Taxes For J-1 Visa Holders


During your Getty residency you will receive a Non-Service Scholarship, Fellowship, or Internship grant. This means that your grant does not constitute compensation for personal services.

The United States Federal tax law requires the Getty to withhold (take out) 14% of your stipend unless we can determine that you are exempt from this obligation. Legal Permanent Residents of countries with whom the U.S. maintains applicable tax treaties may be exempt from withholding. To see if you are a Legal Permanent Resident of a tax treaty eligible country, please view this site:Countries with Treaty Benefits for Scholarship Grants

In addition to your grant stipend, other benefits you may receive from the Getty such as housing, airfare, ground transportation, health benefits, educational travel, visa expenses, etc., are subject to U.S. Federal tax reporting.

FOR INDIVIDUALS WHO ARE PERMANENT LEGAL RESIDENTS OF A COUNTRY WITH THE CODE 15 TAX TREATY WITH THE U.S.

You can decide to take advantage of the Tax Treaty or not.

IF YOU TAKE ADVANTAGE OF THE TAX TREATY

  • Your grant will not be taxed in the US.
  • Please know that Getty staff has no way of knowing if the grant will be taxed in your Country, or eventually, for how much.
  • Contact an accountant in your own Country for this information on your local taxes.

IF YOU DO NOT TAKE ADVANTAGE OF THE TAX TREATY

  • All your US paychecks will have a deduction of 14%.
  • After you have been in the US for 12 months or more, the non-cash benefits you received from the Getty could be taxed at 14% once you prepare the US tax return.
  • In your country you should pay the difference between the local rate and the US 14%. Example: If in your Country, the tax rate is 30%, you will pay 14% to the US and, if your grant is taxed in your Country, you would probably pay 16% in your Country to make up the 30% rate.
  • Getty staff has no way of knowing how the tax system works in your Country and if the above example would actually apply there.
  • Please do not expect to receive answers from Getty staff about taxation in your Country because we are not familiar with this particular subject.
  • Consult an accountant in your Country for information on your local taxes.

Based on past experience, the large majority of J-1 visa holders decided to take advantage of the tax treaty and not be taxed in the US.

In fact they realized that, if they did not take advantage of the tax treaty:

  • They would end up paying 14% of the grant to the US but,
  • They would not actually save tax money in their own Country
  • It would be easier to deal with taxes in their own Country, where they are more familiar with the system and where they may receive support from local knowledgeable accountants.



Whether or not income tax is withheld from your stipend, you are legally responsible for filing U.S. Federal and California State tax returns. At the end of each year the Getty will provide you with IRS form 1042S as well as a statement detailing the amount of your grant and value of benefits received during your residency. You will need to give this letter to your tax consultant when filing your taxes.

Getty Trust Accounting will also send you instructions to access an online tax program that you will be able to use to prepare your tax return.

If you have been in the US for 12 months or more you will be considered a US Resident for Tax Purposes which may or may not considerably increase your stipend withholdings as well as the US Federal and State tax liability.

Each February a Federal tax seminar is coordinated by Getty Tax Accounting & OSIP and presented by a tax expert to J-1 visa holders. Important information pertaining to non-immigrant tax law is provided, as well as necessary tax forms and instructions. It is highly recommended that all non US grantees in residence attend this seminar.

Should you still require personalized assistance, you will need to consult a U.S. tax accounting advisor. Please remember that, for liability reasons, Getty staff is not allowed to recommend any tax advisor and be aware that these professionals charge a substantial fee for their services.

Prior to your stay in the U.S., we strongly suggest you to consult your local tax advisor on the specifics of your tax situation and any reporting requirements related to your Getty grant in your Country.

For tax purposes you are required to have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN).

Click here for information about the SSN and ITIN.





For more information please visit the International Taxpayers portion of the IRS website.

For Information on California State taxes visit the California Tax Service Center website: http://www.taxes.ca.gov/Income_Tax/FileRequire.shtml

For California State tax forms visit the California Franchise Tax Board website at: www.ftb.ca.gov

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