Re: about Tax Treaty benefit ??

Sep 03, 2007 1 Replies


I am a J1 Scholar from Pakistan and getting my earnings,


> funded by Government of Pakistan as research scholarship.
> When I came here in USA, (in 2006), I filed the tax treaty
> exempt (form 8233) since Pakistan and USA has the treaty.
> After filing 8233 for the following two years (i.e., 2007
> and 2008), it seems in my earning statement that my salary
> wasnt dedcucted by the payroll for any tax. But when I got
> my earning statement in April 2007, it showed me that my
> salary was deducted for two kind of taxes, namely;
> Fed-Studying/Trng Tax Trty and IL - Studying/Trng Tax Trty,
> and after that until now every month my salary is being
> deducted by the same taxes. When I asked to my payroll
> office they replied me as following:
>
> "Fed-Studying/Trng Tax Trty and IL -Studying/Trng Tax Trty"
> are indicators that I am receiving tax treaty benefits for a
> portion of my income. Once the benefits have been used I am
> then taxed appropriately for my tax residency status,
> non-resident or resident alien".
>
> I have some questions:
> 1) what is tax treaty benefit?
> 2) If it's a BENEFIT, then why the amount is deducted and
> reducing my salary?
> 3) Should I get this deducted money back at the end of year
> through IRS as I got my taxes back last year?
> 4) How the way for filing this amount, to get back through
> IRS? I mean which form..?
> 5) Should I consider these two taxes same as the normal
> taxes which normally one's get back at the end of
> financial year??

Hey guys , I am waiting for reply



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Maybe nobody here is familiar with your precise situation - it is pretty unusual. You may have to bite the bullet and find a practicioner who knows about this kind of thing, or is willing to learn (at your expense). Stu

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