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Gaetano · Jan 31, 2012, 04:05 PM

I've entered the US for working as a Scholar in march 2010. Will be January and February 2012 subject to federal taxes or from March 2012 on?
Thank you!
Gaetano

AtlantaTaxExpert · Jan 31, 2012, 04:13 PM

While the treaty itself is NOT clear, the technical explanation is clear that two myears menas 24 consecutive months.

So, for you, January and February is tax-exempt for federal INCOME taxes.

For FICA (Social Security and Medicare) taxes, you became liable for FICA taxes on 1 January 2012, because the FICA tax exemption is set by U.S. tax law at two calendar years (2010 and 2011).

Gaetano · Jan 31, 2012, 04:39 PM

Thank you Sir, the point is that my University already withheld January federal taxes. May I ask a reimbursement now?

MukatA · Jan 31, 2012, 08:21 PM

This is from IRS publication 901:
A professor or teacher who is a resident of Italy immediately before the date of arrival in the United States and whose visit to the United States is expected to last no more than 2 years to teach or conduct research at a university, college, school, or other recognized educational institution, or at a medical facility primarily funded from government sources, is exempt from U.S. income tax for up to 2 years on pay from this teaching or research.

If you are here in March 2012, you do not meet the requirement "expected to last no more than 2 years." So you may have problem if you claim treaty deduction in 2012.

Gaetano · Jan 31, 2012, 09:09 PM

The university of here extended my program and my stay as J1, but had to reappoint me as Post-doc fellow/employee (instead of visiting Scholar). If they did, it was possible. My question was: once federal income taxes are withheld, can they be reimbursed?

Gaetano · Jan 31, 2012, 09:18 PM

... actually I was talking about tax exemption in January and February, not from March on..

AtlantaTaxExpert · Feb 1, 2012, 07:03 AM

You will get the taxes withheld in January and February when you file your 2012 tax return next year.

If you are married, you CAN file jointly with your spouse and both CHOOSE to be resident aliens for all of 2012, while submitting Form 8833 to claim the exemption for January and February.

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