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posted Jan 22, 2024 12:34:14 PM

Maryland State Tax for (Non-)Resident J-1 Visa Holder on worldwide income

Hi,

 

I have a question regarding worldwide income in Maryland for state tax.

 

I am a German citizen on a J-1 visa for 2 years.
There's a tax treaty between Germany and the US, so I don't have to pay federal tax for 2 years as a researcher.

 

I get around $2000 stipend from my american employer and a $3500 stipend from a german state organization (tax free).

 

I moved to the US in August, so by maryland residency definition I shouldn't be a resident (not longer than 183 days).

The domicile definition is not fulfilled, as I am just here for short term and will move back to germany.

 

My question is now on what I have to pay state tax (and how much).

 

I'm pretty sure I have to pay state tax in Maryland on the income from Maryland.


For 2023, however, I shouldn't count as a resident, so I need to file tax as a non resident on the $2000 stipend?

 

For 2024 it might be trickier as I might count as a resident (more than 183 days).

(Edit: I also found information that the first two years are exempt in substantial presence test for J-1 visa holders. Is this correct? Then I would count as a nonresident for the whole time?)


So in short:

 

Do I count as a nonresident in 2023 (and 2024?) and do I therefore only have to pay state tax on the income from maryland?

 

Thanks!

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1 Replies
Expert Alumni
Jan 24, 2024 7:51:09 AM

You may be a J-1 Visa status holder and ‘exempt individual’ whose days of physical presence in the United States do not count for purposes of the Substantial Presence Test. 

 

I do not have the information to know whether you qualify to choose between:

 

Contact Sprintax here who can assist you in these decisions and in Federal and State tax preparation.

 

See also Taxation of Alien Individuals by Immigration Status – J-1 here