Hello,

I am attempting to fill out my finance's taxes for 2008. He was employed as a post-doctoral researcher beginning Feb 2006 and worked until the end of May 2008 (moved back at the end of June). The university sent him a W-2 which shows federal, state, social security, and medicare taxes were withheld. The university also sent him three copies of 1042-S which shows a gross income that is less than what is listed on the W-2. It also shows a lesser amount for federal tax withheld and lists that no state income tax was withheld.

I do not understand what I am to do with both forms or how to go about filing for him. Do I simply fill out an 1040-NR, and nothing else? Are there any other forms I should fill out for him? Do I simply fill these all out by hand and mail in the W-2 and the 1042-S that the university sent?

Also, is he eligible to take deductions such as job search expenses, charity donations, etc even though he is a UK citizen and now working back in the UK (as of July 2008)?

For 2008, your days in the U.S. are not exempt from residency. You will file resident tax return.
Read about J1 tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

For 2008, your days in the U.S. are not exempt from residency. You will file resident tax return.
Read about J1 tax filing: Your U.S. Tax Return: The U.S. Visas (http://taxipay.blogspot.com/2008/08/us-visas.html)

Thank you!

I have one other question about how this will work if he is to file a 1040 as a resident. His w-2 only lists his income from march through may, as his jan and feb 2008 income is listed on the 1042-S. he only went over two years beginning march 2008. Does he need to pay taxes on the income listed on the 1042-S? How exactly do we report his total income if he files using a 1040--do we simply add both up when it asks for what is listed on the w-2, or do we ignore the 1042-S form that the university sent altogether and only go off his w-2? Is there a way to be exempt from the 1042-S income but still file as a resident?

One other thing that just occurred to me: if he files as a resident but is now living back in the UK, would this mean his UK income for 2008 is taxable even though he is a UK citizen?

You should check with AtlantaTaxExpert and IntlTax.
Yes, if you file resident return, then you get standard deduction and can not get treaty deduction.

Another alternative is that you are dual status -- non resident up to Feb 08 and then resident. On the nonresident part of your return report 1042-S income and claim exemption.
Still get second opinion.

Thank you for your help!

I just spoke to him about this a bit further and he says since he knew he was staying over 2 years, he did not elect into the tax treaty and is pretty sure he filed as resident alien all along.

I am just not sure why part of his income is separated out on the 1042-s and the rest on the w-2. it could be that the 1042-s represents his fellowship from a german organization and the w-2 reflects what the university paid him?

If he were filing as resident, would I just add the 1042-s together with the w-2 to get his gross income?

Okay... after more research, this is what we can come up with:

He would be considered a resident from jan through June 2008 and we need to figure out how to report both w-2 and 1042-s gross income.

He needs to file a dual-status return, form 1040nr with form 1040 as dual status attachment.

Then he needs to send a form to end his residency as of June 2008 along with this.

Does this sound correct? He is a uk citizen and began work in the uk as of July 2008 and will not be returning to the us.

Hi posting once more now that I've looked into this further...

Could anyone clarify on this... since he was in the us in 2008 for less than 183 days, and since the two exempt years do not count towards substantial presence, he would not be considered a us resident for 2008? So he should file a 1040nr?

If he does file as nonresident, I know he does not get the tax treaty--is there a way to pay taxes using 1040nr?

He needed to file as a dual-status alien for 2008, which requires the filing of BOTH Forms 1040 and 1040NR.

This is NOT a tax return for an amateur; get professional tax help.

If you want my help, contact me at [email protected].

If he filed as a resident alien in 206 and 2007, he filed incorrectly. He should have filed as a non-resident alien, filing Forms 1040NR or 1040NR-EZ with Form 8843. He should correct that error by amending those returns.

Finally, did he pay FICA (Social Security and Medicare) taxes in 2006 and 2007? If so, he can apply for a refund AFTER he amends the 2006 and 2007 returns by submitting Form 843 and 8316, along with some support documents.