Hi

I came to US from UK in Jan 2006 as a visiting professor doing research and teaching in a University.I will be going back in May this year.I am a resident alien for tax purposes and on H1B visa.I will be grateful if you can answer the following questions..

1 ) Will the fact I am on H1B affect tax treaty benefit ?

2) If I can claim treaty benefits,how do I go about filling 1040 , as tax has already been withheld for 2006? Should I attach a statement to 1040 saying I am claiming tax treaty benefit?

Thanks for your reply

Hi

I came to US from UK in Jan 2006 as a visiting professor doing research and teaching in a University.I will be going back in May this year.I am a resident alien for tax purposes and on H1B visa.I will be grateful if you can answer the following questions..

1 ) Will the fact I am on H1B affect tax treaty benefit ?

2) If I can claim treaty benefits,how do I go about filling 1040 , as tax has already been withheld for 2006? Should I attach a statement to 1040 saying I am claiming tax treaty benefit?

Thanks for your reply


You should have filed the appropriate form with your employer so that tax was not withheld. Since it has been withheld you will need to file a 1040, report all your income, subtract back out your tax exempt (via treaty) salary on line 21. You need to attach a statement claiming the treaty benefits.

You are not precluded from the treaty by virtue of your residency status. You must file a 1040.

Note that if you stay longer than the two years then you will have to retroactively pay tax.

All the best with it, enjoy your stay in the US and my regards to the Queen when you return :)

Dear Taxsearcher

Thanks again for your help.I will make sure you get an invitation to the palace soon.;)

Regards

king2001

I yield to TaxSearcher's greater expertise in this field, and have no comment!