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mystiq

Claiming tax treaty

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Filed: AOS (apr) Country: Bangladesh
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I and my wife are both from Bangladesh. We are trying to file our federal tax return and need some help. There is a tax treaty between Bangladesh and US that exempts $8000 for students. I am working in a company, but my wife is a graduate student.

The treaty article 21(2) says this:

An individual who was a resident of a Contracting State immediately before visiting the other Contracting State and is temporarily present in that other State for the primary purpose of:
a) studying at a university, college, school or other recognized educational institution in that other State;

...

I came to US in 2008 as a student and I used this treaty till 2014 (there was not time limit on the treaty for students like us), even though I submitted my federal return as a resident alien. After 5 years, I became resident alien for tax purposes under substantial presence test.

The problem is we applied for green card last year and at the end of last year our status was AOS pending. We are planning to file a joint return (me resident alien, my wife nonresident alien treated as a resident alien). Can we use this treaty in this case? The fundamental question is, does applying for green card (AOS pending) violates the treaty condition of being temporarily present?

Thanks in advance for your help. We appreciate your feedback. 

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