Hi All,

I have a few questions,

Here is my situation:

I am a J-1 Student and my wife is a J-2 dependent.
We arrived Aug 2004 - so we "used" 4 years of the non-residence, HOWEVER, I was a j-2 dependent in 1988 so from what cintax (foreign tax software) says that if I have 5 years including past years I am a resident for tax purposes.

Here are my questions:
1. Is it true that if I was on J-2 20 years ago, these years also count toward the 5 years?

2. If I file as a resident - can I file jointly with my wife. Even though she only has 4 years?

3. We are PA residents, am I a resident for tax purposes in PA also, or can I still be a non-resident for PA?

Thanks!

1. No it does not count as you were not present as teacher, trainee or student.
2. When did your J1 begin?
3. You are resident of PA.

Thanks MukatA,

1. cintax says with confidence (which doesn't mean that they are right) that because I was as a dependent J-2 (of a scholar) for a full year in the past, it takes a year off the exemption. When I talked with the IRS helpline they read me the paragraph which can be understood in both ways. I also saw a different place that does say to count previous J's...

2. My J-1 began Aug 04.

3. I have seen in a few places for instance the Upenn link (http://www.upenn.edu/oip/iss/tax/index.html) that says that full time students in PA are non residents.

Thanks again!

1. You do count the J-2 from 20 years ago. A "student" includes the individual student and that individual's immediate family. See Treas. Reg. § 301.7701-3((b)(4).

2. Yes, you can file jointly with your wife.

3. I don't know.

Wow, great - Thanks IntlTax.

Do you maybe have a link to this Treas. Reg. section?

I guess this means that I can get the stimulus rebate this year, etc.

Is it true that if my university (by mistake) exempt 3000$ because of the treaty (I have a 1042-S) with my country then it will balance out when I do the taxes (i.e. trubo tax will see that I did not pay enough taxes and will readjust)?

What do I need to do about social security taxes

Thanks again!

Your liability for Social Security and Medicare taxes begins on 1 January of the THIRD calendar year in country on your J-1 visa.

That means you should have been paying FICA (Social Security and Medicare) taxes starting on 1 January 2006.

Your liability for Social Security and Medicare taxes begins on 1 January of the THIRD calendar year in country on your J-1 visa.

That means you should have been paying FICA (Social Security and Medicare) taxes starting on 1 January 2006.

Even if I am a student J-1, not a professional J-1?

Second, I thought FICA was not related to the residency status, and if I am only as a intentional student I don't need to pay it.

Thanks!

If you are a student, then the FICA liability starts at the beginning of the sixth calendar year (just like F-1 students).