F1 Student to J1 Scholar

[SM2025]

Hi,

I was a f1 PhD candidate from 2015 to 2023 with multiple entries and exits. I left USA on Nov 11 2023 for India having completed PhD. I am a Indian citizen. On Nov 8, 2024 I returned to USA to a different university as a postdoctoral fellow on J1 Research Scholar visa. I stayed from Nov 8 -Dec 3 2024. Then left for India for the winter break. I returned on Jan 23, 2025. I have these questions:

1) Can I be eligible for the J1 exemption from federal tax for two years for research scholars, teachers (art 22 India US tax treaty)?

2) What forms should I file now for 2024? Would a 1040 NR, form 8843, part time State tax (new Jersey), form 8233 all be needed? The University has been deducting federal, state and social security etc from the salary. Can I file a form 843 to get the social security etc back for 2024?

3) I plan to finish the contract in Oct 2025 or July 2025 and return to India. What forms will I file for next year to get the tax treaty exemption?

[DaveF1006]

No, you are not eligible for another exemption period because it was exhausted previously as a F-1 visa holder. Since you spent less than 31 days in 2024, you need to file a 1040 NR return with Sprint Tax. You will not file form 8843 since you aren't an exempt individual in 2024. Also you would not file be able to file form 8233 because these need to be filled out by December 15 for the following calendar year. You would have need to file this by December 15, 2023 to apply to the 2024 tax year.

For the remainder of your questions.

1. You would file a NJ State return for the income earned in that state.
2. You may file a form 843 if your employer refuses to adjust the overcollection.
3. For 2025, since you will be in the country for more than 183 days, you will file a resident return. There is no treaty exemption in the case since you are being taxed on US income as a resident alien.

[SM2025]

Hi,

Thanks.

Can I file the 8233 now for 2025? 

Filing the 1040 NR means I will get refunded on all the federal and part state taxes deducted for 2024 right? 

For 2025, I am gone from May 23 to August 30. If it's found that I am a non resident, I will file another 1040 NR for 2025 right? In that case I would get federal and part state taxes refunded? Thanks.

[DaveF1006]

No, you won't be able to file the 8233 for 2025 because you have needed to file that by December 15, 2024. Yes, if you are out of the country for the period of time you mention, you may file a 1040 NR return with Sprint Tax because you won't meet the substantial presence test. 

A 1040 NR does not get all of their federal tax refunded back. They may receive a refund for excess taxes if their federal tax paid is more than their tax liability based on their taxable income. Same is true for your state taxes.

You may file a form 843 for 2025 to have your social security taxes refunded next year at this time if you file as a non-resident since you missed the filing deadline to submit 8233.

[SM2025]

Hi,

Since I am headed back to India and have a closer connection with that country, can I request an exception to the J1 lookback rule? I am not planning to file for permanent residency or anything like that in the near future. 

Also, my previous visa status was in F1 as a PhD graduate student. Now, I am a J1 research scholar at a different university after spending a year in India. Does the six-year lookback rule apply without any doubt in my case? 

[SM2025]

Also, for filing the 1040 NR as non resident on J1, is there any standard deduction to be applied? Thanks.

[DaveF1006]

No. The standard deduction is not available for 1040 NR filers. 

[SM2025]

The Sprint tax is showing that I need to pay more taxes despite federal and State deductions by the University. This doesn't seem to add up as a NR filing. Can you please point me to a J-1 NR filing reading by the IRS? I was thinking of hand filing. 

[Vanessa A]

Did they withhold enough? Here are the instructions for the 1040NR. Also, here is pub 519 which is the US Tax Guide for Aliens.   There is not necessarily a publication JUST for J-1 holders, but both of these publications include information for J-1 holders as well as Non-Resident aliens in general. 

[SM2025]

Thank you to both of you!