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    eric116's Avatar
    eric116 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Apr 5, 2009, 06:49 PM
    China treaty and standard deduction
    I was F1 (OPT) and then H1B in the last year. I have stayed in the US as F1 for 8 years.

    I use 1040 to file the tax.

    (1) Can I claim both $5000 treaty and the standard deduction in 1040?

    (2) I did not claim the $5000 treaty in the past year (I chose to use 1040 and the standard deduction after 2005), can I use the treaty this time?

    (3) The amount on my 1042-S is 13,000, not $5000. I do not know what happened. Even if I can claim the treaty, it will be $5000, right?

    Thank you for your time and help!

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

    Apr 6, 2009, 09:59 AM

    Yes, you are eligible for the $5,000 China treaty exemption. You will file Form 1040 and claim the exemption as a NEGATIVE number on Line #21. Further, you can continue to claim the $5,000 treaty exemption for the duration of your stay in the U.S. as long as you do not get a green card.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jun 4, 2009, 11:32 AM
    Up to about a month ago, I would have agreed with Mukata by not posting any comments.

    However, while you can In my opinion claim the $5,000 treaty exemption in the year (2008) you converted to H-1B, you CANNOT claim the exemption in subsequent years, because you are NO LONGER a student under a F-1 visa.
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