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-   -   Resident taxe exemption treaty (https://www.askmehelpdesk.com/showthread.php?t=202167)

  • Apr 4, 2008, 06:57 AM
    thymallus
    Resident taxe exemption treaty
    I will present my case :
    I entered in USA under J1 visa on march 2005.
    According to the france-USA treaty article 20 I was able to claim taxes exemption until march 2007 as a research scholar.

    So for 2007 I have 3 months exemption, the institut provide me a 1042-S for this three month and then I started to pay federal taxes
    I am nowresident of USA for taxes purpose.
    In the same time the france USA taxes treaty allow to exempt 5000 dollars I would like to know whether I can claim that amount on the 9 months left? And how I should write it on my 1040.

    Overall it would be nice if you can tell me which forms I should use and where to put the amount of money for taxes exemption.

    Thanks in advance,
  • Apr 5, 2008, 02:16 AM
    MukatA
    J1 Researcher from France gets tax exemption for two years.
    The $5,000 deduction is only available to the Students.
  • Apr 5, 2008, 08:00 AM
    Guest
    Quote:

    Originally Posted by thymallus
    I will present my case :
    i entered in USA under J1 visa on march 2005.
    according to the france-USA treaty article 20 i was able to claim taxes exemption until march 2007 as a research scholar.

    so for 2007 i have 3 months exemption, the institut provide me a 1042-S for this three month and then I started to pay federal taxes
    I am nowresident of USA for taxes purpose.
    In the same time the france USA taxes treaty allow to exempt 5000 dollars i would like to know wether i can claim that amount on the 9 months left? and how i should write it on my 1040.

    Overall it would be nice if you can tell me which forms i should use and where to put the amount of money for taxes exemption.

    thanks in advance,

    You said Research scholar, were you on a fellowship grant (income code 15 on your 1042-S)?
    If that's the case, then the treaty article applying to you should be 21, not 20, and you can claim it for up to 5 years according to the exception clause, even if you became resident for tax purpose after 2 years (due to the fact that you can't exclude presence days anymore).

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