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American Tax Center

Generally, exchange visitors are obligated to pay taxes on all income earned from US sources (e.g., wages, salaries, stipends, bank interests, dividends, etc.) and the rates depend on numerous factors.

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Introduction
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Part 1 When to file?
Part 2 What does a paystub include?
Part 3 How to calculate?
Part 4 How to file?
Part 5 Initial tax forms
Part 6 Post-program tax forms
Part 7 What to note?

www.fusia.net/incometax2

Part 3 How to calculate?
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Aside from FICA which is generally not applicable to participants who are considered Nonresident Aliens (NRAs), there are federal, state, and local taxes.

Federal
Federal income applies to everyone, regardless of where they live or intern. As of 2023, the federal tax brackets for single individuals are 10% (up to $10,275), 12% ($10,276-$41,775), 22% ($41,776-$89,075), 24%, 32%, 35% and 37%. With a marginal tax rate, participants pay the rate only on the amount of their income that falls into a certain range. For a single filer who makes $10,875,

• The first $10,275 is taxed at 10%
• The remaining $600 is taxed at 12%

State/city
The amount of state and city income tax one pays depends on how much the person earns and the tax rate of the state or city where they live. In the US, some states (e.g., Alaska, Florida, Nevada, South Dakota, Texas, Tennessee, Washington, Wyoming) are income tax free, some levy 10%+ on income taxes. There are also sitautions where income taxes are levied by both the state and city, and situations where income taxes are only levied by one or the other.

• NYC residents pays both the NYS and NYC income taxes
• Long Islanders pay only the NYS income tax
• In New Hampshire, only interest and dividend earnings are taxed

Flat income tax states
Illinois (4.95%), Colorado (4.4%), Indiana (3.23%), Kentucky (5%), Massachusetts (5.0%), Michigan (4.25%), New Hampshire (5%), North Carolina (4.99%), Pennsylvania (3.07%), Pennsylvania (3.07%), Utah (4.85%)

Progressive income tax states
Alabama (2-5%), Mississippi (4-5%), Oklahoma (0.25-4.75%), Iowa (0.33-8.53%), South Carolina (0-7%), North Dakota (1.1-2.9%), New Jersey (1.4-10.75%), Hawaii (1.4-11%), Missouri (1.5-5.4%), New Mexico (1.7-5.9%), Louisiana (1.85-4.25%), California (1-13.3%), Georgia (1-5.75%), Idaho (1-6%), Montana (1-6.75%), Delaware (2.2-6.6%), Nebraska (2.46-6.84%), Arizona (2.59-4.5%), Ohio (2.765-3.99%), Arkansas (2-5.5%), Maryland (2-5.75%), Virginia (2-5.75%), Kansas (3.1-5.7%), Vermont (3.35-8.75%), Wisconsin (3.54-7.65%), Rhode Island (3.75-5.99%), West Virginia (3-6.5%), Connecticut (3-6.99%), Oregon (4.75-9.9%), Washington DC (4-10.75%), New York (4-10.9%), Minnesota (5.35-9.85%), Maine (5.8-7.15%)

www.fusia.net/incometax2