[zouchu]

I have a question about the State Tax return for J1 resident.

I am research scholar from China with J1 visa. I have been U.S. for 4 years, so I am a resident. Because the tax treaty between China and U.S. there are total three years for the federal tax exemption. So I can have 4 months tax exemption in 2010.

My question is can I have the tax exemption for the state tax return in Georgia?

In the instructions for form GA500, I should use the "federal adjusted gross income" as the basic income. Therefore, I think I can have the tax exemption even the U.S.-China tax treaty is only for federal tax, because the "federal adjusted gross income" is the amount including the tax exemption. Am I correct?

If I went back to China for one month without additional income in 2010 and I had all 12-month salary in U.S. am I a full-year resident or part-year resident?

I would appreciate your help!

[AtlantaTaxExpert]

You are lucky. Georgia is one of the fews states that honors provisions of the tax treaties which provides for tax-exempt income, so if your income is tax-exempt on the federal level due to a treaty provision, it is also tax-exempt for the Georgia state return.

For the 2010 Georgia return, you would be considered a part-year resident.

[zouchu]

Thank you so much!

[AtlantaTaxExpert]

Glad to help!