I am an Indian student in F1-OPT status. My wife and kids are in F2 status. My kids are 7 years old and 3 years old. My Reported W-2 wages are $41305. My federal income tax with held is $3723. My state income tax is $1394 and my local income tax is $667. I recently went to H&R block to do my filing. They told me that I would get an refund of $812 from state and I owe $53 to IRS.

However, my friends told me that I should get a refund of more than $3500. I also checked H&R block's free tax estimator and got a figure of $4300 as refund. H&R block consultant also said, the US treasury some how does not consider the benefit given to kids if I am in F1-OPT status. I am confused. Am I missing something there? Is H&R block's estimate accurate and trustable?

-kums20

I have not checked the figures, but H&R Block is likely correct, because, as an Indian student, you are a non-resident alien and thus unable to claim the $1,000 Child Tax Credit for each child, or are you allowed to claim the Earned Income Credit (EIC).

Because you are Indian, under the U.S.-India Tax Treaty, you CAN claim your wife's and children's three $3,800 personal exemptions (for a total of $11,400 deduction) .

The Child Tax Credit will change should you convert to a work visa (H-1, H-01B or L-1), but you will still be unable to claim the EIC as long as your wife or any of your children have an ITIN.

Be sure the H&R Block people file Form 1040NR for you. If they attempt to file your return electronically, you will know that they are filing incorrectly, because Form 1040NR CANNOT be filed electronically; it MUST be mailed.

Hi there,

Thanks a lot for your response. There is one standard deduction for item line number 38 in 1040 NR form (which is NOT sent electronically), for $5950 and $35,655 exempted under India Income Tax treaty for line number 39 and exemption in item line 40 for $7600. H&R block also filled the W-7 form for my wife to get her an ITIN number. Does these figures look good?

I feel better now and informed. Thanks for the quick reply.

-Kums20

Kums20,

Please email me a copy of the return H&R Block prepared for you. They should be getting ITINs for your children as well as your wife.

My email address is in my profile if you cannot see it below.

Hi,
Sorry for my late response. As I understand from your answer, my kids should also be applied for ITIN. But still I won't get any extra tax benefits. Am I right? Also I have sent you the H&R Block's tax filing form 1040NR to your email.

Kums20

I got the tax return, and have responded on what you should do.

Ghe H & R Block people are doing their best, but it is clear they lack the experience to properly deal with your case.

Get someone who DOES have such experience.