[lapiccolaflo]

Hi, I have been a WB visa from January until march, and then on H1B visa (for accademia for a post doc) from around the 14 of April.

I live in Massachusetts, I am not married, I don't own house or else. I don't have dependents or else.

I was wondering which form I will need to fill for my taxes (in the last year I was a j1 unpaid) and which are the deductions that I can claim, if any.

I have receipts of medications and so on, in italy, wherei come from, for example can be deducted, together with other many things.

I am willing to give more details if needed.

Thanks!
Chiara

[lapiccolaflo]

Hi, i have been a WB visa from january until march, and then on H1B visa (for accademia for a post doc) from around the 14 of april.

I live in Massachusetts, i am not married, i don't own house or else. I don't have dependents or else.

I was wondering which form i will need to fill for my taxes (in the last year i was a j1 unpaid) and which are the deductions that i can claim, if any.

i have receipts of medications and so on, in italy, wherei come from, for example can be deducted, together with other many things.

i am willing to give more details if needed.

thanks!
chiara

Last thing that I forgot to mention, is that italy has a tax agreement with the US on exemption for the first 2 years.
I was wondering if this applies only on J1 visa or H1. So far I was in the us for already 2 years, but I was always paid tru a scholarship in italy, so I was not paying taxes here in the states as I was not getting any income.
Thanks

[AtlantaTaxExpert]

The tax exemption applies only while under the J-1 visa.

The income earned while under the H-1B visa is fully taxable (federal and state income taxes plus Social Security and Medicare taxes).

For 2008, you will as a dual-status alien because you have met the Substantial Presence Test.

You CANNOT file as a resident alien because you spent as least ONE DAY in 2008 in non-resident alien status.

[lapiccolaflo]

I understand that, thanks.
My last question is, even if I do research for public good? There ino mention of the VISA status in the law, I read the article, but only on the finality of the work.
What if I try to claim the tax treaty? The worst that could happen is that I get denied, is it correct?

Thanks a lot for your valuable help.

[AtlantaTaxExpert]

When you file the tax return (Form 1040NR or 1040NR-EZ), the visa information is explicitly stated.

This type of tax exemption IS covered by the J-1 visa. Based on the ifnormation posted, you ARE entitled to claim the exemption and it will NOT be denied.

However, the worst thing that can happen is that it IS denied. If that happens, you may owe the tax and some interest. No penalties will be assessed unless the IRS determines you made the application in bad faith, i.e. you applied for a tax exemption that you knew you were not entitled to.

[lapiccolaflo]

THANKS A LOT
Last.. I swear last question :)
I am currently paying the taxes, as they are automatically held from my salary. From what you wrote it seems that I can claim the treaty and the worst that can happen is that I will be denied. But since I am currntly paying taxess I won't owe anything.
Thanks a lot for being so available.
Chiara

[AtlantaTaxExpert]

When you file the return, you should get a refund for any taxes paid while under the J-1 visa.

When it comes time to file in January, keep our tax service in mind. You will find our fees to be very reasonable for the service provided.