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    zannaclay's Avatar
    zannaclay Posts: 7, Reputation: 1
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    #1

    Jan 19, 2012, 07:17 AM
    US-UK tax treaty exemption on J1. Still valid if I leave US but continue to be paid?
    I understand that under the tax treaty- I am exempt from US tax for a period of 2 years on my J1 visa, following which I would have to repay

    My Q is this: if I leave the county before going beyond this 2 year period, but continue to receive a salary from the University for 6 months (when back in UK), will this also mean necessary tax repayment? Or is it OK?

    Any info or help appreciated!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Jan 19, 2012, 12:14 PM
    If you earn income from the U.S. unversity while in the U.K for ONE YEAR (not six months), that will be okay. The income is considered to be U.K-sourced and thus subject to U.K. income taxes.
    zannaclay's Avatar
    zannaclay Posts: 7, Reputation: 1
    New Member
    		  
    #3

    Jan 20, 2012, 01:05 AM
    Thanks for your answer. The payment would only be 6 months though, that is fixed (i.e. a 6 month extension on a 2 year job). How does it stand for just 6 months?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Jan 20, 2012, 06:11 AM
    If you leave US before 2 years on J1, you are nonresident in US.
    Now you work in UK. So any income you receive from US is not taxable in US. You must not be present in US to work.
    Also during your stay in US make sure to file nonresident tax return and Form 8843.
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