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    tiger28's Avatar
    tiger28 Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Apr 9, 2009, 04:04 PM
    Non-taxable income (treaty)
    Hello.

    Briefly my situation: I and my wife came to the USA in September, 2006. I have J1 visa- scholar (from the very beginning) and my wife J2, we are citizens of Poland. We have never lived the USA since that moment, two years tax exemption passed in September, 2008. According to my calculation we pass the SPT.

    1) So, I am going to file 1040 as resident alien jointly with my wife - Am I correct?
    2) The problem is where should I put on tax form 1040 the non taxable income that I made before September in 2008.

    I went to local tax service for a advice and they couldn't give me an answer since they have never met with that situation before.
    I was going to not include it anywhere, only joint (to tax refund form) a copy of my 1042-S showing this non- taxable income - is it correct?

    Thanks in advance
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Apr 9, 2009, 06:40 PM

    "Briefly my situation: I and my wife came to the USA in September, 2006. .... We have never lived the USA since that moment..."

    How must time you have spent in the U.S.
    tiger28's Avatar
    tiger28 Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Apr 9, 2009, 07:54 PM

    I am sorry I meant to write:
    We have never left the USA since that moment. ;)
    tiger28's Avatar
    tiger28 Posts: 5, Reputation: 1
    New Member
    		  
    #4

    Apr 9, 2009, 08:41 PM

    I have another question + these above:

    Am I eligible for Recovery Rebate on your 2008 return. $600
    Even though I filed as non resident in 2007 (1040NR)
    Many thanks for your interest
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Jun 9, 2009, 11:15 AM
    Based on my reading of the U.S.-Poland Tax Treaty, your tax-exempt status lasts for two years from "date of arrival", which means your earned income until your two-year anniversary date in September 2008 is exempt from income taxes.

    That also means you are exempt from the Substantial Presence Test (SPT) until the day after that two-year anniversary date. This means you will file as a non-resident alien for 2008 for the 3+ months you are subject to SPT.

    Now, you CAN file jointly with your wife as resident aliens (and still retain your tax-exempt status for the first 8.5 months of 2008) if you wait until late May 2009 to file, but you would need to file Form 8833 to explain the treaty provision under which you are filing.

    If you need professional help to do this, contact me at [email protected].
    IntlTax's Avatar
    IntlTax Posts: 831, Reputation: 23
    Tax Expert
    		  
    #6

    Jun 10, 2009, 01:43 PM

    Did you expect to stay in the U.S. for more than 2 years when you originally came?
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