Are There J1 Visa Taxes for Physicians?

The United States tax code is notorious for its complexity, and it’s easy for immigrants to file improperly and get audited by the IRS. However, there’s no reason to panic! While there is a lot of tax information that J1 visa holders should be aware of, you just have to be careful and do your research.

This article is a resource for J1 visa holders with questions about tax status and provides a detailed breakdown of the different taxes J1 visa holders are obligated to pay, along with special considerations and FAQs.

Are there J1 Physician Taxes?

Immigrants in the U.S. on a J1 visa must pay the same taxes that all wage earners pay: federal, state, FICA, and local. However, there are no special taxes specifically for physicians on a J1 visa. J1 physicians will face the same tax obligations as other J1 visa holders.

Alien Liability for J1 Physicians and J1 Visa Holders

Immigrant wage earners who are “resident aliens” are liable for Social Security and Medicare taxes. However, J1 visa holders fall into the category of “nonresident aliens” who are generally exempt from Social Security and Medicare taxes. As long as the wages earned are for services approved by the United States Citizenship and Immigration Services (USCIS) for nonimmigrant status, J1 visa holders will not have to pay these taxes on that income.

Taxes Paid in the U.S.

J1 visa holders likely won’t have to pay Social Security and Medicare taxes, but they are still liable for other taxes on their wages. There are 4 types of taxes that J1 immigrants need to be aware of, and the following section describes each in detail.

4 Types of Taxes

Federal Taxes

Federal taxes are the most substantial J1 physician taxes that you will be liable for. For the year 2019, there are 7 different tax brackets, with tax rates ranging from 10% for the lowest bracket to 37% for the highest bracket. However, falling into a higher tax bracket does not mean that you pay the tax rate of that bracket on your entire income. What matters is taxable income.

For example, in 2019 the lowest tax bracket was 10% for income between $0 and $9325, while the second lowest bracket of 15% was for income between $9,325 and $37,950. Even if you fall into the second lowest tax bracket, you will only pay 10% in taxes on the first $9,325 that you made, and 15% on the rest. This means that in the end, you would end up paying much less than 25%.

State Taxes

State taxes are much lower than federal taxes, but also vary widely state-by-state. Some states have a fixed tax rate, while others have a graduated one similar to the federal tax code. J1 visa holders should find the tax rate for their state of residence to get an idea of their final tax bill.

Federal Insurance Contributions Act (FICA) Tax

The only J1 visa holders who may be eligible for the FICA tax are those who have previously lived in the U.S. and are still classified as resident aliens. Otherwise, J1 visa holders are not subject to the FICA tax since the J1 is a non-resident visa. However, the tax may be taken out of your wages automatically. If so, make sure that you request a tax refund when you file.

Local Taxes

Local taxes are permitted in 14 states and Washington D.C. The most common local tax is sales tax. Sales tax is not a tax on your income, but on the purchases that you make. While local taxes like this won’t appear on your final tax bill, you should keep an eye out for them on receipts and factor them into purchasing decisions.

J1 Physician Taxes: ITIN and SSN

To pay J1 physician taxes, visa holders must have either an Individual Taxpayer Identification Number (ITIN) or a Social Security Number (SSN).

Individual Tax Identification Number (ITIN)

An ITIN is a tax processing number used by the Internal Revenue Service (IRS) to identify taxpayers. ITIN numbers are issued to individuals who are required to pay taxes but do not have — and cannot obtain — a Social Security Number. J1 physicians or visa holders must apply for an ITIN if they are not eligible for an SSN.

Social Security Number (SSN)

J1 physicians and visa holders are typically eligible for an SSN, however. The SSN application process can be lengthy and involves a number of steps. Immigrants must have their visa validated within the government’s SEVIS database, then set an appointment at their local Social Security Office no less than 10 days after entering the country. Finally, an SSN card will be mailed to the applicant, typically two weeks after their appointment.

How to File J1 Physician and J1 Visa Taxes

The following section gets into the nitty-gritty details of filing J1 physician and J1 visa taxes, including forms, important dates, and information on exemptions.

Forms

J1 visa holders will file their taxes with a Form 1040NR-EZ or 1040-NR “US Non-Resident Alien Income Tax Return,” and a Form 8843, called the “Statement for Exempt Individuals and Individuals With a Medical Condition”. Residents of countries that have a tax treaty with the US may be eligible for reduced tax rates or exemptions, so find out if your country of origin has a tax treaty before filing.

The Filing Process

The deadline to submit your tax return is Monday, April 15, 2019. Fill out your 1040NR-EZ or 1040NR form, which you will file alongside your W2 and any relevant state and local tax forms. The 1040NR-EZ form can be quite complex, so go through it slowly and thoroughly, and double-check the information you enter in each box. State and local tax forms can be difficult as well, and you need to make sure that you find and submit all of the relevant forms. Your return can be mailed into the IRS or submitted electronically.

Deductions and exemptions

J1 visa holders are typically not eligible for the standard deduction, but there are other deductions that you may be eligible for, including:

• State/local income tax
• Charitable contributions to NGOs
• Loss from casualty and theft

Also, it is illegal for J1 visa holders to apply for the American Opportunity Tax Credit (AOTC), and doing so may incur a fine from the IRS and complicate your visa status.

Nonresident aliens are permitted one personal exemption, and personal expenses typically cannot be deducted.

Tax Considerations for J1 Physicians

J-1 physicians are classified as nonresidents for the first two years of their stay in the U.S., though this status changes after they have been in the country for 183 days of the third calendar year of their stay. Nonresident aliens are exempt from Medicare and Social Security taxes, while resident aliens are liable for these taxes.

The other important tax consideration J1 physicians must make concerns tax treaties. J1 physicians are eligible for tax treaty exemptions if they resided in the treaty country immediately before traveling to the U.S. In addition, some treaties require that you retain tax residence in the treaty country to be eligible.

J1 physicians in residence receive income from training, and whether or not their income will be tax-exempt depends on the specific clauses of the relevant tax treaty. Some treaties only exempt income for trainees that comes from abroad, so J1 physicians in residence would not be exempt. Other treaties only exempt income for trainees up to a certain threshold, typically $2,000 to $5,000. Each J1 physician, then, must investigate the clauses of the relevant tax treaty of their home country for the specific considerations they must make when filing taxes.

J1 Visa Taxes FAQ

For J1 visa holders who still have questions about filing taxes, this section provides more information on how to file and other special considerations you may need to make.

What IRS tax forms do I need to fill out?

The main forms that J1 visa holders will fill out to file their taxes are either the 1040NR or the 1040NR-EZ (US Non-Resident Alien Income Tax Return). The “EZ” stands for easy: the 1040NR-EZ is a shorter version of the 1040NR that is simpler to fill out. The IRS has a helpful questionnaire that will help you determine if you should fill out either a 1040NR or a 1040NR-EZ.

When will I receive my W-2 and what do I do if I haven’t received it?

The W-2 is the other crucial form that you must submit to the IRS upon filing your taxes, which details all of the income that you have received from the relevant organization in the current calendar year. The organization that sponsored your J1 visa must send you a W-2 by January 31. If you have not received your W-2 by that date, make sure to reach out to the human resources department of your organization, or talk to your immediate superior.

I have my W-2 but do I need any other forms before I can file my taxes?

Filing J1 visa taxes often involves a Form 1042-S, called the “Foreign Person’s U.S. Source Income Subject to Withholding,” in addition to your W-2, your 1040-NR and your Form 8843. The Form 1042 reports taxable federal payments and withholding on U.S. income.

I did not earn income in 2024, but I was present on a J1 visa. Do I still need to file taxes?

Yes, all J1 visa holders who spent a minimum of one day in the United States must file a Form 8843 with the IRS, regardless of whether they earned income or not.

Conclusion

At first glance, filing J1 visa taxes might seem overwhelming and confusing, but you just need to break your tax bill down into the different types of taxes you owe and the forms required to file each of these taxes. Review the information you fill into each form carefully before filing to lessen your chances of triggering an audit. Individuals filing J1 physician taxes must be particularly careful to find the treaty information for their country of origin so they can apply for any exemptions they may be eligible for.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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