[Austin_S]

I am a J-1 research scholar. I haven't paid federal taxes by claiming US-France tax treaty for 2 years. Now, I am at the end of my first 2 years period and extended my J-1 status. In the future, by marriage, I will adjust my status. Some people say that I have to pay the federal taxes that I haven't paid until now because I extend my stay. Some other people say, it is not necessary to do so. DO you have an idea about my status? Thanks a lot.

[AtlantaTaxExpert]

Austin:

Just reviewed Article 20 of both the U.S.-France Tax Treaty and the technical explanation of that treaty. There is NO "retroactive tax" provision in either document, so once you exceed the 2nd year anniversary of your arrival date, you become liable for income taxes from that date forward with NO REQUIREMENT to pay back taxes for your two-year tax exempt period.

You become liable for the Substantial Presence Test the day after your 2nd year anniversary date, so you may file as a non-resident alien or a dual-status alien or, if married, as a resident alien, depending on whether you have met the 183-day Substantial Presence Test.