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June 5, 2019
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Am I eligible for any tax benefits as an F1 student(08/2017). I was a J1 research scholar from 09/2016 to 04/2017, then I came back to China and now return the US

  • June 5, 2019
  • 2 replies
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Hello, I was a J1 research scholar from Sep 2016 to April 2017, and then I went back to China and now I am an F1 student at another University since August 2017.Am I eligible for the tax benefits for the year 2017?  And if not, when should I be eligible for those tax treaty benefits?   

    Best answer by pk12_2

    As TaxGuyBill said, it would help if we knew what benefits are you talking about.  So please tell us more  as to what  you mean.

    Generally speaking, once you have completed 186 total days of physical presence ( counting all days in current year + 1/3  days from the last year and 1/6 the days of the year before , i.e. all of 2017, 1/3 of 2016 and 1/6 of 2015 ), you are treated as a resident for tax purposes. A resident ( even  if only for tax purposes )  is taxed by the USA on world income. Since the  non-resident alien is being taxed as a resident, it also means all the decutions, credits ( mostly ) are also applicable.

    A non-resident alien is taxed by the USA only on US sourced/ connected income. There are also very limited number os deduction allowed.

    The test for physical presence  of non-resident alien is suspended for students ( F1 ) for upto five years  from the time of admission under F-1.  And  you can only work with a very limited permit from the  Homeland Security.  You also have to file a 1040-NR  which is not supported by TurboTax. 

    Does that cover what you are looking for ?

    2 replies

    Employee
    June 5, 2019
    Are you referring to any tax benefits in particular?

    You are a Nonresident Alien, and TurboTax is not able to do that type of tax return, so I would recommend going to a tax professional that is EXPERIENCED with Nonresident Aliens.
    pk12_2Answer
    Employee
    June 5, 2019

    As TaxGuyBill said, it would help if we knew what benefits are you talking about.  So please tell us more  as to what  you mean.

    Generally speaking, once you have completed 186 total days of physical presence ( counting all days in current year + 1/3  days from the last year and 1/6 the days of the year before , i.e. all of 2017, 1/3 of 2016 and 1/6 of 2015 ), you are treated as a resident for tax purposes. A resident ( even  if only for tax purposes )  is taxed by the USA on world income. Since the  non-resident alien is being taxed as a resident, it also means all the decutions, credits ( mostly ) are also applicable.

    A non-resident alien is taxed by the USA only on US sourced/ connected income. There are also very limited number os deduction allowed.

    The test for physical presence  of non-resident alien is suspended for students ( F1 ) for upto five years  from the time of admission under F-1.  And  you can only work with a very limited permit from the  Homeland Security.  You also have to file a 1040-NR  which is not supported by TurboTax. 

    Does that cover what you are looking for ?

    June 5, 2019
    Thank you very much! I am talking about the tax treaty forms and Federal tax deductions.  Am I eligible for applying that?