Hi,
I am an Indian student. I had an income 7500$ during OPT in 2005, on which tax was deducted. This was from working at my university. Later I changed back to F1 because I went for PhD. Is this income completely tax exempt? My total income during 2005 is 12,000$.

VS331:

You will owe some taxes on the $12,000 you earned in 2005, but $8,200 (the amount of your personal exemption plus the standard deduction) is exempt, so you will not owe much. It's likely you are due a refund.

You need to prepare Form 1040NR or 1040NR-EZ to find out.

Thanks for your help. I had one more question. I have moving expenses associated with changing universities. Can I claim these moving expenses along with the 8200$(5000 + 3200)? I think moving expenses do not come under itemized deductions, so I thought I can claim it. Can you please clarify this?

Thanks.

If you worked at both universities, you can claim the moving expenses using Form 3903.