You earned money on your J-1 visa by working more than three months in the U.S.—now you’re wondering what taxes you actually owe. The tricky part: you’ll almost certainly owe federal income tax, but state tax depends on which state you worked in and your residency status there. This guide walks you through both, so you know exactly what to pay and where you might get money back.

Do J-1 visa holders pay federal tax, state tax, or both?

Most J-1 visa holders who earned a W-2 from a U.S. employer must file a federal income tax return and generally owe federal tax on their U.S. earnings. State income tax is separate and depends on your work location and whether you meet that state’s residency rules for tax purposes—not every state charges income tax the same way, and some don’t charge it at all.

The IRS taxes income earned within U.S. borders, and individual states do the same for income earned within their borders (though the rules vary by state). You could owe federal tax without owing state tax, or vice versa, depending on where you worked and how long you stayed.

It depends on your J-1 category, time in the U.S., and treaty benefits

Whether you’re a resident or nonresident alien for tax purposes determines which federal form you file (Form 1040 or Form 1040-NR) and affects your taxable income. Your J-1 visa category matters: “student” category J-1s can exclude their physical presence in the U.S. from the residency test for up to 5 calendar years; “teacher or trainee” category J-1s (interns, trainees, specialists, camp counselors) can exclude only 2 of the last 6 calendar years (extendable to 4 in some cases). Once that exclusion period ends and you meet the Substantial Presence Test, you become a resident alien and must file Form 1040 and report your worldwide income.

State tax rules add another layer. Some states don’t charge income tax at all; others tax you as a resident if you earned money there, even if you left later. A handful of states have reciprocal agreements with neighboring states, so where your employer is located might differ from where you’re considered a tax resident. Your home country may also have a tax treaty with the U.S. that reduces or eliminates tax on certain types of income—but this varies widely, and you have to claim it correctly to benefit.

Use the Substantial Presence Test tool to check your own residency status, since it depends on your specific visa history, not just your current year.

Where most J-1 workers get this wrong

Mistake 1: Assuming you don’t owe state tax because you didn’t work all year or weren’t planning to stay. If you worked in a state that taxes income and earned money there, you generally owe state tax on those earnings, period. Many states don’t require you to be a “resident” in the legal sense to owe tax—earning income there is enough. Even if you left the state after three months, you often still file a part-year or nonresident return in that state.

Mistake 2: Thinking your federal residency status automatically applies to state tax. You might be a nonresident alien for federal purposes but owe state tax anyway, or vice versa. Each state sets its own rules, and they don’t always align with the federal Substantial Presence Test. If you worked in a state and earned income there, start with the assumption that you owe state tax unless you’re sure you don’t—many J-1 workers skip state filing entirely and lose refunds.

Mistake 3: Not checking for FICA withholding mistakes. Nonresident J-1 workers are generally exempt from Social Security and Medicare tax (FICA), but many employers don’t know this and withhold it anyway. If FICA was taken from your paystubs and you’re exempt, you might be leaving thousands of dollars on the table. This is easier to catch on federal returns, but some states also have payroll tax rules that differ—check your paystubs line by line.

Frequently Asked Questions

Do all J-1 visa holders have to file federal tax?

If you earned a W-2 from a U.S. employer and worked more than three months in the U.S., you almost certainly must file a federal return. Whether you file Form 1040 or Form 1040-NR depends on your residency status under the Substantial Presence Test, which is determined by your J-1 category and prior time in the U.S. Even if you don’t owe federal tax because your income is low or you have treaty benefits, you may still have to file to get a refund of withheld taxes.

If I worked in a state with no income tax, do I file state tax anywhere?

If all your U.S. work income came from a state with no state income tax, you generally don’t file a state return there. However, if you worked in multiple states or moved during the year, check the rules of each state where you earned income—some states do tax nonresidents even if they’re not residents of that state. The safest approach is to list every state where you received a W-2 on your federal return and research each one.

Can a tax treaty help me avoid state tax?

U.S. tax treaties typically reduce or eliminate federal tax on certain types of income (like scholarship or stipend income for students, or personal services income for teachers and trainees), but they rarely exempt you from state income tax. States generally don’t recognize federal treaty benefits unless they’ve passed specific legislation to honor them, which is rare. Your treaty might lower your federal bill significantly, but state taxes are usually separate—check with your state tax authority to be sure.

I got a W-2 but don’t think all of it was taxable because of my visa status. How do I know what to report?

The W-2 shows your gross earnings and withholding, but as a nonresident J-1, you may have exclusions (like treaty benefits or the student exemption for certain income). You don’t change the W-2 itself; instead, you claim the exclusion on your tax return (usually Form 1040-NR or in a treaty clause). The exact amount and type of income you can exclude depends on your visa category, home country, and the type of work you did—this is why running your details through a return specifically built for J-1s gives you the clearest picture.

What if I worked part of the year in one state and moved to another?

You file a part-year or nonresident return in the state where you worked, reporting only the income earned there. Your federal return covers all U.S. income no matter where it came from. If you lived and worked in State A for six months, then moved to State B and worked there for two months, you file a return in State A for those six months and another in State B for those two months. Each state taxes only the income earned within its borders during your time there.

This is general information, not personalized tax advice. Your exact situation depends on your visa history, the states where you worked, and whether you had treaty benefits. Use the calculator to see a number based on your own paystubs and details, and consult a qualified tax preparer if anything feels unclear.

Federal and state taxes are separate systems with different rules, but they both matter. The good news: once you understand your J-1 category, where you worked, and your residency status, you can file both returns confidently. Answer a few quick questions about your W-2 and work history in the tax calculator to see your estimated refund for both federal and state combined.