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-   -   F1 Student on OPT (US-India treaty) (https://www.askmehelpdesk.com/showthread.php?t=329389)

  • Mar 15, 2009, 01:02 AM
    1cipher1
    F1 Student on OPT (US-India treaty)
    Hi all,
    I am on F1 student Visa, and have been working on my OPT after my masters degree. I read that the tax treaty between US and India claims that I can file for exemptions just like a US citizen on the income earned from a local agency in US.
    But I have read that while filing 1040NR-EZ (applicable to me) I can only claim Standard deduction of 5450 and exemption of 3500 for year 2008.
    Is it true that I cannot use the above clause in treaty to claim:
    1. Recovery Rebate Credit. ($600)
    2. Tuition Fee that I paid from my Income ($2122) (this was paid after my tax was deducted!)

    I understand that without the treaty, I cannot claim these two, but I am not sure that I can claim these even with the treaty.
    Any advise would be well appreciated.

    Regards
    ~cipher
  • Mar 16, 2009, 12:00 AM
    MukatA

    If you are filing nonresident tax return, you will not get recovery rebate and tuition deduction.
  • Mar 16, 2009, 12:03 AM
    1cipher1
    Quote:

    Originally Posted by MukatA View Post
    If you are filing nonresident tax return, you will not get recovery rebate and tuition deduction.

    Thanks @MukatA for answering my query. It is helpful.
    I appreciate your help.
    Regards
    ~cipher
  • Mar 16, 2009, 07:16 AM
    1cipher1
    Can I ask for the relocation charges to be exempt from taxes, I incurred these when I did not have a job, I noticed that this is exempt from taxes in a resident tax form, can I ask for this exemption under the NonResident tax form under the treaty?
    ~cipher
  • May 7, 2009, 11:09 AM
    AtlantaTaxExpert
    I assume by relocation charges you speak of reimbursements for moving costs.

    If so, these reimbursements are normally tax-exempt.

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