WIll I be fined against Tax Treaty if I over stay for one week?

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kanthala1

Jul 30, 2010, 08:56 AM

Hi, I have just signed up for tax treaty exemption between India- USA. My question is at the end of two years I am planning to get my Visa changed from J1- researcher to J1- clinical residency. For which I have to forgo this work and go to India for VISA change and come back. So now that I am under the treaty but changing visa status will I be FINED RETRO ACTIVELY for staying more than 2 years, PLEASE ADVICE , I truly appreciate your response

AtlantaTaxExpert

Jul 30, 2010, 12:28 PM

You are NOT going to be retroactively fined, you will be retroactively TAXED!

To avoid that tax, you must return to India, re-establish residency in India (which usually takes ONE year), then return under the second J-1 visa.

kanthala1

Aug 1, 2010, 08:50 AM

Thank you so much AtlantaTaxExpert! I truly appreciate your time to answer my question. I think I will forgo the tax treaty benefit.

AtlantaTaxExpert

Aug 2, 2010, 10:09 AM

Glad to help!