I was on F1 from August 2003, I started working from Feb 2005 on My OPT and my H1b came into effect from October 2005. I am assuming I have to fill the 1040 NREZ form since I read that if India has a treaty with USA I should fill forms as NR alien. My question is the exemption deduction of 5000 which is meant to be taken by students and trainees (not sure who they are), Can I take that exemption? I think I can take the 3200 personal exemption but am not sure about the 5000.

I would appreciate any help with this. In addition if any of the facts I stated above are incorrect kindly let me know.

Thanks

If you were on F-1 visa status until October 2005, you CAN take the $5,000 standard deduction authorized under the U.S-India Tax Treaty. You just need to cite Article 21(1) on page 5 of Form 1040NR.