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-   -   F1/OPT student and tax treaty deduction (https://www.askmehelpdesk.com/showthread.php?t=647681)

  • Apr 1, 2012, 03:44 PM
    alex070486
    F1/OPT student and tax treaty deduction
    Hye,

    I am a F1 student on OPT. I worked for a US company and earned approximately $50,000 in 2011. The France-US tax treaty include a $5,000 deduction.

    Here is my question:
    - If I put $5,000 in line 22 of the form 1040NR, it's never take into account. So how do I include that in my 1040NR form?
    - What's the best way to claim a tax treaty deduction?

    Thanks in advance for your help!

    Alex.
  • Apr 1, 2012, 06:37 PM
    newacct
    In the instructions for line 8:

    Do not include on line 8 amounts exempted under a tax treaty.
  • Apr 1, 2012, 07:11 PM
    alex070486
    Thanks for your answer.
    But do you know how to effectively claim tax treaty deduction?
  • Apr 1, 2012, 07:59 PM
    newacct
    Just make sure to fill out line 22 and the last section in "Schedule OI" that's included with the form. Also, you need to include form 8843 because you're exempt from the substantial presence test.
  • Apr 1, 2012, 08:30 PM
    alex070486
    I have done that already but the total amount of tax I have to pay stays the same with or without filling line 22. That's why I think I am missing something...

    By the way, newacct thanks for your time! :)
  • Apr 1, 2012, 08:41 PM
    newacct
    I already told you. Subtract 5000 from line 8
  • Apr 1, 2012, 08:43 PM
    alex070486
    Ok. Thanks!
  • Apr 2, 2012, 11:13 AM
    AtlantaTaxExpert
    Also, cite the treaty exemption on bottom of Page 5 of Form 1040R.

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