A Guide to Finances, Benefits, and Taxes for J-1 Interns & Trainees

The J-1 visa program offers people from around the world the chance to advance their professional development while immersing themselves in American culture. Participants can receive compensation and access to company benefits, but understanding U.S. tax and income requirements can be a challenge. That’s where AIFS Professional Pathways comes in—to simplify the process and provide support every step of the way. This guide answers common questions about finances, benefits, and taxes for J-1 visa participants on an Intern or Trainee program. 

Can I Get Paid While Interning or Training at a U.S. Company? 

Yes! You can legally accept payment from the host company listed on your DS-2019. Interns and trainees are expected to be compensated at a rate that is industry standard and equal to their American counterparts. Host companies must meet local, state, and federal wage and labor laws. If your program pay is low or you’re not paid at all, you can test the legality using the Department of Labor’s Factsheet 71. 

You are also allowed to accept bonuses and overtime wages (although, overtime should generally be limited). 

Compensation totals will be presented to you before starting your program and are outlined on all federal documents. If compensation amounts change or notable bonuses are granted after program approval, please notify AIFS Professional Pathways, as we may need to update relevant federal documents. 

Can I Obtain a Social Security Number? 

All J-1 visa participants are advised to obtain a Social Security number (SSN). As a J-1 holder, you have U.S. work authorization; therefore, you are eligible for an SSN. You can apply for an SSN at the Social Security Administration office only after arriving in the U.S. and validating your visa with AIFS Professional Pathways. We provide you with step-by-step instructions to obtain an SSN in our Participant Orientation & Resource Guide. 

The SSN application process can take four to six weeks. While this may cause delays with your payroll, this should not prevent you from beginning your program on your scheduled start date. 

Am I Subject to Taxes or Other Payroll Deductions? 

Although you are deemed a non-resident or resident alien and are in the U.S. on a temporary cultural exchange program, you ARE subject to federal, state and local income taxes, and possibly other employee deductions if you are receiving income. Your host company should inform you of and anticipate deductions. 
 
However, due to your temporary resident status, J-1 holders are exempt from FICA (Social Security and Medicare contributions) and FUTA (unemployment benefits). Please consult your host company to ensure FICA and FUTA taxes are not deducted from your paycheck. 
 
J-1 participants must file tax forms for any period they participated in their program in the U.S. For example, if you train in the U.S. from May to August in 2025, you must file taxes by April 15, 2026, regardless of whether you received income (rest assured, this does not necessarily mean you owe any taxes!). 

Can I Receive Employee Benefits?  

You should receive benefits that align with your company’s policies and are equal to those provided to Americans in the same position and employment status.  

Paid sick leave and vacation time is not required for J-1 holders, but host companies should apply policies consistently. J-1 participants should, at minimum, be able to take reasonable leave for illness or emergencies without penalty. 

Please consult your supervisor and/or host company’s Human Resources team at the start of your program to ensure that you understand the benefits available to you, and company protocol.   

Can I Get a Second Job or Source of Income? 

As a J-1 visa participant, the only wages you can legally accept are those from the host company listed on your DS-2019 form; therefore, you cannot get a second job. Pursuing work and receiving compensation from another U.S. entity is illegal and a violation of your visa, which will result in the termination of your J-1 program.  

Can My Spouse Work or Receive Income While on a J-2 visa? 

Your spouse can work and receive income while on a J-2 visa with approval. With a DS-2019 and J-2 visa your spouse may apply for work authorization through the USCIS (Form I-765) and for the Employment Authorization Document (EAD) under the provisions of Category 274a. 12(c). When submitting the application, the J-2 (your spouse) should indicate that they do not need to work to financially support the J-1 visa participant (you).  

Please be aware that this can be a lengthy process upwards of 60 – 90 days. Upon approval, the J-2 holder can work part-time or full-time. Like the J-1 participant, the J-2 must stop working by the end date presented on the DS-2019 and must file taxes accordingly. 

AIFS Professional Pathways: The Key to Your J-1 Visa Success 

While the majority of Intern and Trainee programs provide participants with compensation, the goal of these programs is boosting mutual understanding between the U.S and other cultures, while allowing participants to develop their careers at American companies. Although receiving income is an advantage of the J-1 visa program, understanding your finances can be a challenge for international participants who are unfamiliar with the American tax system. Fortunately, AIFS Professional Pathways is here to help you at every step of the J-1 program process and answer any questions you may have about payroll, application, eligibility, and beyond.  

Ready to begin your professional journey in the U.S.? Get started with AIFS Professional Pathways today!

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