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    schubrakete's Avatar
    schubrakete Posts: 1, Reputation: 1
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    #1

    Mar 11, 2008, 12:52 PM
    J1 resident alien - tax treaty - fellowship Germany
    Hi there!

    I have a question regarding taxation of fellowships. I am German citizen who came to the US in 2005 on a J-1 visa as a research scholar. Between 2005 and 2007 I was paid by a german fellowship and partly by my boss at the university for the time that was not covered by the fellowship. I applied now for a second postdoctoral fellowship from an US source that is a non-profit organization. Starting from Jan 2008 I am paid now by this fellowship.
    The question is now do I have to pay income taxes? A friend told me that according to the German-US tax treaty article 20(3) Germans that were residents of Germany before entering the US for the purpose of working there as a research scholar are exempt from income taxes. Is this true and what should I do? Paying estimated taxes and hoping to get them back next year when I claim this benefit? Is this article still valid when I am a resident alien (which I am in 2008)?

    Thank you very much for your help!!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 28, 2008, 02:17 PM
    The TOTAL exemption from taxes is normally only good for TWO years max.

    Did you pay taxes from 2005 and 2006 on your first J-1 visa?
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