Log in

View Full Version : Claiming tax exemption


shwetakul
Mar 23, 2011, 01:46 AM
Hi Mukata,
I am an Indian student (on F1 visa) and have been working for a US based company on OPT for 6 months. I earned approx $7000 during that period. I had no US income before I started my OPT. Can I claim tax exemption for my wages under the tax treaty with india?

AtlantaTaxExpert
Apr 4, 2011, 08:25 AM
Negative; your wages ARE subject to U.S. income taxes, and a tax return IS required.

However, the combination of your personal exemption ($3,650) and the standard deduction ($5,700) which you can claim under Article 21(1) of the U.S.-India Tax Treaty will completely offset the $7,000 in income, which means you will get a complete refund of what was withheld for federal income tax.

If you need professional help filing your return, email me at [email protected] or [email protected].