Can J-1 Visa Holder work in US for 8 months file 1040?

[twbh]

J-1 visa holder, single Canadian citizen, 2011 work in U.S. for 8 months(internship) has W-2 income but didn't pay Social security tax and medicare tax due to exchange visitor status.

Can he file 1040 return to report world income then claim 2011 Canadian tuition fee shown on 2202A or standard deduction as per XXV? For Canadian return, Can he file non-resident return and carry forward education/tuition amount?

[JGCA]

On a J-l exchange visa you are normally considered as a non resident for at least 2 yrs, you have to file a 1040Nr in US and a CND T1 return in 2011.

Per treaty you can elect to file a 1040 full year but this has no effect on the residency you still have to file as a CND resident and claim the tuition fees on the CND side until you reduce teh taxable income to NIl.

[twbh]

thanks for your response.

so my understanding is J-1 visa holder can file 1040 directly to claim tuition amount and standard deduction. Need to attach a 8833 treaty form to indicate XXV with 1040 return?

[nelsona]

Yes. This is a treaty benefit, but to do this you must report ALL world income for the year, not just US wages like on 1040NR.

[twbh]

In this case, I have to report my world income on both my T1 and 1040 returns. W-2 income $40K is my only income, but unfortunately, I have carry-forward cdn tuition amount $35K from previous years, so I don't think I can deduct any foreign tax credit. On 1040, I can only claim current year tuition fee, is it right?

[nelsona]

Correct. This is a problem recent Cdn graduates face when they work in US.

[twbh]

Thanks a lot, Nelsona. I really appreciate your quick response especially in the busy tax season. I couldn't even get right direction from high rate fee tax consulting until i found this forum.