[JoGoan]

Hello,

I'm a little bit confused about the tax treaty rules here in US. For 5 years I was a student with F1 visa and during this time I could (and I did)claim the tax exemption. Then, last year my visa status changed from F1 to H1B. I know that H1B visa holders can also claim the tax exemption for first 2 years but does it apply to me too, especially that I was still here in the US when the H1B visa was issued ( I didn't return to my home country). I've heard that during an exempt period, an individual is not considered to be present in the US so does it mean that as my visa status changes I could be entitled for another tax exemption? On the other hand, everybody is entitled to claim only one tax exemption so if I used my as a student, I probably can't do this again now?
And another question, some countries require individuals to come back to their home countries after 2 years or to pay back the money their received from tax treaty. How does it look for Poland?
Many thanks,
Joanna

[AtlantaTaxExpert]

Joanna:

The exemption of which you speak is from FICA (Social Security and Medicare) taxes, which ENDED the day you converted to the H-1B visa. Once you meet the Substantial Presence Test, you become liable for ALL taxes that a U.S. citizen pays.

Even if you were under the F-`1 visa, you were NOT exempt from income taxes on income earned while working in the United States.

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