» Federal Income and State Income Taxes
Normally employees pay Federal Income Tax and State Income Tax while working in the USA. These taxes go to the Internal Revenue Service (IRS) and to the Tax Department in the state in which you work.
Usually, you can recover a major part of them. However, if you have earned money above a specified minimum, you might have to give up part of the taxes you paid to the US Treasury.
There are a few states which do not levy State Income Tax – Alaska, Florida, Nevada, Texas, South Dakota, Washington, Wyoming, New Hampshire and Tennessee. If you have worked in any of these states you will not have to care about the State Tax and will have to recover only the Federal Income Tax you have paid.
» FICA Taxes
Some employers are not well aquainted with the tax regulation for J-1 visa holders and improperly withhold Social Security and Medicare taxes from your check, as they would do to a regular American employee. These are the so called Social Security Tax and Medicare Taxes (or FICA). If you have kept the requirements of the program and if you keep all your documents, the IRS will refund you all of the FICA taxes. You can find more information on the prerequisites to have your FICA taxes refunded in our offices.
» Other types of taxes
It is possible that you have paid some other types of taxes, like local taxes, state disability and workforce taxes, and others, which are insignificant and cannot be recovered.
Specific documents, related to the US Tax Refund:
» W-2 form
This document is issued by your employer after the end of the year. It contains exact details about the income you have earned and the taxes you have paid working for him.
It is the employer’s duty to send you the W-2 form between 1-st and 31-st of January. If you have given a wrong or no Bulgarian address to your employer, you might have problems receiving the form. Also, it is possible that the W-2 gets lost while passing through the post offices. Do not worry, if anything like this happens – in most cases you can still use your last paycheck.
Fortunately, more and more employers initiate the uploading of all the W-2 forms on special web-sites, so the delivery problems can be avoided. If you have worked for a big company with thousands of employees, it is highly probable that your W-2 form is only one click away. Please, refer to our consultants at any Usit Colours office for more information.
» Social Security Card
It is issued by the Social Security Administration at the beginning of your first working year in the US. The number on this card – the Social Security Number (SSN) is similar to the Bulgarian EGN. The IRS uses it as an identification number. If you have lost, damaged or have not received your Social Security Card at all, you can call any of our offices for assistance.