Hello,

I have a question regarding the tax treaty between USA and Bulgaria.
I am a Bulgarian citizen and now I am a full time student in USA (I have an F-1 visa).

According to the article 19 of the treaty, students have an exemption of $9,000/year. Before coming to USA I was a student in Germany for 1.5 year. I spoke with a representative in our university's tax office and she said that I may not be eligible for this treaty since I was 'residing' in Germany before coming to USA.

In article 19 of the tax treaty it is written that the student should be a resident of Bulgaria immediately before visiting USA in order to claim the exemption.

Also at article 4, it is stated that "For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile,residence, citizenship, place of management, place of incorporation, or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof."

Ok, so based on this description I understand that I am a resident of Bulgaria because of my citizenship.
Before coming to USA I lived in Germany, but I do not think that based on this residency' I can use the tax treaty between Germany and USA.

I will be very happy if you can help me resolve this matter, and tell me whether I am eligible to use the treaty between Bulgaria and USA.

Thank you a lot.

P.S. Here is the link for the treaty :
Www.treas.gov/offices/tax-policy/library/Bulgar07.pdf

Read the provisions of the treaty, especially in regards to paying taxes to Germany.

So, bottom lin, did you pay any income tax to Germany? If so, you probably qualify as a German resident and claim the treaty exemption under the German treaty, which I believe is also $9,000.

If not, you can claim the exemption under Bulgarian treaty.

Either way, the exemption is $9,000.