Financial Resources - Taxes, J-1 Visa, W2 - how to handle

Tax Information for J-1 Au Pair Visa Care Professionals

The tax information contained on this website is not meant to be exhaustive and is not meant to be tax advice. We are providing introductory information for U.S. income tax requirements of Care Professionals working in the US on J-1 visas. If you have any questions about your tax obligation you should speak with a professional tax advisor or Certified Public Accountant. Please note that Apex Social Group, our staff, and Area Directors are not able to provide any additional guidance or tax advice.

Apex Social Group encourages you to visit the following page of the IRS website for the most detailed information:

http://www.irs.gov/Individuals/International-Taxpayers/Au-Pairs

Here are a few Frequently Asked Questions about Taxes for Care Professionals on a J-1 Au Pair Visa

Is withholding of Social Security tax required on the weekly stipend paid to my Care Professional who is a J-1 Au Pair Visa Holder?

No. According to the Internal Revenue Code, “Services performed by a non-resident-alien while temporarily in the United States as a non-resident under subparagraph (J) of Section 101(a)(15) of the Immigration and Nationality Act are excluded from coverage under the Social Security Program if the services are performed to carry out the purpose for which the non-resident alien was admitted to the United States.”

Is the weekly amount paid to my Care Professional who is a J-1 au pair visa holder taxable and is Federal withholding required?

According to the IRS, while the weekly stipend paid to a J-1 visa holder is not subject to Social Security and Medicare taxes, it is taxable to the Care Professional as wages. Federal withholding is not required unless the “employee” (Care Professional) asks the “employer” (Host Family) to withhold Federal income tax and the “employer” agrees to do so. Any withholding action must be mutually agreed to.

* Note: The Tax Cuts and Jobs Act of 2017 changed the tax code for non-resident aliens, no longer allowing them to take the standard deduction when filing their income tax return – resulting in a significant increase in the amount of tax they are likely to owe when they file their 1040-NR EZ. For this reason, some Care Professionals may prefer to have income taxes withheld each paycheck in order to avoid a large tax bill at the end of the year.

Do I need to issue a W-2 form to our Care Professional?

According to the IRS, because the stipend paid to a J-1 Au Pair participant Care Professional is paid for domestic service in a private home, stipend payments are not subject to mandatory U.S. income tax withholding and reporting. However, Care Professionals may request that you withhold their income taxes from their wages and provide a W-2 because it makes their required filing with the IRS at the end of the year much less of a burden.

Does the weekly pay to a Care Professional represent a qualifying child care expense to the Host Family?

Yes, it is generally considered to qualify. However, Host Families are advised to verify their specific situations with their tax advisors. To claim the Child and Dependent Care Tax Credit for the Care Professional stipend, the Host Family will need to provide the Care Professional’s social security number. Apex Social Group recommends you collect your Care Professional’s Social Security information immediately upon receipt and maintain it for your records, as Apex Social Group is not the Care Professional’s employer and we do not collect this information.

General Tax Information for Host Families/Household Employers

Does the program fee paid by the Host Family to Apex Social Group qualify as a child-care expense?

Apex Social Group recommends that Host Families discuss this topic with their tax advisors. Federal law prohibits Apex Social Group from giving any tax filing advice. According to IRS Publication 503, “fees you paid to an agency to get the services of a care provider, deposits you paid to an agency or preschool, application fees, and other indirect expenses are work-related expenses if you have to pay them to get care, even though they aren’t directly for care.”

What is Apex Social Group’s tax ID number?

Apex Social Group’s Federal Tax ID number is 51-0677755

Is Schedule H (Form 1040) required to be filed by the Host Family?

According to the IRS, Schedule H is required for reporting wages of $2,200 or more paid to a domestic worker. However, families are only required to file the form if they withheld income taxes or paid wages that are subject to Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes. Since payments to the Care Professional are not considered wages for the purpose of Social Security Taxes, Medicare Taxes or Federal Unemployment Taxes, you are not required to fill out the Schedule H if you do not withhold income taxes from your Care Professional’s wages.

Am I required to purchase Workers’ Compensation insurance for my Care Professional?

Due to the fact that an employee-employer relationship exists between Host Families and Care Professionals, you are responsible for determining whether Workers’ Compensation insurance, or any other insurance, is mandatory under federal, state and/or local laws and providing any such mandatory insurance. To review the requirements in your state, click here.

How does my Care Professional file a tax return?

Apex Social Group provides helpful resources for Care Professionals on how to take care of filing their taxes. Visit our Care Professional Tax Resource page.

U.S. Department of State

A.P.EX. American Professional Exchange, LLC is designated as an official sponsor of the J-1 Au Pair Exchange Visitor Program, overseen by the U.S. Department of State. Through the program, Care Professionals and Host Families take part in a mutually rewarding, intercultural exchange opportunity. Care Professionals, who are foreign nationals between the ages of 18 and 26, can continue their education while experiencing everyday life with an American family. Host families receive reliable and responsible childcare from individuals who become part of the family. Apex has a strong relationship with the U.S. Department of State and works to ensure that participants (both Care Professionals and Host Families) are fully compliant with program regulations and supports them in a way that encourages cultural exchange and program success.

The U.S. Department of State regulations states that:

Both host parents must be American citizens or permanent residents
Care Professionals have a private bedroom
English must be the primary language spoken in the home
Care Professionals can work up to 45 hours per week, and up to 10 hours per day
Care Professionals must have 1.5 days off each week and one full weekend off each month
Care Professionals must receive six credits (or 60 hours) of education at an accredited post-secondary institution (such as a community college)
Care Professionals receive two weeks of paid vacation during their year-long program
Care Professionals receive full room & board and a weekly stipend from their Host Family

Apex Social Group operates within the regulations defined by the U.S. Department of State. It is important to us that both Host Families and Care Professionals are aware of these regulations. Apex Social Group’s registered name with the U.S. Department of State is A.P.EX American Professional Exchange, LLC (dba Apex Social Group).

For more information, including a complete listing of program regulations, please visit the following links:

Learn more about the U.S. Department of State Exchange Visitor Program

Financial Resources - Taxes, J-1 Visa, W2 - how to handle

Tax Information for J-1 Au Pair Visa Care Professionals

Here are a few Frequently Asked Questions about Taxes for Care Professionals on a J-1 Au Pair Visa

General Tax Information for Host Families/Household Employers

U.S. Department of State

Care Support

Health Care

Financial Resources - Taxes, J-1 Visa, W2 - how to handle

Tax Information for J-1 Au Pair Visa Care Professionals

Here are a few Frequently Asked Questions about Taxes for Care Professionals on a J-1 Au Pair Visa

General Tax Information for Host Families/Household Employers

U.S. Department of State

Care Support

Therapy

Health Care