[achicago]

Hi,

I came to the US on 1st October 2009 with a J1 research scholar visa, and claimed exemption under the US-Germany tax treaty for 3 months in 2009 and the entire year in 2010. For the year 2011, I asked my employer to withhold tax for the entire year. So my form W2 mentions the entire salary from 2011 as wages. Is it correct that I can still claim part of the salary (Until 30th September) to be exempt from taxes? How do I claim this?

I was going to fill form 1040, and put in wages the entire salary, and then on line 21 put the tax exempt salary in parantheses and write the treaty under which it is exempt as explained here:
Publication 519 (2011), U.S. Tax Guide for Aliens

My questions are:
1) Is the way I am filing 1040 correct? Should I attach more forms, like 8843 or 8833 or 1040 NR for the part of the year I claim exemption?
2) What is the savings clause, and as a researcher do I have to worry about it?

[AtlantaTaxExpert]

1) That IS the correct way to claim the treaty exemption. However, you need to submit Form 8833 to explain your exempt status under the treaty.

2) The Savings Clause is the clause in the tax treaty that allows the United States to tax income earned while the foreign national works and lives in the United States. The exemption you are claiming is an exception to that clause.

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