Ask Experts Questions for FREE Help !
Ask
    slumdog's Avatar
    slumdog Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Feb 18, 2009, 07:46 AM
    Difference between 1040 and 1040NR
    Hi everyone,

    I would like to know the difference between 1040 and 1040NR. I was in OPT till sep 2008 and in h1b from oct 2008. I hear from my friend that for people from India and China, filing 1040 or 1040NR should not matter as they have a tax treaty that qualifies for the standard deduction.

    Is it true that the standard deduction is the only difference between 1040 and 1040NR? Please help.

    Thanks.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Feb 18, 2009, 10:32 AM

    On F1/OPT you are exempt from residency for 5-years. You must file non-resident tax return Form 1040NR or 1040NR-EZ and Form 8843.

    Your income is not subject to FICA taxes but you must pay federal and state income taxes. On your OPT income you will get deduction based on tax treaty between the U.S. and your country. 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
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Difference between 1040 and 1040NR [ 3 Answers ]

Can you explain the difference between forms 1040 and 1040NR? I have an H1B visa and was out of the country only on vacation (15 days in March and 10 in December). Which form should I file?

L1B and 1040 or 1040NR [ 1 Answers ]

Hi I am on L1B visa and working for a US company since August 2006 to date. Should I be filing the form 1040 or 1040NR?

1040NR or 1040 [ 1 Answers ]

I'm doing a little pre-emptive tax research, mostly precipitated due to my switching jobs on an H1B. I've been in the US since 2002, on F1 and then transferred to an H1B during 2006, and would have been on an H1B visa throughout the 2007 calendar year. I believe I file as a resident...

1040NR or 1040? [ 6 Answers ]

I read some instructions, but I am still confused:confused: . Please help me! My husband has been in US with H1b since Aug 29th,2005. He changed to another job in the same state (Texas) at Aug 2006. I came to US with H4 on July 11th,2006, and I just stay home without any income. It seems like my...

1040NR or 1040 if 1040 returns are more [ 1 Answers ]

Thanks AtlantaTaxExpert you are AWESOME :) Thanks for all who help us. I am qualified for 1040NR and I filled out both forms 1040NR-EZ and 1040 to check. 1) Can I claim qualified education expenses? Because I pay the loan of 5400 and also paid around 250$ of interest. If I add 5400 as ...

View more questions Search