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    vcsanad's Avatar
    vcsanad Posts: 1, Reputation: 1
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    #1

    Apr 5, 2007, 01:45 PM
    2 year tax exemption for Hungarian citizen in the US
    Hi,
    I am a Hungarian citizen, I came to Oregon in 2005 (April 14th), and have been working at the university (OHSU) as research instructor since April 15th. I have a J1 visa. According to the Hungarian Tax Treaty (Article 17 I think) I have been exempt from all income taxes (Federal, State, SS and Medicare). The two years from my arrival time will end next week, but I was asked to stay longer (my visa is valid till March 2008).

    As it seems the SS and Medicare taxes I have to pay as of Jan 2007.
    How about the Federal and State taxes? I thought I was exempt for 24 months from the date of my arrival. The information I get is controversial regarding this, someone says, that I am subject to all taxes as of Jan 2007... I hope not...

    Thanks for your answer in advance,
    -Cs
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 16, 2007, 01:32 PM
    CS:

    If you stay beyond the original two years, for sure you are subject to all taxes in 2007.

    Further, you MAY be retroactively subject to all U.S. taxes because you did stay beyond the original two-year period.

    Contact the HR department at the university and have them research this for you. It may affect your decision as to whether you want to stay or not.
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