Question

Eligibility for tax treaty benefit under the U.S.-Italy tax treaty

Forum|Forum|1 year ago
March 15, 2025
1 reply
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I am currently a postdoctoral researcher on a J-1 visa. I entered the U.S. on December 16, 2022, and had no income in 2022, so I did not file taxes for that year. Before moving to the U.S., I was a permanent resident of Italy. For the 2023 tax year, I claimed the treaty benefit under the U.S.-Italy tax treaty, meaning I have used one year of the treaty benefit so far.

For 2024, my tax residency status changed—I was considered a non-resident alien in 2023 but became a resident in 2024. I consulted with IRS volunteers at the University, and they believed that since I have only used one year of treaty benefits and the U.S.-Italy treaty allows for up to two years, I may still be eligible to claim the benefit for 2024. Would you be able to provide me with any guidance? Thanks!

J

JamesG1

This article from the US-Italy Tax Treaty seems to be what the volunteers were referring to. Remuneration from teaching and research are exempt. Other income may not be exempt.

The US-Italy Tax Treaty states:

ARTICLE 20

Professors And Teachers

1. A professor or teacher who makes a temporary visit to a Contracting State for the purpose of teaching or conducting research at a university, college, school, or other educational institution, or at a medical facility primarily funded from governmental sources, and who is, or immediately before such visit was, a resident of the other Contracting State shall, for a period not exceeding two years, be exempt from tax in the first-mentioned Contracting State in respect of remuneration from such teaching or research. 2. This Article shall not apply to income from research if such research is undertaken not in the general interest but primarily for the private benefit of a specific person or persons.

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