Hi

I came to US from UK in Jan 2006 as a visiting professor doing research and teaching in a University.I will be going back in May this year.I am a resident alien for tax purposes.I will be grateful if you can answer the following questions..

1 ) Am I eligible for tax exemption under the UK-US tax treaty ,article 20 ? It states that if you stay for less than 2 years you are exempt from tax.Some of my colleagues from Germany are being tax exempt.Unfortunately I did not know about the treaty and my payroll office has been withholding tax.

2) If I am eligible for tax exemption will I benefit from claiming deduction for dependants.(Wife and 2 daughters aged 6 and 7 on h4).

3) Should I file a 1040 as married filing jointly ?

4) Should I bother getting an ITIN for my spouse and 2 children by filling in W-7?

Many thanks

You should be exempt under the treaty (the Article you want is Article 20A -- you were probably referring to the old treaty). You get it for 2 years but you lose it all if you stay beyond that.

I'm also assuming you are not a US citizen or green card holder -- this does not apply if you are.

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Originally Posted by taxsearcher

You should be exempt under the treaty (the Article you want is Article 20A -- you were probably referring to the old treaty). You get it for 2 years but you lose it all if you stay beyond that.

I'm also assuming you are not a US citizen or greencard holder -- this does not apply if you are.

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Thanks for your prompt reply tax searcher.

Agree with TaxSearcher.

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Originally Posted by AtlantaTaxExpert

Agree with TaxSearcher.

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Dear Atlanta expert

I did not mention in my original post that I came on a H1B visa.Will this preclude me from claiming treaty benefits?

Since taxes have been with held for 2006 ,how do I fill 1040 to claim traty benefits.

Thanks

The H-1B visa changes everything! That's a work visa; the two-year exemption applies for J-1 visa holders.

Normal taxes are due. You will need to file a dual-status return In my opinion.

Hi I work with visiting instructors/professors from the UK. On an H-1B visa you are able to claim the tax treaty. You will be subject to the FICA tax (social security tax) only. You will not need to claim your family on the W4. Hopefully the place you worked can reimburse you for taxes deducted. :)

One more thing the FICA tax works out to be 7.25 % of your salary.

Actually FICA tax is 7.65% of your salary

Yes, Social security at 6.2% and Medicare at 1.45%.

I will teach for only one week in a US university and will have a groos income of $8500. I am a UK resident. Will I bebenfit form treaty 20a and therefore pay no tax?

Pikay

What tax treaty exisit between the UK and the US? Under that treaty, does a one-off teaching assignment in a US university with gross income of $10000 iattract any tax? And if yes, what is the tax rate? PK

What is the SOURCE of the income? Is is U.K.-sourced or is it sourced inside the United States?