Taxes: What You Have to Pay

As a foreign student working in the U.S. you have to pay some, but not all of the taxes that a U.S. Citizen has to pay:

You do pay:

• Federal income taxes
• State income taxes
• City income taxes

You do not pay:

• Social Security & Medicare Tax (FICA)
• Federal Unemployment Tax (FUTA)

U.S. Income Tax

In the U.S., income taxes are imposed by the federal, state and local governments. Your employer generally withholds income tax from your salary and pays it directly to the government. Approximately 10 to 15 percent of your salary will be withheld for federal income tax, a portion of which you may be able to claim back as a refund at the end of the year.

States and cities may charge extra income tax according to local laws. State income taxes are approximately 5 to 8 percent. If applicable, state and local income taxes will be withheld from your paycheck. Ask your employer about the local tax situation. You may be able to claim a refund for a portion of these taxes at the end of the year.

You MUST pay U.S. income tax. Failure to pay any taxes you owe could cause problems for you if you apply for any visas to return to the U.S. in the future. Please make sure that these taxes are being withheld from your paycheck.

If your employer has questions regarding your tax status, he or she can contact CIEE (1-888-Council)