Resident J1 & J2

[Mille]

Hello,

Me and my spouse entered US in Oct 2017 with J1 and J2 visa. We have now pay taxes for 2020.

For the first 2 years (calendar for state and 2 real year for federal) I had a tax exemption. So I started paying on my salary State in Jan 2019 and  Fed in Oct 2019.

I received a W2 with a blank in the wadge box (not blank for social security and medicare tax witheld). I also got a 1042s with code 19, expemption code 04 et 16; tax rate 0, 0 federal tax whithheld and non blank value for my gross income.

My spouse working at another place just received a refular W2 with non blank cases.

We used springtax the past two years and now have to swich to turbotax because we are resident for tax now.
Should I enter both 1042s (with precedure explained here) and my W2? Because when I do that I have to pay thousand of unpaid and underpay taxes which is weird because I already pay some on my salaray.

Where should I mention these paid taxes and my tax treaty?

[KarenJ2]

Please provide additional details.  

• Did you arrive on a J1 student visa or J1 scholar visa.... is this your first time in the US on a J1 or F1 visa?
• What visa do you and your spouse have now?
• What country are you from and what treaty article are you referring to?

Thank you for your assistance.

[Mille]

I arrived on a scholar visa it was our first time in the US.

We still have the same J1 and J2 status for research scholars. We had to renew the visa for this third-year extension.

We are from France and have a tax treaty (see here for example) that prevents us to pay taxes in the US for the first two years. For 207 and 2018 I had to fill an 8843 Statement for Exempt Individuals form.
I checked last year in 2019 I paid on my salary state taxes (social security and medicare) but not federal taxes (due to the treaty).

Thanks

[KarenJ2]

You were exempt from counting US days of presence for 2 years or part years.  So you were a nonresident for 2017 and 2018.  Starting January 1, 2019, you had to start counting your US days of presence.    Please see example 4 in following link just to see how to count the exempt years.  Alien Residency Examples

I am not sure that the US French treaty exempts you for 2 full years, instead it is more likely to exempt your compensation for 2017 and 2018 while you were exempt from US days of presence.

You should enter your W-2 and 1042-S forms (as indicate in your link above).  Your W-2 I assume is for October to December 2019 wages.  As such it should include your wages and include federal and state tax withholdings. 

If you are eligible for a tax treaty, you would need to file a Form 8833 and claim the treaty exemption as a negative amount under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ".  

You will need to attach Form 8833 and print and mail your return .

[Mille]

Thanks.

So I am a resident for this year.

I signed a treaty for 2019 and was not withheld federal (only state) so I guess it works for the full two years.
W2 has empty bow 1 and 2. My 1042s has zeros for federal tax withheld. How much should I manually remove as negative amount? The whole gross income of 1042s? Minus Oct to Dec gross income?

Or My social security (and medicare) wadges?

[KarenJ2]

You need to speak to someone who is familiar with the US /France Treaty.

ARTICLE 20 Teachers and Researchers 1. An individual who is a resident of a Contracting State immediately before his visit to the other Contracting State and who, at the invitation of the Government of that other State or of a university or other recognized educational or research institution situated in that other State, visits that other State for the primary purpose of teaching or engaging in research, or both, at a university or other recognized educational or research institution shall be taxable only in the firstmentioned State on his income from personal services for such teaching or research for a period not exceeding 2 years from the date of his arrival in the other State. An individual shall be entitled to the benefits of this paragraph only once. 2. The provisions of paragraph 1 shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.