[sunwp]

Hi, I am a visiting scholar in US from China. My visa is J-1 research scholar. Last Friday I was told that I could not apply for tax treaty because my payroll was non-compensatory. I want to make sure whether tax treaty works for me. Thanks a lot.

[MukatA]

You are non resident for two years so you will not pay Social Security and Medicare tax. You are research scholar from China so you are exempt from federal income tax for two years. You may have to pay state income tax.

This is from tax treaty between China and U.S.:
"An individual who is a resident of the People's Republic of China and who is temporarily in the United States primarily to teach, lecture, or conduct research at a university or other accredited educational institution or scientific research institution is exempt from U.S. income tax on income for the teaching, lecturing, or research for a total of not more than 3 years.
This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest."

[AtlantaTaxExpert]

If the income you are receiving is NON-compensatory, then it is likely grant or fellowship income that is tax-exempt under U.S. tax law.

If it IS taxable, then you can apply the tax exemption as allowed for under the U.S.-China Tax Treaty article which MukatA has quoted above.

If you need professional help filing, email me at [email protected].

[ygao]

Hello, should the J-1 professor be exempt to the state tax of Ohio? Thank you very much !

[AtlantaTaxExpert]

No; only a few states honor the tax treaties. If you have earned income in Ohio, the state of Ohio DOES have the legal right to tax that income.

[ygao]

No; only a few states honor the tax treaties. If you have earned income in Ohio, the state of Ohio DOES have the legal right to tax that income.

Thank you very much!

[AtlantaTaxExpert]

Glad to help!