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Where Taxpayers and Advisers Meet

J-1 visa - tax question regarding tax treaty

ojazz5
Posts:5
Joined:Fri Nov 20, 2020 10:14 pm
J-1 visa - tax question regarding tax treaty

Postby ojazz5 » Fri Jun 04, 2021 11:57 pm

Dear All,

Could I ask your advice regarding tax treaties.

I am going to the USA to work as a doctor next month for 12-18 months. I'll be on a J-1 visa and thus be considered a 'nonresident alien'.

I received a 'travelling fellowship' from a medical society in the USA. This is for the purposes of education and non-compensatory.

The society have told me they need to deduct 14% state tax from the fellowship money.

I wanted to ask whether this is correct? Or whether under the tax treaty with the UK I would have any arguement for an exemption?

many thanks

DavidTreitel
Posts:244
Joined:Thu Aug 16, 2012 4:31 pm

Re: J-1 visa - tax question regarding tax treaty

Postby DavidTreitel » Sat Jun 05, 2021 9:15 am

Withholding tax is never a final tax. You'll calculate the correct levels of Federal & State tax due when you file your US tax returns.

ojazz5
Posts:5
Joined:Fri Nov 20, 2020 10:14 pm

Re: J-1 visa - tax question regarding tax treaty

Postby ojazz5 » Fri Jun 11, 2021 11:25 pm

thanks for your response - I understand that.

What I wonder is, what is the taxation rate for a UK J-1 visa holder for a non-compensatory education fellowship?

Are there are any uk tax treaties relevant here?


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