Austria hosts about more than one million of foreigners working in various sectors. As the economy changes, the job demand differs as well, but still, tourism sector is the most requested area in order to find an easy and seasonal job. Quite a lot, unfortunately, don’t know anything about income tax and tax refund. So what to do if you want to work in Austria and comply with the Austrian regulations? Read article
The Tax Cuts and Jobs Act is a new tax bill voted into law in the United States.Here is how it affects J1 Visa students working and travelling in the USA in 2018. Read article
So you live in Malta, but not just because of the sunny beaches and the astonishing waves? Well, if you are also a worker there, employed or self-employed, we have good news for you! Read article
Nowadays there are many jobs that can be done on cruise ships or cargo ships. You could cover different types of job, ranging from bars to sales, restaurants, entertainment, fitness, and many others. Instead workers on cargo ships are employed in the boarding operations, security, travel, storage and others. Read article
How do family policies change through Europe? Who is entitled to them and for how long? Find out which countries are the best parental leave payers. Here we compare Austria, Germany, the Netherlands, Italy, Iceland, Belgium and Norway in a comprehensive overview of what local rules are and how they differ in our elderly dear Europe. Read article
Lots are moving to Spain for a year or two to work and travel, enjoying the country. But what happens when it’s time for a tax return? Here some helpful tips about Spanish fiscal system! Read article
Most of those who work or study in Norway omit to claim their deductions to the Norwegian tax administration. Keep your eyes on your Selvangivelse form before it is too late! Here are some tips for you, dear expat! Read article
If you were there as a student or with a working holiday visa, hurry up to get your overpaid tax back! New Zealand tax year ended up on the 31st of March. From now until the 7th of July, be ready to apply for your tax refund! Read article
Every employee has already received his PAYE-P60 for 2017. In this document, you will find the summary of your earnings and the tax you paid last year. Unfortunately, many expats forget to claim their allowances before they apply for a tax refund. Find out what allowance you are entitled to and how you can apply for it! Read article
The tax year in the UK is finished on 5th April 2018. Starting from this date, you will receive your P60, a document that resumes your British income. It also lists the amount of tax your employer deducted from your salary for the whole tax year. Read article
In Canada fiscal year ends up at the end of December (01/01-31/12).The deadline for file your tax return, and so your tax refund, is before April 30. Read article
Every year many expats don’t apply for their tax refund as they simply don’t know it is possible! Here we explain how to refund your taxes. Read article
Here you can find easy guidelines about allowances and rights in the Netherlands for those who works there for a limited period or just arrived. Read article
Your tax return and your tax refund may change.
Last year Luxembourg modified fiscal law bringing in many adjustments; primarily rising the ceiling applicable for certain deduction and adding new deductibles. Rules for non-resident married couples were changed as well.
But how may Luxembourg fiscal reform affect your next tax return? What are the relating implications your tax refund claim? Read article
Lots of foreigners work nowadays in the Czech Republic and many of them don’t know that it is possible to get back their overpaid taxes. You may be one of them. Read article
Foreigners that work and pay taxes in Belgium are entitled to a certain allowance, as well as they can be entitled to apply for a tax refund. Read article
For those who work in Germany, every fiscal year ends up with your LBS. Moreover, every employer is legally obliged to issue it to every employee. Read article
Child benefit in Austria is one of the best child allowance in Europe. It can be granted by the State, by the Region and/or by the city you live in. The best thing to do is to find out what are the conditions you must meet to apply. Read article
What is a Sufinummer, a Burgerservicenummer and a DigiD? Those who work in the Netherlands still can have some doubts about them. Here we explain what they are for and how you can apply for them Read article
Every year a huge number of students askfor a permit to go to the USA. Most of them opt for a J1 visa. Last year forexample about 90.000 were accepted to work in USA with a J1.Read article
Germany announced changes in payments of child benefits for all employees having kids applicable as of January 2018. All applicants who apply for child benefits later than 1st January will receive the benefits only for 6 months back as opposed to current 4 years. For example, if you apply in January 2018 you will receive benefits for your kid(s) from June 2017.Read article
With the new Jobs Act President Donald Trump's administration introduced several changes of the utmost importance for J1 Visa holders, effective as of 1st January 2018.
Since then, we have found that most of the J1 Visa holders where at a loss as to how to relate to their new tax status.
Hence Dendax is answering in this guide to the most frequently asked questions: what tax amount are you subject to? Can you still get a tax refund? How can you fill your tax return?
Your new tax status as J1 Visa student
The Tax Cuts and Jobs Act eliminates personal exemptions for tax years 2018 through 2025, regardless of the taxpayer’s status. This affects most of J1 Visa holders as they are deemed as non-resident by the IRS. Prior to this Jobs Act the personal exemption was of $ 4,050, meaning that as J1 Visa holder you could earn up to that amount without having to pay taxes.
As the personal exemptions are eliminated for 2018, J1 Visa holders are now subject to the new Federal Tax Rates for non-residents, hence they'll have to pay:
Another change is that after the elimination of the personal exemptions is that every person who earns income in the USA has a legal obligation to fill tax return.
An example of two J1 Visa students working in the US
Leonardo travels to Florida in 2018 under the J1 Visa to work on a resort for summer, and he earns a total amount of $4000.
Under the new 2018 Jobs Act, he'll have to pay a 10% tax ($400) on his $4000 earnings.
Had he worked and earned the same amount in 2017, he would have benefited from the exemptions, not having to pay any taxes.
Vladimir worked for a company in 2018 under his J1 Visa, and he earns a total amount of $8200.
According to the new tax regime for non residents, his taxable income is of 10%, meaning that the amount of taxes is of $820.
Had he earned that amount in 2017, he would have paid a 10% of taxes only on the taxable amount of his earnings, that between $4,051 and $9325. Hence the tax amount he would be subject to in 2017 would have been of $414,9.
2018 Tax rate scheme
Can I still apply for a tax refund?
As most of the exemptions for J1 Visa students are gone, chances are Federal tax refunds will be reduced.
But the good news is that you can still apply for a State tax refund, which will not be affected by 2018 Jobs Act.
The tricky part is that you are now legally obliged to fill a tax return before applying for a tax refund.
How can I fill a tax return as non resident in USA?
As mentioned above, according to the new Jobs Act non-residents such as J1 Visa students are legally obliged to fill a tax return, even if they are not applying for a tax refund.
Filing a tax return for the IRS is not an easy task, as the process can require the assistance of a professional in that field. On top of that, not filling it, or filling it with non correct information could bring you to face legal issues.
Dendax USA Tax Return compiler
Dendax is preparing a new service which will let you fill your tax return and apply for a tax refund in the smoothest and clearest way. It will let you handle your tax return online, and send it directly to the IRS and Tax Office
The service will be officially launched in time for the fall.
Follow #Dendax on any social media platform to stay up to date on this service.
Meanwhile feel free to contact us, we'd be happy to clear the air about the new USA Job Act.
You can also take a look at our tax refund services for USA in our website