I am Indian and came as a student to the US in Aug 2002 and have been in the US since. For the year 2005, I was on OPT from Jan 1st to Sept 30th and then on H1B from Oct 1 to year end.

Will I get the $5000 std deduction under the US India treaty since I was on H1B for the last 3 months.

Am I a resident for tax purposes. If not when will I become one and what is the criteria for it

Which of 1040R, 1040R-EZ, 1040NR, 1040NR-EZ should I fill out.

I got some interest income on 1099 form. Is the amount taxable or would it be taxable only for the interest earned while on H1B.

My company hasn't deducted local taxes for year 2005 which last week I discovered that my county does have local taxes. How should I fix this. How does this affect my federal and state(indiana) returns

Thanks in advance

Guyatin:

You are, In my opinion, a dual-status alien. You can file as a dual-status alien or as a resident alien if you want until June 2006 to file. In either case, you can claim the $5,000 standard deduction.

If you file as a resident alien, all of the interest on the Form 1099-INT is taxable. If you file as a dual-status alien, then only the interest earned while under H-1B visa status is taxable.

File the tax return with the county and pay the taxes owed. Notify your employer that he should begin to withhold the local county tax.

How do I file as a dual status alien, what form do I have to fill in? What is In my opinion
Thank you.

In My Humble Opinion.

The dual-status tax return is rather complicated. It requires you complete both Form 1040 and 1040-NR.

You should download IRS Pub 519 from www.irs.gov and read Chapter 1, 5, and 6 for details.