Ask Experts Questions for FREE Help !
Ask
    seattlelimey's Avatar
    seattlelimey Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Apr 18, 2010, 02:42 PM
    J-1 UK-US Tax Treaty- Return to US
    Hi,

    I was in the US on a J-1 visa for the last 2 years before returning to the UK. During this time I claimed income tax exemption under the UK Income tax treaty.

    If I was to return to the US on, say an H1-B, K-3, or IR-1/CR-1 visa, would I have to re-file my tax returns for the period that I was on the J-1 visa? Is there a minimum time that I need to wait before returning to the US on another visa type before I do not lose the tax exempt status for my previous J-1 period?

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

    Apr 19, 2010, 03:57 AM

    If the individual’s 2-year period is exceeded, the exemption is lost for the entire visit, including the 2-year period.

    If you return back to UK before 2 years on J-1, and get a new visa from UK, my opinion is that you stay on J-1 has not exceeded.
    seattlelimey's Avatar
    seattlelimey Posts: 3, Reputation: 1
    New Member
    		  
    #3

    Apr 19, 2010, 09:45 AM

    Thanks for the quick reply!

    That was my understanding as well, but had a sneaking suspicion that in order to keep my refunded tax, I had to stay out of the US for 2 years before returning. I couldn't see this anywhere in the tax treaty itself, however, so I'm not sure why I'd think that. I appreciate your opinion, thanks again.

    Seattlelimey
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Apr 19, 2010, 01:46 PM
    Usually the period required to re-establish residency in the home country (in your case, the U.K.) is ONE year, not two.
    seattlelimey's Avatar
    seattlelimey Posts: 3, Reputation: 1
    New Member
    		  
    #5

    Apr 20, 2010, 01:13 AM

    Excellent. Thanks for your help!

    Seattlelimey
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Apr 21, 2010, 01:12 PM
    Glad to help!
    horationelson's Avatar
    horationelson Posts: 3, Reputation: 1
    New Member
    		  
    #7

    Oct 6, 2010, 08:16 PM
    So I'm in the same boat - is the answer one year or zero? And if one wanted to return immediately would it have to be on a different visa, or would a new J1 be OK? Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #8

    Oct 8, 2010, 09:26 AM
    I am confident that the time would be ONE year, but I cannot be sure without knowing your specifics.
    moon_l's Avatar
    moon_l Posts: 2, Reputation: 1
    New Member
    		  
    #9

    Mar 7, 2011, 01:23 PM
    I'm also querying this. At the beginning on January 2012 I will have been working in the US for 2 years under the J-1 visa. To clarify, if I am to leave the US at the end of this year for at least one year and return to the UK (I am a UK citizen) or Europe to work I avoid paying back taxes even if I return later to work in the US? On my return to the US to work would I then be tax exempt again for 2 years? I'm struggling to find any information regarding subsequent contracts/visa after the initial 2 year period. Thanks in advance.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #10

    Mar 7, 2011, 02:13 PM
    Check the Technical Explanation for the specific tax treaty between your country and the United States. They usually cover whether someone can use the exemption more than once.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

F-1 US-German tax treaty: Return for new program? [ 2 Answers ]

I have been on an F-1 visa since 2005, and have since benefitted from the US-German tax treaty. Due to a previous visit to the US, I have also become a resident alient under the five-year rule. As the US-German tax treaty allows only a four-year stay in the US--after 4 years the taxes have to be...

J-1 US-Israel tax treaty and tax return [ 2 Answers ]

Hi, I am an Israeli scholar (postdoc) on J-1 visa. I came to the US in December 2006, but started working (and receiving salary) from Jan 1, 2007. For the first 2 years (2007-2008) I have claimed tax benefits under US-Israel tax treaty. Since I wasn't paying federal income tax for the first two...

Non Resident Tax Return Treaty Applicability [ 4 Answers ]

Hi, I am an Indian. I am due for tax return 2008. I was in USA (New Jersey) From 12 May 08 to 24 Oct 08 (165 Days). Till now only stay in US. Prior to this I never had been in USA. I am an IT personnel worked as an employee of Satyam Computer Services Ltd, 8500 LEESBURG PIKE #202, VIENNA...

How to claim German tax treaty for US tax return [ 1 Answers ]

Hi, I am a German national but have become resident in the US because of the substantial presence test. Still, I think I should be able to claim the tax treaty on my scholarship payments, since I am here for less than 2 years. (I collected presence days from an earlier stay). The taxes have been...

Tax for F-1 visa on OPT with tax treaty, resident alien for tax purpose [ 2 Answers ]

HI--I have multiple "identities" with regard to tax: 1. I'm an F-1 visa holder 2. I'm on OPT from Sept.2007-Aug.2008 3. I have benefits of tax treaty, under which I can be exempted from federal taxes up to $5000 a year for wages, and unlimited amount for fellowship 4. I'm a resident alien for...

View more questions Search