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-   -   Filing status for J-1 (exempt individual) (https://www.askmehelpdesk.com/showthread.php?t=547939)

  • Jan 25, 2011, 10:58 PM
    macjr
    Filing status for J-1 (exempt individual)
    Dear, it's confusing to determine my tax filing status.

    Now I'm a J-1 Scholar, like teacher and trainee since 10/18/2006
    And didn't change my status.
    Previously I have been in USA as J-1 student 2003-2004,
    Returned to my home country and came back again in 2006.

    So my presence days are
    2003 J-1 student (132 days) 08/22/2003 - 12/31/2003
    2004 J-1 student (224 days) 01/01/2004 - 08/11/2004
    2004 B-2 visitor (7 days) 10/18/2004 - 10/24/2004
    2005: No presence
    2006: J-1 scholar (75 days) 10/18/2006 - 12/31/2006
    2007: J-1 scholar (365 days) 01/01/2007 - 12/31/2007
    2008: J-1 scholar (366 days) 01/01/2008 - 12/31/2008
    2009: J-1 scholar (365 days) 01/01/2009 - 12/31/2009
    2010: J-1 scholar (365 days) 01/01/2010 - 12/31/2010

    In 2006, from the 6-year look-back rule for J-1 scholar, I have two exempt individual years, 2003-2004,
    So nonexempt individual counting started on 10/18/2006. So SPT (substantial presence test) for 2006 made me a nonresident alien.
    For 2007-2009, still have 2003-2004 as my exempt individual years, so SPT for 2007-2009 made a resident alien.
    However, in 2010, what I was told from my payroll office is that 2003 went out of 6-year look-back window,
    Exempt individual commenced on 01/01/2010 and so in SPT, I cannot include my stay during 2010, which made me an nonresident alien for 2010.
    I asked IRS international law office twice and was told that I would be a resident alien so need to file 1040, not 1040NR. From form 8843 for exempt individual (teacher), it looks like it only counts the days during 6-year look back window...
    I read publication 519 for this thing and alien residency examples in IRS web site,
    But my case is not obviously dealt in those I guess.

    1. What would be my alien tax status for 2010?
    2. If it is resident alien, I guess I need to pay FICA tax for 2010, which was not charged due to my non-resident alien status as my payroll office assumed. (I filed several tax forms accordingly.) What would I do if my status changes from "presumable" non-resident alien status?

    Thank you.

    P.S.
    I don't trust Glacier on-line tool for status determination and cintax for nonresident alien,
    Which is used in our pay roll office.
  • Jan 30, 2011, 12:34 AM
    AtlantaTaxExpert
    It would have been nice if you identified your HOME country so I would know WHICH tax treaty to read.

    However, I do not think it matters. The MAXIMUM tax-exempt status for the J-1 scholar category is THREE years, which, for you, would be 2006, 2007 and 2008, That being the case, you should file as a resident for BOTH 2009 and 2010.

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