After finishing the Work and Travel USA program, most participants return home with a suitcase full of memories and new experiences — and often with an empty wallet after intense travels. And that’s totally understandable because that’s exactly what this adventure is for. Surprisingly, not many people know that a portion of the money earned while working in the U.S. can be recovered by filing a tax return. Depending on the state and income, this could amount to several hundred dollars — money that’s better in your account than left to the IRS.
Even though filing U.S. taxes might sound complicated if you’ve never done it before, it’s actually easier than it seems, especially if you’re well-prepared. In this article, you’ll find everything you need to know: what taxes you can reclaim and what documents are necessary. With our help, you can go through the entire tax refund process step-by-step to get your money back quickly and stress-free.
Types of Taxes Deducted in the U.S. – What Can Be Refunded?
Every paycheck you receive during your Work & Travel program includes various tax deductions. If you’re unfamiliar with the U.S. tax system, this might seem confusing. To know how much you may be eligible to recover, it’s important to understand what taxes are withheld and how you can reclaim them.
Federal Tax – The Main Source of Tax Refunds
Federal income tax is the primary deduction that applies to everyone working in the U.S., regardless of visa type or residency status. The tax rate starts at 10% and increases based on earnings. For Work & Travel participants — who typically work only a few months and have low annual income — there’s a good chance of reclaiming 100% of the federal tax paid.
Why? As a J-1 visa holder working for only a short period, you most likely won’t exceed the tax-free threshold, meaning the U.S. government should return most or all of the federal tax withheld.
To find out how much federal tax you paid, check the W-2 form your employer should provide at the end of your employment or the tax year (January or February of the following year). This form includes details of your earnings and tax deductions, making the refund process easier.
State Tax – Depends on Where You Worked
In addition to federal tax, some states also charge a state income tax. The amount varies depending on state tax laws. Some states don’t charge it at all (e.g., Florida, New Hampshire, Nevada, Wyoming, Alaska, Washington, South Dakota), while others may withhold a few percent of your income (e.g., Minnesota, New York, Oregon).
If you worked in a state with income tax, check if you are eligible for a refund. The process is not always as straightforward as with federal tax. Some states require extra conditions or more complex forms.
Local Tax
Besides federal and state taxes, some U.S. cities or counties charge local taxes. The rates and rules vary depending on where you worked. Can they be refunded? Sometimes, but the process is more complex, and local tax refunds are less common than federal and state ones. Check the rules for your specific work location.
Social Security and Medicare
In the U.S., employees usually pay 7.65% of their wages toward Social Security and Medicare. However, J-1 visa holders — such as Work & Travel participants — are not legally required to pay these contributions since they are non-immigrants.
The issue arises when employers mistakenly deduct these taxes. Some companies may not be familiar with J-1 visa rules or use payroll systems that automatically apply them. If your paystub shows deductions labeled FICA, OASDI, or Medicare Tax, it means these contributions were likely withheld incorrectly.
You can apply for a refund of these contributions, but it involves submitting special IRS forms — mainly Form 843 and Form W-2C (corrected by the employer). The process is more complex and time-consuming than a regular income tax refund, so check your documents early and contact your employer if needed. If you haven’t yet gone on your Work & Travel trip, talk to your employer about this in advance.
Required Documents for U.S. Tax Refund
To file for a refund as a Work & Travel participant, you’ll need several documents. Missing documents will delay the process and may be hard to obtain once you’re back in your home country, so collect them before returning:
W-2 Form
The most important document is the W-2 form, summarizing your earnings and withheld taxes. Your employer will send it in January or February. If you don’t have it, you might try to file using your final paycheck (pay stub), but the W-2 is preferred by the IRS.
Social Security Number (SSN) or ITIN
Every legal Work & Travel participant receives a Social Security Number (SSN), which is required for filing taxes. If you don’t have an SSN, you can apply for an ITIN (Individual Taxpayer Identification Number), but the refund process may take longer and be more complex.
1040NR-EZ Form
As a J-1 visa holder, you must use the 1040NR-EZ form for non-residents instead of the standard 1040. On this form, you’ll report your earnings and tax withholdings to determine the refund amount.
Additional Documents
The IRS may request additional documents, such as a copy of your passport, J-1 visa, Social Security card, or a letter from your employer. Keep all employment-related paperwork safe.
How to Get a U.S. Tax Refund (Work & Travel)
There are two ways to file: independently or with a tax agency. Each method has pros and cons, so choose based on your comfort level with paperwork and U.S. institutions.
Filing Taxes Independently
If you want to avoid paying service fees and feel confident with forms, file on your own:
- Fill out Form 1040NR-EZ
Enter your income (from W-2) and withheld taxes. Be accurate to avoid delays. - Mail the Form
Print, sign, and mail it to the correct IRS office (based on where you worked). E-filing is not allowed for non-residents.
How long does it take?
Refunds usually take 3 to 6 months. You’ll receive a check or a direct deposit to a U.S. bank account if you have one.
Using a Professional Tax Service
If you’re unsure about the paperwork or prefer help, you can use a tax refund agency. These companies handle the entire process — collecting documents, completing forms, and communicating with the IRS. You only need to send them scans of the required documents.
At Easy Travel Abroad, we partner with three trusted agencies that have helped our students recover tax refunds for years. Each has been tested and is well-reviewed:
- RTTax – International company with years of U.S. tax experience. Easy online form and fast service: https://rttax.com/easytravel
- Sprintax – Popular DIY tax filing platform, great for users who want full control: https://taxprep.sprintax.com/easytravelabroad
- TAXBACKEXPERT – Ideal for Polish speakers. Fixed price: 400 PLN with promo code “HSP.” Just email your documents to: info@taxback-expert.com
Choose the service that suits your needs — each has its strengths. Note that they charge a fee: either a fixed amount ($100–$200) or a percentage (10–15%) of your refund. While it reduces the refund amount, many people find the convenience worth the cost.
Common Mistakes and How to Avoid Them
When filling out official forms, avoid errors — even a typo in your name can delay your refund or reduce the amount. If you don’t have a W-2, contact your employer and ask for it. Also, double-check all details like your name and SSN.
Common errors include:
- Using form 1040 instead of 1040NR-EZ (required for J-1 visas)
- Forgetting to include SSN/ITIN
- Miscalculating taxes
- Missing signature
Also, beware of untrustworthy tax agencies. Some charge high fees or hide costs. Always read online reviews, compare prices, and avoid anyone promising a “guaranteed refund” — the actual amount depends on your tax situation and can’t be determined without reviewing your documents.
What Happens If You Don’t File a Tax Return?
Filing a tax return is mandatory. Applying for a refund is optional — but reporting your income is not. Many participants don’t realize that J-1 visa holders must file a tax return even if they don’t expect a refund.
If you fail to file by the IRS deadline, you could lose your right to a refund. You can still apply for a refund up to 3 years from the end of the tax year you worked. After that, it’s too late.
Can skipping a tax return affect future U.S. visa applications?
Yes — especially if you plan to apply for another work, student, or immigrant visa. U.S. authorities can check your tax history, and missing filings could count as a violation, making future visa approval more difficult or even impossible.
FAQ
Can I apply for a refund after completing the Work & Travel program?
Yes — you are entitled to a full or partial refund of the income tax withheld from your wages. You’ll need your W-2 or 1042-S form and either file the tax form yourself or use a tax agency.
Can every participant get a refund?
Most participants can recover federal and state taxes. Exceptions include those who earned very little and had no taxes withheld.
How do I check if my employer deducted Social Security and Medicare?
These deductions should not apply to Work & Travel participants. Check your W-2 for “Social Security Tax” and “Medicare Tax” fields.
Can I still get a refund years later?
Yes — you can file within 3 years from the end of the tax year you worked in the U.S.Where do I send tax forms?
The mailing address for Form 1040NR-EZ depends on your residence outside the U.S. Check the IRS website for the most up-to-date addresses.
