US Tax Questions & Answers

For B1/B2, P and O Visa Holders

Taxback.com's tax FAQs (frequently asked questions) for artists, athletes and entertainers answer any questions you have about the US tax system and how to get your tax refund.

We help you maximise your income, winnings and royalties from the US by claiming refunds of taxes you've overpaid including:

• Federal Tax Refunds
• State Tax Refunds
• FICA Tax Refunds
• Withholding Tax on Royalty Refunds

If you'd like to talk to someone now about your refund, or if you've got a question not answered below, Chat Live online with our team via instant messenger or contact your nearest taxback.com office.

Do I have to file a US tax return?

Yes. US tax law requires everyone who works in the country to file a tax return – including foreign workers and non-residents on P, O and B Visas. If you don't file your tax return you could face penalties and interest on any money owed and this can affect future visa applications for the US. You need to file a US tax return if you earn more than the following in any one tax year:

The thresholds are as follows:
2011 US tax year - $3700
2010 US tax year - $3650
2009 US tax year – $3650
2008 US tax year – $3500

If you earned less than these thresholds you don't have to file a US tax return, but you may still be owed a US tax refund so it's a good idea to file your tax return to claim any additional money back. Register online to find out what you could be due.

What is the April 15th deadline?

The US tax year is the same as the calendar year - from January 1st to December 31st. All tax returns must be filed by April 15th of the following year.

You can still claim your US tax refund after the April 15th deadline as the US tax office allows up to three years to claim tax refunds. Register to get your US tax refund.

If you don't file your US tax return by this date and you owe money to the tax office, you may incur filing penalties and interest on the amount you owe.

How do I know if I'm a resident or non-resident for tax purposes?

If you're working in the US on a P, O, B1 or B2 Visa you will be treated as a non-resident for tax purposes unless you pass the “Substantial Presence Test”.

To pass the substantial presence test you must have been physically present in the US for at least 31 days during the current year AND 183 days during a 3-year period including the current year and the two years before that. You can count all of the days you were present in the current year, 1/3 of the days you were present in the year before that and 1/6 of the days you were present in the year before that.

How much money will I get back?

Taxback.com assists you in claiming any income tax and royalty refunds you may be owed from your US earnings. We ensure you get back as much overpaid tax as is legally possible. That amount depends on factors like:

• Your visa
• Your earnings
• What state you worked in
• How long you worked for

Register online for a free online tax refund calculator to find out more about your US tax refund.

How does the taxback.com service work?

Taxback.com takes care of everything in organising your US tax refunds and royalty tax refunds – whether you're still in the US or working somewhere else. We prepare your tax documents, estimate your refund, file your tax return, communicate with the IRS and then send your refund money to you as soon as we receive it from the tax office.

The process is as follows:

1. Register online and then download our US tax forms. Send them to us at royalties@taxback.com with your W2 form or final payslips.


2. We'll estimate your refunds and give you an online TaxTracker ^® account. If you're missing any documents we can organise replacements for you.


3. We prepare and file your US tax return with the IRS and as soon as we receive your refund we contact you to organise the most convenient way to transfer the refund to you.

Register to file your US tax & royalty return with us today.

How long will it take to get my US tax refund?

Our team of US tax experts work to ensure you receive your tax refund as quickly and securely as possible.

Once we receive all your documents it takes us just one week to estimate your refund, prepare your US tax return and send to our US Certified Public Accountant (CPA) Nick Kolligris in Chicago.

Nick and his team check your tax return to ensure it is 100% compliant with US tax regulations. Nick personally signs your forms and submits them to the IRS.

Tax office processing times depend on the office and its workload. The Federal Tax Office usually takes about 6- 8 weeks to process US tax returns while State Tax Offices times vary from 3 to 9 months, depending on the state you have worked in. Our tax team are in constant communication with the tax office to monitor how your application is progressing.

Once approved, the tax office posts your refund cheque through international mail which takes about 10 working days. As soon as we receive your refund cheque from the tax office we contact you immediately to organise a transfer through our secure payments system.

The total estimated time for your US income tax refund is 10-12 weeks.

How much will it cost?

Taxback.com provides the best value-for-money tax refund service available anywhere in the world. We guarantee to get you the fastest, maximum, legal tax refund and our services and fees reflect this.

Firstly, you can receive a free online refund estimation in just a few minutes. Then once you send us your documents we'll evaluate your refund further and assess what additional services you need such as document retrieval or a temporary social security number. Then we'll let you know how much it will cost to file your tax return for you.

We operate a no refund, no fee policy – which means we only charge you the fee once your refund is actually received from the tax office. You don't have to pay anything upfront.

For 2011-2008 US income tax refunds we charge 10% + handling fee of the refund received, subject to a minimum processing fee of $75 + handling fee for refunds up to $750.

If you are due a small refund from the US that does not cover our minimum fee, taxback.com offers a reduced fee to allow you to meet your US tax filing obligations and file your tax return.

If you require our document retrieval service our fees are US$25 + handling fee.

Why the minimum fee? This fee covers all the things that make filing your US tax return with us so easy including:

• Our CPA and his compliance team in the US
• Customer support 24/7
• Online tracking service
• Free phone and free fax
• Local staff to meet you and guide you through the process
• Tax technicians
• Researchers to identify new legal developments to maximise your refunds
• Quality team

How do I know what's happening with my tax return?

Your personal, secure online TaxTracker ^® account allows you to follow the step-by-step progress of your tax refund application online, 24/7. All you need to do is log in to see every action taken on your case, as well as what information or documents we require from you.

As soon as we receive your refund from the tax office we contact you to organise the most convenient way to transfer it to you.

If you'd like to talk to someone now about your US tax return, you can contact our team anytime online through our Live Chat instant messaging service or call your nearest taxback.com office.

When can I apply for my US tax refund?

If you received income from the US between 2010 and 2008 we can file your US tax return now and claim your refunds. Download your US tax forms or register online to get started today.

If you are working in the US in 2011: You will be able to apply for your tax refund at the end of 2010 so make sure you hold on to all your documents. If you leave your job or the US, use our FREE online refund calculator to see what you can claim back.

The US tax year is from January to December and tax returns should be filed by April 15 the following year. However, US tax law allows up to three years for tax returns to be filed.

If you owe money on your taxes and are late in filing your US tax return, you will incur late penalties and interest on the money you owe.

What if I don't have my documents?

To file your US tax return we need either your W2 form or final payslip. If you don't have these documents our dedicated document retrieval team can contact your US employer(s) to organise replacements for you. Simply contact us on usdocuments@taxback.com . Our fee for US document retrieval services is US$25 + handling fee.

What if I don't have a Social Security Card or Number?

We can file your US tax return and apply for your tax and royalty refunds even if you don't have a US Social Security Card or Number (SSN). To do this we will need to obtain a temporary number for you from the IRS called an Individual Taxpayer Identification Number (ITIN). Chat live with our staff now about getting your US tax refund application started today.

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What is a W2 form?

If you've be working in the US, we'll need your W2 form to claim your US income tax refund. The W2 form is the official government form that you receive from your employer(s) in January after the tax year ends. The W2 form shows the amount of money you earned and the amount of tax you paid for that employer.

In most cases we can use your W2 form or your final cumulative payslip to claim your U.S tax refund. However some US states only accept applications with the W2 form so if you've misplaced yours or you never received it, our document retrieval team can obtain one for you.

You don't need to wait for your W2 form to arrive to start applying for your refund. Download a US TaxPack and sending in your forms so we can start preparing your tax return today.

What is a final cumulative payslip?

A final cumulative payslip is the payslip you receive with your final pay cheque in the US. It shows your total earnings and the amount of tax you paid for that employer.

We can use either your final cumulative payslip or your W2 form to file your US tax return. If you don't have your final cumulative payslip, our document retrieval team can organise a W2 form for you when the tax year ends.

What is a CPA?

A Certified Public Accountant, or CPA, is a US accredited professional trusted by the IRS to approve whether tax returns are compliant with US tax law or not.

Our CPA Nick Kolligris is registered in Chicago, Illinois. Nick has been a CPA since 1994. Nick and his team check every single application we process - both for compliance and to make sure we are applying for the maximum legal refund - before they go to the IRS. Nick puts his signature and professional reputation on every US tax return we file. He guarantees your tax return will be legal and compliant when filed through us.

Am I eligible to use an international tax treaty?

Taxback.com uses all available credits and benefits – including international tax treaties – to ensure you claim back any tax and royalty refunds you are entitled to.

International tax treaties are agreements between the US and other countries that allow you to claim back tax you paid while working in the US. We always check if you're eligible for an international tax treaty when we file your USA tax return. Whether you are eligible to claim under tax treaties depends on factors like your nationality and your visa.

What taxes will I pay in the US?

While working in the US on a P, O or B Visa you will pay up to four types of tax on your US earnings:

Federal Tax: Everyone working in the US pays federal income tax on their earnings. About 10 to 15 percent of your earnings will be withheld as federal income tax.

State Tax: Almost all states in the US have their own income tax system which can be quite different from the federal income tax system. State income tax is usually about 5 to 8 percent. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming do not have state tax. New Hampshire and Tennessee apply state tax on interest and dividends income only.

FICA: Federal Insurance Contributions Act (FICA) Tax is imposed by the government on employees and employers to fund Social Security and Medicare in the US.

Local Tax: Local tax in some counties and cities may also be withheld from your earnings.You may also be subject to self-employment tax on certain income from your business activities.

Taxback.com can file tax returns and organise a refund of any overpaid US tax for any of these taxes.

What taxes can you file for me?

Taxback.com can file for any income tax and royalty refunds you may be entitled to including your Federal, State, FICA and local tax returns. Register online for this US tax service today.

What's the difference between filing my US tax return and getting my US tax refund?

We file your US tax return in order to organise your income tax and royalty refunds.

A tax return is the annual submission of tax forms documenting your earnings, taxes paid, deductable expenses, appropriate international tax treaties for your personal circumstances and allowances that you send to the tax office for review. They review it according to the information submitted by your employer and the current laws that apply to your case.

If you get a tax refund, this means the tax office review found you had overpaid tax and were due some back.

Our estimate of your refund is based on our prediction of what the tax office will decide when they review your tax return - providing they have the same information as us.

Can you guarantee that I'll receive the refund amount you estimated for me?

No, but we do guarantee to get you the most money back that we legally can.

Our estimate of your income tax and royalty refunds is based on your documents and our experience in filing thousands of tax returns every week since 1996. Once your tax return is submitted, the US tax authority has the final decision in your tax refund based on their systems and tax codes.

When our tax technicians prepare and file your return, they check for any allowances or benefits you could get and ensure we apply for the maximum rebate possible. Our Certified Public Accountant (CPA) Nick Kolligris and his team of accountants double check all that work to make sure there isn't anything else we can get for you and that the application is totally legal.

Can you get tax refunds for me from other countries?

Absolutely! Taxback.com organises tax refunds from 16 countries so whether you've been working in other foreign countries or in your home country, we can assist you in claiming your tax refunds. We offer professional tax services for:

Australia tax refund	Austria tax refund	Belgium tax refund
Canada tax refund	Denmark tax refund	Germany tax refund
Gibraltar tax refund	Guernsey tax refund	Holland tax refund
Ireland tax refund	Japan tax refund	Luxembourg tax refund
New Zealand tax refund	Norway tax refund	UK tax refund

Our research team is constantly developing tax return services for new markets so if you've worked in a country not mentioned above, email our team on newtaxes@taxback.com to see what we can do for you.