Au pairs do pay state taxes in almost every state that has an income tax. The weekly stipend counts as taxable wage income, and while nonresident alien status on a J-1 visa keeps au pairs out of Social Security, Medicare, and federal unemployment taxes, it does not shield them from state income tax on money earned inside a state’s borders. The minimum standard au pair stipend of $195.75 a week works out to roughly $10,179 a year, which is more than enough to cross the filing threshold in most income-tax states.
Why the Stipend Is Taxable at the State Level
The federal government treats au pair wages as includible in gross income, and the IRS expects a U.S. individual income tax return. That federal treatment is what pulls the stipend into the state calculation. Most states start their own income tax math from federal adjusted gross income or federal taxable income, then apply state rates and deductions on top. Because the stipend sits inside federal gross income, it flows straight into the state return for any state that uses federal income as its baseline.1Internal Revenue Service. Au Pairs
States tax income earned within their borders regardless of the worker’s immigration status or federal classification. An au pair who is a nonresident alien for federal purposes will typically file the state return as a nonresident or part-year resident. That changes the form and the mechanics, but it does not erase the liability. For an au pair living with a host family in a single state for the year, essentially 100% of the stipend is state-source income.
Two federal features often get misread as covering state tax and do not. First, the FICA and FUTA exemptions that apply to J-1 au pairs are federal payroll rules, not income tax rules; they say nothing about state income tax. Second, host families are generally not required to withhold federal income tax on domestic service in a private home, and no W-2 has to be issued unless the au pair and family voluntarily agree to withholding. No withholding is not the same as no tax owed. When nothing has been withheld, the au pair reports the full stipend and pays the balance directly at filing time.1Internal Revenue Service. Au Pairs
States With No Income Tax
Eight states impose no individual income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. If your host family is in one of these states, there is no state income tax return to file and no state tax on the stipend. Federal filing obligations still apply.
When a Nonresident Au Pair Has to File
In states that do levy an income tax, the rules for when a nonresident must file vary a lot. Some states want a return from any nonresident who earns even a dollar of state-source income. Others set a minimum dollar amount, and those thresholds range roughly from about $100 to more than $15,000 depending on the state. A few states key the filing requirement to days worked in the state rather than a dollar figure.
The practical reality: au pairs earning around $10,000 a year will clear the filing threshold in almost every income-tax state. The exact number matters and needs to be checked against the host state’s current rules, because states update their thresholds and forms periodically. State revenue department websites publish the nonresident filing requirements. Filing when you don’t have to wastes time; skipping a required return brings penalties and interest.
Tax Treaties Usually Don’t Reach State Tax
The U.S. has income tax treaties with dozens of countries, and some include provisions that reduce or eliminate federal tax on certain exchange-visitor income. An au pair from a country with a favorable treaty may be able to claim a partial or full exemption from federal income tax on the stipend by filing Form 8833 with the federal return.2Internal Revenue Service. About Form 8833 – Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
Most states do not honor federal tax treaties. A treaty that wipes out the federal bill often has no effect at the state level, and the state will calculate its tax as if the treaty exemption did not exist. It is entirely possible to owe zero federal tax on the stipend and still owe state income tax on the same money. Check whether the host state recognizes federal treaty provisions before assuming the treaty benefit carries over. If it does not, plan for the state liability.
How to File the State Return
Use Software Built for Nonresident Aliens
Standard consumer tax software such as TurboTax is designed for U.S. citizens and resident aliens. It cannot properly prepare a Form 1040-NR or handle a nonresident alien filing status, and that limitation carries over to the state return that ties to it. Sprintax is one of the few platforms built specifically for nonresident alien filings and can prepare both federal and state returns for J-1 visa holders. State returns through Sprintax carry an additional fee. Some universities and exchange program sponsors offer free access to nonresident tax preparation tools, so check with the sponsoring agency before paying out of pocket.
Filing Without a W-2
Most host families do not set up voluntary withholding, so most au pairs will not receive a W-2. Without that document, the au pair reports the total stipend directly as wage income on the federal nonresident return, and the same figure flows to the state return. Keep your own records through the year: dates paid and weekly amounts. If the host family did agree to withhold and issued a W-2, attach it and claim credit for any federal and state tax already withheld.
Deadlines and Late Penalties
The federal Form 1040-NR deadline is April 15. Most income-tax states align their deadlines with the federal date. If state tax is owed and nothing was withheld during the year, the full balance is due by that deadline. Late filing typically brings a penalty calculated as a percentage of the unpaid tax, plus monthly interest. Rates vary by state, but penalties commonly run from about 5% to 25% of the balance owed.
What Host Families Should Know
Host families sometimes assume their responsibilities end with paying the weekly stipend. Two things are worth keeping straight. If the au pair asks for voluntary withholding, the family has to get an Employer Identification Number, withhold the agreed amount, report it on Schedule H of their Form 1040, and issue a W-2.1Internal Revenue Service. Au Pairs Even without a withholding arrangement, keep clear records of stipend payments. Au pairs need that documentation to prepare their state return, and the IRS can ask the family to verify amounts paid.