J1 research to H1b, married to J1

[estchef]

Hi,
I asked question in another thread (H1b) and now I would like to know which type of service I should subscribe too.
I am a French citizen on H1B visa since May07, before I was a J1 scholar since July05.

My spouse is a J1 holder (research fellow) since july 05.
We both paid Medicare and Social security since January 07 ( questions about 24 months or 2 calendars years) and I (H1B) start to pay FICA in June 07 (that is normal as far as I know)

This year I could fill dual status and my spouse non-resident or we could choose to fill as resident alien.

Does the income non taxable because of tax treaty become taxable (article 20, teacher/researcher from France)?
How do we report the amount show on our 1042s on a form 1040 ?

Are you qualify to help us figuring out our tax and refund ?
If we want to purchase your filling services, which one should we choose? For how much?

[Atlanta Tax Guru]

The FICA withholding for the first several months of 2007 is improper in my opinion. The J-1 exemption from these taxes are 24 consecutive months.

If you file jointly, you explicitly choose to be treated as resident aliens for ALL of 2007, which would make the exempt income taxable. You can include the 1042-S income on either Line #7 or Line #21.

Yes, we are qualified to help you file your taxes. As to which service to choose, you need to email me at taxexpert@visataxes.com with your phone number so we can discuss the options in depth.

[anidoke]

Hi VisaTaxes.com,

(I couldn't find the link to start a new thread so posting a reply....)

I came from India to US in June 06 as a J-1 postdoctoral fellow in NC, USA. Initially, the project was for a year and I availed the tax treaty. Then I got 1 more year extention but was still under treaty limit.
At the end of June 08, I got further 1 year extention and now I need to
pay all backtaxes retroactively.

I'd filed 1040NR-EZ for 06 and 07 as zero tax.

I am calculating my taxes still.....Any help is much appreciated. If anyone with similar case like me, pls reply ur experience....

My questions are

1) On the basis of 1042-S from my Univ. I am filing 1040X but I doubt that I can't avail the std. deduction of $5000 as a J-1 researcher from India (not a student). I can only avail the exemption deduction of $3300 for 06 and $3400 for 07.
Am I correct ?

2) Since I'd not filed the NC state taxes also for these 2 years, how to calculate the itemised deduction ? ( the only permitted itemised deduction for J-1 researcher is state and local taxes according to 1040NR-EZ columns....correct me if I'm wrong )

3) Since these two are interconnected, I am unable to calculate the AGI and fed taxable income...

Please reply with your inputs...

Hoping to be excusd for the trouble and thanking you in anticipation,

Regards,

Anidoke

[Visa Taxes Expert]

J1 students can avail the exemption for upto 5 years

J1 Teacher or Trainee can avail the exemption for upto 2 years.

If you are a J1 Teacher or Trainee , you need to start paying FICA taxes after your 2 years exemption period.

Contact us to see if Form 1040NR or 1040X is right for you.

You can email taxexpert@visataxes.com

Hope this helps!