Tax Treaty Benefits
This is general information, not professional tax advice. For your specific situation, please consult a qualified tax professional.
CRITICAL RULE
Au pairs CANNOT claim tax treaty benefits on their wages. This applies to au pairs from ALL countries — Germany, France, China, South Africa, Colombia, Canada, Greece, Jamaica, and every other nation.
Why Treaty Benefits Do Not Apply — Two Independent Reasons
Reason 1: Au pairs are not students or trainees
Tax treaty "student/trainee" articles (like Article 20 of the US-Germany treaty) require the person to be present "solely for full-time education or training." Au pairs are present to provide childcare services. The IRS has explicitly confirmed this on irs.gov/individuals/international-taxpayers/au-pairs.
Reason 2: The "dependent personal services" articles require a non-US employer
Some treaties (e.g., with Canada, Greece, Jamaica) have "dependent personal services" or "employment income" articles that can exempt wages. However, these articles ALL require that the employer is NOT a US resident. An au pair's employer IS the US host family — so this condition fails.
Examples:
- Canada (Article XV): Employment income is only exempt if "not paid by, or on behalf of, an employer who is a resident of the United States."
- Greece (Article 14): Employment income is only exempt if paid by "a resident of Greece or a Greek corporation."
- Jamaica (Article 15): Employment income is only exempt if "the employer is not a resident of the United States."
Since the host family is always a US resident, au pairs from these countries still cannot claim treaty benefits.
Common Misconceptions
- German au pairs claiming Article 20(4) ($9,000 exemption) — this only applies to students/trainees, not au pairs.
- Canadian au pairs claiming the employment income exemption — requires a non-US employer, which au pairs don't have.
- Online sources saying "some countries offer treaty exemptions for au pairs" — these sources are incorrect or referring to provisions with conditions au pairs cannot meet.
What If a Tax Preparer Suggests Treaty Benefits?
If a tax preparer suggests claiming treaty benefits on au pair wages, this is incorrect and could result in IRS penalties. The au pair should find a different preparer.
The Only Tax Benefit for Au Pairs
The FICA exemption under IRC Section 3121(b)(19): J-1 nonresident aliens do not owe Social Security or Medicare taxes. This is a statutory exemption, not a treaty benefit, and applies to all J-1 NRAs regardless of country.
When Treaty Benefits COULD Apply
If an au pair has income OTHER than au pair wages — for example, a scholarship from a US university — treaty benefits might apply to that non-wage income. But au pair wages are never eligible.