Dear Atlanta Tax Expert,

I am filing 1040 NR EZ for 2005(Indian resident on H-1 B since September 2005)

1.I was a student until August 2005. I received a scholarship during my Masters, by which my out of state tax was exempted and I also got a $ 500 scholarship in January 2005. Is the scholarship and/or waiver tax exempt?

2. What is the treaty article for India tax treaty for the $ 5000 benefit?

3. Which line of the 1040 NR EZ do I claim the $ 3400 personal exemption?

Thank you very much,

Madhav

Hi Madhav,

I can't answer your first question, but answers to other two are given below:

2. What is the treaty article for India tax treaty for the $ 5000 benefit?
Article 21 (2)

3. Which line of the 1040 NR EZ do I claim the $ 3400 personal exemption?
I think the amount is $3200 (please correct me is I am wrong), line number 13 on 1040NR-EZ

Madhav:

Amit's answers are correct.

The scholarships are not taxable.