[sonuataskcom]

Hi,

I am a Indian f-1 student in usa since AUG 2005. I am still on CPT. Each year I have filed 1040NR form for Federal Tax. But neither understand nor get benifites of this US TAX Treaties.

I know India-USA has Unlimited Tax treatis for student , but is this applies to any sallary paid by US employer or any US based salary. It is not from abroad. So because my salary from us employer, it is not Tax exempt?

Is Standered Deduction is related to this?

[MukatA]

You will file non-resident tax return. You will also file Form 8843.

Since you are from India, as per tax treaty, you will claim standard deduction of $5,450 instead of itemized deduction. Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

[sonuataskcom]

Thanks a lot, so that means the standerd deduction I got so far is under tax treaty.

another question for this year, my itemized deduction is more than standard one,
you know my status of filing already,
on 1040NR,
line-26, I want to show 700 moving expenses with 3903 for my second job in boston.
line-32, I want to show 1000 US Student loan Interest I paid in 2008.
Total State Txes paid (NJ + MA) is 500+900 = 1400.

I also paid my college fees 5560 for only 2008 year. I am not sure where to include this so I can get most of it.

Is it on Line-9,(job related expenses,education) Schedule-A of 1040NR, or any other better option?

[MukatA]

1. You can deduct moving expenses even when you get standard deduction. Read: Your U.S. Tax Return: Moving Expenses
2. Student loan interest deduction is available as adjustment of income.
3. Non residents do not get tuition and fee deduction.