returning after tax exemption
Dec 3rd 2014, 5:34 am
#1
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Thread Starter
Joined: Dec 2014
Posts: 3
returning after tax exemption
Hi!
I'm currently visiting the US as a J1 scholar. I've been claiming the tax exemption and in order to qualify I will leave the country in January 2015 as to not exceed the two years.
Here's where it gets tricky: I'd like to return for a couple of months on a short-term J1 for a couple of months later that year. My two questions:
- Will this forfeit my tax exemption in any way?
- Can I return on J1 short-term for about the same work?
Cheers, Philip
Ps. I read a lot of similar topics, but none with my specific question. If I've overlooked one I do apologize.
I'm currently visiting the US as a J1 scholar. I've been claiming the tax exemption and in order to qualify I will leave the country in January 2015 as to not exceed the two years.
Here's where it gets tricky: I'd like to return for a couple of months on a short-term J1 for a couple of months later that year. My two questions:
- Will this forfeit my tax exemption in any way?
- Can I return on J1 short-term for about the same work?
Cheers, Philip
Ps. I read a lot of similar topics, but none with my specific question. If I've overlooked one I do apologize.
Dec 3rd 2014, 8:50 am
#2
Forum Regular
Joined: Mar 2014
Posts: 37
Re: returning after tax exemption
When did you actually arrive on your J1?
It's often recommended that you don't claim the tax exemption if you plan on staying longer than two years or plan on coming back to the US to work/postdoc in the future. This is because if you exceed the two years then, yes, you do have to pay it all back.
Why not calculate how much tax you owe and see if you can afford it and is worthwhile? Assuming you came in January 2013 I guess you will be paying for two full years as you were probably in the US >183 days each calendar year.
It's often recommended that you don't claim the tax exemption if you plan on staying longer than two years or plan on coming back to the US to work/postdoc in the future. This is because if you exceed the two years then, yes, you do have to pay it all back.
Why not calculate how much tax you owe and see if you can afford it and is worthwhile? Assuming you came in January 2013 I guess you will be paying for two full years as you were probably in the US >183 days each calendar year.
Dec 4th 2014, 6:51 pm
#3
Just Joined
Thread Starter
Joined: Dec 2014
Posts: 3
Re: returning after tax exemption
Hi! Thanks for the response.
I arrived February 2013. I did not have the intention to stay longer than the two years. However, as with many things, sometimes plans change.
Because I'm only looking to return for a couple of months it's not worth it paying two years of taxes for. The taxes would exceed the amount of money I would make. From two years worth of taxes I can spend half a year on island somewhere without having to work a day.
My main interest is how they define stay? When I return to the US on a J1 short-term will they consider it a new stay. Or will they look at my file and note I already worked in the same state a couple of months before and come after me?
I arrived February 2013. I did not have the intention to stay longer than the two years. However, as with many things, sometimes plans change.
Because I'm only looking to return for a couple of months it's not worth it paying two years of taxes for. The taxes would exceed the amount of money I would make. From two years worth of taxes I can spend half a year on island somewhere without having to work a day.
My main interest is how they define stay? When I return to the US on a J1 short-term will they consider it a new stay. Or will they look at my file and note I already worked in the same state a couple of months before and come after me?
When did you actually arrive on your J1?
It's often recommended that you don't claim the tax exemption if you plan on staying longer than two years or plan on coming back to the US to work/postdoc in the future. This is because if you exceed the two years then, yes, you do have to pay it all back.
Why not calculate how much tax you owe and see if you can afford it and is worthwhile? Assuming you came in January 2013 I guess you will be paying for two full years as you were probably in the US >183 days each calendar year.
It's often recommended that you don't claim the tax exemption if you plan on staying longer than two years or plan on coming back to the US to work/postdoc in the future. This is because if you exceed the two years then, yes, you do have to pay it all back.
Why not calculate how much tax you owe and see if you can afford it and is worthwhile? Assuming you came in January 2013 I guess you will be paying for two full years as you were probably in the US >183 days each calendar year.
Dec 4th 2014, 8:48 pm
#4
Lost in BE Cyberspace
Joined: Jun 2008
Location: San Francisco Bay Area
Posts: 10,678
Re: returning after tax exemption
Hi! Thanks for the response.
I arrived February 2013. I did not have the intention to stay longer than the two years. However, as with many things, sometimes plans change.
Because I'm only looking to return for a couple of months it's not worth it paying two years of taxes for. The taxes would exceed the amount of money I would make. From two years worth of taxes I can spend half a year on island somewhere without having to work a day.
My main interest is how they define stay? When I return to the US on a J1 short-term will they consider it a new stay. Or will they look at my file and note I already worked in the same state a couple of months before and come after me?
I arrived February 2013. I did not have the intention to stay longer than the two years. However, as with many things, sometimes plans change.
Because I'm only looking to return for a couple of months it's not worth it paying two years of taxes for. The taxes would exceed the amount of money I would make. From two years worth of taxes I can spend half a year on island somewhere without having to work a day.
My main interest is how they define stay? When I return to the US on a J1 short-term will they consider it a new stay. Or will they look at my file and note I already worked in the same state a couple of months before and come after me?
Dec 5th 2014, 3:59 am
#5
Just Joined
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Joined: Dec 2014
Posts: 3
Re: returning after tax exemption
You'll have to look into the UK/US tax treaty to find out exactly the rules. However from my understanding, any additional time beyond 2 years no matter how far in the future on a J-1 scholar treaty triggers back taxes owed. However I think if it is for another visa (H-1B, etc.), then it does not trigger back taxes owed but even then, there may possibly be some restrictions as to how long you have to wait before you can start that job.
