Hi,

I am from India and in USA with J1 Visa(Training). I have received my W2 Form and completed my 1040-NR-EZ for federal return with Exemption deduction($3400) and Standard deduction($5350) as per India-US Treaty. Since, I am in MA I have state tax withheld in my W2 Form. Could I deduct this state tax withheld for federal filing or I can opt only the standard deduction?

For filling Massachusets state tax, Form 1-NR/PY Personal exemption $4125 is allowed. Apart from this can I deduct $5350 in other deduction (Schedule Y Line 4) Income exempt under U.S tax treaty?

If you take standard deduction, then you can deduct state tax.

You can try, as the standard deduction IS a treaty exemption under Artile 21(1).

No guarantee that the MA state tax authorities will buy it, though.

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Originally Posted by MukatA

If you take standard deduction, then you can deduct state tax.

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Correction: If you take standard deduction, then you can't deduct state tax.