topic J1 research scholar, year 3, resident or non resident (Exempt from 183 day rule?) in Education

J1 research scholar, year 3, resident or non resident (Exempt from 183 day rule?)

eridani — Sun, 21 Mar 2021 21:26:20 GMT

Hello everyone,

I arrived to the US from France in February 2018, on a J1 visa as a research scholar, from France.

I had a tax treaty for the first two years. Then I thought I was subject to the 183 day substantial presence test. Since I was more than 183 days in 2020, I thought I qualified as resident for tax purposes.

However, I have heard J1 researchers are exempt from the substantial presence test, up to 5 years.

Thus, for my 2020 taxes, I would still be considered non-resident for tax purposes?

Can someone help me clarify this?

Thank you so much.

Eridani

Re: J1 research scholar, year 3, resident or non resident (Exempt from 183 day rule?)

DaveF1006 — Sun, 21 Mar 2021 21:48:06 GMT

According to this IRS link, A J-1 alien can exclude U.S. days of presence as a “student” for purposes of the Substantial Presence Test for up to five calendar years. The five-year limit is a lifetime limit that can’t be renewed but may be extended if certain conditions are met. For detail information, see Exempt Individual - Who is a Student. Generally, a J-1 alien cannot exclude U.S. day of presence as a “teacher or trainee” for more than two calendar years.

It depends on what you are classified as a researcher. If a student, there is a five-year lifetime exemption period. A teacher is only two-year.

Re: J1 research scholar, year 3, resident or non resident (Exempt from 183 day rule?)

eridani — Mon, 22 Mar 2021 00:15:37 GMT

Hi Dave!

Thank you for your informative reply. I was a researcher (J1 research scholar) full time from february 2018 until now. Thank you very much for the link. I see the exemption of the substantial presence requirement could apply to short-term scholars but I am a research scholar so it only applies to me for the first 2 years. Now I am considered resident alien for tax purposes.

I received 1099-MISC and 1099-NEC for my stipends (non employee compensation). I tried Turbotax and it recommended I file as self-employed. I calculated the total federal taxes to be about 24%. Is this normal?

I am wondering if I should file with Sprintax instead.

Re: J1 research scholar, year 3, resident or non resident (Exempt from 183 day rule?)

LinaJ2020 — Fri, 26 Mar 2021 21:24:33 GMT

You should not file Sprintax. You can use TurboTax to file.

You are exempt for two years. Therefore, you are considered as a nonresident for both 2018 and 2019. Starting from January 1, 2020, if you stayed more than 183 days in the US, you are considered as a resident for tax purposes and will be filing a Form 1040.

When you received 1099-MISC and 1099-NEC, IRS will treat you as self employed. Besides your regular income tax ( based on your taxable income), you need to pay an additional self employed taxes of 15.3%. (12.4% for social security for old-age, survivors, and disability insurance and 2.9% for Medicare for hospital insurance). It will show on line 4 of Schedule 2 and line 23 of the Form 1040. Without seeing your tax return, I would not know what your total tax rate will be.

If you follow through the steps in the TurboTax program, the program will calculate your taxes correctly. I am attaching the 2020 Form 1040 tax table for your reference. https://www.irs.gov/pub/irs-pdf/i1040tt.pdf