To learn more about the income and benefits you will receive as an AIPT program participant, click on one of the links below:

Does my host employer have to pay me overtime?
Can a host employer pay a participant a bonus?
Does the employer have to provide the participant with paid vacation or paid sick leave during the training period?
Do participants have to pay taxes?
Where can participants find information about taxes?
Can participants work a second job?
Can a spouse work?
How do participants use their health insurance?

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Can a host employer pay a participant a bonus?
Yes. There are no regulations that prohibit participants from earning a bonus during their training program.

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Does the employer have to provide the participant with paid vacation or paid sick leave during the training period?
No. American employers are not legally required to offer their employees any leave with pay, including vacation and sick time. Therefore, U.S. employers are not legally required to offer J-1 participants any type of leave with pay. Participants are subject to the leave policies of their specific host employers. In most cases, participants will have to "earn" paid vacation and sick time. That is, participants will be eligible for paid leave only after spending a certain period of time with the host employer.

As a guide, in the United States, new employees typically earn one to two weeks of vacation in their first year of employment. Therefore, participants should not expect any more than two weeks of vacation during their training period in the United States.

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Do participants have to pay taxes?
Participants who earn income from a U.S. source must pay federal and state income taxes. State income tax rates vary (and some states do not have an income tax), but the federal income tax is indexed by the level of the wage. Participants should expect to pay about 25 percent of their gross salary in federal income taxes. The employer will automatically deduct federal and state income taxes from the paycheck. Participants do not pay Social Security taxes (FICA) or Federal Unemployment tax (FUTA) because they are not eligible for these benefits.

In addition, participants whose training wages may be paid from an overseas source should also note that this income may be subject to tax, as well. How an individual performing services in the United States is taxed depends on his or her U.S. tax status – resident or nonresident. A non-immigrant is a resident if he or she has been physically present in the United States for 183 days or more, for any reason. A resident is subject to U.S. tax on worldwide income, regardless of the location of payment. Compensation for services performed in the United States is U.S. source income regardless of the location of payment, unless an exception applies.

Participants must file both a federal income tax return and a state income tax return (if there is a state income tax). These returns must be filed by April 15 for each year they earn income in the United States. For example, if the training program lasts from January 1, 2003, to July 2, 2004, participants will have to file tax returns for two years. In this example, participants must file the first return by April 15, 2004, for income earned in 2003, and must file the second return by April 15, 2005, by the income earned in 2004.

Participants will use either the form 1040NR-EZ or form 1040NR to file their federal tax return. These forms are available after January 1 at Internal Revenue Service (IRS) offices, at a local public library, or from the IRS Web site at www.irs.gov. Information for forms used to file tax returns for state income taxes can be found after January 1 at a local public library or from the state's Web site.

Some participants earning an income from a source not in the United States do not have to pay U.S. federal or state income taxes. However, they must still file a federal tax return each year they are earning income in the United States (the amount of income will be "$0"). Examples of this are students who receive grants from their home countries.

It is important to remember to file tax returns. In most cases, participants can expect to get a tax refund from the federal government. For more information about taxes, including tax treaties, program participants can review additional tax information located in AIPT's Web Community.

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Where can participants find information about taxes?
In addition to obtaining information from the tax information available on AIPT's Web Communities, they can view the Internal Revenue Service (IRS) Web site at www.irs.gov/. The tax system in the United States in complicated. Because it is impossible to take into account all of the factors involved, it will not be easy to obtain information and advice from others about a personal tax situation.

You may wish to check with Tax Back International, a company specializing in assisting foreign nationals with filing U.S. income taxes. Tax Back International can be contacted for free advice through a toll-free phone number in the U.S. at 1.888.203.8900 or via their Web site at www.taxback.com .

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Can participants work a second job?
No. The J-1 visa for on-the-job training allows participants to legally earn a wage only from the employer listed on the form DS-2019. Participants cannot legally earn a wage at any other employer during their training program, and would not be authorized to be at a workplace other than the one for which the training program is approved, as indicated on the Certificate of Eligibility.
 
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Can a spouse work?
Yes. Upon arriving in the United States, a dependent spouse who has a valid J-2 visa is able to apply for work authorization through the Department of Homeland Security’s U.S. Citizenship and Immigration Services (USCIS). Dependents on a J-2 visa are eligible to apply for the Employment Authorization Document (EAD) under the provisions of Category 274a.12(c).

When making application, the most important thing to show is that the J-2 dependent spouse does not need to work to financially support the J-1 visa participant.

Please note that AIPT is not involved in the J-2 dependent spouse's application for work authorization.

The time it takes for USCIS to process an application for work authorization varies considerably depending on the region of the United States in which the application is processed. J-2 dependent spouses should expect at least a 60-day wait for employment authorization. Such an application is usually made on Form I-765 along with the appropriate application fee and a statement of family expenses. The most up-to-date information on filing fees and where to file the Form I-765 can be found on the USCIS Web site. The statement of family expenses may include customary recreational and cultural activities and related travel. The Form I-94 of the participant and the Form I-94 of the family member applying for work permission should be submitted with the I-765 Form. Action taken by USCIS on the application will be noted on the back of the dependent's Form I-94, which will be returned to the applicant. If permission for employment is granted, it is valid for any kind of employment without limitation as to full time or part time. Work permission for a J-2 dependent expires at the same time as the authorized stay noted on the J-1 visa holder's Certificate of Eligibility.

Although Social Security and federal unemployment taxes are not deducted from the earnings of a J-1 participant, they are deducted from the earnings of J-2 dependents, because their services are not performed "to carry out a purpose for which the individual was admitted." Therefore, J-2 dependents are subject to Social Security and federal unemployment taxes, federal income taxes, and, where applicable, state and local income taxes.

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How do participants use their health insurance?
Please see the Health Insurance Information Guide for more detailed information. Participants should always carry the health insurance card with them. If participants are in an accident or need medical attention unexpectedly, they will need to show proof of coverage under a health insurance policy. Except in potentially life threatening medical emergencies, clinics, doctors, and hospitals will ask to see the health insurance card before treatment is administered.

Procedures for payment of medical treatment vary, but participants should expect to have at least some out-of-pocket costs for each medical treatment they receive.

Please note that pregnancy is NOT covered by the AIPT-provided medical insurance policy which is included in the Program Fee. Any pregnancy-related medical expenses would be incurred at the expense of the participant and/or spouse.

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