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J1 Intern 183 Rule - Fourth J1 - Please Help

Hello my friends. First of all, thank you for your attention.

 

I have a question related to being a resident or non resident alien to file my 2022 taxes. I'm currently under my fourth J1 here in the US. The first one happened in 2015 (Dec/2015 to Mar/2016 - J1 Summer Work and Travel - around 15 days in 2015 and 75 days in 2016) - second in 2018 (Dec/2018 to Mar/2019 - J1 Summer Work and Travel - around 15 days in 2018 and 75 days in 2019) - third in 2019 (Aug/2019 to Aug/2020 - J1 Internship - around 120 days in 2019 and 240 days in 2020) and fourth, now (May 2022 to May 2023 - J1 Internship - at the end, around 240 days in 2022 and 120 in 2023).

 

Based on that, am I considered a resident or non resident alien for tax purposes? I couldn't figure it out if I am considered exempt or not.. can you give please help me out? I will be using TurboTax if I'm considered resident.

 

Thank you so much! 

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1 Best answer

Accepted Solutions
pk
Level 15
Level 15

J1 Intern 183 Rule - Fourth J1 - Please Help

@Anderson Merten , based on your posts so far what i get is as follows :

(a) the dates you have provided so far are kind of general  i.e. moth and year and approx. number of dates  and therefore my conclusions in some cases may not withstand scrutiny

(b) for the year 2015,  you stayed in the USA approx 15 days  -- 12/2015 --- thus NRA -- file form 1040-NR

(b) for the year 2016 , you stayed  approx 75 days   01/01/2016 through 3/XX/2016 --thus NRA -- file form 1040-NR

(c) for the year 2018, you stayed approx 15 days -- 12/XX/2018 through 12/31/2018 -- thus NRA -- file form 1040-NR

(d) for the 2019  you stayed 01/01/2019 through 03/XX/2019   ( approx 75 days ) and again 08/XX/2019 through 12/31/2019 , probably 150 days  or thereabouts for a total of  225 days or so. Thus making you a Resident for Tax purposes. -- file form 1040.   You could also file form 8840  " closer connection exception statement for aliens" to request to be treated as a Non-Resident Alien.  This would mean that as a trainee, you may be  taxed on on US sourced income ( in lieu of world income) and even be not subject to FICA under certain conditions  like  be in school, training  with Non-profits associated with the school etc. etc. )  However, from your earlier statements  sounds like you were here working  and /or training NOT associated with a school -- thus  you may have to consider yourself  a Resident for Tax Purposes.

In my personal view if , and only if, your world income is ALL from US sources, it is better to file as Resident for Tax Purposes, since you get the benefit(s) of standard deduction to reduce your taxable income.

(e) for the 2020, you stayed 01/01/2020 through 08/XX/2020 --- in excess of 183 days .  Thus again a Resident for Tax Purposes --- file form 1040. Same comments as for 2019.

(f) for 2022 , you expect to be here  5/XX/2022 through 12/31/2022 --- thus passing the SPT  of 183 days and therefore Resident for Tax purposes --- file form 1040.

(g) for 2023 --- no comments 

 

I hope all these years you have been filing tax returns  based on the your world income or US sourced incomes as appropriate.   The question that come to my mind is what training are you doing and for this many years -- is his with an US entity / school or a Brazilian entity with US presence or what ?

 

You may find the following page useful ( it does not refer to actual statutes / IRC/rulings etc. though )--->

https://www.irs.gov/individuals/taxation-of-alien-individuals-by-immigration-status-j-1

 

BTW -- your statement that  "you will use TT" to do taxes  is NOT part of  this discussion. Yes it is a very good self-use software but your tax status is ONLY dependent facts and circumstances.  Undoubtedly Intuit would be very happy to have you as a user.  IMHO

 

Is there more I can do for you ?

 

Muito obrigado

 

pk

View solution in original post

5 Replies

J1 Intern 183 Rule - Fourth J1 - Please Help

@pk?

pk
Level 15
Level 15

J1 Intern 183 Rule - Fourth J1 - Please Help

@Anderson Merten , can you please tell me more about J-1 for what --- trainee, exchange student, researcher etc. etc.  And which country are you a citizen/resident of ?   Based on the  number of days I would have said  you are a resident for tax purposes but depending  on why the visa was issued , and the tax treaty  may make a difference.   Please help me.   Also how did you file earlier years that you were here ?

 

I will circle back once I hear from you .

 

pk

 

@tagteam 

J1 Intern 183 Rule - Fourth J1 - Please Help

Hey @pk, thank you for your answer.

 

2015 to 2016 and 2018 to 2019 were J1 Summer Work and Travel.

 

2019 to 2020 and 2022 to 2023 J1 Internship.

 

All of them were work related - I did not come here to study - even tho the J1 VISA is only issued for students, because you need to be enrolled in a college back in your country. I'm from Brazil my friend.

 

That's the main thing: it's unclear if I'm exempt or not. They consider all the J1 students? But then, if you read the tax website info, they say that you are only considered exempt if you are enrolled in college or school HERE (studying), which doesn't make sense because most of the J1 visas are for working not for studying.

pk
Level 15
Level 15

J1 Intern 183 Rule - Fourth J1 - Please Help

@Anderson Merten , based on your posts so far what i get is as follows :

(a) the dates you have provided so far are kind of general  i.e. moth and year and approx. number of dates  and therefore my conclusions in some cases may not withstand scrutiny

(b) for the year 2015,  you stayed in the USA approx 15 days  -- 12/2015 --- thus NRA -- file form 1040-NR

(b) for the year 2016 , you stayed  approx 75 days   01/01/2016 through 3/XX/2016 --thus NRA -- file form 1040-NR

(c) for the year 2018, you stayed approx 15 days -- 12/XX/2018 through 12/31/2018 -- thus NRA -- file form 1040-NR

(d) for the 2019  you stayed 01/01/2019 through 03/XX/2019   ( approx 75 days ) and again 08/XX/2019 through 12/31/2019 , probably 150 days  or thereabouts for a total of  225 days or so. Thus making you a Resident for Tax purposes. -- file form 1040.   You could also file form 8840  " closer connection exception statement for aliens" to request to be treated as a Non-Resident Alien.  This would mean that as a trainee, you may be  taxed on on US sourced income ( in lieu of world income) and even be not subject to FICA under certain conditions  like  be in school, training  with Non-profits associated with the school etc. etc. )  However, from your earlier statements  sounds like you were here working  and /or training NOT associated with a school -- thus  you may have to consider yourself  a Resident for Tax Purposes.

In my personal view if , and only if, your world income is ALL from US sources, it is better to file as Resident for Tax Purposes, since you get the benefit(s) of standard deduction to reduce your taxable income.

(e) for the 2020, you stayed 01/01/2020 through 08/XX/2020 --- in excess of 183 days .  Thus again a Resident for Tax Purposes --- file form 1040. Same comments as for 2019.

(f) for 2022 , you expect to be here  5/XX/2022 through 12/31/2022 --- thus passing the SPT  of 183 days and therefore Resident for Tax purposes --- file form 1040.

(g) for 2023 --- no comments 

 

I hope all these years you have been filing tax returns  based on the your world income or US sourced incomes as appropriate.   The question that come to my mind is what training are you doing and for this many years -- is his with an US entity / school or a Brazilian entity with US presence or what ?

 

You may find the following page useful ( it does not refer to actual statutes / IRC/rulings etc. though )--->

https://www.irs.gov/individuals/taxation-of-alien-individuals-by-immigration-status-j-1

 

BTW -- your statement that  "you will use TT" to do taxes  is NOT part of  this discussion. Yes it is a very good self-use software but your tax status is ONLY dependent facts and circumstances.  Undoubtedly Intuit would be very happy to have you as a user.  IMHO

 

Is there more I can do for you ?

 

Muito obrigado

 

pk

J1 Intern 183 Rule - Fourth J1 - Please Help

Hey @pk!

 

Thank you so much for your answer man, that really helped me a lot. I really appreciate you taking your effort and time for helping me, thank you once again.

 

Just to clarify, on 2015 to 2016 (tax was different here, as J1's we shouldn't pay no taxes during that year) and 2018 to 2019 I worked for Deer Valley in Park City, since is our summer vacation back in Brazil it doesn't affect college. On 2019 I met this architecture office in Park City (I was studying architecture back in Brazil) and they offered me a 1 year internship with them. I 'stopped' college during that 1 year - then I went back to Brazil and graduated, finally an Architect. Even tho we always associate internships with being in college, you can still go for the J1 internship, 1 year max after you graduate.

 

I understand now that I should file as a resident - and no, I have no other income coming from other countries. As soon as I graduted the company hired me back so I basically have been working for them even before I graduated in college.

 

Once again, thank you your answer my good friend. I hope I have a wounderful weekend/holiday.

 

Anderson

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