What are exemption Deductions?
Can we use exemption deduction as well as standard deduction ?
as a professional having H1b visa status

MukatA

When did you enter the U.S. and on what visa? When did you start on H1-B? Are you married or single. Only if you answer these questions, then someone can post the reply.

If you are nonresident for tax purpose, you will not get standard deduction.

Zifa

Hi Mukta

I entered USA in 2006 on F1 visa. Then In 2007 Oct. My visa status changed from F1 to H1B. I am Indian national. And I am single.I dont have any dependents.I dont have any property or estate, no other social services funds ......... basically nothing for deductions.
I wanted to know if one can get Exemption Deduction along with standard deductions irrespective of you are resident or on H1 B ? or even nationality matters_ eg Japan korea India ect. ( I am concern only about personal exemptions and not dependent exemption)
I tried HandR block and it shows me exemption deductions as well as standard deduction for rough estimation of the Taxes.

Thanks

MukatA

Everyone resident or nonresident gets personal exemption ($3,400 for 2007).

For 2007, you will file nonresident tax return. If you have income during F1 or OPT, on your OPY income you will get standard deduction of $5,350 based on tax treaty on.

Zifa

I have one more question since this time as well my Social Security and Medicare Taxes are not charged for half of 2007 do I need to file 8843 along with the federal form ?

MukatA

Yes, you will also file Form 8843.

For more info on nonresident filing: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents