Hello,

I was under OPT until Oct. 2007 and changed over to H1B from the beginning of Oct. 1, 2007. With regards to filing my federal tax returns for 1040-NR, I have a question about reporting bank interest income on my tax forms.

I have received about $ 2000 as bank interest in 2007 and the banks sent me a 1099 form. Is it mandatory that I report all my interest income to the IRS? I'm a single non dependent and have already been paying a huge amount of taxes.

Also, all my interest income has been from my salary that I have no choice but to deposit in the bank. Isn't it wrong to be taxed twice? The salary I get is already after tax deduction and the interest that I make is from the money which is already taxed.

Please advise me on this asap.

Thank you very much.

kaushik

The interest earned while on OPT is NOT TAXABLE due to your F-1 visa status.

Interest while on H-1B IS taxable.

Prorating it is grade school math.