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

    Mar 16, 2015, 03:52 PM
    Are H1B science researchers TAX EXEMPT under US-India Tax Treaty? <EDITED>
    Hi all, please find below my quick summary:

    Aug 2011 - Aug 2013 = F1 student visa [MS]
    Aug 2013 - Aug 2014 = F1 OPT

    For the year 2014:
    Jan 2014 - Aug 25 2014 = F1 OPT
    Aug 26 2014 - Dec 31 2014 = H1B

    I am working as a researcher at the University of Colorado, Denver.

    I was not sure how to do my taxes so I went to an international tax preparer. He says I am tax exempt and will get all my taxed salary back and asked me to add this page while mailing my taxes.

    "ARTICLE 22Payments Received by Professors, Teachers and Research Scholars 1. An individual who visits a Contracting State for a period not exceeding two years for the purposeof teaching or engaging in research at a university, college or other recognized educational institution inthat State, and who was immediately before that visit a resident of the other Contracting State, shall beexempted from tax by the first-mentioned Contracting State on any remuneration for such teaching orresearch for a period not exceeding two years from the date he first visits that State for such purpose. 2. This Article shall apply to income from research only if such research is undertaken by theindividual in the public interest and not primarily for the benefit of some other private person or persons."


    Is this applicable in my case? I intend on working for more than 2 years on my H1B VISA.

    For some reason, I don't feel like I should mail IRS asking for a complete refund... Please clarify this for me.

    Thank you very much!
    Manya.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 16, 2015, 04:59 PM
    Manya,

    If it is your intent to work for more than two years, then you should file as a non-resident alien for 2014, and then as a resident alien for 2015 and beyond.

    Do NOT claim the full tax exemption, because you would have to pay it back after your researcher tour exceeded the two-year mark.

    If you are married, you can file jointly with your spouse and you both CHOOSE to be treated as resident alien, but only after waiting until 1 June 2015 to file.

    If you need professional help to file, email me at the email address on my profile.
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!

Income Exempt by US - India TAX treaty [ 10 Answers ]

I have a question regarding the income exempt by the US - India tax treaty. I was a student from Jan 04 to Jun 04, then on a OPT from Jun 04 to Oct 04 and on a H1 from Oct 04 through. I have a W2 from my University (for part of the summer that I was working over there), a W2 from my employer...

UK US Tax Treaty: Remuneration for researchers is exempt (20A) but are stipends? [ 2 Answers ]

Hi! I am a British visiting Fellow on a J1 visa at a university in California, where I shall be for a total of 10 months. My letter of offer says that "In return for your contribution to Center activities as set forth in this invitation, we are pleased to offer a stipend of $xx,000 over the nine...

OPT Tax Issue & India tax treaty [ 5 Answers ]

I came to the US as a student and have been here since Dec 2006. I graduated in June 2008 and have filed taxes for my 2007 income that I earned working at the University in NY. In 2008, I worked at the University in NY while studying and continued on OPT after graduating. Since September 2008, I am...

For F-1 Students is whole 'Stipend' income tax exempt under India-Usa Treaty ? [ 2 Answers ]

Hi, I entered USA in the August of 2005 on F-1 Visa. I received a graduate assistantship for one year and later on became a Research Assistant (RA) in my department. Being an RA entitles me to full tuition remission and am paid a stipend of 18K per year. When I filed my taxes previously with...

View more questions Search