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    kanthala1's Avatar
    kanthala1 Posts: 2, Reputation: 1
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    #1

    Jul 30, 2010, 08:56 AM
    WIll I be fined against Tax Treaty if I over stay for one week?
    Hi, I have just signed up for tax treaty exemption between India- USA. My question is at the end of two years I am planning to get my Visa changed from J1- researcher to J1- clinical residency. For which I have to forgo this work and go to India for VISA change and come back. So now that I am under the treaty but changing visa status will I be FINED RETRO ACTIVELY for staying more than 2 years, PLEASE ADVICE , I truly appreciate your response
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jul 30, 2010, 12:28 PM
    You are NOT going to be retroactively fined, you will be retroactively TAXED!

    To avoid that tax, you must return to India, re-establish residency in India (which usually takes ONE year), then return under the second J-1 visa.
    kanthala1's Avatar
    kanthala1 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Aug 1, 2010, 08:50 AM

    Thank you so much AtlantaTaxExpert! I truly appreciate your time to answer my question. I think I will forgo the tax treaty benefit.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Aug 2, 2010, 10:09 AM
    Glad to help!
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