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

    Apr 16, 2008, 02:22 PM
    Tax treaty Italy-US
    I would like to ask about the tax treaty between Italy and the US in the case
    Of research scholars (J-1 visa).
    Under the treaty, J-1 scholars are exempt from all US taxes for up to two years.
    I am wondering what happens if one receives an extension to his job and remains,
    Let's say, for a third year. Does he start paying taxes for the third year
    Or does he need to pay back all taxes, even for the first two years?

    Many thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Apr 16, 2008, 07:17 PM
    In the tax treaty, the exemption is for two years. After two years you don't get the exemption. The treaty does not say that the exemption is lost for the entire visit.

    Yes, in third year you start paying the taxes. You do not pay back the taxes for previous two years.

    Read Your U.S. Tax Return: U.S. Tax Treaties for Professors, Teachers and Researchers
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Apr 18, 2008, 11:01 AM
    It is also possible (in general) to get the exemption extended for an extra year. You should investigate that possibility with your sponsoring organization.
    The Texas Tax Expert's Avatar
    The Texas Tax Expert Posts: 310, Reputation: 7
    Full Member
    		  
    #4

    Apr 19, 2008, 12:56 PM
    Quote Originally Posted by AtlantaTaxExpert
    It is also possible (in general) to get the exemption extended for an extra year. You should investigate that possibility with your sponsoring organization.
    I'm not aware of the Italy-US treaty having an option for an extension. However, I believe that the treaty does not require that taxes be paid retroactively if you extend into the third year.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    Apr 21, 2008, 11:29 AM
    I will yield to TTE's greater expertise on this issue. I answered without conducting the research.
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!

USA-Italy tax treaty applicabilty [ 4 Answers ]

Hello, I have a question about the taxes exemption under international agreements between USA and Italy for non-resident aliens. I am in US since a few weeks under J-1 VISA. I am here as a post-doc researcher. The tax office of the institute says I cannot apply to any tax exemption because...

Treaty with Italy [ 1 Answers ]

Never mind

US/Italy Tax Treaty -- H1B Exemption [ 3 Answers ]

Hello, I recently changed my status from F1 to H1B in January 2007. I have a post-doc position for the academic year 2006-07, started on September 2006 and renewable for two years. I haven't received tax refunds as an F1. My instiutution (Penn) now claims that I am not eligible for tax exemption...

USA/Italy treaty for taxes?. [ 3 Answers ]

I have an Italian passport, and I am now working as an opera singer with a O1 VISA for a couple of months in a major Opera Company in USA. Two questions: What's the roof of gross earnings for not being taxed when they will pay me at the end of the gig? I just got the "allowance" cheque for...

Usa-italy tax treaty [ 1 Answers ]

Hello, I am an Italian PhD doing a research fellowship UCSF. I am here on a J-1 visa, arrived July 2004 and leaving 2007. 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. If I claim the exemption now, am I going to pay all...

View more questions Search