J1 visa become tax resident asap

[JGin]

Hello,

I am a foreign national who came to the US in October 2022 on a non-student J1 visa.

I would like to make a first year choice to become a US tax resident as soon as possible.

However the IRS Publication 519 (2021), U.S. Tax Guide for Aliens, states that for the substantial presence test I should not count days for which I am an exempt individual. As a non-student J-visa holder, I can be an exempt individual for up to two years.

But what if I do not want to be an exempt individual at all? Is it my voluntary choice or my duty to wait for whole two years before counting the days for the substantial presence test?

Thank you!

[Anonymous_]

@pk ?

[pk]

@JGin , unless your home country  has a US - HomeCountry  tax treaty that contravenes,  your exempt status  will prevent you from qualifying for  first year choice  {  26 CFR 301.7701 (b) }.  But before  we come to a final conclusion ( you and I ), please provide the following info :

(a) country you are from ( citizenship  or resident of );

(b) validity of your J-1  ( teacher / trainee / researcher --yes? );

(c) is this your first entry into the USA during the last six years i.e. back to 2017 ?;

(d) are you single or married ( and if married , is it to a US resident  or citizen )?;

(e) an lastly why do you want to change to a resident status  --- ( MFJ and standard deduction or what ? )

Once I hear from you I will circle back

[JGin]

Hello @pk,

Thank you so much for your responsiveness and attention to my question. Please find below the details:
(a) I am a Russian citizen. A scientific refugee, in a sense.
(b) I am a postdoctoral researcher at the University. I receive a salary, not a stipend/fellowship. Therefore I am not sure if the treaty does apply in my case.
(c) This is my first entry into the USA ever.
(d) I am married to a Russian citizen.
(e) I would like to reduce my taxes since I have a large number of J2 dependents (my wife, who does not work, and our three little kids).

Thank you!

[JGin]

@pk , I would also add that I have resigned from the university in Moscow before leave, so I do not have any income outside the US.

[pk · Accepted solution]

@JGin , I went through the US-Russia Tax treaty and was surprised to see that there was no carve out or J-1 researchers -- just the usual boilerplate language.  So no help there.

Also the IRS rules do not allow a J-1 ( and therefore exempt  from counting days for two years  from date of entry ) to request to be treated  as a resident.

 This board is only for tax issues and therefore your issue is beyond  the normal material covered here.

My personal suggestions  would be :

(a) Perhaps discuss your situation  with your employer and see if they can put on a work-visa like H-1B

(b) Discuss with Immigration ( INA services ) for a work permit for your spouse   ( I am assuming that your wife is now on J-4 and so cannot work ).  Note that an issue that will come up is J-1 assumes  you are  going to be in the USA as a non-immigrant and only for a fixed duration and intend to go back to your home country -- you will need a good answer as to why you plan to change that

(c) Perhaps you should consider having a discussion with an immigration attorney  to help you navigate  these  current  and troubled waters.

Is there more I can do for you ?

pk

[JGin]

Hello @pk ,

Thank you so much for your help and advice!