J1-J2 VISA

[HOPE2]

J1/J2 visa

Hi to all, if wife has J1 visa and husband has a J2 visa , who should file form 8843 for child and if both have W-2 should file each as non-resident 1040-NR separately?

 J1 visa should file 8843 for herself and husband as well or J2 visa can file 8843 by himself since has a W-2 and J1 file 8843 for herself. 

I was wondering if husband has other income like online shop as self-employed (beside W-2 ) where should enter on 1040-NR?

should file Sch C but no pay SE tax also? If so, what part of Sc C indicates to exempt of SE for a non-resident. no treaty tax included on visa.

Please help.

[itonewbie]

It is assumed you have already verified that the J-1 visa holder is within the time limit of being treated as an exempt individual.

Does the dependent child have any income that may otherwise fall within US tax net?  If not, I wouldn't file a F.8843.

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@HOPE2 wrote:

I was wondering if husband has other income like online shop as self-employed (beside W-2 ) where should enter on 1040-NR?

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The presumption is that the husband on J-2 has EAD and he substantially complies with the requirements for being so present pursuant to §7701(b)(5) and §301.7701(b)-3(b)(6) to be treated as an exempt individual.  On that basis, he'll file a F.1040-NR separate from the J-1 spouse.

Although J-2 exempt individuals are generally subject to FICA, §1402(b) specifically excepts from the definition of SE-income such earnings derived by NRA's.

SE-income and employment income are US-ECI, which is subject to graduated rates under §1.  SE-income would be reported on Sch C and Sch 1 before flowing to page 1 of F.1040-NR.

[HOPE2]

@itonewbie I truly appreciate your consistent help with my tax questions.

Does the dependent child have any income that may otherwise fall within US tax net?  If not, I wouldn't file a F.8843.:     No , child did not have income. I found this today: UNIVERSITY OF CALIFORNIA, BERKELEY, 

Who must file Form 8843?
All international students, scholars and their dependents including spouses and children present in the U.S. under
F-1, F-2, J-1, or J-2 nonimmigrant status regardless of an individual's age, who are nonresidents for tax
purposes, must file Form 8843. Nonresidents for tax purposes must file this form with the IRS even if they received
NO income in 2023. 

The presumption is that the husband on J-2 has EAD and he substantially complies with the requirements for being so present pursuant to §7701(b)(5) and §301.7701(b)-3(b)(6) to be treated as an exempt individual.  On that basis, he'll file a F.1040-NR separate from the J-1 spouse. Got it, thanks

SE-income and employment income are US-ECI, which is subject to graduated rates under §1.  SE-income would be reported on Sch C and Sch 1 before flowing to page 1 of F.1040-NR. Got it, thank.

To be honest I did not see any part of Sch C that to checkmark exempt from SE since he is Nonresident!

May I have your help for this part!

[itonewbie]

No problem, @HOPE2.

Given the child is in university, I'd file F.8843 just in case.  Who knows, he may take up employment later and you'd want these days to be exempted.

For SE-tax, you should also check whether there's any totalization agreement with your client's home country in place, which may then necessitate the payment of SE-tax.

[HOPE2]

Child is 5 years old, I meant I searched and found that article from university of Berkely that says :

All international students, scholars and their dependents including spouses and children present in the U.S. under F-1, F-2, J-1, or J-2 nonimmigrant status regardless of an individual's age, who are nonresidents for tax purposes, must file Form 8843. It means should file for 5 years child form 8843.

Their country does not have any tax treaty and totalization with the U.S. that is why I could not find any area of Sch C to checkmark exempt from SE tax.

"Thanks again for the ongoing help. I really appreciate it!"

[itonewbie]

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@HOPE2 wrote:
Does the dependent child have any income that may otherwise fall within US tax net?  If not, I wouldn't file a F.8843.:     No , child did not have income. I found this today: UNIVERSITY OF CALIFORNIA, BERKELEY, 

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I thought you mean you found out today that the child was enrolled in UC, Berkeley.

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@HOPE2 wrote:

All international students, scholars and their dependents including spouses and children present in the U.S. under F-1, F-2, J-1, or J-2 nonimmigrant status regardless of an individual's age, who are nonresidents for tax purposes, must file Form 8843. It means should file for 5 years child form 8843.

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Don't disagree with it.  That's most prudent.  No question this should be filed for the J-1 visa holder and the J-2 visa holder with EAD.  Then take a look also at the penalty provisions on the filing instructions for F.8843, which is consistent with §301.7701(b)-8(d), and consider whether you would still want to file for a dependent child of 5 years old.

[HOPE2]

@itonewbie do you have any idea for this part:

Their country does not have any tax treaty and totalization with the U.S. that is why I could not find any area of Sch C to checkmark exempt from SE tax.

"Thanks again for the ongoing help. I really appreciate it!"

[itonewbie]

I'm not a PS user, so can't be certain.  I think you'd need to override and disable error checking to e-file.

[HOPE2]

I have Proconect as well but Sch C for both is similar.