QUESTION
How can I transition from H1B to permanent tax treaty status?
Asked on Mar 11th, 2012 on Immigration - Florida
More details to this question:
During the course of the last tax year, my status changed from H1B to permanent resident. Because of substantial presence I have been paying taxes as a resident since 2010. Because of a tax treaty with an exception to the saving clause, however, I could claim an exemption despite my tax status as resident. Does the tax treaty and exemption apply to the wages I earned *before* the change in my US immigration status, or is the change in immigration status applied retroactively to my earnings for 2011? In other words, can I still claim an exemption for those wages I earned as a H1B employee, or not? I received a form 1042 S from my employer so I assume so, but would like to check. Thank you.
2 ANSWERS
Assault Attorney serving Richardson, TX
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This is a question for a CPA familiar with international taxes. Call for a recommendation if you are in the Dallas area.
Answered on Mar 14th, 2012 at 3:40 PM
Immigration Law Attorney serving Orlando, FL
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Stoller & Moreno, P.A.
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This is a tax question more than an immigration question. My advice would be to consult with a qualified tax professional on this issue. To the extent that the tax question brings forth an issue of your immigration status, keep in mind that if you make any claim that you are a "nonresident" for tax purposes, you can have issues with applying for naturalization when the time comes. So there are potential immigration problems that can occur, but the focus of your concern is on the tax side of the equation rather than the immigration side of things. In an effort to protect yourself, I would recommend seeking the advice of a tax professional and then taking that advice to an immigration lawyer who can review the advice offered by the tax professional and make sure that you are not making any wrong moves. Good luck.
Answered on Mar 13th, 2012 at 10:29 AM