Hi,

I was on F-1 till sep 30, 2006 and then my status changed to H1-B. I received some interest when I was on F-1 and some when I was on H1. Do I need to show all this interest as interest income for federal and state tax purposes, or only the interest I earned after going on H-1 status ( I think students are exempt from showing interest income tax)?

Thanks.

You should file as a non-resident alien for 2006. Hence, ALL of the bank interest is tax-exempt for 2006.