Hi,

I was in the US on a J-1 visa for the last 2 years before returning to the UK. During this time I claimed income tax exemption under the UK Income tax treaty.

If I was to return to the US on, say an H1-B, K-3, or IR-1/CR-1 visa, would I have to re-file my tax returns for the period that I was on the J-1 visa? Is there a minimum time that I need to wait before returning to the US on another visa type before I do not lose the tax exempt status for my previous J-1 period?

Thanks in advance,
Seattlelimey

If the individual’s 2-year period is exceeded, the exemption is lost for the entire visit, including the 2-year period.

If you return back to UK before 2 years on J-1, and get a new visa from UK, my opinion is that you stay on J-1 has not exceeded.

Thanks for the quick reply!

That was my understanding as well, but had a sneaking suspicion that in order to keep my refunded tax, I had to stay out of the US for 2 years before returning. I couldn't see this anywhere in the tax treaty itself, however, so I'm not sure why I'd think that. I appreciate your opinion, thanks again.

Seattlelimey

Usually the period required to re-establish residency in the home country (in your case, the U.K.) is ONE year, not two.

Excellent. Thanks for your help!

Seattlelimey

Glad to help!

So I'm in the same boat - is the answer one year or zero? And if one wanted to return immediately would it have to be on a different visa, or would a new J1 be OK? Thanks!

I am confident that the time would be ONE year, but I cannot be sure without knowing your specifics.

I'm also querying this. At the beginning on January 2012 I will have been working in the US for 2 years under the J-1 visa. To clarify, if I am to leave the US at the end of this year for at least one year and return to the UK (I am a UK citizen) or Europe to work I avoid paying back taxes even if I return later to work in the US? On my return to the US to work would I then be tax exempt again for 2 years? I'm struggling to find any information regarding subsequent contracts/visa after the initial 2 year period. Thanks in advance.

Check the Technical Explanation for the specific tax treaty between your country and the United States. They usually cover whether someone can use the exemption more than once.