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ray-2018
New Member

I used tax treaty for one full year and currently I'm more than 2 years in US. Do I need to pay back the retroactive tax? Is it both federal and state tax or one of them?

I'm still in J1 visa from India. I wanted to calculate how much I need to pay back. is this only the federal tax or also the state tax? A suggestion on how much percent of my annual salary this tax is would be really helpful.

Thanks,

1 Reply
bine22
Level 7

I used tax treaty for one full year and currently I'm more than 2 years in US. Do I need to pay back the retroactive tax? Is it both federal and state tax or one of them?

You would have to amend your return for the relevant year. Since Turbotax does not support nonresident alien returns, you would have to download the forms from the IRS website and fill them out yourself (or use a tax professional).

You would need form 1040NR or 1040NR-EZ  plus form 1040X for the amendment. The percentage would depend on your taxable income. What state are you if? Usually, when states recognize treaty exemption, which are federal, the same rules apply, so you most likely have to pay state taxes as well. You will also be subject to interest/underpayment penalty. So do this as soon as possible.

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