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    virgo913's Avatar
    virgo913 Posts: 3, Reputation: 1
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    #1

    Nov 30, 2007, 11:38 AM
    Period and eligibility of tax treaty exemption
    Hi
    I'm from Korea and a Post-doc of basic science working in the United States.
    I have a question regarding the period and eligibility of tax treaty exemption.
    Here is my visa history.
    I was a student with F1 visa and stayed in the United States for 6 months in 1998.
    After that, I have visited USA for a short time like 7-10 days to attend a conference as a B1 visa holder almost every year.
    In February 2007, I came to the United States as a J2 visa holder and stayed here for 4 months. In June 2007, I left the United States and changed my visa to J1-research scholar in Korea and re-entered the United States as J1 visa holder.
    Currently, my visa is J1.
    My question is that am I eligible for two-year income tax treaty exemption?
    I wonder that the period 'two-year' means 24 months or just calendar year.
    Please give me an answer.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Nov 30, 2007, 12:30 PM
    Based on what you have posted, you ARE eligible for the two-year tax exemption. The details for Korea can be found in IRS Pub 901 (Tax Treaties), page 16.

    For the tax-exemption, two years means 24 months. You can stay a bit longer to finish up the details of your stay, but do not overdo it, because if the IRS determines you violated the 24-month period, they will retroactively impose the taxes that would have been during that two-year period.
    virgo913's Avatar
    virgo913 Posts: 3, Reputation: 1
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    #3

    Nov 30, 2007, 12:50 PM
    Thank you for your kind answer.
    I have one more question.
    As I already described in my question, I stayed in the United States as a F1 visa holder for 6 months in 1998. Do the tax treaty also include this 6 months stay in the 24 months period of tax treaty exemption? Or it just starts counting from the arrival date of J1 visa?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Nov 30, 2007, 04:58 PM
    No, the F-1 time does NOT count towards this two-year period, especially when you consider that it was almost ten years ago.

    The two-year/24-month clock started when you arrived in the U.S. in 2007.
    virgo913's Avatar
    virgo913 Posts: 3, Reputation: 1
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    #5

    Dec 3, 2007, 11:13 AM
    Thank you so much for your answer.
    Now, I clearly understand that I'm eligible for tax treaty exemption.
    Thanks.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Dec 3, 2007, 06:33 PM
    Glad to help!
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