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l_ali_khan · Apr 8, 2005, 10:44 PM

Hi,
Sorry if these questions are very naïve.
I came here on a F-1 visa in Aug'01 and am originally from india. Last year I was working on an OPT till Sept 30th and started working on a H-1 from Oct 1st.
1)Which form do I use: 1040-NR or 1040 NR-EZ or something else?
2)Will I still be able to claim standard deduction ($4700 and is this amount right) under US-India income tax treaty?
3)I have another question. I have been obtaining my Transit Checks from my firm and have paid $600 which is excluded from federal taxable wages. If I were to take a deduction for this would I have to file a different form? Would this be complicated to file for?Approximately how much would I be able to save by asking for this exclusion.My tax rate is 28% and I am in chicago(if it helps).
Thanks in advance for answering my questions
Lak.

AtlantaTaxExpert · Apr 9, 2005, 07:34 AM

L_ali_khan:

1) You need to file Form 1040NR so you can claim the standard deduction.

2) You may claim the standard deduction, which is $4,850, under the U.S.-Indian Income Tax Treaty.

3) You cannot take the deduction for the transit credits, as they represent commuting expenses, which are never deductible. Besides, those transit credits were paid for with pre-tax money to begin with.

l_ali_khan · Apr 9, 2005, 08:26 AM

Hi AtlantaTaxExpert,

Thanks a ton for answering my question. So just to confim I should file form
1040-NR(not form 1040 NR-EZ) and file the standard deduction($4850) along with an exemption deduction of $3100 which should make my total deduction to be $7950.

I thank you again for your help.

AtlantaTaxExpert · Apr 9, 2005, 08:39 AM

That is correct.

Good Luck!

l_ali_khan · Apr 10, 2005, 01:50 PM

Sorry, Please Ignore...