J1 visa considered resident?

[asaga189]

Hello,

I'm a Peruvian in a J1 Trainee visa since January 2020. I entered the US on January 1st 2020, my program will end in May 1st 2021. I'm still in the US and need to file my taxes for 2020. Now, I'm not sure if I need to file under non resident or resident as I don't quite understand the Substantial Presence Test. Also I was unemployed from March 2020 to July 2020. Does the stimulus check apply?

Additional information:

I had a J1 work and travel visa from Dec 2014 to March 2015

I had a J1 work and travel visa from Dec 2013 to February 2014

Please I'm not sure how to properly file my taxes for 2020.

[DaveF1006]

Since you pass the substantial presence test, you can file as a US resident for tax purposes. it states in this link In general, an alien in J-1 status (hereafter referred to as a “J-1 alien”) will be treated as a U.S. resident for federal income tax purposes if he or she meets the Substantial Presence Test. 

[asaga189]

Hello Dave,

Thank you for the reply.

The IRS said there is a 6 year period for the 2 year tax exempt:

You will not be an exempt individual as a teacher or trainee if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 calendar years preceding the current year. However, you will be an exempt individual if you were exempt as a teacher, trainee, or student for any part of 3 (or fewer) of the 6 preceding calendar years and:

• A foreign employer paid all of your compensation during the current year.
• A foreign employer paid all of your compensation during each of the preceding 6 years you were present in the United States as a teacher or trainee.

Since it was back in 2013 , 6 years would have been 2019. Does 2020 not count as a fresh count for another 6 years? I'm confused with this.

Thank you for your time.

[DaveF1006 · Accepted solution]

I am a little cautious to advise you to declare yourself exempt because of the broken periods you were a J1 status. In your example, the lookback period dates back to 2014.

it does say "You will not be an exempt individual as a teacher or trainee if you were exempt as a teacher, trainee, or student for any part of 2 of the 6 calendar years preceding the current year." The current year for tax purposes is 2020 thus the look back would be from 2014-2019.

It is my opinion based on this fact, that will not qualify to be an exempt individual this year but may qualify next tax season. 

[asaga189]

Hello Dave,

Thank you for your fast reply. I understand, I will file as a resident then.

Thank you for your time.