Ask Experts Questions for FREE Help !
Ask
    Ana000's Avatar
    Ana000 Posts: 3, Reputation: 1
    New Member
    		  
    #1

    Jan 21, 2010, 08:14 PM
    US Russia tax treaty questions
    Hi, I am currently on Academic Training J-1 Student visa, after completing my PhD in April 2005. I came to USA on this J-1 student visa in August 2005. However, I came twice before to USA on J1 visa: in 2003 for 2,5 month and in 2004 for 5 months. Do those visits count for the substantial presence test? Am I resident or non-resident for tax purposes? To complicate the matters, since the academic trainings is the continuation of my studies, can I claim my taxes using the US-Russia tax treaty or not?
    Ana000's Avatar
    Ana000 Posts: 3, Reputation: 1
    New Member
    		  
    #2

    Jan 21, 2010, 09:06 PM

    Sorry, correction: I finished my PhD in April 2009
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
    Full Member
    		  
    #3

    Jan 22, 2010, 04:21 AM

    Ana, the relevant treaty article is Art. 18(2):
    2. The exemption in paragraph 1 shall apply only for such period as is ordinarily necessary
    To complete the study, training or research, except that no exemption for training or research shall
    Extend for a period exceeding five years.

    It would appear that your benefit expired in 2008. In 2009 you are resident by substantial presence in the US and thus taxable on worldwide income.
    Ana000's Avatar
    Ana000 Posts: 3, Reputation: 1
    New Member
    		  
    #4

    Jan 22, 2010, 09:40 AM
    Could you clarify please why 2008? i.e. I started as a student in 09/2005, so 5 years expire in 09/2010. So am I resident due to the earlier visits? Also the treaty says to complete "STUDY, TRAINING or RESEARCH" and "no exemption for TRAINING or RESEARCH shall extend five years", so the latter does not include the STUDIES. I am on the continuation of my STUDENT visa. If Academic training is not part of the study (is that correct?) my benefit expired when I officially graduated, then I am a dual resident this year?
    Five Rings's Avatar
    Five Rings Posts: 459, Reputation: 7
    Full Member
    		  
    #5

    Jan 23, 2010, 08:37 AM

    Ana, my congratulations; that is a very astute point.

    The word "study" is eliminated from the five year limitation. Nevertheless, after your formal studies ended in April and you got your doctorate you began "training" which is excluded from the benefit after 5 years.

    In my opinion your JI started in 2003 + 5 = 2008. Your studies continued to April, 2009; thereafter you began training.

    You might wish to call the IRS International number to get their opinion. 1-800-829-1040 or 1-215-516-2000. It opens at 6am EST.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

J1 tax treaty US germany: what if they have paid me the tax exempt but I stayed >2yr [ 44 Answers ]

I am a postdoctoral research fellow at Harvard. I am on a J1 visa and I entered the US a little more than 2 years ago. Filing my taxes for 2007, I thought I wouldn't stay longer than 2 years therefore I claimed the tax exempt and the state returned all federal taxes to me that I had paid up until...

Russian F-1 Student. Federal Tax Exemption based on the US-Russia Tax Treaty? [ 7 Answers ]

Hello, I'm a Russian graduate student who was in US on an F-1 visa since 2005. In 2005 I had a fellowship, later in 2006 I became a Graduate Student Researcher (research assistant). That paid my tuition and a monthly stipend. SHORT VERSION: For years 2006, 2007 I claimed full refund of...

How to get social securtiy tax and medicare tax back (J-1, sign tax treaty)? [ 1 Answers ]

I hold J-1 visa and am a researcher from China, and sign the tax treaty form. I can file tax forms to get federal and state fax back. But there are social securtiy tax withheld and medicare tax withheld over 1000 USD in total. Do I need to pay that or can I get them back and how? Thank you so...

Russia-OPT-H1B- treaty for taxes [ 1 Answers ]

Hello, I'm a Russian citizen. I've been in the US for almost 8 years. I've got a F1 status from 11.19.2003 till now. At this year, May 2008, I graduated from the University and got my OPT from June 1, 2008 for one year. At the same time, I've been approved for the H1B visa from October 1, 2008. I...

Tax for F-1 visa on OPT with tax treaty, resident alien for tax purpose [ 2 Answers ]

HI--I have multiple "identities" with regard to tax: 1. I'm an F-1 visa holder 2. I'm on OPT from Sept.2007-Aug.2008 3. I have benefits of tax treaty, under which I can be exempted from federal taxes up to $5000 a year for wages, and unlimited amount for fellowship 4. I'm a resident alien for...

View more questions Search