Tax Issues for U.S. Residents and Foreign Nationals

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Subject:		Tax liabillity under treaty
Name:		drilan
Date Posted:		Jun 10, 08 - 3:53 PM
Email:		i_stem@yahoo.com
Message:		Hello, thanks for the great forum. Here's my question: I've entered the US on September 2006 on a J1 visa. I work in research for a university and I'm exempt from taxes for the 1st 2 yrs under article 23 in the US-Israel tax treaty. I will go back to Israel on August 2008. I was already exempt from taxes during 2006 (Spe-Dec) and through all of 2007. Regarding 2008 - my employer thinks I should pay my taxes because the treaty is for 2 calendar years, so the taxes are deducted from my paycheck. According to my understanding - the exemption is for 24 months. 1. Am I right? If I am - can I file a 1040NR in 2009 for 2008 refund? 2. To make things even more complicated, in 2008 I am considered a resident alien since I will stay in the US for more then 181 days, so I can't file 1040NR according to the irs publication. This is conflicting the treaty. Any help would be appreciated. Thanks again.
Replies:
Re: Tax liabillity under treaty by triad · Jun 11, 08 - 9:05 AM

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