client w / J1 Visa doing research in US

[indy]

Client on J1 visa since 1999....
I have a client that has been doing research for a University for 144 days in 2008. Looking
back at the past several yrs worth of returns he brought with him to the office it shows
him filing as a 1040NR and utilizing the US - Spain treaty which allows researchers to
exclude up to $5k of income. He also is a full time Professor teaching in Spain. My questions...
1> Doesn't the ability to exclude the $5k of income expire after 5 yrs?
2> Using the days of presence test, if I take days present in 08 + 1/3 days here in 07 + 1/6 of the days in 06 he satisfies the presence test. I believe I can only continue to treat him as a non-resident if I fill out a Form 8840 to claim a Closer Connection to Spain?
3> On last yrs return he took temporary living exp as an itemized deduction.....
Help!!!

[indy]

bump J1 Visa question

Anyone with any answers out there?

[Roberts]

Since he isn't full term, I don't know. I do some tax returns for doctors with J-1 Visa's but they are all full time employees in the US and are on Fellowships. The first year we do Non-Resident return and after that they are Residents. With them being part time I wouldn't know the different rules.

How is their income reported? 1099? I have one who has his income reported in a written letter from the University. Where will you report the income on the return?