Tax treaty claiming for state tax.
Hi All,
I am an international student on OPT. I am a part-year Non resident Alien in Alabama and hence filing the form 40NR (AL 2008). I moved from South Carolina where I studied.
For the treaty between INDIA and USA I am eligible for
Itemized Deduction - 5450
Personal exemption or exemption Deduction 3500.
I earned 30% of my Income for 2008 in SC and 70% in AL.
SC lets me claim 30% of (5450+3500). I filled up SC 1040 and the Schedule NR(to claim this).
I am eligible for the remaining 70% of ( 5450+3500) to be claimed in my Alabama state tax.
The Alabama state form ( 40NR) does not have provision to do this.
In the 40NR, When I select my status as
“Single”, the personal deduction column of the 40NR(Alabama) gets automatically updated with $1500.
But actually I am eligible for 3500 as personal exemption.
My question is : In which field(line no) of form 40NR(Alabama) or Schedule, will I have to enter this information and get both my deductions (3500 and 5450) ? Thanks a lot!!
Please help.
I emailed the Alabama state dept with this query and they replied as below:
"Alabama has no provision for the deduction $3500.00. The maximum personal exemption is $1500.00."