Discussion:J-1 Visa working in USA - How to claim?

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Discussion Forum Index --> Tax Questions --> J-1 Visa working in USA - How to claim?

Luis (talk|edits) said:

22 January 2006
I have been approached by a J-1 visa person working here in the USA.

The first thing they asked me is HOW HE/SHE SHOULD CLAIM? and what forms. Any input, please answer. Thank you. Luis

Riley2 (talk|edits) said:

22 January 2006
A J visa is an exchange visitor's visa. Taxation depends on why this indidual is here and what he or she does for a living (place of employment). It also depends on the taxpayer's country of residence.

If the taxpayer is not a student, teacher, or trainee, then the normal substantial presence tests would apply, and you will need to determine the taxpayer's days of U.S. presence in 2003, 2004, and 2005.

Bean (talk|edits) said:

29 January 2006
In this case, in payroll I have seen federal withholding but no FICA - is this correct?

Riley2 (talk|edits) said:

30 January 2006
Yes, FICA and Medicare would ordinarily not apply to a visitor on a J-1 visa. In some cases, Federal withholding would not apply to a visitor on a J-1 visa.

Kim24 (talk|edits) said:

21 February 2006
I know someone who has J-1 Visa and works in US as a trainee. 2005 is his second tax year and he owes a lot of money if he doesn't file Form 1040 (MFJ) vs. Form 1040NR (MFS).

In this case, I assume substantial presence tests doesn't apply, correct? Then, the taxpayer needs to file Form 1040NR??

Riley2 (talk|edits) said:

22 February 2006
Kim24, your analysis is correct.

Lilyvink (talk|edits) said:

6 August 2008
For J1 filer, the general rule is to file as nonresident 1040NR and cannot claim standard deduction,. If it possible to file 1040 as a resident anyway. I want to claim standard deduction. I can't find any research that says J1 must file as a nonresident and the substantial presence is not counted under J1 status. My question is whether I have the option to file as a resident-1040 anyway.

CrowJD (talk|edits) said:

6 August 2008
Lily, you are correct according to Prof. Singleberry, but incorrect according to Prof. Finklestein. In general, I would take as a cautionary tale the matter of St. Paul. By making his appeal to Rome, which was his right, he doomed his case. I would advise that you stop while you're ahead.

Chilli2007 (talk|edits) said:

6 August 2008
J1 filers are considered a nonresident for tax purposes and therefore exempt from Social Security Tax and Medicare tax for 2 years.

Can they claim as resident to take standard deduction and at the same time not paying Social Security and Medicare tax? I doubt it.

Riley2 (talk|edits) said:

7 August 2008
I think you are asking if a person making a 6013(g) or 6013(h) election to be treated as a resident for US tax purposes can also be exempt from US Social Security taxes. The answer is no.

Lilyvink (talk|edits) said:

13 August 2008
Can a J1 make an election to file as a resident in order to be able to claim standard deduction?

Smktax (talk|edits) said:

13 August 2008
No election is available unless they are married to a U.S. citizen or to a person that is a resident of the U.S. on the last day of the year.

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