Hello Atlanta Tax Expert

I was on F1 visa from Jan 2005-August 2005, on OPT from September 2005- Nov 2005 and on H1-B visa from Dec1.
During my student visa I was in Texas and now moved to Colorado (two W-2 forms). And for the last month of December also had paid State Taxes for Colorado.
Please tell me which forms do I need to fill up. Can I take the 5000$ deduction for indian students.
Also I tried to use Turbo-tax but am not sure if it gets me the deductions from the Indian Tax treaty. Can you suggest me any online tax websites that can consider my tax-treaty status and offer me the deduction?

It would be great if you can help me out on this.
Thanks
Amit

There is an online website for tax returns for non-resident aliens. I believe the name is CINCTAX.COM.

You should file as a non-resident alien (Form 1040NR or 1040NR-EZ). You can claim the tax treaty exemption if you made at least $5,000 while under the F-1 visa.

Texas has no state income tax.

You can get the Colorado forms from the Colorado state government website.

Thanks a lot AtlantaTaxExpert. It was a big help

The website is actually www.cintax.us.

However, several of the posters says is it does not work well for people converting from F-1 to H-1, which means you probably will have to fill in the forms manually.

Hi AtlantaTaxExpert
I figured out the website had a spelling mistake,, thanks though for the update. I just wanted to know if I can fill any of the 1040 NR or the 1040 NR-Z. I am confused what's the difference between the two.
Thanks a lot
Amit

From 1040NR-EZ is a lot easier to fill out, but you cannot claim any credits or itemized deductions with it.

AtlantaTaxExpert
Can I conclude the following...
As in your last message you said that if I have more than 5000$ income on F-1 visa (I had income more than 5000$ on my F-1) and worked for less than 180 days on H1-B in 2005, and if I want to take both the 3200$ and 5000$ deductions then I should fill up the 1040 NR.
I guess I can fill in the form 1040 NR (I am assuming both of my W-2 forms tax data can be filled in 1040 NR).
Thanks
Amit

Amit:

Yes, that would be the best way to file. On the line where you put "Itemized Deductions", put $5,000 and write in the dotted line the following statement:

"Standard Deduction allowed under U.S.-India Income Tax Treaty".

Highlight in green or yellow so it will be noticed.

AtlantaTaxExpert
Your comment and tips have been very helpful.. thanks a lot for your guidance. I will try to follow your instructions. Thanks
Amit

Glad to help!

To ATE

Iam planning to fill in the 1040NR-EZ form and my question is

Which line do you fill in the $3200 exemption?

Thanks

Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

Please let me know similar to the $5000 deduction you have explained.

Thanks.

Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

Please let me know similar to the $5000 deduction you have explained.

Thanks.

Where does the $320 deduction go in the 1040NR form and with what explanation. Please let me know.

ExtraAapace & Arkanand:

The $3,200 personal exemption goes on Line #13, Form 1040NR-EZ.

Atlanta Tax Expert,

Thanks for the answer. Don't we use form 1040 NR for the $5000 deduction? Can we put in the $3200 deduction into the 1040NR form ? If yes, where?

If not, are you saying that at one time we can use either the $5000 (1040NR form) or the $3200 (1040 NR-EZ)?

Please advise.

ExtraAapace:

If you are both Indian nationals on F-1 status, you can claim both the $5,000 standard deduction and the $3,200 personal exemption on either Form 1040NR or 1040NR-EZ.

On Form 1040NR, You would claim the $3,200 personal exemption on Line #38 and the $5,000 standard deduction on Line #36. You would write "Standard deduction allowed under U.S-India Income Tax Treaty" on the dotted line just left of the #36.

On Form 1040NR-EZ, you would do the same thing on Lines #11 and 13.

AtlantaTaxEXpert
I would like to round off the discussion with the following. Please correct me if I am wrong.
People who have been in the US on F-1 visa in 2005 lets say till November 2005 and H1-B for the rest (Thus not passing the substantial presence test of 180 days) can fill either the 1040NR or 1040 NR-EZ.
Both the forms will allow us to take both 5000$ (If the income on F-1 was higher than 5000) and 3200$ deductions. So any one of the forms can be filled.
Lastly I heard some of my friends talking about form 8843. Do we need to do that? Can you please guide us on that issue. Your help has been valuable.
Thanks
Amit

Amit:

Yes, everything you said is accurate.

And, yes, you need to file Form 8843 one last time.

AtlantaTaxExpert
Thanks a lot. Can you put some more light on the 8843 form. I mean by what you have said I guess that one needs to fill up this form if he/she is on F-1 during the tax year. And since from this year I would not be on a student visa, I would not have to fill up the form for next year taxes. Also from next year I will have to use 1040 NR and cannot fill up 1040 NR-EZ.
Thanks
Amit

Amit:

If you are on F-1 visa status for only one day in 2005, you are technically required to file Form 8843.

That said, the IRS' enforcement of this policy is rather lax, so if you are on F-1 status for less than half of the year, you would file as a resident alien and filing the Form 8843 is no really necessary in the eyes of the IRS because the filing of the resident alien form (Form 1040/1040A/1040EZ) would confirm that you have changed to a different visa, months likely H-1.

If you are on H-1 or H-1B visa in 2006, you will will as a resident alien (Form 1040/1040A/1040EZ) and will not have to file Form 8843 for Tax Year 2006.

AtlantaTaxExpert
I Guess that rounds off most of my doubts, I will use all the info from this messageboard to fill up my taxes (Hopefully soon... and also hope that won't run into trouble while actually filling up the forms)
Thanks a lot AtlantaTaxExpert
Amit

Glad to help!

AtlantaTaxExpert
I need your help with my friends case... you have been really helpful and I guess u would be the same this time too... so let me thank you intiially for all this... my friends income is less than the standard deduction and the exemption amount, so the line 12 and line 14 have negative values... i.e his income was 3792.. the deduction and exemption are total 8200 so line 14 calculates out to be -4408... should he put it as the negative number or just leave it as 0.
On another topic I went to H & R block and they had me fill up 8833 also.. although finally looking that I knew more about india-tax treaty (thanks to you).. the lady said don't pay H & R block $150 for nothing... as I had also accurately calculated my tax before but still wanted to fill up the taxes with pro services.. so finally I didn't use H & R block and will be filling in my taxes on my own... I owe this to u
thanks a lot
amit

Leave it at zero!

Glad to help! Feels good to be helpful!

Hey AtlantaTaxExpert
I hope your doing fine.. same here.. had one more query.. more of a query than a question.What is this 8833 form? Do you think I need to fill that form up? I haven't seen anyone fill up the form and no one evrs speaks about it. I guess you are the only one who can put some light on the issue.
Thanks
Amit

Form 8833 is used to explain detailed citations from tax treaties. It may be needed if you have a complicated treaty exemption, but most people do not need it.