Greeting taxman, I am a non resident alien from india, so I have been filling up the 1040NR form. Now there are 2 simple questions I would like to know and would be grateful if the experts could answer them.

Q1) I want to know what is the amount for standard deduction for the us-india treaty for 2009. In the 519, chapter 5 IRS publication it only shows the amount for year 2008. I am not able to find the amount for 2009. I read elsewhere on the internet it is $5700. But I would like to know if this is true and is there a document where this present?

Q2) In 1040NR at the end of the form in L,
Column (d) for amount exempt under this treaty what should I put here? Since the treaty is only for std deduction and not for exemption, should I put a zero? OR should I put the exemption for non-resident alien, i.e. $3650 ? :confused:

1. $5700
2. Your treaty deduction or exemption is $5700 as itemized deduction.

Mukat, many thanks for the information.

now just one more silly question
In 1040NR, L(c) Number of months claimed in prior tax years.

Supposed I claimed this treaty for the last 3 years. So I should be putting 3x12 = 36 months?

Start counting from the month you entered U.S. For example, if you entered in August 2007, for 2007 count 5 months.

1. $5700
2. Your treaty deduction or exemption is $5700 as itemized deduction.

Hi MukatA,

What would be the Tax Treaty Article ? Is this is Publication 519, Chapter 5?

Article 21(2)

Start counting from the month you entered U.S. For example, if you entered in August 2007, for 2007 count 5 months. great thank! This site rocks :D

Hi Mukata,

Form 1040NR.

Line 22 $5700
Line 23 (total from Line 8 to Line 21) $2,183.47
Line 34 NIL
Line 35 : $2,183.47
Line 36: $2,183.47
Line 37: $5700 ( Here is the issue, $ 2 is deducted as state income tax, where as Page 21 if instructions - (top right corner) states that "Residents of India who were students or business apprentices may be able to take the standard deduction instead of their itemized deductions. See Pub.519 for details"

Line 40: NIL

Am I right in claiming standard deduction at Line 37 and also mentioning $5700 at Line 22.

Or is should be

Line 22: $2,183.47

Line 23: NIL


Or


Line 22: $5700
Line 23: Nil


Or

Line 22: $2,183.47
Line 23 (total from Line 8 to Line 21) $2,183.47
Line 34 NIL
Line 35 : $2,183.47
Line 36: $2,183.47
Line 37: $5700
Line 40: NIL


I would be thankful to you.

Thanks.

Hi Mukata..

Got stuck with this...

Am I right in claiming standard deduction at Line 37 and also mentioning $5700 at Line 22.
that's what I did. Also you can see in L(e) it has been mentioned to put it 22.

I don't think you can claim at two places, it would mess up the calculation. Mentioning twice would mean, claiming twice, means twice the deduction! CINTAX had prepared my earlier 2008 1040NR-EZ. There, it did not put any amount in the line 6 (Total Wages and scholarship exempt by a treaty from page 2, item J). It put zero there, and put 5450 (2008 std. deduction amount) in line 11 "Itemized Deduction". In form 1040NR, either 22 or 37, you should put it only once.

I am not a tax expert though.

I don't think you can claim at two places, it would mess up the calculation. Mentioning twice would mean, claiming twice, means twice the deduction! CINTAX had prepared my earlier 2008 1040NR-EZ. There, it did not put any amount in the line 6 (Total Wages and scholarship exempt by a treaty from page 2, item J). It put zero there, and put 5450 (2008 std. deduction amount) in line 11 "Itemized Deduction". In form 1040NR, either 22 or 37, you should put it only once.

I am not a tax expert though.