How to Plan Financially for Your Shlichut in America

🗂️ Program Fees and Costs

Before beginning your Shlichut, several administrative and visa-related fees are required. While most are covered or reimbursed by the host school, it’s important to understand what they are.

These fees relate to your participation in the J-1 Exchange Teachers Program, your teaching eligibility, and WZO’s onboarding services.

💡 Confirm with your school which fees are reimbursed or paid directly and which, if any, are deducted from your salary.

🔷 Sponsor fees – Annual program fee to WZO for screening, orientation, and administrative support (covered by school)

🔷 I-901 SEVIS fee – $220 for J-1 visa holder (reimbursed by school)

🔷 Visa application processing fee – $185 per person (reimbursed by school)

🔷 Credential evaluation – Required by some states; typically $150–$300

🔷 Licensing/credential fees – Varies by state; may include teaching certification fees ($100–$500)

🔷 Licensure examination fees – If needed; $200–$600 depending on subject/state

🔷 Background checks/fingerprinting – $50–$150 depending on school/state requirements

Living in the U.S. as a Moreh Shaliach:

What to Expect Financially

Embarking on Shlichut in the United States is an inspiring opportunity—but it also comes with serious financial considerations. As the Shaliach, you are employed directly by the school, which determines your salary and terms of employment. However, you are responsible for covering your household’s full cost of living while abroad.

This guide offers realistic cost estimates to help you plan. Actual expenses vary by region and household size, but knowing what to expect will empower you to make informed decisions and avoid financial surprises.

🏠 Housing Costs

While a few schools offer subsidized housing or logistical help, most Shlichim rent independently.

💡 All housing must be approved by the WZO Security Department before signing a lease.

🩺 Medical Insurance

U.S.-compliant health insurance is required for all Shlichim from the day they leave Israel until the end of their Shlichut. This insurance must meet J-1 visa criteria and cover all family members who join the Shlichut.

In most cases, the school provides a group health insurance plan as part of its employee benefits. These are standard employer-sponsored plans through major U.S. providers and often represent the most cost-effective and compliant option available.

Even when subsidized, it is important to know the full cost of coverage to understand the value of your compensation and to anticipate any payroll deductions.

Estimated Full Monthly Premiums (after school contribution):

• Individual (employee only): $600–$800/month
• Family: $1,500–$2,400/month

If your school does not provide insurance, or you choose not to enroll in their plan, the WZO can offer a designated plan via Passport Card (David Shield). While fully J-1 compliant, it currently costs $494 per person per month, which may be significantly more expensive for families.

💡 Confirm with your school:

• What insurance is offered?
• What your share of the premium will be?
• Whether it meets J-1 requirements.

🍽️ Food & Groceries

Kosher groceries are available in many areas but may be limited or costly outside major Jewish communities.

🚗 Transportation

Used cars cost ~$12,000–$25,000

💡 Utilities & Internet

🧒 Childcare & Tuition

Most schools provide full or partial tuition coverage for your children. If your children won’t attend the host school, they’ll help you explore public school or other options.

After-school care or daycare (where needed):

• Preschool/daycare: $800–$2,000/month per child
• Aftercare (elementary age): $300–$600/month

📝 Discuss all school-related fees (registration, lunch, books) with your school before signing your contract.

🧾 Taxes & Deductions

As a J-1 visa holder working as a Shaliach in the U.S., you may be eligible for important tax exemptions—but these depend on your personal visa history and length of stay:

• Federal Income Tax:
  You may be exempt for up to 2 years under the U.S.–Israel tax treaty, if you haven’t been in the U.S. as a J-1 or similar visa holder for more than 2 of the last 6 years.
• • Approximately 10%-19% of salary depending on tax bracket
• FICA (Social Security & Medicare Taxes):
  You are usually exempt for the first two calendar years of your Shlichut.
• • Total Rate: 7.65% of your salary
  • • Social Security: 6.2%
    • Medicare: 1.45%
• State and Local Taxes:
  May apply based on where you live. Some states honor federal exemptions; others don’t.
• • Low-tax states (e.g., Florida, Texas, Nevada): 0%
  • Moderate-tax states (e.g., North Carolina, Colorado, Arizona): 3%–5%
  • High-tax states (e.g., California, New York, New Jersey): 6%–10%
• Annual Filing:
  You must file a federal tax return each year (even during the exemption period), typically using Form 1040-NR, along with Form 8843.

💡 Very Important: Always consult a U.S.-based CPA or tax advisor familiar with J-1 taxation. U.S. tax law is complex, and filing incorrectly can result in the loss of exemptions or penalties. While some schools may offer help, the responsibility is yours.

🧑‍🏫 Union Dues & Retirement Contributions:

Most Shlichim are employed by private schools that do not require union membership, and U.S. retirement plans like 401(k) or 403(b) are generally not relevant for non-citizens on a J-1 visa.

In Israel, employer contributions to your pension stop while abroad, but you can continue contributing independently to preserve your benefits.

✈️ Flights & Relocation

Schools typically cover:

• Round-trip airfare for the Shaliach.
• 50% or more of airfare for family members.
• Some relocation expenses like excess baggage or a home setup stipend.

💼 Not in Your Contract—But Should Be Planned For

• Furniture and household setup
• Medical costs not covered by insurance
• Travel to Israel (some multi-year contracts include one trip)
• Community and synagogue participation costs

🎒 Be Prepared, Not Surprised

Shlichut is more than a job—it’s a mission. But financial preparation is essential. Ask:

✅ Is housing provided or included in salary?

✅ Are school costs for children fully or partially covered?

✅ What health insurance is offered, and what will it cost me?

✅ What relocation and travel costs are reimbursed?

Always keep written records of what’s discussed and ensure all agreements are reflected in your contract.

Questions? Contact us at morim@wzo.org.il. We’re here to support you every step of the way.