Hi, I'm a Canadian resident and I went to the States for an internship last summer (H-3 visa). Before I left I went to IRS office and an officer helped me with 1040-C. She put $17700 on line 15 (Total income) and $925 on line 25 (Total tax).

This year when I received W-2, it says my total income is $25783.4 (my company paid me for living in the states and they included this on box 1 in W-2). I tried to calculate the tax by myself and I surprisingly found I should pay $2965 for the tax. Did I miss any deduction or excemption?

Thank you very much!

Can anyone helo me out please? Thank you!

In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

In 2006, your income is $25,783. Your deduction $8,750. Taxable income $17,033. Your federal income tax is $2,163.

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Originally Posted by MukatA

In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

In 2006, your income is $25,783. Your deduction $8,750. Taxable income $17,033. Your federal income tax is $2,163.

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Hi MukatA,

Actually it's tax year 2007, not 2006.

Would you kindly explain how can I calculate the deduction of $8450 and $8750 please? From 1040NR/NR-EZ, I can only figure out my exemption is 3400.

I was in Washington last year so I didn't pay State or City tax.

Thank you very much!

Any help is greatly appreciated :)

In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

In 2007, your income is $25,783. Your deduction is $8,750 (standard deduction of $5,350 plus exemption of $3,400). Taxable income $17,033. Your federal income tax is $2,163.

Quote:

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Originally Posted by MukatA

In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

In 2007, your income is $25,783. Your deduction is $8,750 (standard deduction of $5,350 plus exemption of $3,400). Taxable income $17,033. Your federal income tax is $2,163.

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Hi MukatA and other experts,

Can I claim $5350 standard deduction in 1040NR? I'm not from India... and now I'm back to Canada already. Thanks a lot!

H-3 visa is for training in the U.S. In the publication 901: Tax treaties, I could not find any deduction based on U.S. Canada tax treaty for students and trainees; that is you can't have standard deduction. You can have itemized deductions.
You can read this at: Your U.S. Tax Return: U.S. Tax Treaties for Students and Apprentices

But you should also refer to Publication 597: U.S. and Canada Tax Treaty.