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Postdoc tax exemption

Postdoc tax exemption

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Old Aug 23rd 2008, 4:23 pm
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Default Postdoc tax exemption

Hi Everyone,

I'm currently considering leaving my 60hr/wk tech sales job to go and do a postdoctoral research job in Phoenix. The plan would be to work as a postdoc for a year and then get a job in industry in the US...if I can get visa sponsorship. One thing I was wondering was if I would be better to try get the university to sponsor a H1B rather than a J1. I know there is no cap on H1B visas for universities but can it then be transfered to a company after a period of time? Also, does anyone know if the tax exemption provided by the UK/US tax treaty is restricted to J1 visas?

Article 20A in the treaty states that you have to pay back taxes if you stay for over 2 years. How long would you need to leave the US for in order to avoid this?

Now to the tricky bit! I'm an Irish citizen and the Irish/US tax treaty does not have this exemption for researchers. However, I did my phd in the uk and have recently come back to work here.
The UK treaty only states that you need to be considered a resident (in tax terms) to be covered by the treaty, not a citizen. This means I would need to have been living in the UK for 183 days in a tax year - I've only been here about 110 days this year, so i don't qualify under that one! It also states that if you have been living here for an average of 93 days per year, over a 4 consecutive year period, then you are considered a resident too. I meet that requirement as I lived here from for 3 years until Sept 2006 but didn't return till 4 months ago( average of 193 days from 2005-2009) ! So, I think i'm ok to be considered a resident but that colud be a $10,000 mistake. Any ideas on that bit? I can call the revenue on Monday but I kinda need to make a decision over the weekend.

any helpful info would be great. thanks in advance!
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Old Aug 23rd 2008, 5:55 pm
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Default Re: Postdoc tax exemption

Originally Posted by kgob
Hi Everyone,

I'm currently considering leaving my 60hr/wk tech sales job to go and do a postdoctoral research job in Phoenix. The plan would be to work as a postdoc for a year and then get a job in industry in the US...if I can get visa sponsorship. One thing I was wondering was if I would be better to try get the university to sponsor a H1B rather than a J1.
Hard to say. H1B would at least prevent the 2 year home return thingie, and would allow a green card app to be started - but good luck finding a uni that would do that for you.
Originally Posted by kgob
I know there is no cap on H1B visas for universities but can it then be transfered to a company after a period of time?
No: You can go company to company because the quota place has already been claimed. If you have a uni H1B, the quota place has not been claimed and you need to file a new petition under the quota.
Originally Posted by kgob
Also, does anyone know if the tax exemption provided by the UK/US tax treaty is restricted to J1 visas?
Not sure, but I don't think you can claim it under an H1B since you end up being 'resident for taxes'.

Originally Posted by kgob
Article 20A in the treaty states that you have to pay back taxes if you stay for over 2 years. How long would you need to leave the US for in order to avoid this?
Definitely more than a day. ;-) Not really sure - but I wouldn't want to come back during the same tax year.
Now to the tricky bit! I'm an Iris
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