J2 visa holder and starting time of taxes exemption

[federica]

Hi,
My husband and I have been living in the US (NY State) since August 2008. We are Italian. He has a J1 visa and he works as a post-doc researcher. I have a J2 visa and a valid work permit; I have not worked in the US before.
I am going to start my first American job (such as a post-doc researcher, too) and I would like to know if I am exempted from taxes (and in case wich ones) or not. The two-year exemption is also valid for the J2 visa holders? And when this exemption does start? I mean, we understood that my husband's exemption started when we came in the US (August 2008), is that correct? Did my exemption start at the same time although I did not work until now, or will it start when my job will start?
We are so confused about American taxes!
Thank you very much for answering.

[Atlanta Tax Guru]

Federica:

First, verify with your husband's work that he IS in fact considered to be tax-exempt as a researcher. Not ALL post-doc researchers are tax-exempt.

As for you, generally J-2 visa holders are NOT tax-exempt. However, if the place where you work has issued the necessary documents for you to categorize you as a post-doc researcher, then they should grant you the same status. However, I would NOT count on it.

Below is the extract from the technical explation for the Itallian Tax Treaty; note the sentence in bold italics:

Paragraph 1 provides an exemption from tax in one Contracting State for an individual
who visits that State (the "host State") for a period that is not expected to exceed two years for the purpose of teaching or engaging in research at a university, college, school or other recognized educational institution in that State, or at a medical facility primarily funded from governmental sources. [b]This rule applies only if the individual is a resident of the other Contracting State immediately before his visit begins.[/B] The exemption applies to any remuneration for such teaching or research. The exemption from tax applies for a period not exceeding two years from the date he first visits the host State for the purpose of teaching or engaging in research at the qualifying educational institution or medical facility there.

Since you were NOT resident immediately prior to the visit beginning, I believe the tax exemption does NOT apply to you.

If so, you will file as a resident alien and pay the same taxes as a U.S. citizen.

Your husband's INCOME tax exemption ends in August 2010.

As a matter of U.S. tax law, his exemption from FICA (Social Security and Medicare) taxes ended on 1 January 2009.