[mkhalil]

Hello
I am a doctor working as a resident in one of the hospitals. I arrived to the US in July of 2005. I am married and my wife is on J2 visa. I went to a tax specialist to file for my taxes for the years of 2005, 2006 and 2007. Recently I realised that I was paying FICA taxes and so I asked my employer to pay them back, and so they paid me back the tax calender year of 2005 and 2006 but not 2007 as I am considered then as a resident. After I heard from them about this thing of being a non resident or resident I checked my 2005 and 2006 tax file and I found out that the person who did my taxes filed them as a resident rather than a non resident. Now I am in the process of changing my visa to H1 visa. Would this effect me? I mean did I do something illegal? And what should I do to fix this? I filed my taxes as a joint account for my wife and me, and I didn't know that she has to file her own tax documents because she is on J2. What should I do about this too?? I am really confused and I am afraid that what happened might affect the process of obtaining an H1 visa. Please advise.

Thank you.

[MukatA]

Every one on J1 is exempt from residency for 2-years; and students on J1 for 5-years. During exempt period you don't pay FICA (social security and Medicare taxes).
Read about nonresident filing: : Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

For many countries as per tax treaty for researchers the income is not subject to federal tax for 2 years or even more. What is your citizenship?

Yes, you need to amend your tax returns for 2005 and 2006. For 2007 you may be resident but it depends upon your citizenship and your classification: intern, student, researcher...

[mkhalil]

I am from Jordan and I know there is no treaty. I know I have to amend but if I don't do that now because of financial issues can I do it later when I can pay back the money? Or I am breaking the law by doing so?

[AtlantaTaxExpert]

Dr Mkhalil:

You are considered aJ-1 trainee, and are therefore liable for state and federal income taxes.

You DID file incorrectly and you should amend the returns for 2005 and 2006 as soon as possible. You are correct in your supposition that you will need to pay additional tax, because you will have to UNclaim your wife's personal exemption, as well as the joint standard deduction.

It probably will NOT affect your H-1 visa application, but it is not something you should delay for too long