Hello, I was a J1 research scholar from Sep 2016 to April 2017, and then I went back to China and now I am an F1 student at another University since August 2017.Am I eligible for the tax benefits for the year 2017? And if not, when should I be eligible for those tax treaty benefits?
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As TaxGuyBill said, it would help if we knew what benefits are you talking about. So please tell us more as to what you mean.
Generally speaking, once you have completed 186 total days of physical presence ( counting all days in current year + 1/3 days from the last year and 1/6 the days of the year before , i.e. all of 2017, 1/3 of 2016 and 1/6 of 2015 ), you are treated as a resident for tax purposes. A resident ( even if only for tax purposes ) is taxed by the USA on world income. Since the non-resident alien is being taxed as a resident, it also means all the decutions, credits ( mostly ) are also applicable.
A non-resident alien is taxed by the USA only on US sourced/ connected income. There are also very limited number os deduction allowed.
The test for physical presence of non-resident alien is suspended for students ( F1 ) for upto five years from the time of admission under F-1. And you can only work with a very limited permit from the Homeland Security. You also have to file a 1040-NR which is not supported by TurboTax.
Does that cover what you are looking for ?
As TaxGuyBill said, it would help if we knew what benefits are you talking about. So please tell us more as to what you mean.
Generally speaking, once you have completed 186 total days of physical presence ( counting all days in current year + 1/3 days from the last year and 1/6 the days of the year before , i.e. all of 2017, 1/3 of 2016 and 1/6 of 2015 ), you are treated as a resident for tax purposes. A resident ( even if only for tax purposes ) is taxed by the USA on world income. Since the non-resident alien is being taxed as a resident, it also means all the decutions, credits ( mostly ) are also applicable.
A non-resident alien is taxed by the USA only on US sourced/ connected income. There are also very limited number os deduction allowed.
The test for physical presence of non-resident alien is suspended for students ( F1 ) for upto five years from the time of admission under F-1. And you can only work with a very limited permit from the Homeland Security. You also have to file a 1040-NR which is not supported by TurboTax.
Does that cover what you are looking for ?
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