[fellow]

Hello, as someone has already pointed out, a J-1 scholar from Germany can't stay more than two years without losing the tax treaty benefits retroactively. As such, I did not take the benefits as I knew I'd be here more than 2 years. I have been here before on a J-1 student visa, went back for 3 years then came back in 2005. I want to know if paragraph 3 of Article 20 applies to J-1 scholars. I have German fellowship income as well as US fellowship income, paid as wages on a W-2. Are either of these exempt? Please help!

[MukatA]

For everyone, fellowship is tax free only if:
You are a candidate for a degree at an eligible educational institution, and
You use the scholarship or fellowship to pay qualified education expenses.

Yes, you should claim it under 20 (3).

This is your second visit on J1. The treaty says that the exemption from taxes is for two years during the visit. Does this mean that first visit does not affect the second visit?
You need to check this.