$1000 1040NR

Tax Information for Au Pairs
Taxes are filed based on earnings in the previous calendar year - use this document for your earnings in calendar year 2015.
We know how confusing taxes can be and we want to help make the process as simple as
possible. Because we are not certified tax advisors, we can’t instruct you on exactly how to
fill out your tax forms, but we can provide you with some helpful information.
1040
IRS
$1000
1040NR-EZ
The Internal Revenue Service (IRS) is a
government agency that is responsible
for collecting taxes.
Our experience has shown that for
the majority of au pairs the maximum
amount of taxes owed is less than
$1000*.
Form 1040NR-EZ is a Federal/United
States Income Tax form for Non-Residents.
For most au pairs, this will be the correct
form to use*.
$
1040
?
APRIL
18
WHAT
HOW MUCH
The U.S. government collects a portion
of the money you earn in the U.S. This
is a tax to support the nation’s services
and facilities.
The amount you will owe depends on when you arrived to the U.S. and how much
you earned in a calendar year. First calculate how much you earned during the
year. Then calculate how much of that income is taxable.
WHY
It is the law in the U.S. to file taxes and
report your earnings from each calendar
year. Everyone is subject to the same
rule: all au pairs no matter what agency,
no matter which host family.
WHEN
You need to report last year's earnings
by April 18, 2016.
!
Keep a record of the weekly stipend payments you receive
from your host family during the year.
PERSONAL EXEMPTION LIMIT
This is the amount a person can earn but not pay taxes on. The 2015 amount is
$4000. An au pair who earned more than $4000 in 2015 is required to pay federal
taxes on the additional amount.
1K
$0
1K
1K
nontaxable
1K
$4000
$4000+
taxable
Where can I get help?
You can check with the U.S. Internal Revenue Service regarding federal tax filing requirements at their website irs.gov:
irs.gov/Individuals/International-Taxpayers/Au-Pairs. The IRS website has the most recent and only official information about au
pairs and taxes. If you need additional information, we advise host families and au pairs to speak with a local professional tax
advisor or directly with the IRS.
updated january 2016
MEET HELENA
Here’s how you can find out how much you
earned and what may be taxable. In this
example, Helena arrived to the U.S. in June
and provided services as an au pair for 30
weeks in 2015.
30
$195.75
$5872.50
weeks of au pair
services provided
stipend
per week
Helena’s total earnings
for the year
$5872.50
$4000
$1872.50
$186
total earnings
personal exemption
Helena’s taxable income
in tax year 2015
Helena completes form 1040NR-EZ
and checks the instruction booklet
to determine the amount owed.
5 steps to filing your taxes
HAVE YOU BEEN IN
THE U.S. BEFORE?
no
yes
Did you obtain an F, J, M or Q
non-immigrant visa before
becoming an au pair?
no
1.
yes
For tax
purposes, you
might be considered a
resident alien - someone who is a
permanent resident of the U.S. but
does not have
citizenship.
WHY IS THIS IMPORTANT?
In such a case, the host family and au pair should
consult a tax advisor because the host family may need
to withhold Social Security and Medicare taxes and pay
Federal Unemployment Tax for their au pair.
Get a Social Security number. If you do not already have one, you can find more
information here:
help.culturalcare.com/au-pair/knowledge-base/social-security-number
!
2.
3.
4.
Calculate your earnings from the previous calendar year. Multiply your weekly
stipend by the number of weeks that you worked for your host family, then
deduct $4000 from this amount to get your taxable earnings.
Check the 2015 instruction booklet starting on page 22 to see the tax income table
and find out what the tax is on your taxable earnings.
!
If you did not earn more than $4000 in 2015, you do not have to file a tax return unless your
host family withheld taxes from your stipend.
Fill out form 1040NR-EZ for calendar year 2015.
irs.gov/pub/irs-pdf/f1040nre.pdf
!
5.
A Social Security number is a unique number assigned to you used for identification
purposes and to track income.
You will not receive this form in the mail and no one will remind you to fill it out. You are
responsible for completing the form on time.
If you do owe an amount, you can pay your tax bill online at irs.gov/Payments.
Remember to submit your tax return and pay by April 18.
*Cultural Care Au Pair cannot be held responsible for the interpretation of the information within this document, or any changes to IRS rules or forms that may occur.
Cultural Care Au Pair staff and representatives are not tax professionals and the information provided here is for reference only. Information in this document pertains
to federal tax obligations. Since tax laws vary from state to state and are changed on a frequent basis, we advise host families and au pairs to speak with a local
professional tax advisor regarding your state tax requirements. Calculations and use of form 1040NR-EZ in this document are based on a stipend of $195.75 per week. If
this does not apply to you, we recommend speaking with a local professional tax advisor for assistance.
updated january 2016
Understanding Form 1040NR-EZ
BELOW ARE SOME HELPFUL TIPS FOR UNDERSTANDING FORM 1040NR-EZ (A SAMPLE BLANK FORM IS INCLUDED FOR REFERENCE):
1. Enter the total amount you earned in 2015 on lines 3, 7, 10 and 12.
2. Lines 4, 5, 6, 8 and 9- you will likely enter $0 on all of these lines- they refer to refunds or credits, scholarships and grants,
tax treaties- all things which do not apply to a typical au pair. In the unlikely event these items do apply to you, fill in the
correct amounts on these lines.
3. Line 11 refers to itemized deductions (itemized deductions are expenses that taxpayers can report in order to decrease their
taxable earnings). If you think you have paid for any itemized deductions, such as a donation to charity, you should speak to a
professional tax preparer.
4. Enter the 2015 personal exemption amount of $4000 on line 13.
5. Subtract $4000 from the number you reported on line 12. This amount is what is taxable for you and should be listed on
line 14. If you did not earn more than $ 4,000 in 2015, you typically would not have to file a tax return, unless your host
family withheld federal taxes from your weekly stipend.
6. Use the tax table starting on page 23 of the instruction booklet to determine your tax amount and put this total on line 15.
7. Line 16- this will likely be $0 as the au pair stipend is not typically subject to social security and Medicare (Medicare is a
health insurance program for people who are age 65 and older or for people with certain disabilities) taxes because of the au
pair's status as a J-1 non-immigrant and as a non-resident alien.
8.The vast majority of au pairs will report $0 on line 21 because their host families have not withheld taxes for them, and
because the au pairs have not been making quarterly estimated payments (estimated payments are tax payments made before
taxes are due) during the tax year. If either of these cases did happen, you should enter the appropriate amounts on lines 18
and 19 and then add them up on line 21.
9. Line 25- subtract line 21 from line 17. This is the amount you will pay to the IRS.
10. Line 26- As long as line 25 is less than $1,000 you can put $0 on line 26.
11. Remember to sign and date your return! If you used a professional tax advisor to prepare your form, they should also sign
in the space provided below your signature.
ANSWER ALL THE QUESTIONS ON PAGE 2 (“OTHER INFORMATION”)- HERE ARE A FEW TIPS TO CLARIFY THESE QUESTIONS:
Section B: write in United States.
Section E: the last day of the tax year is December 31st of the previous year.
Section G: include your arrival date to the au pair school and list any departure and return dates to the U.S. in the previous
calendar year.
Section J: au pair stipend payments are generally not exempt (exempt means that you are not required to pay taxes on the
earnings) under any U.S. tax treaties, however if you believe there is an applicable tax treaty (an agreement between two
countries regarding taxes) with your home country, consult with a tax professional for more details.
updated january 2016
THIS SAMPLE FORM IS FOR REFERENCE PURPOSES ONLY. EACH AU PAIR MUST COMPLETE A FORM USING THEIR OWN SPECIFIC TAX INFORMATION.
E
PL
M
SA
updated january 2016
E
PL
M
SA
updated january 2016