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View Full Version : J1 Visa - Internship in CA - Tax treaty France/USA?


walien
Jul 5, 2012, 01:43 PM
Hi everyone,

I am a french student currently doing an internship in IT under a J1 Visa (from February to August 2012).

On my paycheck, I see that some taxes are withheld:
- Federal income tax
- CA income tax
- CA disability ins

I heard that thanks to the tax treaty between France and USA, it's possible to get a refund for the federal income tax.

I stumbled upon those form: http://www.irs.gov/pub/irs-pdf/f1040nr.pdf and http://www.irs.gov/pub/irs-pdf/f8833.pdf

Does anyone can tell me more on it?

Thanks in advance

AtlantaTaxExpert
Jul 9, 2012, 08:34 AM
There IS a treaty exemption for interns/trainees, but it is only for $5,000 and is NOT a total tax exemption. Further, California does NOT honor tax treaties, so all of the income earned while in California IS subject to California income taxes.

However, because the internship is LESS than one year in length, you can and should deduct your daily living expenses (travel, rent, food, incidental costs) by filing Form 2106 with Form 1040NR. Those costs will also be deductible on your California tax return.

When the time comes to file your return, I specialize in returns for foreign nationals like yourself. You can email me at the email address in my profile.