How does the US/India tax treaty affect the state tax refund?

student2worker · #1 Apr 1, 2007, 01:16 PM

The people who make International Student Taxes have put a special resource page for Indians.

International Student Taxes | Resources | Students from India

I am stuck on a point in this page. To quote:

"2. If you took the standard deduction last year, do not put anything on Line 4 of 1040NR-EZ or Line 11 of 1040NR even if you received a refund of state taxes."

Why is this so?

Is this only for those who are still in F1 visa or can it be used for those who changed status to H1B but are still non-residents for tax purposes?

The Texas Tax Expert · Apr 1, 2007, 01:19 PM

Quote:

Originally Posted by student2worker

The people who make International Student Taxes have put a special resource page for Indians.

International Student Taxes | Resources | Students from India

I am stuck on a point in this page. To quote:

"2. If you took the standard deduction last year, do not put anything on Line 4 of 1040NR-EZ or Line 11 of 1040NR even if you received a refund of state taxes."

Why is this so?

Is this only for those who are still in F1 visa or can it be used for those who changed status to H1B but are still non-residents for tax purposes?

This is true for everyone. It's called the tax benefit rule.

student2worker · Apr 1, 2007, 01:21 PM

Thanks Texas Tax Expert.