Hi there,

I'm British and working at a university in TN on a J1 Research Scholar visa. I arrived April 06 so filed my first tax form last year. Thinking at that time that I would return to the UK within 2 years, I claimed exemption through the US-UK tax treaty. However, now at April 08, I want to stay on longer and am not sure if I should what to do now. The Uni withheld by taxes for 2007, which I want to pay, but do I need to file an amended claim for 2006 and pay the taxes back that they refunded to me? Please help...

Confused...

Lynda

For 2007, pay tax as nonresident. Do not claim treaty benefit. Your income is still exempt from FICA taxes for 2007. You will also file Form 8843.

About 2006, yes the treaty says that if your stay exceeds two years, the entire exemption is lost. Read Your U.S. Tax Return: U.S. Tax Treaties for Professors, Teachers and Researchers (http://taxipay.blogspot.com/2008/04/us-tax-treaties-for-professors-teachers.html)

What you should do about your 2006 return, may be some other tax professional can tell you.