Hi

I am an Indian student. I have made three visits to US each time with new J-1 visa.
1) I came for first time in US in 2009 for an internship, as a J-1 scholar. My visa was for 3 months. My internship was for 2 months and I went back to India again. I was not charged any taxes under US India treaty.

2) In 2010, I again went back to US for same 2 month internship. I also got a new J-1 visa. I was again exempted of taxes under US- India tax treaty. I again came back to India.

Now the catch... I am back in US in Feb 2011 and will be here for 4 months. I am here for my internship. I was issued a new J-1 visa again this time. However, this time I am being taxed on my salary as payroll people says that the treaty has now ended (which makes sense).

But as I was reading the questions on this forum and found out that J-1 scholars who have stayed in US for more then 2 yrs, need to pay back all the taxes they were exempted under treaty in addition to some penalty.

This is the reason of my worry. I want to know if I come under the above case or some other rule applies to my case.

I will really appreciate your help as it has been a matter of worry for me constantly.

Thanks

You must file tax return and or Form 8843 even for 2009 and 2010. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents (http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html)

On J-1 you are exempt from residency and FICA taxes for two years. You still pay income taxes. For 2011, you must pay FICA taxes and income taxes.