Hi, I am an international student from India and resident alien for tax purposes. I have been trying to find answers to a couple of questions before I can file my taxes. One of my friends strongly recommended me to contact you.

I am a resident alien for tax purposes since jan 2006 and a citizen of India. I received a scholarship from Jan 2006 - July 2006. No tax was withheld on this money because I had filled form W8. I haven't been issued a 1042-S for the same reason. So I was wondering:

a) Is my scholarship federal tax exempt under India-US treaty? Table 3 0n publication 901 does list a treaty between India and US.

I researched on the web and found the following document. Please see Article 21 on this document. But it was confusing to understand.

http://unclefed.com/ForTaxProfs/Treaties/inditech.pdf

b) If not, then how do I declare this as income, i.e. under what column?

c) How do I find out if this amount is taxable for GA taxes?

Thanks much,

AS

AS:

You MAY or May NOT be a resident alien for tax purposes. When did you first enter the U.S. on your F-1 visa?

If it was AFTER 2001, then you are STILL a non-resident alien or, at most, a dual-status alien.

If the scholarship is your ONLY source of income, it is likely tax exempt, which means no tax return is needed.

I entered US first in August 2001. I filled W8 last year after which no tax was withheld from my scholarship money. I also get a research assistantship, so this scholarship was not the only source of income. The main confusion arises from the fact if the tax treaty between India and US makes any difference.

You are a resident alien for 2006. The exempt status granted under the F-1 visa expired on31 December 2005.

However, the scholarship income is exempt income In my opinion, No tax return is due.

Did you get a Form 1042-S, and was income withheld?