A NEW INCOME

A New Income Q&A

Q: Am I dual alien or other typs for US Taxation? Which taxes to be paid?

I had been a visiting scholar, holding J-1 Visa from 2005-2007. I left the US for good in August 2007 due to the end of the program. I have deposited part of my salaries in the Bank of America in 2006. While I was outside the USA, I also added more monies in the same bank in Jan 2008. Am I both "dual alien" and "exempt individual" for this year 2007 taxation? Am I exempted for taxation? Or will I have to pay only "interest income" earned from the bank for 2007? By adding my new monies in my bank account, will I have to pay "other kind of tax" for the following year 2008, and/or only "interest incomes"? Thanks

A: A student on a J-1 Visa does not start counting his/her days until 5 years are up. So for 2007, you are apparently a non-resident. (The exemption is ONLY for the substantial presence test.) When you file for 2007 you pay tax on income, but not interest income. Non-residents don't include bank interest in their income. The funds are a non-issue (assuming you properly filed your 2006 tax return!)

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