thanks.

ProudDUB

If you earned less than the income threshold, you don't have to file at all. I don't remember the exact amount, but I though it was a good deal more than 3 grand. Every US worker (who is over the income threshold) has to file a tax return, whether they are self employed, an independent contractor, or they are a paid employee of a company who withhold tax for you. Even though the company were not deducting tax for you, they were still paying you. They are obliged by US law to send you a statement of earnings form (called a W-2) by the end of January 2014. This is the form that you use to file your taxes.

If you were under the income threshold, you won't have to file a tax return. However, you should still hang onto the W2 form for your own personal records. You'll need it in case you ever go back to the US and, you are ever asked to prove why you didn't file a tax return for the money you earned when you were in the US this year. Contact the company you worked for and, make sure that they have your postal address in Ireland. They may send you a W2 now, but odds are they won't and they'll just include you with the others that they send out in January of next year.

Your credit rating would only be affected if the IRS filed a judgement against you in court (for unpaid taxes) & won. That would show up on your credit rating, as it is linked to your social security number. But as you don't owe the IRS any money, that won't happen regarding your earnings for this year.

US residents who have been overseas for a long time, may be questioned as to their tax compliance while they have been away. You are unlikely to ever be questioned about it, as you were only in the US for a few months on a short term student visa. Border police would have enough cop on to see that, and judge for themselves that you were unlikely to have made enough money to have gotten in trouble with the IRS for non payment of taxes. However, it would be a good idea to bring your W2 from 2014 with you, if you are ever going back to the States to live and work again.

spideog7

ProudDUB is correct, although if you were treated as self employed you won't get a W2 it would be a 1099 and your employer likely didn't pay any taxes for you.

It sounds like you didn't earn enough to worry about it and on J1 you don't have to pay FICA anyway.