I am a Turkish citizen working for an American hotel under a J1 visa. I have been in the US since April 2003, and am now trying to file my taxes for 2004. I am confused by the "exemption" portion of the Substantial Presence Test- if I have a J1, am I considered exempt? I am working as an intern at the hotel, and do not know if I am considered a student or teacher under the J1. If I am exempt from the test, does this mean I file as a non-resident alien using the 1040NR form? I have not received payments from any Turkish organizations, just from the US-based hotel. Which form should I use to file?

Kgray:

Review Pages 5 - 7 of IRS Pub 519.

In order for you to be considered exempt under a J-1 visa, you must be either a student, a teacher or a trainee, It appears you may qualify as a trainee.

This being the case, you need to file as a non-resident alien, which means you file Form 1040-NR or 1040NR-EZ. It is likely the actual tax you owe will be about the same if you would file as a resident alien.

Is your employer withholding Social Security and Medicare taxes? If not, then your employer also considers you to be an "exempt" individual and the advice I gave you above applies.

If so, then your employer does NOT consider you an exempt individual. You may be able to recover the Social Security and Medicare taxes withheld by filing Form 843.