Question

I'm a French J1 scholar with a tax treaty. In 2017 I became a resident for tax purposes after being NR for 2 years.Do I file dual status or can i elect to be resident?

Forum|Forum|7 years ago
June 6, 2019
10 replies
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I'm a J1 scholar from France with a tax treaty. In september 2017, I became a resident alien for tax purposes after beinga non resident tax exempt for 2 years, which means I have to file as a dual status alien this year, and we have to file married separately. Or could we elect to file jointly and be considered Resident alien for the whole year ? Or is it not possible because I claimed a treaty during the Non resident part of the year ? Also, my wife is a J2 and started working in August 2017, does she have to prorate her earnings for August to fill the non resident part of the year in 1040NR, and then prorate the remainer of the year as resident in 1040 ? We don't quite understand what to put in the 1040NR statement for her (I have a 1042-S so it's easier). Also, should we prorate our interests of our foreign account to reflect only the resident part of the year (1/4 of the interest, corresponding to 4 months)?

PopeyeTheSalior

Employee

When did you and spouse first enter the US?

S

stefstev2Author

September 2015

PopeyeTheSalior

Employee

How long did you stay in the US in 2017?

S

stefstev2Author

The whole year except a month abroad.

S

stefstev2Author

We do meet the SPT.

S

stefstev2Author

The more I read, the more I'm wondering if we could elect to be resident for the whole year (First year election) to make our return more simple. I thought we had to do a Dual Status return, but can we just do a Resident alien return (and file 8833 to claim the exception of the saving clause of the treaty between France and the US, article 20 for researcher).

PopeyeTheSalior

Employee

Please see answer below.

P

punter

Hey Stephen, I have just moved here from France and in a similar situation as you. Did you have to pay/declare taxes in France while you were being exempted from taxes here? I have been looking for this information all over but seems very complicated. Thanks!

M

mgent

Hey @punter, did you find any information regarding this? I'd be curious. Thanks.

PopeyeTheSalior

Employee

As a J-visa holder, you are exempt (not counting days) for two years from the year you first enter the US. In your situation, you both are considered as a nonresident for 2015 and 2016. Based on your information, during 2017, you are likely treated as a resident for tax purposes as you meet the Substantial Presence Test SPT. ( Do not need the First Choice election) You can simply file a Form 1040 like most of the US citizens. You are not a dual status. If your income meets the criteria for the US-France tax treaty, you can claim an exemption on your Form 1040.

In the TurboTax program, you would enter your income in the appropriate section, then enter the treaty-exempt amount as a negative amount under "Federal / Wages & Income / Less common income / Miscellaneous / Other Reportable Income ". You will have to file a Form 8833 to claim an exception. Per IRS, you cannot e-file, but can print and submit the return along with the form 8833 by mail.

S

stefstev2Author

Thank you so much for your clear answer and help!

R

Riccodesbois13

Hello Stef !

did it work for your tax return ?
I ve same statut as you.

j1-j2, we arrived in October 2019.
so until October 2021 we were exempted.
can you explain me what did you have to do and which form you have to complete.

merci d avance 🙂

DaveF1006

Since your period of exemption was 10/2019-10/2021, you do you have enough days in 2021 to file as a US resident according to the substantial presence test. You will need to file a 1040 NR for 2021. To file, contact our affiliate at sprintax.com.

@Riccodesbois13

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