Hello!
I have a situation while filing a 1040.
Some history. For 4.5 years I've been a J1 US government sponsored scholar at NIH, filing 1040NR with federal tax exempt conditions based on the USA-Russia treaty. In 2006 I finished my research at NIH on 30 of January as a scholar under J1 status and accepted a new position in a private biotech with a work permit, which was received during fall 2005 as an adjustment status for my permanent resident application petition. From 1 February 2006 to December 31 2006 I was working in this company full-time.

Here is the problem. I should file the form 1040 as a Resident using W-2 information from last employer. This one is clear. But what shall I do with my wages received during January as a J1 scholar, listed in a form 1042-S? There is no such a category in 1040 for income exempt under treaty (line 22 in 1040NR). Is it possible to file two forms 1040NR and 1040 covering J1 and working permit periods independently? Will I be eligible for the J1 January tax exempt and standard deduction for the rest of the year at the same time? :confused:
Thank you in advance.
Alexander.

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Originally Posted by arumyantsev

Hello!
I have a situation while filing a 1040.
Some history. For 4.5 years I've been a J1 US government sponsored scholar at NIH, filing 1040NR with federal tax exempt conditions based on the USA-Russia treaty. In 2006 I finished my research at NIH on 30 of January as a scholar under J1 status and accepted a new position in a private biotech with a work permit, which was received during fall 2005 as an adjustment status for my permanent resident application petition. From 1 February 2006 to December 31 2006 I was working in this company full-time.

Here is the problem. I should file the form 1040 as a Resident using W-2 information from last employer. This one is clear. But what shall I do with my wages received during January as a J1 scholar, listed in a form 1042-S? There is no such a category in 1040 for income exempt under treaty (line 22 in 1040NR). Is it possible to file two forms 1040NR and 1040 covering J1 and working permit periods independently? Will I be eligible for the J1 january tax exempt and standard deduction for the rest of the year at the same time? :confused:
Thank you in advance.
Alexander.

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Unless you were a student, I don't think you should have been filing a 1040NR. The J1 exemption for a researcher ends after 2 years and after that you should file a 1040.

If you still meet the terms of the treaty, you should be OK for exempting your income.

Agreed!