Gift Tax on J1 Visa's I have a question that i'm hoping that some of you could possibly answer for me. I am currently in the US (from India) on a J1 visa, in year 1 of 4 of my post graduate education. I receive a regular salary for this job, and a W2 with standard taxes and deductions as defined by the US India Tax Treaty. I was wondering if you guys could shed some light on questions that i'm finding rather long winded and complicated answers to, that don't really make sense to me.
1. I understand that i am subject to exemption from SS and Medicare taxes for my first 2 years on a J1. From what i understand it is because after 2 years on a J1, i become a resident alien from a non-resident alien? or am i completely confusing two different concepts.
2. With regards to receiving gift from family and friends, what are the rules for J1 visa holders?
The scenario that has me perplexed is if i receive money from non-blood relatives in the US (who are paying their taxes regularly), in exchange for money given to their family members in India (also paying taxes there in india).
is there anything illegal/illegitimate about this? also how does this affect my tax calculation at the end of the year? or does this just count towards my annual non-taxable gift allowance of 14,000$??
i realize this question might be too specific, but whatever i've read so far is too non specific and general. Thanks in advance. |