J-1 Non-student Visa Holders:
J-1 professors and researchers who come to the U.S. for more than a few weeks are usually treated as employees, rather than independent contractors. J-1 visitors formally assigned a class or laboratory for a semester require employee status.
J-1 non-student visa holders (professors, researchers, etc.) are generally considered nonresident aliens for any part of the first two calendar years they are in the U.S. in that visa status. J-1 non-student visa holders who have been in the U.S. for any part of more than two calendar years pass the substantial presence test and so are considered to be resident aliens. For example, a professor with a J-1 visa who arrived in the U.S. in 2004 files nonresident tax returns (IRS Form 1040NR) for 2004 and 2005. The professor passes the substantial presence test in 2006. The professor is considered a resident alien for tax purposes in 2006 and should file a 1040 for that tax year. Please see IRS Publication 519: US Tax Guide for Aliens for more information.
Departments that are planning to pay a J-1 professor or researcher must ensure that (1) the visitor has or applies for a U.S. social security number and (2) the visitor has completed the International Tax Questionnaire.
H-1B, O, P and TN Visa Holders:
H-1B, O, P, and TN visa holders are generally considered nonresident aliens until they meet the "substantial presence" test. Unlike F-1 students and J-1 students, professors, and researchers, H-1B visa holders do not have a special exempt period before counting days in the substantial presence test. They will start counting days according to the substantial presence test from the day they arrive in the U.S. These individuals will pass this test with 6 months of continuous presence in the US. These individuals will have FICA taxes deducted from their employment earnings beginning with their first paycheck.
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