Ask Me Help Desk - J-1 Visa to F-1 Visa and Tax Issues

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To Immigration Consultant & Tax Experts

We have a friend who came to the US from Italy (Italian Citizen) on April 15, 2006 on J-1 visa as a Research Scholar and was treated as a non resident alien for tax purposes. On April 15, 2008 his J-1 visa was renewed as J-1 visa - Research Scholar(until April 14, 2011) but his status was changed to Resident Alien Status. He ended up getting huge cuts in his paycheck as he was not tax exempt anymore as a result of the US- Italy Tax treaty and the Substantial Presence test.
Now he has been accepted as a Student and has a valid I-120 to join as a student of Ph.D. He will be leaving the country(USA) for a conference and intends to go to Italy to get his visa stamped as F-1 . As an F-1 student can he get back on the Non resident alien status to avail of the tax exempt status for 5 yrs which all students are eligible for?Please advise on this as soon as possible. If you need any further details, feel free to ask and I will gladly provide the necessary information.
Thanks
A very concerned friend.

F-1 holders are not allowed to work except on campus job at 20 hours/week.
He should become "non-resident alien" for the next 5 years or as long as his F-1 is valid.

Quote:

Originally Posted by CBAdmin

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To Immigration Consultant & Tax Experts

We have a friend who came to the US from Italy (Italian Citizen) on April 15, 2006 on J-1 visa as a Research Scholar and was treated as a non resident alien for tax purposes. On April 15, 2008 his J-1 visa was renewed as J-1 visa - Research Scholar(until April 14, 2011) but his status was changed to Resident Alien Status. He ended up getting huge cuts in his paycheck as he was not tax exempt anymore as a result of the US- Italy Tax treaty and the Substantial Presence test.
Now he has been accepted as a Student and has a valid I-120 to join as a student of Ph.D. He will be leaving the country(USA) for a conference and intends to go to Italy to get his visa stamped as F-1 . As an F-1 student can he get back on the Non resident alien status to avail of the tax exempt status for 5 yrs which all students are eligible for?Please advise on this as soon as possible. If you need any further details, feel free to ask and I will gladly provide the necessary information.
Thanks
A very concerned friend.

Thank you Lawanwadee for the quick reply. I would like to know if he will automatically become " Non Resident Alien" when he comes back to the USA with a stamped valid F-1 visa on his passport? Advice
F-1 holders are not allowed to work except on campus job at 20 hours/week.
He should become "non-resident alien" for the next 5 years or as long as his F-1 is valid.

Yes... recommend to get F-1 stamped from his country.

Quote:

Originally Posted by CBAdmin

FONT="Century Gothic"]
To Immigration Consultant & Tax Experts
We have a friend who came to the US from Italy (Italian Citizen) on April 15, 2006 on J-1 visa as a Research Scholar and was treated as a non resident alien for tax purposes. On April 15, 2008 his J-1 visa was renewed as J-1 visa - Research Scholar(until April 14, 2011) but his status was changed to Resident Alien Status. He ended up getting huge cuts in his paycheck as he was not tax exempt anymore as a result of the US- Italy Tax treaty and the Substantial Presence test.
Now he has been accepted as a Student and has a valid I-120 to join as a student of Ph.D. He will be leaving the country(USA) for a conference and intends to go to Italy to get his visa stamped as F-1 . As an F-1 student can he get back on the Non resident alien status to avail of the tax exempt status for 5 yrs which all students are eligible for?Please advise on this as soon as possible. If you need any further details, feel free to ask and I will gladly provide the necessary information.
Thanks
A very concerned friend.

1. For two years on J-1 as research scholar you (your friend) were exempt from residecny for two years.
2. After two years on J-1, you file resident tax return if you meet the SPT. So you filed resident tax return.
3. Now if you get F1, and file non-resident tax return, then you must also file Form 8843. From the form: If you were in the U.S. for 5-years as teacher, trainee or student, you can not file non-resident tax return.