[universe2000]

I have been in US for 2 years as a j1 "research scholar" visa holder. I came back to China last Oct. Before I came back, I only paid the security and medical tax.

I am planning to go to US as a J1 short-term visa holder around this Jun. and will stay in US for 6 months. My question is what taxes I should pay for revisiting (what tax benefits will I have?).

Thanks!

[AtlantaTaxExpert]

You probably should NOT have paid the FICA (Social Security and Medicare) taxes for the first two year, because you are exempt from those taxes for two calendar years as a matter of U.S. tax law.

When you come back, the J-1 income tax exemption looks good, because the U.S.-China tax treaty allows for THREE years of exemption.

However, you WILL be liable for FICA (Social Security and Medicare) taxes on this six-month tour.

Email me at [email protected] with a complete timeline of yor first visit and I will advise you on how to request a refund of the FICA (Social Security and Medicare) taxes for the first tour.

[universe2000]

Thanks for your answer.

Do I need to pay the federal and state tax for my second visit?

You probably should NOT have paid the FICA (Social Security and Medicare) taxes for the first two year, because you are exempt from those taxes for two calendar years as a matter of U.S. tax law.

When you come back, the J-1 income tax exemption looks good, because the U.S.-China tax treaty allows for THREE years of exemption.

However, you WILL be liable for FICA (Social Security and Medicare) taxes on this six-month tour.

Email me at [email protected] with a complete timeline of yor first visit and I will advise you on how to request a refund of the FICA (Social Security and Medicare) taxes for the first tour.

[MukatA]

On J-1 from China are exempt from residency and FICA taxes for two years and for federal income tax for three years.
If you did not complete 3 years of J-1, you will not pay federal income tax.

[universe2000]

About my first visit, I went to USA in Oct. 25,2007 and came back to china in Oct. 26,2009(duration is exactly 2 years). I started to pay FICA tax from Jan, 2009.

Did you mean I don't need to pay federal and state tax for my second tour(6 months)?


Thanks!

On J-1 from China are exempt from residency and FICA taxes for two years and for federal income tax for three years.
If you did not complete 3 years of J-1, you will not pay federal income tax.

[universe2000]

Did you mean I don't need to pay federal income tax for the entire 6 months? Or just from July to Oct. 25,2010?

//more information
I went to a US Lab A in Oct. 25, 2007 as a J1 research Scholar visa holder without any dependants, and came back to China in Oct. 26th,2009 when the program terminated. (I transferred to Lab B in Apr. 28th,2008 and stayed until Oct. 26th,2009. For these two years I have maintained my J1 status). I started to pay security and medical tax in Jan. 1st,2009 and was still exempt from federal and IL state tax.

I am planning to come to Lab B again with a J1 short-term scholar in July 12th, 2010 and stay for 6 months. Am I exempt for the federal and state tax for the entire duration of the coming visit or partially?

//explantion from web site, but it didn't mention whether one day will burn the whole year.
The Technical Explanation3 to Article 19 of the Treaty states:
This article provides that a resident of a Contracting State who goes to the
Other Contracting State for the primary purpose of teaching, lecturing, or
Conducting research at an accredited educational institution or scientific
Research institution in that other State will be exempt from tax in that other
State on the remuneration for such activities for a period of up to three
Years in the aggregate. Thus, for example, a resident of China who visits
The United States to conduct research at the National Institute of Health
(NIH) for two years, 1986 and 1987, returns to China for a year, and then
Comes back for another year of research at NIH in 1989 would be exempt
From tax on his NIH remuneration for each of the three years. However, if
He stayed at NIH in 1990 or returned at a later time the exemption would
No longer be available. The exemption provided in this article is not
Available if the research is not undertaken in the public interest, but for the
Private gain of a specific person or persons.
This article is excepted from the "saving clause" of paragraph 2 of the
Protocol, so its benefits are available to persons who otherwise qualify
Even if they become U.S. residents.

On J-1 from China are exempt from residency and FICA taxes for two years and for federal income tax for three years.
If you did not complete 3 years of J-1, you will not pay federal income tax.