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Anne
Anne, Master Tax Preparer
Category: Tax
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Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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Hi, I am a French J1 visa holder postdoctoral fellow at

Resolved Question:

Hi,

I am a French J1 visa holder postdoctoral fellow at the University of Hawaii.
Every month, I receive a stipend from my institute and I am not entitled to any kind of benefits (as I would if I'd received a salary from the university).

According to the federal tax treaty with France (Pub. 901, p. 42):
- Teacher/Professor and Researcher: 2 years without federal taxes.
- Student and apprentice: 5 years without federal taxes.

At first I thought I fall into the first category (Researcher) but the following sentence in the student and apprentice section (Pub. 901, p:21) "An individual who is a resident of France...who receive a professional training or do research as a recipient of a grant, allowance'' seems to indicate that I might qualify for that section.

So here is my question: is a monthly stipend received by a postdoctoral fellow considered as a grant/allowance?

Thanks, Nicolas
Submitted: 7 years ago.
Category: Tax
Expert:  Anne replied 7 years ago.
HICustomerbr />
Thank you for using justanswer. You should be able to exempt your grant income as long as your J1 Visa does not limit your presence or your status to 2 years. If your J1 visa was given to you so that you could study in the US for 5 years, then you would still have to file 2008 Form 1040NRU.S. Nonresident Alien Income Tax Return along with Form 8833 (Rev. August 2006)Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b)

I believe that you are on solid ground here, but you should definitely check with the international specialist at the school you are attending.

Please see below for more in depth information:

Claiming Tax Treaty Benefits

I hope this helps.
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