WHAT APRIL WHEN 15 - help.culturalcare.com

1 Tax Information Taxes are filed based on earnings in the previous calendar year use for Au Pairs this document for your earnings in calendar year 2018. 1040. We know how confusing taxes can be so we want to help make the process as simple as possible. Because we are not certified tax advisors, we can't instruct you on exactly how to fill out your tax forms, but we can provide you with some helpful information. IRS 1040NR-EZ. The Internal Revenue Service (IRS) Form 1040NR-EZ is a Federal/United is a government agency that is States Income Tax form for Non- responsible for collecting taxes.

2 Residents. For most au pairs, this will be the correct form to use*. WHAT APRIL WHEN. 15. The government collects a portion of You need to report last year's earnings $ the money you earn in the This is a tax to support the nation's services and by APRIL 15, 2019. facilities. 1040 WHY HOW MUCH. ? It is the law in the to file taxes and The amount you will owe depends on when report your earnings from each calendar you arrived in the and how much you year. Everyone is subject to the same rule: earned in a calendar year. Calculate how all au pairs no matter what agency, no much you earned during the year using the matter which host family.

3 Tips on the following pages. Keep a record of the weekly stipend ! payments you receive from your host family during the year including any additional payments received from the host family beyond the stipend. Where can I get help? You can check with the Internal Revenue Service regarding federal tax filing requirements at their website : The IRS website has the most recent and only official information about au pairs and taxes. The chat function helps to direct you on the website. You can also call the IRS Help number: 1-800-829-1040. within the , and +1-267-941-1000 outside the If you need additional information, we advise host families and au pairs to speak with a local professional tax advisor or directly with the IRS.

4 Updated January 2019. Tax Rates How much you will owe in taxes is determined by how much you earned in the 2018 calendar year (January 1, 2018 . December 31, 2018). You are required to pay a 10% tax for the first $9525 that you earned in the United States. If you earned more than $9525, you will pay a 10% tax on the first $9525 and then a 12% tax on the additional amount of money*. The tax table included on page 22 of the 2018 instruction booklet calculates the tax you will owe based on your total earnings. Below you will find two examples to help you understand how this works.

5 Here's how you can find out how much you earned and what tax will be owed. In this example, Meet Helena Helena arrived to the in June and her family paid her a weekly stipend of $ per week. She participated in the au pair program for 30 weeks in 2018. 30 $ $6,000. Weeks of au pair Stipend Helena's total services provided per week earnings in 2018. Helena uses the instruction booklet to determine the tax she will owe on $6,000: $6,000 $603. Total taxes owed In this example, Francisco extended with his family for an additional year and continued Meet Francisco his au pair program experience for 52 weeks in 2018.

6 His host family paid him a stipend of $ per week. 52 $ $10,179. Weeks of au pair Stipend per week Francisco's total services provided earnings in 2018. Francisco uses the instruction booklet to determine the tax he will owe on $10,179: $10,179 $1,031. Total taxes owed *This applies to earnings up to $38,700, above which we encourage outreach to a tax professional for individual guidance. Updated January 2019. 5 steps to filing your taxes 1 Get a Social Security number. If you do not already have one, you can find more information here: A Social Security number is a unique number assigned to you used for identification !

7 Purposes and to track income. 2 Calculate your earnings from the previous calendar year. Multiply your weekly stipend by the number of weeks you worked for your host family to get the total amount you earned in 2018. Include any additional payments received from your host family beyond the stipend. 3 Check the 2018 instruction booklet starting on page 22 to see the tax income table and find out what the tax is on your earnings. 4 Fill out form 1040NR-EZ for calendar year 2018. You will not receive this form in the mail and no one will remind you to fill it out. You are !

8 Responsible for completing the form on time. 5 Check the 2018 instruction booklet on page 3 under Where to File to see where to send your form and payment. Payment must be submitted by APRIL 15, 2019. Have you been to the before? Did you obtain an F, J, M or Q non-immigrant visa before becoming an au pair? If yes, for tax purposes, you may be considered a resident alien someone who is a permanent resident of the but does not have citizenship. In such a case, the host family and au pair should consult a tax adviser because the host family may need to withhold Social Security and Medicare taxes and pay Federal Unemployment Tax for their au pair.

9 Back home? If your program has ended and you have returned home, you will still owe taxes for the time you worked in the Taxes are collected by calendar year, so if you worked all or part of 2018, you will owe taxes. Follow the instructions on this form to determine your tax amount and visit the IRS website to determine how you can make the necessary payment. *Cultural Care Au Pair cannot be held responsible for the interpretation of the information within this document, or any changes to IRS. rules or forms that may occur. Cultural Care Au Pair staff and representatives are not tax professionals and the information provided here is for reference only.

10 Information in this document pertains to federal tax obligations. Since tax laws vary from state to state and are changed on a frequent basis, we advise host families and au pairs to speak with a local professional tax advisor regarding your state tax requirements. Calculations and use of form 1040NR-EZ in this document are based on a stipend of $ per week. If this does not apply to you, we recommend speaking with a local professional tax advisor for assistance. Updated January 2019. Understanding Form 1040NR-EZ. Below are some helpful tips for completing form 1040NR-EZ : Enter the total amount you earned in 2018 on lines 3, 7, 10 and 14.