Hi,

I am a Chinese citizen now working at US as a researcher at a DOE lab for fundamental research (the lab is operated by an university and I appear as a staff of the university). I am holding H1B visa.

I moved from Germany at July 2010 and before that I have been working at Germany as a postdoc in a scentific research institute for 2.5 years.

I know there are tax treaties between us and both China (artical 19, max 3 years) and Germany (artical 20(1), max 2 years).

I filed my 2010 tax as nonresident alien and used the German treaty which is suggested by the CINTAX software.

Now I have some questions for my tax return for the year of 2011:
1. Can I use the treaty between us and China to file my return? Or is the German treaty the proper one for me?
2. Do I need to file my tax as a resident alien this year? Will the German treaty still be valid if it is the proper one for me?
3. How to file my return with the treaty? What forms do I need to submit?
4. If the China treaty is valid to me, is it OK to file my return this year with China treaty but my file of last year declared the German treaty?

I am looking forward for any answers or comments! Thank you very much!

Qiao

You entered US in 2010 on H1-B visa. It is work visa so you do not get any tax treaty benefits. Even in 2010, your income is taxable in US. You must also pay Medicare and social security taxes.

Another point of discussion. In tax treaties, the term "resident of" means China or Germany? A U.S. citizen or resident (green card holder) living any where in the world in always the resident of U.S.

Agreed; you are a resident alien now, so you will file a normal return (Form 1040/1040A/1040EZ).

If you want my professional help, double-click on my title above and then scroll down to my profile/signature, where you will find my email address.

The U.S./Germany Treaty Article 20(1) has an "exception to the savings clause", which allows treaty benefits even if the tax payer is eligible to file as a resident alien for tax purposes and the treaty eligibility period has not expired. Look into this!