USA Resident Alien Student / Tax Treaty

[Eli K]

Hello,

I am a new resident alien and a student on a fellowship. I was wondering if I can still claim the tax treaty that my home country has with the US in order to avoid paying taxes on the fellowship, but I am having a hard time understanding the phrasing of the treaty. The saving clause in the tax treaty states:

3. Notwithstanding any provisions of this Convention except paragraph (4), a Contracting State may tax its residents (as determined under Article 3 (Fiscal Residence) and its citizens as if this Convention had not come into effect.

4. The provisions of paragraph (3) shall not affect: (a) The benefits conferred by a Contracting State under Articles 10 (Grants), 21 (Social Security Payments), 26 (Relief from Double Taxation), 27 (Nondiscrimination) , and 28 (Mutual Agreement Procedure); and (b) The benefits conferred by a Contracting State under Articles 22 (Governmental Functions), 23 (Teachers), 24 (Students and Trainees), and 30 (Diplomatic and Consular Officers) upon individuals who are neither citizens of, nor have immigrant status in, that Contracting State.

I don't understand if this means that I can claim the treaty as a resident or that I cannot.......

Thanks for your help!

 

[Drmdcpa]

If you are a resident of the US the treaty does not apply. The treaties often give you an amount of days you can be on US soil to claim the treaty provisions. The number of days varies greatly depending on type of income and status of the individual. Some treaties have better provisions for students. But in general if you are a full time full year resident of the US, the treaty does not apply.

 

[Eli K]

If you are a resident of the US the treaty does not apply. The treaties often give you an amount of days you can be on US soil to claim the treaty provisions. The number of days varies greatly depending on type of income and status of the individual. Some treaties have better provisions for students. But in general if you are a full time full year resident of the US, the treaty does not apply.

Isn't the saving clause supposed to override that in case that I have become a resident alien but have only been a student/paid for 3....? (the treaty in this case is for 5 years...)

 

[Drmdcpa]

You cannot be on US soil making millions and escaping taxation unless you are a political or religious leader or having sex with the same.

If you are on US soil with a student visa, you cannot work for compensation.