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So I am an Irish J1 student doing an internship in Minnesota and have been since july 5th of this year. I have been getting paid a monthly paycheck of $2,000 for the 6 months I have been here and thus was expecting my taxable income to be $12,000. However I got a nasty shock to discover that the apartment the company has been renting for me and the car and any other expense paid to me has been put down as income to be and i am not considered an employee but a separate entity. I was told, and I calculated my tax based on the cash I received to only be a couple of hundred dollars and I budgeted for that, Now however my tax has become $4,300 due to the way they have classified me. Is there any way I can be exempt from this or reduce this as I have not budgeted for this amount, also all of the money I have been paid has gone into living expenses so I have not had the chance to save up this amount of money. Any help would be greatly appreciated

  • Talk to the company and review any contract document you have with them and see how they proposed your pay and bonuses would be calculated. Depending on how they worded their offer, you may very well be screwed, but if you are lucky and they left the wording open to interpretation, you can ask an IRS advocate for recalculation and they tend to be pretty good at working things out. They might at the very least lower your liability by settling on a smaller number. – GµårÐïåñ Dec 9 '13 at 23:19
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On what basis are you not employee? You should probably get some tax/legal advice, but generally J1 internship is by definition employment.

You should also check the tax treaty between the US and Ireland, if there's one, and check what it says about training related income. You may find a pleasant surprise there.

Most universities have support for international students/visiting scholars, check the international students' office at your school.

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J-1 students are considered to be nonresidents for taxation purposes during their first five years of presence in the US. J-1 scholars are considered to be non-residents for taxation purposes during their first two years of presence in the US.

  • While correct, how is it addressing the question? – littleadv Dec 10 '13 at 22:00

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