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

    Mar 24, 2009, 02:43 PM
    J1 to F1: am I exempt from taxes via US-UK tax treaty for my second tax year?
    Hi,

    I'm a British graduate student in California. I was a J1 intern in the US from August 2007-July 2008, and have been a F1 graduate student from August 2008-present.

    In the 2007 tax year I was exempt from certain taxes under the US-UK tax treaty. I am aware that the exemption lasts for one year.

    Is this one calendar year (i.e. I would not be exempt for any part of the 2008 tax year), or 12 consecutive months (I can apply the exemption to 7 months of my 2008 return)?

    My online tax filing system (Cintax) seems to think it's the former as it suggests that no tax treaties apply to me in the 2008 tax year. I am asking because I want to make sure.

    Many thanks in advance.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    May 14, 2009, 11:42 AM
    As an intern, you were only exempt from FICA (Social Security and Medicare) taxes. You were fully liable for income taxes.

    The FICA tax exemption was good for calendar years 2007 and 2008.
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
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    #3

    May 14, 2009, 01:41 PM
    Quote Originally Posted by slaterbx View Post
    Hi,

    I'm a British graduate student in California. I was a J1 intern in the US from August 2007-July 2008, and have been a F1 graduate student from August 2008-present.

    In the 2007 tax year I was exempt from certain taxes under the US-UK tax treaty. I am aware that the exemption lasts for one year.

    Is this one calendar year (i.e. I would not be exempt for any part of the 2008 tax year), or 12 consecutive months (I can apply the exemption to 7 months of my 2008 return)?

    My online tax filing system (Cintax) seems to think it's the former as it suggests that no tax treaties apply to me in the 2008 tax year. I am asking because I want to make sure.

    Many thanks in advance.
    I'm assuming you are referencing the trainee article. It is one year from the date of your arrival and hence if you qualify you could apply part of it to the 2008 year. However, if your income is paid by a US employer then it will not qualify under the treaty.
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