I'm a postdoc for 2 years at a university in the US on a J1 visa and I am a non-resident alien for taxes. My home country (the Netherlands) has a tax treaty with the US which says that researchers/professors on a J1 visa are exempt from income tax in the US for 2 years.

I don't have any income in the Netherlands anymore and I not registered as a resident anymore (automatic when one leaves the country for more than 8 months), so there I am a non-resident as well. If I apply for the exemption on basis of the treaty, does that then imply that I should pay income tax over my US income in the Netherlands? The marginal tax rate is significantly higher in the Netherlands, so in that case paying taxes in the US seems a better option.

The treaty also states that the entire exemption is lost if my stay for more than 2 years. My current contract will expire after two years, but I might get a job as an assistant professor at a different university in the US afterwards (H1 visa). Does that also count as a longer stay? Could I avoid problems by returning home for a month after my current contract and apply for the new (H1) visa there?

In the U.S. you will file Form 1040-EZ and Form 8843 and claim treaty benefit to exempt your income. Read about J1 tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

For Netherlands check with a local professional if your foreign income is taxable in Netherlands or not.

Actually, Mukata meant 1040NR-EZ, but typos happen, especially in the middle of the night! :-)

Actually, Mukata meant 1040NR-EZ, but typos happen, especially in the middle of the night! :-)

Yes, my mistake. Thanks AtlantaTaxExpert.