[ciao85]

Hi, I am an Italian postdoc working in NYC since July 2011 and holding a visa J1. When I arrived in July 2011 I didn't get paid. Now I will get paid by my institution. Am I eligible for the two years tax exemption (based on US-Italy tax treaty)?If so, can I calculate the two years tax exemption starting from the moment I will get paid (april 2012) or starting feom the moment I arrived in NYC(July 2011)?
Thanks!

[taxesforaliens]

The 2 year would start the day you arrived in NYC.

[ciao85]

Thank you very much for your answer.
Bur the 2 year period of exemption will finish on December 2012 or after two ytears since my arrival in NYC(July 2013)?

[taxesforaliens]

Italy has an exception to the saving clause. That means you are eligible for the treaty even if you became a resident alien. So the treaty exemption would run until July 2013 (example: you came on July 12th 2011, the treaty expires on July 11 2013). You are a non-resident alien for 2011 and 2012.

[ciao85]

Ok, thank you again. I didn't became a resident alien; this means that I'm aligible to the 2 years exemption until July 2013, am I correct?

[MukatA]

This is from IRS pub 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.

You are exempt from federal income for two years from date of arrival. Even in 2011 you must file form 8843. However, in 2013 you will pay Social Security and Medicare taxes.

[ciao85]

Ok, thank you very much for your help!!