[wuli]

Hi All,

I have a few questions,

Here is my situation:

I am a J-1 Student and my wife is a J-2 dependent.
We arrived Aug 2004 - so we "used" 4 years of the non-residence, HOWEVER, I was a j-2 dependent in 1988 so from what cintax (foreign tax software) says that if I have 5 years including past years I am a resident for tax purposes.

Here are my questions:
1. Is it true that if I was on J-2 20 years ago, these years also count toward the 5 years?

2. If I file as a resident - can I file jointly with my wife. Even though she only has 4 years?

3. We are PA residents, am I a resident for tax purposes in PA also, or can I still be a non-resident for PA?

Thanks!

[MukatA]

1. No it does not count as you were not present as teacher, trainee or student.
2. When did your J1 begin?
3. You are resident of PA.

[wuli]

Thanks MukatA,

1. cintax says with confidence (which doesn't mean that they are right) that because I was as a dependent J-2 (of a scholar) for a full year in the past, it takes a year off the exemption. When I talked with the IRS helpline they read me the paragraph which can be understood in both ways. I also saw a different place that does say to count previous J's...

2. My J-1 began Aug 04.

3. I have seen in a few places for instance the Upenn link that says that full time students in PA are non residents.

Thanks again!

[IntlTax]

1. You do count the J-2 from 20 years ago. A "student" includes the individual student and that individual's immediate family. See Treas. Reg. § 301.7701-3((b)(4).

2. Yes, you can file jointly with your wife.

3. I don't know.

[wuli]

Wow, great - Thanks IntlTax.

Do you maybe have a link to this Treas. Reg. section?

I guess this means that I can get the stimulus rebate this year, etc.

Is it true that if my university (by mistake) exempt 3000$ because of the treaty (I have a 1042-S) with my country then it will balance out when I do the taxes (i.e. trubo tax will see that I did not pay enough taxes and will readjust)?

What do I need to do about social security taxes

Thanks again!

[AtlantaTaxExpert]

Your liability for Social Security and Medicare taxes begins on 1 January of the THIRD calendar year in country on your J-1 visa.

That means you should have been paying FICA (Social Security and Medicare) taxes starting on 1 January 2006.

[wuli]

Your liability for Social Security and Medicare taxes begins on 1 January of the THIRD calendar year in country on your J-1 visa.

That means you should have been paying FICA (Social Security and Medicare) taxes starting on 1 January 2006.

Even if I am a student J-1, not a professional J-1?

Second, I thought FICA was not related to the residency status, and if I am only as a intentional student I don't need to pay it.

Thanks!

[AtlantaTaxExpert]

If you are a student, then the FICA liability starts at the beginning of the sixth calendar year (just like F-1 students).