Each year, thousands of young adults arrive in the United States to work as au pairs through a special cultural exchange program. This opportunity allows participants to experience American life while providing essential childcare support to host families. Alongside the cultural and educational aspects of this experience, au pairs must also understand and fulfill their tax obligations in the U.S. This guide outlines everything an au pair needs to know about their tax responsibilities, including income classification, residency status, exemption rules, and the importance of accurate reporting.
About the Au Pair Program
What is an Au Pair?
An au pair is an individual between the ages of 18 and 26 who joins an American host family as part of a cultural exchange initiative. The program is administered by the U.S. Department of State and allows au pairs to live in the United States for up to one year. During their stay, au pairs take educational classes, participate in cultural activities, and offer up to 45 hours of childcare per week to their host families.
Most au pairs travel to the U.S. on a J-1 Exchange Visitor visa. This visa permits participants to stay for an initial 12-month period, with a possible extension if certain criteria are met. The goal of the program is to promote cultural understanding by immersing au pairs in American family life, education, and society.
Taxable Income and the Au Pair Stipend
Is the Au Pair Stipend Considered Income?
The weekly stipend received by au pairs from their host families is regarded by the Internal Revenue Service as taxable income. It is considered compensation for services performed in a private home, making it subject to federal income tax. This classification means that every au pair in the U.S. must keep track of their earnings and report this income when filing their annual tax return.
Unlike traditional employees, au pairs are not usually given wage documentation like Form W-2 or Form 1042-S. The IRS does not require host families to withhold income taxes from au pair payments or to file these forms. As a result, the responsibility for accurate recordkeeping and tax payment falls directly on the au pair.
How to Track Your Income
To ensure accurate reporting, au pairs should maintain detailed records of all payments received from their host families. This includes stipends paid by check, direct deposit, or even in cash. Recording the date and amount of each payment in a personal spreadsheet or notebook can help simplify the tax filing process at the end of the year.
Determining Residency Status for Tax Purposes
Nonresident vs. Resident Alien
Tax obligations vary significantly depending on whether you are considered a resident or nonresident alien for tax purposes. Most au pairs will be classified as nonresident aliens during their time in the U.S. However, this status can change based on prior visits to the country or participation in other exchange visitor programs.
The Substantial Presence Test is used by the IRS to determine whether someone should be treated as a resident for tax purposes. This test counts the number of days a person has been physically present in the U.S. over a three-year period. If an au pair has spent more than 183 days in the U.S. within the applicable time frame, they may be reclassified as a resident alien. Filing taxes under the wrong residency status can lead to complications, including penalties and the potential for visa ineligibility in the future.
Federal and State Tax Obligations
Do Au Pairs Have to Pay Federal Income Tax?
Yes, au pairs must pay federal income tax on all U.S.-sourced income. Since the stipend is considered taxable wages, it must be included in a federal tax return. The amount of tax owed will depend on the total earnings for the year and the tax bracket into which the au pair falls.
Au pairs are not exempt from federal income tax, and they must file a return even if the host family did not withhold any taxes throughout the year. Paying attention to annual earnings and setting aside funds for tax payments is crucial to avoid unexpected liabilities in April.
What About State Taxes?
In addition to federal taxes, some au pairs may also be required to pay state and local income taxes. Whether or not you must file a state return depends on the state you lived and worked in during the tax year. States like Texas, Florida, and Washington do not have a state income tax, whereas states like California, New York, and Massachusetts do.
Each state has its own rules regarding income thresholds and filing requirements for nonresidents. If an au pair worked in multiple states or moved mid-year, they may need to file tax returns in more than one state. Understanding the tax laws in your specific state can help you prepare for any additional tax responsibilities.
Taxes Au Pairs Are Exempt From
Social Security and Medicare Taxes
Most au pairs are exempt from paying Social Security and Medicare taxes, also referred to as FICA taxes. This exemption applies because au pairs are generally classified as nonresident aliens and are in the U.S. temporarily on a J-1 visa.
However, if an au pair has previously lived in the U.S. under different visa types such as F, J, M, or Q, and meets the Substantial Presence Test, they may become resident aliens for tax purposes. In this case, they might be subject to FICA taxes depending on the nature of their income and employment.
Standard Deductions and Tax Credits
Nonresident aliens are not allowed to claim many of the tax deductions and credits available to resident taxpayers. This includes the standard deduction, which significantly reduces taxable income for most U.S. citizens and residents. Additionally, au pairs generally do not qualify for credits such as:
- Earned Income Tax Credit (EITC)
- Lifetime Learning Credit
- Hope Credit
The limited availability of deductions and credits means that au pairs may owe a higher percentage of their income in taxes compared to residents.
Making Estimated Tax Payments
When and How to Pay Taxes During the Year
Because host families are not required to withhold taxes from au pair payments, many au pairs choose to make estimated tax payments during the year to avoid a large balance due in April. The IRS provides Form 1040NR-ES for this purpose.
Estimated payments are typically made in four installments throughout the year: April, June, September, and January. These payments are optional but can help reduce the burden of a single large payment when the tax return is filed. Payments can be made electronically or by mailing a check or money order to the IRS along with a payment voucher.
Keeping Up With Deadlines
Tax deadlines are important. Missing a deadline can lead to penalties and interest on the amount owed. For the 2024 tax year, the deadline to file a federal income tax return is April 15, 2025. If estimated payments are being made, the due dates are typically as follows:
- 1st Payment: April 15, 2024
- 2nd Payment: June 15, 2024
- 3rd Payment: September 15, 2024
- 4th Payment: January 15, 2025
Staying organized and keeping a calendar with these key dates can help ensure compliance with IRS requirements.
Preparing to File Your Tax Return
What You Need to Get Started
To file a U.S. tax return, you will need either a Social Security Number or an Individual Taxpayer Identification Number. Most au pairs will have applied for a Social Security Number upon arrival in the U.S. If not, they can apply for an ITIN using Form W-7.
The next step is to calculate the total amount of income received during the year. This includes all stipend payments made by the host family. Even if the payments were made in cash or not formally documented, they must still be reported.
Once the total income has been calculated, au pairs must complete and file Form 1040NR. This form is specifically designed for nonresident aliens and allows for the proper reporting of income, deductions, and taxes owed.
Additional Forms for State Tax Returns
If required by the state where you lived and worked, you may also need to file a state income tax return. Each state has its own forms and filing processes, so it is important to research or seek guidance specific to your location.
Filing both federal and state returns ensures that you remain in compliance with all U.S. tax laws and avoid potential complications with the IRS or local tax authorities. Even if no tax is owed, submitting a return confirms your earnings and demonstrates your compliance with U.S. tax regulations.
Correcting Filing Errors
What to Do if You Made a Mistake
If you realize you filed your tax return incorrectly, don’t panic. There are steps you can take to fix the error. If you mistakenly filed as a resident instead of a nonresident, you can correct this by submitting Form 1040X along with an accurate Form 1040NR.
If you never filed a return at all, you can still submit it. The IRS allows for backfiling of previous years’ returns, although refunds can only be claimed for up to three years from the original due date.
If you owe taxes, it is important to file and pay as soon as possible. The IRS charges interest and penalties on unpaid balances, and late filing can create complications for future visa or green card applications.
Avoiding Common Mistakes
Some of the most common mistakes made by au pairs include failing to file, underreporting income, or filing under the wrong residency status. Double-checking all figures, keeping records of payments, and understanding your residency classification can help reduce the likelihood of errors.
How Au Pairs Can File U.S. Taxes Step-by-Step
Understanding how to file taxes as an au pair in the United States is essential to staying compliant with the Internal Revenue Service and avoiding penalties. We’ll explore the specific steps au pairs need to follow to prepare and file their federal and state tax returns accurately. From organizing records and determining income to completing forms and making payments, this article will provide detailed, actionable instructions tailored for the unique circumstances of J-1 visa holders.
Gathering Required Information
Identifying Documentation Needed
Before starting the tax filing process, au pairs should gather all necessary documents. Unlike traditional employees, au pairs typically do not receive a Form W-2 or 1099. Instead, they must rely on their own records. This means tracking every payment received from the host family throughout the tax year.
Start by reviewing your bank statements or payment receipts. If any payments were made in cash, include those amounts as well. Consistent recordkeeping throughout the year helps ensure accuracy when determining total income.
Obtaining a Taxpayer Identification Number
To file taxes in the United States, au pairs need a valid identification number. Most au pairs are eligible to apply for a Social Security Number shortly after arriving in the country.
If you were unable to get one, you must instead apply for an Individual Taxpayer Identification Number by submitting Form W-7 to the IRS. Make sure you have this number in hand before preparing your tax return. Without it, the IRS will not process your filing.
Calculating Total Income Earned
How to Determine Taxable Income
Au pairs receive a weekly stipend, typically based on the federal minimum wage. While this amount can vary slightly depending on agreements with host families or additional responsibilities, the total amount received from all sources during the tax year should be counted as taxable income.
Add up the full amount of your stipends from January through December. If you were in the U.S. for only part of the year, include only those weeks when you received payments.
Additional Earnings or Benefits
Some host families may reimburse education costs or provide allowances for transportation, travel, or bonuses. While these benefits may not always be considered income, it’s important to identify them and determine whether they must be reported. If in doubt, consult IRS guidelines regarding fringe benefits and non-cash compensation.
Understanding Your Tax Forms
Introduction to Form 1040NR
Nonresident aliens, including most au pairs, must file Form 1040NR to report U.S. income. This form differs from the standard Form 1040 used by U.S. residents. Form 1040NR allows nonresidents to declare their income and calculate the correct amount of tax owed based on U.S.-sourced earnings.
Form 1040NR includes several sections:
- Personal information
- Residency details
- Total income
- Adjustments (if applicable)
- Tax computation
- Refund or amount owed
Carefully read through each section and complete all relevant fields. Make sure all calculations are accurate to avoid processing delays or errors.
Common Attachments and Schedules
While most au pairs will only need to file the main 1040NR form, some situations may require additional schedules. For example, Schedule OI (Other Information) is often used to provide further details about residency, visa status, and travel history.
If your state requires a separate income tax return, you will also need to complete that form using information from your federal return.
Filing a State Tax Return
Do You Need to File at the State Level?
State tax requirements vary by location. Some states, like Florida and Texas, do not impose income taxes at all. Others, including California, New York, and Illinois, require nonresidents to file a return if they earned income within the state.
Research the rules for your specific state or states. If you lived in multiple states during the tax year, you may be obligated to file multiple state tax returns. This is often the case when au pairs move with families or switch placements mid-year.
How to Prepare a State Tax Return
Each state has its own forms and filing procedures. In general, state tax returns ask for similar information as the federal return, including total income, residency details, and whether tax was withheld.
Use your completed 1040NR as a reference. Some states require copies of your federal return to be included with your state submission. Follow each instruction carefully and make sure all documents are signed and dated before sending.
Options for Submitting Your Tax Return
Filing Electronically
Many nonresident tax forms can now be filed online. Electronic filing offers faster processing times and helps reduce common errors associated with paper forms. Check whether Form 1040NR and your state tax return are eligible for electronic submission.
To file electronically, you will need access to an e-filing platform that supports nonresident filings. Make sure the platform you use is authorized by the IRS for nonresident returns and allows you to submit both federal and state returns if needed.
Filing by Mail
If you prefer or are required to file by paper, print your completed forms and mail them to the IRS address designated for nonresident returns. If submitting a check or money order for payment, include a payment voucher and write your identification number on the check.
Be sure to keep a copy of everything you mail. Use certified mail or tracking to ensure your documents arrive safely at the IRS or state tax office.
Paying Any Taxes Owed
Calculating Your Tax Liability
Once your return is complete, you will know whether you are due a refund or owe taxes to the IRS. Tax owed must be paid in full by the filing deadline, usually April 15.
Your tax liability is calculated by applying the correct tax rate to your income. Nonresidents do not benefit from standard deductions, which means their taxable income is generally higher.
Methods of Payment
There are several ways to pay your taxes:
- Check or money order
- Electronic bank transfer
- Credit or debit card
If mailing payment, ensure it is postmarked by the filing deadline. Include your name, identification number, and tax year on the payment to ensure it is applied correctly.
Keeping Records and Documentation
Why You Should Keep a Tax File
Maintain a tax file with copies of all documents related to your income and tax filings. This includes:
- Payment records from host families
- Form 1040NR and any state returns
- Copies of payments made to the IRS or state
- Correspondence from tax authorities
This documentation can be crucial if the IRS requests additional information, and it may also be required when applying for future U.S. visas or residency.
Storing Records Safely
Keep both physical and digital copies of your tax records. Use secure storage options and back up digital files to avoid loss. The IRS recommends keeping tax records for at least three years from the date you filed your return.
What to Do if You Miss the Filing Deadline
Filing a Late Return
If you miss the April 15 deadline, file your tax return as soon as possible. The longer you wait, the more penalties and interest you may owe. Filing late can also impact your immigration status and may raise questions during future visa applications.
Submit your return along with payment for any taxes owed. If you cannot pay the full amount immediately, the IRS may allow installment payments, but interest and penalties will still accrue.
Backfiling for Previous Years
If you did not file a return in a prior year, it is still possible to submit that return. There is no statute of limitations on filing if you owe tax. However, if you are expecting a refund, you must file within three years of the original due date to claim it.
When backfilling, use the correct version of Form 1040NR for the tax year in question. The IRS maintains downloadable versions of past-year forms on its website. Ensure all information provided is accurate, and submit the forms with any payments due.
Amending a Previously Filed Return
Identifying Errors
If you realize that your original tax return included incorrect information or was filed under the wrong residency status, you will need to file an amended return. This process ensures your records are accurate and avoids potential issues with the IRS.
Filing Form 1040X
To correct your return, submit Form 1040X along with a new, accurate Form 1040NR. Clearly explain the error and provide the corrected information. Include any payment or request for refund as applicable.
Amended returns must be filed by mail. Keep a copy for your records, and consider using a tracking service to confirm delivery.
Common Tax Scenarios for Au Pairs
Scenario: Mid-Year Arrival
If you arrived in the U.S. midway through the year, you only need to report income earned after your arrival. Count the weeks you worked as an au pair and calculate your total stipend accordingly.
Be sure to indicate your arrival date and visa type on your tax return to clarify your residency status and earnings period.
Scenario: Moving Between States
Some au pairs may move with their host families from one state to another or switch placements during the year. In this case, determine how many weeks were spent in each state and file state tax returns accordingly. Divide your total income between the two states based on the length of stay.
Scenario: Additional Income
If you earned money outside of your au pair arrangement, such as tutoring or freelance work, that income must also be reported. Even small amounts of additional income are subject to federal and potentially state taxes.
Ensure that you track and report all income to stay in compliance with IRS regulations.
Final Tax Responsibilities for Au Pairs Leaving the United States
As an au pair’s time in the United States comes to an end, it is important to understand the tax-related steps that should be taken before departure. Many au pairs return to their home countries unaware that there are still financial and legal obligations that apply after they leave the U.S. This guide provides a comprehensive overview of the key tax responsibilities to address before and after leaving the country, how to handle potential refunds, and what to do in case of outstanding obligations.
Preparing for Departure
Review of Income and Documents
Before leaving the U.S., au pairs should take time to review all income received during their stay. This includes the weekly stipend and any other payments made by the host family, such as bonuses or reimbursements. It is important to ensure that every payment is recorded and that the total annual income is accurately documented.
All supporting documents, such as proof of payment, visa paperwork, and previous tax returns (if filed), should be kept in a secure folder. These records will be important for filing future tax returns or responding to inquiries from tax authorities.
Collecting Essential Identification Numbers
Ensure that your Social Security Number or Individual Taxpayer Identification Number is available and correctly recorded. You will need this number for any tax filings that take place after you have returned to your home country. It’s essential to keep this information confidential but accessible for future use.
Filing Taxes After Departure
Can You File From Abroad?
Yes, au pairs can file U.S. tax returns even after returning to their home country. In fact, if your program ended during the calendar year and you did not file before leaving, you are still required to do so by the annual tax deadline.
The process is similar to filing while in the U.S. You will still calculate income earned, complete Form 1040NR, and include any necessary attachments. If you owe tax, you must arrange payment from abroad. If you are due a refund, the IRS will process it and send it to the bank account listed on your return or issue a check to your international address.
Determining the Tax Year and Filing Deadline
Au pairs need to file taxes for the calendar year in which they worked. For example, if you worked during 2024 and returned home in December, you are still required to file a 2024 tax return by April 15, 2025. Even if your U.S. stay was short, income earned during that time is still taxable.
Make note of the appropriate tax year and ensure you meet the filing deadline to avoid interest and penalties.
Handling Refunds From the IRS
Determining Eligibility for a Refund
Although most au pairs owe a small amount of tax due to limited deductions and credits, some may still be eligible for a refund. This can happen if estimated tax payments were made throughout the year or if income was lower than expected.
Once your return is processed, the IRS will determine whether you overpaid. Refunds can be issued via direct deposit to a U.S. bank account or mailed as a check to an international address.
Managing International Refund Delivery
If you are expecting a refund after leaving the U.S., it is important to provide accurate and up-to-date information on your tax return. Include a U.S. bank account for faster refunds. If this is not possible, list your foreign mailing address clearly to avoid delivery issues.
IRS checks mailed abroad can take several weeks or months to arrive, and some international banks may not accept U.S. Treasury checks. If you have returned home and cannot cash a refund check, you may need to contact a tax professional or bank that can process international financial documents.
What If You Forget to File?
Late Filing From Outside the U.S.
If you return home without filing your U.S. taxes, you are still responsible for doing so. The IRS allows individuals to file returns from abroad using the appropriate forms for the tax year in question. There are no penalties for filing late if you are due a refund, but there is a time limit on how long you have to claim it.
To receive a refund, you must file the return within three years of the original due date. After this period, the IRS will not issue a refund even if you overpaid.
Consequences of Non-Compliance
Failing to file or pay taxes owed can have serious consequences. Although the IRS may not pursue international enforcement in every case, unresolved tax obligations can negatively impact your chances of obtaining future U.S. visas or immigration benefits. Keeping your tax record clean is essential for anyone considering another visit or future residency.
Communicating With the IRS From Abroad
How to Contact the IRS Internationally
The IRS provides several options for taxpayers living outside the U.S. Individuals can contact the IRS by phone, mail, or through its website. Dedicated international phone lines are available for questions about accounts, filing procedures, and payment options.
If you are trying to resolve an issue or check on the status of your return, be sure to have your identification number, previous tax documents, and any relevant correspondence ready when you reach out.
Receiving Mail and Notices Overseas
When filing your return, include your foreign address and ensure it is correct and complete. This is especially important for receiving notices, requests for additional information, or refund checks. Delays or incorrect addresses can complicate your interaction with the IRS.
Respond to all IRS notices promptly. Ignoring a request for clarification or documentation can lead to delays in processing or additional penalties.
Dealing With Outstanding Tax Balances
Options for Paying From Abroad
If your tax return shows that you owe money to the IRS, you will need to arrange payment. Fortunately, there are several methods available for international payments:
- Online payment via IRS portal using a debit or credit card
- Electronic bank transfer through the Electronic Federal Tax Payment System
- International wire transfer, depending on your financial institution
- Mailing a check or money order drawn on a U.S. bank
Choose the method that is most secure and convenient for you. Always include your name, tax identification number, and the applicable tax year with your payment.
Setting Up a Payment Plan
If you cannot pay the full amount at once, the IRS may allow you to establish an installment agreement. This can often be arranged online or by submitting Form 9465. Keep in mind that interest and penalties will continue to accrue until the balance is paid in full.
If you plan to return to the U.S. in the future, it is wise to resolve any outstanding balances to avoid issues at the border or during future visa applications.
Backfiling Past Tax Returns
When and How to Backfile
If you failed to file a tax return for a previous year, you can still submit that return. This process is known as backfilling. The IRS allows individuals to file returns for any prior year, although refunds are only available for the most recent three years.
To backfile, download the correct version of Form 1040NR for the applicable year. Complete the form using your records and submit it by mail. Include all required documentation, such as payment vouchers or supporting schedules.
Recordkeeping for Past Filings
Keep copies of all forms and correspondence related to backfiled returns. You may need to reference these documents if there are questions or delays. Organizing your past returns by year can help simplify future interactions with the IRS.
Applying for Future U.S. Visas After Filing
Tax Compliance and Visa Applications
U.S. immigration authorities may request proof of tax compliance when reviewing visa or residency applications. Having a complete and accurate filing history can demonstrate good character and responsibility, which are important factors in the approval process.
When applying for a visa, you may be asked to provide:
- Copies of previously filed tax returns
- Proof of tax payments
- Evidence of refund checks or IRS correspondence
Ensure that your records are up to date and accessible. If you anticipate applying for another U.S. visa, resolve any outstanding issues before submitting your application.
Importance of Accurate Records
Keeping organized records not only simplifies your filing process but also strengthens your future applications. Store physical and digital copies in a secure location, and consider updating your records annually to stay current.
What to Do With Tax Documents After Returning Home
Retaining Tax Records
It’s important to retain your U.S. tax records even after you’ve returned to your home country. The IRS recommends keeping records for at least three years from the date you filed your return, or longer if you were involved in complex tax situations.
Store these documents securely, and make backups whenever possible. You may need to refer to them if the IRS contacts you, if you apply for another visa, or if you must prove compliance in the future.
Protecting Personal Information
When storing sensitive information like your tax identification number, keep it in a secure and private place. Avoid sharing this information unless absolutely necessary and only with verified authorities.
Be cautious of scams and fraud attempts that target individuals living abroad. The IRS will never ask for personal information via email or phone without proper verification procedures.
Planning for Tax Responsibilities in the Future
What Happens If You Return to the U.S.
If you return to the U.S. under a new visa or immigration status, your previous tax history may be reviewed. Outstanding balances, unfiled returns, or other issues could surface and require resolution before you are granted access or status.
It’s helpful to carry copies of past filings and receipts as part of your travel documentation. This is especially important for individuals entering on employment-based visas or applying for permanent residency.
Continued Tax Obligations
Depending on the type of visa you receive in the future, you may continue to have tax obligations in the United States. Understanding how residency status affects tax responsibilities can help you stay compliant in future visits or stays.
Conclusion
Navigating the U.S. tax system as an au pair may seem overwhelming at first, but with the right understanding and preparation, it becomes a manageable part of your cultural exchange journey. Across this comprehensive guide, we’ve explored the essential tax obligations that every au pair must fulfill from understanding the nature of your income and determining your residency status to correctly filing your tax return and handling responsibilities even after you’ve returned home.
Being proactive is key. Keeping thorough records of your earnings, knowing the correct forms to file, paying attention to deadlines, and ensuring your filings align with your nonresident status are all vital steps toward staying compliant. While you may not receive a traditional wage slip or tax form from your host family, it remains your responsibility to accurately report and pay taxes on the income earned while living in the United States.
Complying with U.S. tax laws doesn’t just help you avoid fines or interest, it also helps preserve your eligibility for future travel, study, or work opportunities in the country. Any discrepancies in your filing or unpaid tax obligations can negatively impact visa applications or immigration procedures down the road.
As you move forward, whether you are planning to return to your home country, extend your program, or apply for another U.S. visa in the future, fulfilling your tax responsibilities will reflect your respect for the system and your readiness to follow through with international obligations. Filing taxes as an au pair is not only a legal requirement but also an important part of your journey toward global citizenship.
If questions or complexities arise, always seek accurate information and professional guidance tailored to nonresident aliens. With the right approach, tax season can be just another milestone in your rewarding au pair experience in the United States.