hello,

I am a full time F-1 student in Mar '01 to Jul '06, and from Aug '06 I am under OPT working in an US company.

1) Do I need to file the 1040 or 1040NR for 2006?
2) there is $5000 tax treaty between US and China, so I am wondering, if this tax treaty for all kind of incomes, or just for some particular incomes? can I deduct it from my W-2?
3) How to file this tax treaty in the 1040 or 1040NR?

thanks a lot.

AtlantaTaxExpert

1) If you are single, you should file Form 1040NR. If you are married, Form 1040 is an option for you.

2) The treaty exemption is for earned income, so you will be able to claim it for 2006.

3) For 2007 and beyond, the treaty exemption will apply only if you continue to file as a non-resident alien (Form 1040NR). If you file Form 1040, the treaty exemption does NOT apply.

Which state do you live in? The reason is that state and local income taxes are deductible as an itemized deduction. That is in addition to the $5,000 treaty exemption.

Contact me at if you have more questions.