[premek7p]

I have a question regarding type of form I can use If I am a University student from the Czech republic working in the USA in summer as a member of Work and Travel USA program. I am a J-1 visa holder stying in country not longer than 150 days. Can I fill 1040EZ or am I obliged to use 1040NREZ instead? My gross earnings in 2006 were $11400. Now, can I refund all taxes I paid back?

Using 1040EZ I can claim $8200 as total of $3200 personal exemption and $5000 standard deduction.

Using 1040NREZ I can claim tax treaty article 21(3) or at least 21(1). For more info go to publication 901.

Article 21(3) gives me a deduction of $10.000 followed by $3200 personal exemption, which is enough for me to refund all taxes I paid back.:)

Article 21(1) gives me a deduction of $10.000 followed by $3200 personal exemption, which is not enough for me to refund all taxes I paid back.:(

I really appreciate Your reply:o

Mac

[AtlantaTaxExpert]

Mac:

How is 21(3) and 21(1) different? The deduction and personal exemption are the same.

[premek7p]

Yes, I made a mistake. 21(1) gives $5.000 for personal services (work)

My question is can I use 1040EZ as a member of the student Work and Travel USA program staying in the USA on J-1 visa no more than five months and returning back home?

If not, can I use the tax articles I listed in my previous question?

Thank You

Mac

[AtlantaTaxExpert]

Mac:

Because you have been in the United States for less than a full year, you must file a dual-status return, which is a combination of Form 1040 with Form 1040NR. See IRS Pub 915 for details.

As to which article you can use, 21(3) is available to you only if the U.S. government is your employer. If not, you must use 21(1).

The dual-status return is not an easy return to file, but someone who has already done much of the research should be able to handle it.

Which state did you work in? It is likely you will have to file a state income tax return as well. This state tax can be used as an itemized deduction on your federal return, most important because, on a dual-status return, you cannot claim the standard deduction.

[taxsearcher]

I really respect all the hard work ATE does on this site. I certainly don't want to be disrespectful but I disagree with his answer in this case.

As a J-1 visa holder you will be a non-resident and should file a NR return. Here is some information from the IRS website that might help you:


(this shows that exempt individuals do not count days in the US as days toward becoming a US tax resident - note that it does not mean you are exempt from tax but rather exempt from being a US resident)

Do not count days for which you are an exempt individual. The term "exempt individual " does not refer to someone exempt from U.S. tax, but to anyone in the following categories who is exempt from counting days of presence in the U.S.:

An individual temporarily present in the United States as a foreign government-related individual
A teacher or trainee temporarily present in the United States under a "J " or "Q " visa, who substantially complies with the requirements of the visa
A student temporarily present in the United States under an "F, " "J, " "M, " or "Q "
http://www.irs.gov/businesses/small/...=96352,00.html


(this shows that the situation you are in qualifies you for the above)
Any nonimmigrant temporarily present in the U.S. in "J" or "Q" status who is not a student is included within the definition of "Teacher or Trainee." For example, alien physicians, au pairs, short-term scholars, and summer camp workers temporarily present in the U.S. in "J" nonimmigrant status are included within the IRS definition
http://www.irs.gov/businesses/small/...=96320,00.html

Together these two things show that you are a non-resident. (I've assumed that you have never been in the US as a J visa holder before because there are some time limits).

[AtlantaTaxExpert]

After reviewing all posts, I concede that TaxSearcher's posting is accurate. You should file as a non-resident alien vice as a dual -status alien.

[premek7p]

Yes, taxsearcher is right. I have dome my research as well and found the same answer in Pub.519.
There is still one question I would like to be clear at. Can I claim, as a citizen of the Czech republic, tax treaty article 21(1) which gives me $5.000 tax deduction for the tax year? The answer can be found in pub.901 under Student and Apprentices category.

ATE and Taxsearcher
I really appreciate Your assistance!

Best

Mac

[taxsearcher]

Mac,

The question is basically whether you meet the definition of student/trainee etc. If you do, then you qualify. You need to do some research to see if you qualify.

I've done only a little research for you but I noted this which is of interest:

-----------------------------------------------------------
IRS Chief Counsel Advice 200251003

SUBJECT: Tax Treaty Exclusions for J-1 Visa Holders

This memorandum responds to your memorandum of September 5, 2002, requesting advice concerning the processing of returns claiming a J-1 tax treaty exclusion for exchange visitors from the Slovak Republic and the Czech Republic. You identified four issues that needed clarification. We requested the assistance of CC:PA:APJP:Br regarding your issue numbers 1, the second half of 2, 3 and 4, as those issues involve code sections under their jurisdiction. That office will respond to you directly regarding those issues. The following discussion addresses the first part of your issue number 2.

This memorandum does not relate to a specific case and is not binding on Examination or Appeals. This document is not to be used or cited as precedent. Do not disseminate this document beyond National Office personnel with a need to know.

Issue

Whether individuals participating in the Exchange Visitor Program under the Private Sector Programs Division in the Camp Counselor and Summer Work/Travel categories are eligible for benefits under Article 21 (Students, Trainees, Teachers and Researchers) of either the Income Tax Convention Between the United States and the Slovak Republic ( the Slovak Treaty) or the Income Tax Convention Between the United States and the Czech Republic (the Czech Treaty).

Conclusion

Individuals participating in the Exchange Visitor Program under the Private Sector Programs Division in the Camp Counselor and Summer Work/Travel categories are not eligible for benefits under Article 21 (Students, Trainees, Teachers and Researchers) of either the Slovak Treaty or the Czech Treaty.

[piskvorko]

I'm an au-pair in the States for a year and I would like to know if I can get taxes bac. I earn $200 a week. Thank you for your answer

[AtlantaTaxExpert]

WHat is your visa status?

[piskvorko]

I have a J-1 visa.

[AtlantaTaxExpert]

Okay, you made $10,400 in 2006. You need to file as a non-resident alien, filing Form 1040NR-EZ or 1040NR,

If you need professional help doing ANY of this, email me at [email protected].

[wolkann]

HEY HEY HEY

Mac you going to use The NR ones u need to be in the states for 183 days according to this formula
2006 + 2005/3 + 2004/6 should be bigger than 183

If not say bye to your at least 400 bucks:D

I am in the same situation

And how are the things in Chech Republic

Your Turkish Friend from Comfort Inn..

Volkan

[AtlantaTaxExpert]

This is true IF you are single.

If you are married, filing jointly is an option.