Hi,

My wife came to US on Sept 7, 2007 on F-2 visa. She moved to H1B visa on Oct 1 2008, and remained on H1B status till Dec 31 2008. After that she left her job, went to India, and got back on F-2 visa, and is currently on F-2 visa. I am currently on F-1 visa.

We are filing out income tax as "married filing separately". My wife is filing her taxes as a non-resident.

Can somebody tell me whether she can also avail the $5,450 standard deduction under tax treaty with India?

I will appreciate any help/references in this regard.

Thanks in advance.
-Jayesh

For 2008, your wife is nonresident (unless you qualify to file joint return as residents). She must pay FICA taxes on her income and will not get treaty deduction. Read: http://taxipay.blogspot.com/2008/03/us-tax-filing-requirements-for-non.html