R J1 WORK VISA

[gamacpa]

My first client with J1 work visa.  She is from France. with a w2 from a Ca employer.

Help, what do I need to know regarding: 

IRS and/or FTB

[itonewbie]

Read about exempt individuals.

Ask for history of US visas held in previous years.

CA residency determination does not conform to the IRC (what's new?).

[TaxGuyBill · Accepted solution]

Is this person a Resident Alien or Nonresident Alien?

As itonewbie pointed out, you will need to ask about the details about how long this person has been in the US, as well as look into the rules of "exempt" days for a "J" visa (check out Publication 519).

If this person is a Nonresident Alien, are you thoroughly knowledgeable about Nonresident Alien tax returns?  If not, you may consider passing this one to a more experienced person.  Preparing a tax return for a Nonresident Alien is an entirely different specialized field, and unless you have done extensive research on the matter, in my opinion most tax professionals (including myself) should NOT be preparing returns for a Nonresident Alien.

[itonewbie]

NRA's are, indeed, a different kettle of fish.

For exempt individuals, you also need to find out how the employment costs are borne.

And there is a complicated set of sourcing rules that applies, in determining what is taxable and what is not, under different circumstances and when various exceptions would apply.