[ChrisMunich]

Hi everyone,

I am originally from Germany and interned as a J-1 exchange visitor in the US in 2012 and am just about to file my tax return. I earned 17,500 USD in total and have a question regarding which deductions/exceptions I can itemize.

- The 17,500 USD were my total income in 2012
- At the time of the internship, I have been enrolled as a student in Germany
- During my time in the US I were a nonresident alien

I found in publication 519 that there is a tax treaty between Germany and the US through which one can qualify for a exemption in an amount of not more than 9,000 USD for "dependent personal services performed in the United States".

Would a paid internship at a private company in 2012 fall in this category and could I deduct the 9,000 from my taxable income? And in case I can, can I still use 1040NR-EZ or do I have to use another form?

And I don't know if this is relevant, but by accident my host company has not deduced ANY federal tax from my paychecks so I will to pay a lot now if my taxable income is indeed 17,500. :/

Any help would be highly appreciated.

Thanks and kind regards,
Chris

[AtlantaTaxExpert]

That $9,000 exemptions is for students, and you are NOT a student.

However, the internship is considered to be a valid business-related activity, so you can deduct rent, food and other daily living costs if you did not receive a tax-free stipend to cover those costs.

[ChrisMunich]

Thanks for your answer. Would the expenses you listed fall under the 3,800 exemption or could you claim any expenses (rent, food,. ) on top of the 3,800?
Where would I find these deductions in 1040-NR?

Best regards,
Chris

[AtlantaTaxExpert]

They are itemized deductions on Schedule A with Form 2106.