Hi,
I am an Indian postdoc in US with J1 visa. Before I moved here, I was a Belgian resident. As both Belgium and India has double taxation treaty, I got my federal tax refund for 2 year. Recently I completed my 2 year and planning to stay beyond.
How to proceed with the retroactive taxation? Am I eligible for any kind of tax benefit from IRS if I initiate the payment from my side?
Thanks in advance.

Does your J-21 visa show you as a resident of Belgium or India?

If India, then the U.S.-India Tax Treaty applies and you will have a retroactive tax obligation for the first two years you were in the U.S. IF you stay beyond two years.

If Belgium, then the Belgium-U.S. Tax Treaty applies and, under that treaty, there is NO retroactive tax obligation.

When you filed your tax returns for 2014 and 2015, WHICH country did you claim on the Form 1040NR and 8843?

If Belgium, you are okay and need do nothing but start paying taxes.

If India, you will either have to repay taxes owed for the first two years, or amend those returns to show yourself as a resident for Belgium. However, the IRS will probably be very receptive to such a change given that you are in fact a citizen of India, as documented by your passport.

If you have further question, or you need professional tax help, please email me at the email address in my profile.

Dear AtlantaTaxExpert,

Thank you very much.

My J1 visa shows followings:
Issuing Post Name: Brussels;
Nationality: Indian;
Annotation: Bearer is not subject to Section 212(E). 2 YR RULE NOT APPLY.

I was living in Belgium for 6 years with standard residence permit and not a permanent residence.

Am I eligible to file taxes as a Belgian resident?

Thanks a ton in advance.

I suspect you are.

However, on the Schedule OI on Form 1040NR or 1040NR-EZ, did you claim residency for Belgium or India, and which tax treaty did you claim when you claimed the treaty position for tax exemption?

Dear AtlantaTaxExpert,

Thank you very much for your reply.

I was not sure if I can use the Belgium-US tax treaty at the time of filing.

So I used India-US tax treaty to claim the taxes. Also I used Indian residency.






I suspect you are.

However, on the Schedule OI on Form 1040NR or 1040NR-EZ, did you claim residency for Belgium or India, and which tax treaty did you claim when you claimed the treaty position for tax exemption?

I have answered your PM. Please respond as requested.