Hi,

I entered USA in the August of 2005 on F-1 Visa. I received a graduate assistantship for one year and later on became a Research Assistant (RA) in my department.

Being an RA entitles me to full tuition remission and am paid a stipend of 18K per year. When I filed my taxes previously with a Public accountant, he asked me if I intended to settle down in this country. My answer was yes and he filed my taxes using the
1040 EZ form.


However, my friends who have been filing their taxes elsewhere, use the 1040NR-EZ and the 8843 form.

I have noticed that they file their taxes saying that their entire "Stipend Income Amount" is exempt from taxes -- using the INdia -usa tax treaty .

This gives them back all the taxes that they have paid over the year-both federal and state.

I fail to understand if this is legally correct.

Am I filing the wrong forms and losing out on the money that I dont have to pay as tax??

I personally think that after some years down the lane, they might have to pay back that money retroactively. I might be wrong and would like to know the real deal.

Quote:

---

Originally Posted by silpakona

Hi,

I entered USA in the August of 2005 on F-1 Visa. I received a graduate assistantship for one year and later on became a Research Assistant (RA) in my department.

Being an RA entitles me to full tuition remission and am paid a stipend of 18K per year. When I filed my taxes previously with a Public accountant, he asked me if I intended to settle down in this country. My answer was yes and he filed my taxes using the
1040 EZ form.


However, my friends who have been filing their taxes elsewhere, use the 1040NR-EZ and the 8843 form.

I have noticed that they file their taxes saying tht their entire "Stipend Income Amount" is exempt from taxes -- using the INdia -usa tax treaty .

This gives them back all the taxes that they have paid over the year-both federal and state.

I fail to understand if this is legally correct.

Am I filing the wrong forms and losing out on the money that I dont have to pay as tax??

I personally think that after some years down the lane, they might have to pay back tht money retroactively. I might be wrong and would like to know the real deal.

---

Many accountants in this country have little knowledge of international taxation. You should have filed as a NON RESIDENT. File a 1040 NR and you also need to file an amended return for last year.

Agree with TaxSearcher.

It is possible that your stipend is entirely tax exempt. You will need to amend the return to get that taxes back.