FAQ - US Tax Return

What documents do I need for tax refund?

The documents required for a tax refund are:

    • Copy of Social Security Number
    • Copy of First Page of valid Passport
    • Copy of W-2 Form , 1099 , 1098-T or 1042-S form (it depends on the type of realized income)
    • Filled Easy Tax Store USA Tax Application
    • Filled ID form
    • Filled Form 2848 Power of Attorney
    • Customer agreement

All documents can be downloaded here.

What is a W-2 Form?

W-2 Form is an official IRS document that contains information about your earnings and paid taxes. The employer issues the W-2 form at the end of the fiscal year (December 31st) in three copies. One copy goes to the employee, one goes to the IRS, and one stays in the employer’s archive. Employers are obligated by law to postmark and send W-2 forms by January 31st of the following year.

W-2 is one of the forms that employees can get from an employer. Depending on the type of income, it depends on which form of income you will receive. You can read more about tax forms here.

Do I file separate Tax Return for each employer?

No. You can file only one Tax Return per year. On your Tax Return you have to report all income that you had that year, from each employer.

Do I have to report earnings from an employer who did not withhold taxes from me?

Yes. By U.S. law, you are required to report all income earned during the fiscal year. All employers who have taken your SSN will report your earnings to the IRS at the end of the year. When filing a Tax Return, the income you report on the Tax Return has to match the information the IRS has in the system under your SSN number.

How can I get my U.S. tax refund?

There are two ways to get money from the US tax:

    • By check sent to your home address - the competent tax service issues a check, protected by the client's personal data and sends it to the address specified in the request
    • By direct deposit to your USA bank account - in order for the money to be paid into the account, you need to have accurate data for the transfer of money - account and routing number.

How long does the tax process take?

The average waiting time for processing your Tax Return is 3 weeks from the filing date. Depending on the payment method you choose, the waiting time for money also depends.

The IRS has the right to select the return for additional audit if they need additional information to process the tax return. This type of review can affect the waiting time.

Each State Department of Revenue has a different processing time.

Can I track the status of my refund?

Yes. The whole process is transparent and you can track the current status of your tax refund online.

Can I owe for U.S. taxes?

Yes. If you have not paid taxes during the year, you can do so in the first quarter of next year, without interest and penalties. The deadline is April 15th. If you do not file or pay your taxes in full by the deadline, the IRS will begin to charge penalties on the amount you owe.

Can my state refund be applied to my federal tax due?

No. You should file federal and state tax returns separately. The IRS is obtaining federal Tax Returns and each state has a Department of Revenue that is in charge for state Tax Returns.

What is a deadline for claiming a tax refund?

If you are entitled to a tax refund, the deadline for claiming it is 3 years. At the moment, you can apply for a tax refund for years 2021, 2022 and 2023. The deadline for the 2021 tax refund is April 15th, 2025.

Is it possible to get SSMed&Care Taxes back?

Yes, it is. If you have been on a J, F, or M visa and have not spent more than 183 days in the USA, you are entitled to Social Security and Medicare tax refund.

I have worked in the U.S. in 2021, but I do not have my Social Security card. Can I file a Tax Return?

Yes. If you do not have an SS number, you can apply for an ITIN number and be entitled to a tax refund that you paid that year.

You can read more about the ITIN number here.

Do I have to file a Tax Return for every year that I have worked?

Yes. Everyone who has worked in the United States is required to report their earnings to the IRS for each year of service. If you apply for one year and do not file a tax return for another year because it doesn’t pay off for you, the IRS will send you a letter as a reminder to report your earnings for the year for which you did not apply. So, you are obliged to submit a tax return, regardless of whether you have a tax refund or a due.

Am I entitled to a pension even though I am not a US citizen?

Yes. Even though you do not have the status of an American citizen, if you have worked legally in the USA for years, you have a valid Social Security Number and if your employers withheld SSMed&care taxes and paid into the pension fund, you can qualify for a Social Security benefits. The right to a pension is realized by collecting points, and the minimum number of points you have to earn is 40. You can read more about it here.

Do I need to report Cryptocurrency on my U.S. Tax Return?

Yes. If you have made a profit from cryptocurrency (which you traded from a US exchange or broker) while you were living in the US, you will have to declare this income. The cryptocurrency is treated as property by the IRS. That means any profit you make on it will be subject to Capital Gains Tax at 30% and must be included on your tax return. If your investment in cryptocurrencies is losing value, you do not have to pay taxes.

I do not live or work in the USA, but I work for U.S. company. I received W-8BEN form from my employer, what should I do?

The W-8BEN form is obtained by non-residents of the United States from the company that pays for the work performed. When you fill out this form, the employer automatically taxes the earned income at a certain percentage. At the end of the calendar year, you receive a 1042-S from your employer, and if you overpaid tax, you can apply for a tax refund from America.

We can help you with your W8-BEN form, feel free to contact us.

I have received a 1099- Form/1042-S form Google AdSense-a. Do I have to report my income?

The Google AdSense platform generates tax form in the end of a fiscal year. All income earned from clicks in the U.S.  will be reported to the IRS. The tax law in the U.S. requires from an individual to report any income above $400.

If you received 1099 Form or 1042-S form, you should file your U. S. Tax Return and pay tax on reported income.

Deadline for payment (if you owe) is April 15.

If you are not a U.S. resident, do not forget to update your personal information on your AdSense account and fill the W8-BEN form.

I want my YouTube/Twitcher earnings to be automatically taxed. How to do that?

When creating a Google AdSense account, you need to update your account information and fill out the W8-BEN form.

That way, your earnings will automatically be taxed at a 30% tax rate and you won't owe taxes to the IRS.