I was a J-1 intern in 2024 and am trying to determine my tax residency status—whether I am a "Non-resident alien" or "Resident alien." Here is the situation:
I stayed in the USA for more than 183 days, which would qualify me as a "Resident alien" under the Substantial Presence Test (SPT [0]). However, according to Sprintax, J-1 interns are considered "Non-resident aliens" for tax purposes during their first two years in the US [1]:
Scholars, interns, trainees, teachers, professors, and researchers on J or Q visas are considered nonresidents for tax purposes for the first 2 years in the US.
The official IRS website [2], however, only lists "teachers" and "trainees" as "Exempt individuals," and I cannot find specific information about "Interns."
Should I file my taxes as a "Non-resident alien" or as a "Resident alien"?
@Anonymous , which country are you from ? When did you enter the USA with J-1 ? Was this your first entry ( in that case when and with which visa did you enter ?) in the last three year ? Should we assume that you are a trainee on J visa ? or what ?
While I await your answer to my questions, you may find this page informative --> Taxation of alien individuals by immigration status – J-1 | Internal Revenue Service
I will circle back once I hear from you --yes ?
pk
Country: Switzerland
I spent 176 days as a J1 intern in 2022, 0 days in 2023, and 190 days as a J1 intern in 2024.
@Anonymous , based on your response, you are a Resident for Tax purposes. Thus you recognize income(s) on form 1040 and taxed on world income. Article 20 of the Tax Treaty does not give you any special privileges, except for non-taxability of foreign sourced monies ( stipends / family help etc. ) for surviving expenses.
Also note that as a trainee ( not employee ) you are immune from FICA regs.
Is there more I can do for you ?
No. A J-1 intern has a two-year calendar-year exempt period. This exempt period ended in 2023 even if you weren't physically present during the year. Since you were physically present in the US for 190 days in 2024, you will file as a resident alien in 2024.
Hi PK!!
@Anonymous