It’s time for Taxes! Deadline is April 15th!

Dear Au Pairs and Host Families,
As you know, this is the time for taxes. All information is found on the Infosource:

  • During Your Year section of the Host Family online account
  • Program Information section of the Au Pair online account.

While Cultural Care Au Pair is not able to provide specific tax information for host families and au pairs because their circumstances are so different, we are pleased to provide general guidelines regarding host family and au pair taxes, as well as information to help au pairs complete their tax returns. Because we update these guidelines on a regular basis, we suggest that you download our most current guide to host family and au pair taxes. You can also call our office and request a copy by email.

Please note that Cultural Care Au Pair is not licensed to provide official tax advice, so none of our staff may counsel host families or au pairs regarding tax issues.  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 or directly with the Internal Revenue Service for definitive answers to any specific questions regarding taxation.

Important Au Pair Tax Information

  • The IRS considers au pairs to be “employees” of the host family for tax reasons, even though they are in the United States on a “cultural exchange” visa.  This means that au pairs are required to file U.S. individual income tax returns even though many au pairs will not owe any taxes
  • By April 15, the au pair should file form 1040NR-EZ or 1040NR to report his or her au pair stipend for the previous calendar year
  • In order to file income taxes in the United States, all au pairs need to have either a social security number or an Individual Taxpayer Identification Number (“ITIM”)
  • Au pairs are allowed to claim a personal exemption for themselves, but are not eligible for the standard deduction in their tax filing.   As stated above, au pairs are not considered “students” by the IRS so they are also not eligible to exclude au pair wages from gross income under the student article of any U.S. income tax treaty
  • Because the maximum tax burden for the vast majority of au pairs is less than $1,000, there is usually no need for the au pair to make quarterly estimated payments, or to have the host family withhold taxes.  There are some exceptions to this rule which are explained in our more detailed guide which is downloadable from your account.

Here are all the links that you will need to file your taxes. And remember, the deadline is April 15th. Keep in mind that you need to count the weeks only in 2013, which means up to December 31st. You have to take your stipend amount of $195.75 and multiply by the weeks you worked in year 2013. That will be your starting number on the form.

Link for the Tax Form 1040NR-EZ 2013
Link for the instructions
Link to the IRS website if you need more info
Link for Cultural Care example

~Dana

Saturday, 25 January 2014 11:14 PM

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