Hi,

I'm here in the USA as a postdoc on a J1. I'm doing the training at a pharmaceutical company, which also pays my wages. I've heard (from other postdocs at other institutions) that based on a tax treaty between US and Italy I should be exempt from paying federal taxes. However from what I read on the IRS publication #901 this would be true only if my weges were coming from Italy.
Can anyone help me sort this out?

Thanks a lot

Antonia

Antonia:

Your interpretation is correct. Income from a U.S. source IS subject to both federal and state income taxes.

You would need to file Form 1040NR with Form 8843.