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

    Feb 23, 2011, 07:42 PM
    J1 Tax Treaty Exemption
    Hi,

    I am from Germany and have been working as a postoc in the US under a J1 visa for the last 6 months. I am sure that I will stay here for more than 2 years and I also have my offer letter for more than 2 years. Am I however allowed to apply for a tax exemption for the first 2 years? I know that the retroactive rule of article 20 (1) is gone, but what does this exactly mean for my situation?

    Thank you!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 23, 2011, 07:48 PM

    This is from IRS publication 901. Tax Treates.
    "A professor or teacher who is a resident of Germany and who is temporarily in the United States to engage in advanced study or research or teaching at an accredited educational institution or institution engaged in research for the public benefit is exempt from U.S. tax on income received for such study, research, or teaching for a maximum of 2 years from the date of arrival in the United States.
    The exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest. The exemption does not apply if, during the preceding period, the benefit described in paragraph (2), (3), or (4) of Article 20 of the treaty, pertaining to students, was claimed."

    Even if you stay for more than 2 years, the exemption is not lost for the first two years.
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!

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...

Tax exemption Treaty [ 1 Answers ]

My wife is an Italian Professor. She entered in USA on July 2006 with a J2 VISA. She left USA on October 2006. On July 2008 she entered USA with a J2 VISA. She changed her VISA in J1 on January 2008. She started to work in a USA University on January 2008. I ask: She is eligible for Tax...

India tax treaty exemption on California state tax [ 1 Answers ]

Hi, I was a full time employee from working on OPT from 01/01/07 to 09/30/07 and then was on H1-B status from 10/01/07 to 12/31/07. I am filing my 1040 nr for federal and would like to know answers to following questions: 1. what is the india tax treaty exemption for 2007 2. Is the standard...

Tax treaty exemption [ 3 Answers ]

I am currently on a tax treaty exemption Belgium/USA and on a J-1 visa. The time for the tax exemption is 2 years. What I want to know is, if I decide to stay on for another year following the two years, will I have to back-pay tax or will I just have to pay the tax on the third year?

Tax treaty exemption [ 2 Answers ]

I joined university as a reasearcher on H1B June 13, 2006. According to tax treaty, I am exempted from federal and state tax for 3 years (June 13, 2006-June, 2009). So I am a non-resident alien and should file form 1040NR, right? Many thanks.

View more questions Search