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Thank you for your reply! My first J-1 tour started in 01/2007-07/2007. I then went back to Germany for two months and started at a different position as a J-1 for a year before my visa got switched to F-1. After 3 months on F-1 the university here contacts me and asks me if would like to take advantage of the treaty and since then (01/09) taxes or FICA (don't know which I am getting back) have not been taken out of my stipend. Do I have to repay this extra money if I decide to stay longer than 5 years? Thank you very much for your answer and happy holidays!
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If the stipend is a grant of some type, it MAY be tax exempt from both Income and FICA taxes.
If it is compensation for work or services rendered, then it IS liable for state and federal INCOME taxes, but, due to your J-1 (then F-1) status as a student, it is EXEMPT from FICA(Social Security and Medicare) taxes.
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The No 1 Tax Preparation Service for International Students, Foreign Nations, Greencard holders and US Citizens deployed overseas. Save Taxes on H-1B, OPT, F-1, J-1, L-1 and other visas. Apply for Non Resident Tax Forms 1040NR,1040NR-EZ, Form 8843 and Form 843, plus ALL state tax returns! Visit http://www.VisaTaxes.com The No 1 Non Resident Tax Preparation Firm, trusted by thousands of F1, J1, H1B other visa holders in US. Ask us about our 10% Refer a Friend Tax Discount |
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There may have been a misunderstanding, I was J-1 then and am on F-1 now. Anyhow, do I have to repay income and FICA taxes if I exceed my stay over 5 years? Even on a different visa type? How much do you charge to prepare my taxes for me? Do you have a flat rate? Thanks.
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You have the legal responsibility to notify your employer when your exemption from FICA taxes ends. Once you have so notified your employer of that fact, it is HIS responsibility to start collecting these taxes.
Our rates can be found on the main page of this website, and vary depending on whcih forms are used and the complexity of the return. For an exact quote, please email me at taxexpert@visataxes.com.
__________________
The No 1 Tax Preparation Service for International Students, Foreign Nations, Greencard holders and US Citizens deployed overseas. Save Taxes on H-1B, OPT, F-1, J-1, L-1 and other visas. Apply for Non Resident Tax Forms 1040NR,1040NR-EZ, Form 8843 and Form 843, plus ALL state tax returns! Visit http://www.VisaTaxes.com The No 1 Non Resident Tax Preparation Firm, trusted by thousands of F1, J1, H1B other visa holders in US. Ask us about our 10% Refer a Friend Tax Discount |
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