Ask Experts Questions for FREE Help !
Ask
    italianj1's Avatar
    italianj1 Posts: 3, Reputation: 1
    New Member
     
    #1

    Apr 9, 2012, 06:10 PM
    Italian J1 tax exemption
    I am an Italian with a J1 Visa. While the sponsor on my Visa is a University, my salary is paid by the non profit institute where I am conducting my research. The institute is not an accredited educational institute... still my sponsor clearly is. Does the exemption for two years apply to my situation? Moreover, I am exempted from the FICA for two years. Is this exemption valid 24 months, or only two calendar years? Thank you
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Apr 10, 2012, 05:56 AM
    This is from IRS publication 901:
    A professor or teacher who is a resident of Italy immediately before the date of arrival in the United States and whose visit to the United States is expected to last no more than 2 years to teach or conduct research at a university, college, school, or other recognized educational institution, or at a medical facility primarily funded from government sources, is exempt from U.S. income tax for up to 2 years on pay from this teaching or research.
    This exemption does not apply to income from research carried on mainly for the private benefit of any person rather than in the public interest.

    1. You need to figure out if the research institution meets the requirement.
    2. Exemption is for 24 months.
    italianj1's Avatar
    italianj1 Posts: 3, Reputation: 1
    New Member
     
    #3

    Apr 10, 2012, 08:13 PM
    Thank you for your answer. The institute is a non profit and seems not to be an accredited educational institute . I was hoping to be able to use my J-1 sponsor (university) .

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!

Italian J1 tax exemption [ 6 Answers ]

Hi, I am an Italian postdoc working in NYC since July 2011 and holding a visa J1. When I arrived in July 2011 I didn't get paid. Now I will get paid by my institution. Am I eligible for the two years tax exemption (based on US-Italy tax treaty)?If so, can I calculate the two years tax exemption...

Italian J1 researcher tax exemption [ 1 Answers ]

"I am Italian and I am working in the US as a researcher. They are telling me that The institute I work for is not directly linked to any university and cannot be considered an educational institution. It's also not a medical facility. Therefore I am not qualified for tax exemption.Still, I am not...

Can a US S Corp get a tax credit for a 10% reduction of royalty inc for Italian tax? [ 1 Answers ]

US S Corp gets royalty income from Italy. Per agreement with Italian company, invoice shows total income, "less 10% withholding tax". The US corp does not pay the tax to Italian tax authorities. The Italian corp pays any tax due Italy (presumably). Since the US corp doesn't actually pay the...

1040NR - line 21 exemption for Italian trainee [ 4 Answers ]

How much income is exempted from 2008 Income taxes under Article 21 of the US-Italy Tax Treaty for an Italian mgmt. trainee who arrived in October, 2008 on a J1 visa working in the US for an international Hotel company here for a temporary 1 year assignment? Is it $0 or all of his earnings? ...

Non resident tax exemption for Italian citizen? [ 5 Answers ]

Hello, I am an Italian MD doing a research fellowship in one of the Harvard Medical School hospitals. I am here on a J-1 visa, arrived last June and leaving next July. I am filing my tax return now, and I don't know if I can apply for the exemption based on the treaty with Italy or not. I have...


View more questions Search