[Chutz]

Hello,

I'm from Thailand and holding J-1 visa. For J-1 visa I can exempt tax for 2 years.
I'm wondering how's tax payment after 2 years in two different status.

1. If I extend J-1 visa, do I need to pay tax back for the first two years?

2. If I change to H-1B, do I need to pay tax back for the first two years (while I was J-1 status)?

Thank you in advance.

[MukatA]

Your J1 visa is for Professor, Teacher, Research, Student?
When did you enter the U.S. on J1 visa? Did you have any other visa before that?

The tax treaty with Thailand does not say any where that you have to pay back the taxes if your stay exceeds two years.

[Chutz]

Thank you MukatA

I am a researcher and I've been US since Oct, 06. I did not have any visa before that.

Some people said for J1 visa I can exempt tax only for 2 years. If I stay longer than that tax exemption is over and I need to pay back for the first two years.

I also found this page Alien Manual, Section D3, Tax Treaty Exemption
In D3.2 **** Tax Treaty is lost retroactively if stay in country exceeds 2 year period.

Anyway I didn't find anywhere mention about tax treaty is lost retroactively in the tax treaties article as MukatA mentioned.

ARTICLE 23
Teachers
1. An individual who visits a Contracting State for a period not exceeding two years for the
Purposes of teaching or engaging in research at a university, college or other recognized educational
Institution in that State, and who was immediately before that visit a resident of the other Contracting
State, shall be exempted from tax by the first-mentioned Contracting State on any remuneration for such
Teaching or research for a period not exceeding two years from the date he first visits that State for such
Purpose.
2. This Article shall apply to income from research only if such research is undertaken by the
Individual in the public interest and not primarily for the benefit of some other private person or persons.

I'm really confused. Could you please make me clear this point.

Thank you very much.

[MukatA]

Thank you MukatA

Anyway I didn't find anywhere mention about tax treaty is lost retroactively in the tax treaties article as MukatA mentioned.

Did I say this?

[Chutz]

I thought that if they didn't mention about the retroactive loss of tax treaties means that it doesn't need to pay taxes back...

If I misunderstood, I'm sorry.

[MukatA]

On J1 you are exempt from FICA tax and federal income tax for 2-years from the date of arrival.
Read Read Your U.S. Tax Return: U.S. Tax Treaties for Professors, Teachers and Researchers