Many Work/Travel Students are surprised by the high amount of money taken out of their paychecks for US Taxes. All US Citizens suffer the same shock when entering the workforce. As a Work/Travel student you have to pay some, but not all, of the taxes that a US Citizen has to pay.

Taxes You Have to Pay:

• Federal income taxes
• State income taxes
• City income taxes

Taxes You Do Not Have to Pay:

• Social Security & Medicare Tax (FICA)
• Federal Unemployment Tax (FUTA)

US Income Tax

Your employer is required by law to withhold income tax from your salary and pay it directly to the government. Approximately 10 to 15 percent of your salary will be withheld for federal income tax. Depending on regional laws, state and local income taxes may also be withheld from your paycheck. State and local income taxes can take out another 5 to 8 percent of your total income.

Work/Travel Students MUST pay US income tax. Failure to do so could result in an outstanding debt to the US Government, creating big problems for you in the future. Please look carefully at your first paycheck to ensure that these taxes are being correctly withheld.

If your employer has questions regarding your tax status, they can contact AWA at 888.292.0088

Filing for Your Tax Return

A portion of the taxes you paid, you may be able to claim back as a refund when you file your taxes. You must file your taxes by April 15th. AWA has joined forces with taxback.com to assist you in this process. Taxback.com will be contacting all AWA students via email with information about the services they offer. This company is a great resource for getting your questions about taxes answered. Even though you will be contacted by taxback.com, you are under no obligation to use their services. With taxback.com you will pay nothing upfront but a processing fee will be deducted from your refund. Taxback.com provides every customer with innovative services such as FREE online tax refund calculators and online tracking for your tax accounts. Taxback.com provides customer service in 25 languages and you can choose from a range of different payment and currency options for receiving your US tax refund. Find out more visit www.taxback.com.