fabio_j1
Mar 15, 2012, 03:02 AM
Hi, I am an Italian researcher. I came to California in March 2009 with a J1 visa. Based on the tax treaty, I did not pay federal taxes until March 2011. I am now filing my tax return for 2011. As far as I understand, I was non-resident alien until March 2011, and resident alien for the rest of the year, that means that I have to file based on a dual-status for last year. If I choose to be treated as a resident alien during the full year (to use the standard deductions and pay much less taxes) would the tax treaty still be valid during the first two months of 2011?
The form 519 says:
"Most tax treaties have a saving clause. A saving clause preserves or “saves” the right of each country to tax its own residents as if no tax treaty were in effect. Thus, once you become a resident alien of the United States, you generally lose any tax treaty benefits that relate to your income. However, many tax treaties have exceptions to the saving clause, which may allow you to continue to claim certain treaty benefits when you become a resident alien. Read the treaty to find out if it has a saving clause and an exception to it."
I read the treaty but still do not understand if there is an exception to the saving clause or not. If there is, where is that specified in the treaty?
Thank you very much for your help!
The form 519 says:
"Most tax treaties have a saving clause. A saving clause preserves or “saves” the right of each country to tax its own residents as if no tax treaty were in effect. Thus, once you become a resident alien of the United States, you generally lose any tax treaty benefits that relate to your income. However, many tax treaties have exceptions to the saving clause, which may allow you to continue to claim certain treaty benefits when you become a resident alien. Read the treaty to find out if it has a saving clause and an exception to it."
I read the treaty but still do not understand if there is an exception to the saving clause or not. If there is, where is that specified in the treaty?
Thank you very much for your help!