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wyp68 · May 13, 2008, 05:14 AM

Hello, I am a research scholar working in the US on J1 visa. I came from P.R.China. Am I required to pay income tax, etc?I came here 5 months ago as a J2, and back China together with my wife for 2-3 months, then back here for science research as J1 singly . At first I deeply believe that I should enjoy the tax exempt, but after the payroll office said I'm not eligible. I’m not quite sure whether one is exempt from taxes on J1 visa. Could you please help me with this reply? Thank you
Again, the officer in finance office said that:” You were here as a J-2 visa holder and did not stay out of the U.S for one full year before returning as a J-1. This excludes you from the treaty benefit. “Is that right?
I've called IRS and discussed with the expert twice on treaty, they all thought that I should enjoy the treaty benefit.
But the process has not been over, the officer in payroll office still deem that I'm not eligible for the treaty benefit, and I had to reestablish myself for 365 days before I came back to America. She said:"Once again you may claim the treaty on your personal tax return, as the withholding agent we are not taking the liability risk for a situation we know you are not eligible for."
Is she right?
What can I do next?

AtlantaTaxExpert · May 13, 2008, 09:35 AM

What were the EXACT dates of your J-2 visit?

When did you start the J-1 visa?

wyp68 · May 13, 2008, 05:55 PM

I visited America started from October 5th 2007, and left on Jan28,2008. My J1 visa started from March 16, 2008.

MukatA · May 13, 2008, 08:17 PM

Waiting for AtantaTaxExpert's reply.

AtlantaTaxExpert · May 14, 2008, 12:35 PM

In my opinion, you ARE exempt under Article 19 of the U.S.-China Tax Treaty. The previous time in-country as a J-2 visa holder should not be held against you for determining your qualifications.

If I were to file your tax return, that is how I would file it.

MukatA · May 14, 2008, 04:02 PM

Also in 2007 you had more than 183 days in China. Your income on J1 as researcher is exempt from federal income tax.

wyp68 · May 14, 2008, 07:36 PM

Thanks for your valuable opinions.
What should I do next?
If I must wait for my personal tax return till next year,and claim my treaty at that time?

AtlantaTaxExpert · May 15, 2008, 06:34 AM

Yes, that is how you would file if your HR department refuses to grant you exempt status.