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    jaymech's Avatar
    jaymech Posts: 5, Reputation: 1
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    #1

    Feb 19, 2009, 01:16 PM
    US-India Tax treaty for students from India
    I found out that for Students from India studying in USA under US-India Tax treaty , I can claim $5450 standard exemption under Article 21(2) . IS this true?

    Thaks in advance!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Feb 20, 2009, 01:15 AM

    Yes, since you are from India you will get standard deduction of $5,450 (instead of itemized deductions). If married, you will get exemption of $3,500 for your spouse only if spouse did not have any income in 2008. Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents
    jaymech's Avatar
    jaymech Posts: 5, Reputation: 1
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    #3

    Feb 20, 2009, 07:17 AM
    Quote Originally Posted by MukatA View Post
    Yes, since you are from India you will get standard deduction of $5,450 (instead of itemized deductions). If married, you will get exemption of $3,500 for your spouse only if spouse did not have any income in 2008. Read: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

    Thanks for your answer. I am confused in where should I enter the amount of Standard Deduction under Tax Treaty, Line 6 or Line 11 or both the line?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #4

    Feb 21, 2009, 05:14 AM

    On page 1, line 11. On page 2, item J, write "India" as your tax treaty country and on the line below write "standard deduction claimed under Article 21(2)."
    jaymech's Avatar
    jaymech Posts: 5, Reputation: 1
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    #5

    Feb 21, 2009, 04:11 PM
    Quote Originally Posted by MukatA View Post
    On page 1, line 11. On page 2, item J, write "India" as your tax treaty country and on the line below write "standard deduction claimed under Article 21(2)."

    From your answer it seems like I do not need enter anything on Line 6 which is for Item J , is this true?

    Thank you for your advise. This was really helpful!
    saisushank's Avatar
    saisushank Posts: 20, Reputation: 1
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    #6

    Feb 25, 2009, 03:47 AM
    Hi,, I visited us last summer on j1 visa (short term scholar )... I got 5000$ stipend... and 700$ deducted as taxes... Am I eligible for 5450$ standarrd exepltion for indian guys...
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #7

    Apr 23, 2009, 11:52 AM
    Yes, as you are considered to be a student as defined by IRS Pub 519.
    pavankumarp's Avatar
    pavankumarp Posts: 3, Reputation: 1
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    #8

    Feb 8, 2010, 09:14 AM
    Is this tax exemption only for students or for people on H1-B visa.
    And it says for this year (2009) the Article 21(2) i.e. Standard deduction as per tax treaty between India and the USA is $5700, is that right?
    pavankumarp's Avatar
    pavankumarp Posts: 3, Reputation: 1
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    #9

    Feb 8, 2010, 09:15 AM
    Is this tax exemption only for students or for people on H1-B visa.
    And it says for this year (2009) the Article 21(2) i.e. Standard deduction as per tax treaty between India and the USA is $5700, is that right?
    pavankumarp's Avatar
    pavankumarp Posts: 3, Reputation: 1
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    #10

    Feb 8, 2010, 09:15 AM
    Is this tax exemption only for students or for people on H1-B visa.
    And it says for this year (2009) the Article 21(2) i.e. Standard deduction as per tax treaty between India and the USA is $5700, is that right?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #11

    Mar 4, 2010, 01:31 PM
    The standard deduction for 2009 IS $5,700.

    However, if you are on H-1B and are filing as a non-resident alien, you CANNOT claim the standard deduction. It is available ONLY to Indian students on F-1 and J-1 visas and Indian trainees/business apprentices on J-1 visas.
    Ruchinarayan's Avatar
    Ruchinarayan Posts: 2, Reputation: 1
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    #12

    Mar 23, 2010, 09:40 PM
    Hi. My husband is on J-1 visa and is a Postdoctoral associate and I am on J-2 visa and also a Postdoctoral associate. Can we claim standard deduction? We have a child (US citizen)-can I claim him as dependent on me (I am on J-2). Thanks in advance
    Ruchinarayan's Avatar
    Ruchinarayan Posts: 2, Reputation: 1
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    #13

    Mar 23, 2010, 09:40 PM
    Hi. My husband is on J-1 visa and is a Postdoctoral associate and I am on J-2 visa and also a Postdoctoral associate. Can we claim standard deduction? We have a child (US citizen)-can I claim him as dependent on me (I am on J-2). Thanks in advance
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #14

    May 4, 2010, 12:03 PM
    Assuming you are Indian, you both will file separate non-resident alien tax returns (Form 1040NR or 1040NR-EZ).

    The spouse who claims the child as a dependent (allows for J-1 interns/trainees) will file Form 1040NR; the other spouse files Form 1040NR-EZ. You BOTH file Form 8843.
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