schubrakete
Mar 11, 2008, 12:52 PM
Hi there!
I have a question regarding taxation of fellowships. I am German citizen who came to the US in 2005 on a J-1 visa as a research scholar. Between 2005 and 2007 I was paid by a german fellowship and partly by my boss at the university for the time that was not covered by the fellowship. I applied now for a second postdoctoral fellowship from an US source that is a non-profit organization. Starting from Jan 2008 I am paid now by this fellowship.
The question is now do I have to pay income taxes? A friend told me that according to the German-US tax treaty article 20(3) Germans that were residents of Germany before entering the US for the purpose of working there as a research scholar are exempt from income taxes. Is this true and what should I do? Paying estimated taxes and hoping to get them back next year when I claim this benefit? Is this article still valid when I am a resident alien (which I am in 2008)?
Thank you very much for your help!!
I have a question regarding taxation of fellowships. I am German citizen who came to the US in 2005 on a J-1 visa as a research scholar. Between 2005 and 2007 I was paid by a german fellowship and partly by my boss at the university for the time that was not covered by the fellowship. I applied now for a second postdoctoral fellowship from an US source that is a non-profit organization. Starting from Jan 2008 I am paid now by this fellowship.
The question is now do I have to pay income taxes? A friend told me that according to the German-US tax treaty article 20(3) Germans that were residents of Germany before entering the US for the purpose of working there as a research scholar are exempt from income taxes. Is this true and what should I do? Paying estimated taxes and hoping to get them back next year when I claim this benefit? Is this article still valid when I am a resident alien (which I am in 2008)?
Thank you very much for your help!!