[pennyroyal]

Dear Expert,

I am very confused about how to qualify for the benefits for students under US China tax treaty. My wife has been here for one year and a half on F-2 visa. She will go back to China, apply for F-1 there and come back to the US. Some people said, to be eligible for the treaty benefits, she has to stay in China for at least a full year immediately before she comes to US on F-1. But why does she have to reestablish Chinese residency? The things is, she has been a non-resident alien in the US. So for tax purposes, she has always been a Chinese resident. By the same logic, I think even if she applies for change of status within the US (without going back to apply for F1 in China), she would still qualify for the benefits. Is that right?

Thanks

Ben

[AtlantaTaxExpert]

I am of the considered opinion that your wife does NOT have to re-establish Chinese residence to claim the tax treaty benefits asscoiated with being a student. Your logic seems correct to me, in that she has NEVER abandoned her Chinese residency by being in the U.S. under the F-2 visa.

[pennyroyal]

Thanks so much for your opinion!