Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Are you asking if you would be liable for taxes on the income earned during your J1 period, if you come back?
You would not be liable for the past taxes. However, when you come back into the US you will be subject to the income tax rules for your visa type. You would most likely be taxed on the income you earn here.
Even if the treaty has a retroactive clause?
What country are we looking at, and which article of the tax treaty
United Kingdom, treaty article 20A
okay let me look and read the article
I read article 20, and I do not see a retroactive clause
Are you going back home, staying a little while, and then coming back?
I have booked to go back home. But I am thinking of applying for another job- which I will apply for a H1-B.
If you go home and then come back, I do not see how you would be liable for the tax for the period that you were a gueset
However, if you were to stay longer than 2 years then you would owe the tax because then you have been here for over 2 years and don't meet the requirements of the treaty
Does it matter how long I am home for- do I need a break between the two positions?
Yes, I would take a break between positions
What should be the duration?
That's subject to interpretation. I would say at least a couple of months.
Ok thank you for your help
If you would, please rate my response "excellent " so that I may receive credit for assisting you today
Thanks so much! Have a great day
I have found this from Publication 901 which suggests there is a retroactive clause?
entire visit, including the 2-year period
But if you go home and then come back, then it's a new visit
allow several months between jobs
Ok thats what I needed to know!
Thank you so much!