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- Re: Teacher J1 Visa under Treaty Exemptions.
Teacher J1 Visa under Treaty Exemptions.
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Celticpanther25
Level 1
Tuesday
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Hi there.
I would like to seek guidance for a client who is here on a J1 visa as a teacher from Spain, working for a US educational institution. Under the J1 visa rule for teachers unless otherwise stated in the treaty. A teacher is exempt for 2 years with no income limit or limit on presence for those two years. My education, a teacher from Spain is under Treaty Article 15 Independent Personal Services: Article 15 Independent Personal Services 1. Subject to the provisions of Article 7 (Business Profits), income derived by a resident of a Contracting State in respect of professional services or similar activities of an independent character shall be taxable only in that State. However, such income may be taxed in the other Contracting State if such resident has or had a fixed based regularly available to him in the other Contracting State for the purpose of performing those activities. In that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State. 2. The term "professional services" includes especially independent scientific, literary, artistic, educational, or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists, and accountants.
.Professional services are defined under Educational or Teaching activities.
The agent is stating that since the teacher has a W-2 and not a 1099 they are required to file under dependent personal services. I have informed the agent that they are getting the standard treatment of an NRA confused with that of a NRA Teacher here on a J1 visa.
Any feedback or assistance would be appreciated.
I
I'd appreciate any input. Thank you.
1 Comment 1
TaxGuyBill
Level 15
yesterday
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@Celticpanther25 wrote:
The agent is stating that since the teacher has a W-2 and not a 1099 they are required to file under dependent personal services. I have informed the agent that they are getting the standard treatment of an NRA confused with that of a NRA Teacher here on a J1 visa.
This is not my area of expertise, but I agree with the agent. The teacher is an employee, and that is "dependent personal services", not "independent".
Why do you think being a teacher or on a J-1 visa changes that?
