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

    Jan 16, 2011, 06:41 AM
    J1 UK/US tax
    Any advise would be much appreciated. I am about to move to the US from the UK for a 2 year postdoc posting on a J1 visa. I am trying to research everything so that there are no suprises once I arive in the US. I have several questions though.

    Tax in the US: I have read that under a J1 visa I am exempt from paying tax in the US for the 2 years that I am working there. However, I have also been informed that if I work over the 2 years that I will made to pay back the tax that I was exempt from paying.

    Tax in the UK: I am slightlyh confused about the details here. I presume that I will be paying tax in the UK while I reside in the US for the two years. However, I have found little details about this process...


    Could anyone confirm if I am correct in my findings and also shed some more light on the tax payment in the UK.

    Many thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 16, 2011, 07:42 AM
    I believe you are referring to a provision in the OLD tax treaty, which, under Article 20, allowed teachers, academics, professors and researchers to come to the U.S. and work tax-free for two years.

    There is NO such provision in the latest tax treaty; see link below:

    http://www.treasury.gov/resource-center/tax-policy/treaties/Documents/uktreaty.pdf

    That being the case, you will pay income taxes at the federal and state level on all income earned in the United States. You will file as a non-resident alien, filing Form 1040NR or 1040NR-EZ plus Form 8843, plus the state tax return.

    For the first two CALENDAR years, you will be EXEMPT from FICA (Social Security and Medicare) taxes.
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!

I had filed W-7 & tax return form, I got my ITIN, when should expect my tax returns? [ 2 Answers ]

Hello I had my filed W-7 (for ITIN ) & my husbands tax return form, I got my ITIN , so in how many days should I expect my tax returns?

OPT Studentqith tax query! Forms?Tax Status?stimulus money? [ 1 Answers ]

Hi: I entered US in Aug 2006 and graduated in May 2008 with my masters degree. I am on OPT since July 2008- July 2009. Which form should I fill for taxes? Am I a NON- Resident for Tax purpose? Can I get education credits and stimulus money? Thanks Janki

How to get social securtiy tax and medicare tax back (J-1, sign tax treaty)? [ 1 Answers ]

I hold J-1 visa and am a researcher from China, and sign the tax treaty form. I can file tax forms to get federal and state fax back. But there are social securtiy tax withheld and medicare tax withheld over 1000 USD in total. Do I need to pay that or can I get them back and how? Thank you so...

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...

Form 1116, foreign tax credit: Tax paid vs tax accrued, exchange rates and dates [ 2 Answers ]

Hi, I'm applying for foreign tax credit on taxes I've paid / accrued on interest earned in savings accounts and certificate deposits in New Zealand. For cds, the bank statements don't give precise dates for when taxes were withheld. And so I have several questions relating to form 1116, Part II: ...

View more questions Search