From: Daniel Kluge < >
Date: Mon, 16 Apr 2001 10:39:32 -0700
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On 16 Apr 01, at 9:57, Balthasar Bickel wrote:

> Thank you so much everybody for their generous advice! Here's the
> summary of what I found out from people's responses to my query, from
> the UC Berkeley International Scholars Services, and from direct
> information from the IRS (yes, they call you back when you leave a
> message -- even now! -- and they do know about things!):

Just my $0.02 to the matter below, the usual disclaimers apply (e.g.
it's your fault).

> There are two important things to know:
>
> 1. As Ursula points out, you become a resident alien after two years of
> presence ONLY if your salary comes from within the US. So, SNSF
> fellowship holders continue to qualify as nonresidents in their third
> year of presence!

Huh?

For Federal Taxes, you qualify as a resident alien either if you are
a. a lawful permanent resident (Green Card)
b. meet the substantial presence test.

The substantial presence test is met if:
- individual present in the U.S. for at least 31 days in current year
AND
- current year U.S. days plus 1/3 prior year U.S. days, plus 1/6
second prior year U.S. days equals or exceeds 183 days.

Where your salary comes from has no influence on the presence test.

Non-Residents pay taxes on U.S. Employment income and on
foreign income while present.

Residents pay taxes on all foreign employment income and all U.S.
employment income and all foreign passive income. Foreign income
taxes can be used as a credit.

(The info is taken straight from slides from Ernst & Young)
 
> 2. For those of you who qualify as resident aliens nevertheless,
> salaries and other renumeration from Swiss Government agencies are
> tax-exempt under the current Tax Treaty.

Note that the State of California doesn't honor tax treaties.
 
> I take no responsability for the correctness and accuracy of this
> information. When in doubt, call the IRS at 1-800-829-1040!

Good choice :-)

Cheers,
-daniel

-- 
Daniel Kluge / Program Manager - TIBMercury Online
TIBCO Finance Technology Inc.              Phone  +1-650/461-3000
3375 Hillview Avenue                       Fax    +1-650/461-3003
CA 94304 Palo Alto, USA                    Direct +1-650/461-3332
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