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Old 12-02-2014, 06:05 PM
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returning after tax exemption

Hi!
I'm a dutch national staying in the USA as a J1 scholar. My trip is less than two years and I've been exempt from paying tax as by the Netherlands-US tax treaty. Per treaty definition I have to keep my stay under to years, or will have to pay the two year taxes retro-actively.

My question is, when can I come back on a different visa without forfeiting my exemption? I'm currently considering returning on a short stay J1 visa next. I understand I couldn't claim the tax treaty again, but would it also forfeit my previous exemption.

Kind regards, Philip



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Old 12-03-2014, 11:58 AM
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I'm a dutch national staying in the USA as a J1 scholar. My trip is less than two years and I've been exempt from paying tax as by the Netherlands-US tax treaty. Per treaty definition I have to keep my stay under to years, or will have to pay the two year taxes retro-actively.
=======>>>>>correct; Nonresident J-1 visa holders, teachersn or scholars, are generally exempt from FICA for the first two calendar years that they are in the US; however, in order to qualify for exemption from federal income tax,you, as a J-1 visa holder, must qualify under the particular tax treaty that the Netherland has with the US.It should also be noted that, in most states, the tax exemption does not apply to thestate income tax. Hence, while your income may be exempt from federal incometaxes and the FICA taxes, you must still pay the state income tax most of the time.


My question is, when can I come back on a different visa without forfeiting my exemption?=======>>>>yes..if you want, you may obtain a non-immigrant visa .i.e.,O, E or F visa or etc from a U. S. Consulate located in your country. But you may not obtain an H or L visa until you have received either a J-1 Waiver or until you have completed the two-year foreign residency requirement. The two-year foreign residency requirement must be fulfilled in your country you were residing in at the time you received your J-1 status


I'm currently considering returning on a short stay J1 visa next. I understand I couldn't claim the tax treaty again,===>>>>>correct. For at least 2 years, ypu, a J-1 visa holder are "exempt" from counting days, so you cannot pass the spt . Thus, you are still a non-resident alien for those 2 years

but would it also forfeit my previous exemption.=====>>>>no;as you know, it is not a good idea to change your J-1 program if you have not yet fulfilled your two-year requirement. If you change your J-1 program, you may be subject to the two-year restriction twice and will need to obtain two J-1 Waivers in order to be relieved of the rule.

you are subject to a two-year home-country physical presence requirement requiring you to return to your home country for at least 2 years at the end of your exchange visitor program. If you are unable to return to your home country to fulfill the two-year requirement, you must obtain a waiver approved by the Department of Homeland Security prior to changing status in the US or being issued a visa in certain categories for travel to the US.



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Old 12-04-2014, 03:31 PM
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Thanks so much for the elaborate response! I have one question regarding your reply, could you maybe clarify? Either way, thank you for your help!

- You mention I can return on a different visa like O,E or F without forfeiting my previous tax exemption from the (almost) two years as the J1 scholar. However, is a J1 short-term also considered a new visa (as compared to my J1 scholar that I got the tax exemption on), or will it be considered a continuation of the same stay?

Quote:
Originally Posted by Wnhough View Post
I'm a dutch national staying in the USA as a J1 scholar. My trip is less than two years and I've been exempt from paying tax as by the Netherlands-US tax treaty. Per treaty definition I have to keep my stay under to years, or will have to pay the two year taxes retro-actively.
=======>>>>>correct; Nonresident J-1 visa holders, teachersn or scholars, are generally exempt from FICA for the first two calendar years that they are in the US; however, in order to qualify for exemption from federal income tax,you, as a J-1 visa holder, must qualify under the particular tax treaty that the Netherland has with the US.It should also be noted that, in most states, the tax exemption does not apply to thestate income tax. Hence, while your income may be exempt from federal incometaxes and the FICA taxes, you must still pay the state income tax most of the time.


My question is, when can I come back on a different visa without forfeiting my exemption?=======>>>>yes..if you want, you may obtain a non-immigrant visa .i.e.,O, E or F visa or etc from a U. S. Consulate located in your country. But you may not obtain an H or L visa until you have received either a J-1 Waiver or until you have completed the two-year foreign residency requirement. The two-year foreign residency requirement must be fulfilled in your country you were residing in at the time you received your J-1 status

I'm currently considering returning on a short stay J1 visa next. I understand I couldn't claim the tax treaty again,===>>>>>correct. For at least 2 years, ypu, a J-1 visa holder are "exempt" from counting days, so you cannot pass the spt . Thus, you are still a non-resident alien for those 2 years

but would it also forfeit my previous exemption.=====>>>>no;as you know, it is not a good idea to change your J-1 program if you have not yet fulfilled your two-year requirement. If you change your J-1 program, you may be subject to the two-year restriction twice and will need to obtain two J-1 Waivers in order to be relieved of the rule.

you are subject to a two-year home-country physical presence requirement requiring you to return to your home country for at least 2 years at the end of your exchange visitor program. If you are unable to return to your home country to fulfill the two-year requirement, you must obtain a waiver approved by the Department of Homeland Security prior to changing status in the US or being issued a visa in certain categories for travel to the US.



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Old 12-04-2014, 03:42 PM
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Hmmm my previous reply didn't post correctly, my apologies if this appears twice:

Thank you so much for your elaborate response! I was wondering if you could clarify one question I have regarding your response? Either way your previous response has been very helpful!

- You mention I can return on a different visa (e.g. O,E or F) without forfeiting my exemption I got while visiting as a J1 scholar. However, does a J1 short-term also fall in that category? Or may they see it as a continuation of my stay if I return on a J1 short-term?
(for as far as I understood a J1 short-term after a regular does not violate the two-year rule)



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Old 12-04-2014, 03:59 PM
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it will be considered a continuation of the same stay.

You are exempt from residency for two yearsand after that you will be treated as a US resident for tax purposes. it is more advantageous to file as a resident alien.

if you have not yet fulfilled your two-year requirement and If you change your J-1 program, you may be subject to the two-year restriction twice and will need to obtain two J-1 Waivers in order to be relieved of the rule .



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Old 01-27-2015, 09:43 PM
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Tourist visit

I left the country on jan 23rd to avoid loosing my tax exemption. I've put the tax exemption on ice, but i have a stopover in NY in a month and would like to pick up some of the stuff i couldn't take with when i left. Does reentering on a tourist visa (in the same year) affect the tax exemption in any way?



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Old 01-27-2015, 10:23 PM
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yes I guess so I guess you need some professional help from an immigration expert



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