[sbaheti]

I am masters student in USA from India. I heard this time there are some changes in rule and F1 students are not exempted and we will not get our money back for the Tax filling of 2009

[MukatA]

Exempted from what?

[sbaheti]

I mean there is a treaty between India and USA which states that if a person is on F1 visa then we must be exempted from tax. Is this treaty is applicable for the 2009 tax.

And I have one more question which one is best resource available on net to file 1040NR tax return.If its not free then too its fine I can pay them.

[MukatA]

On F-1 every one is exempted for SS tax and Medicare tax. You must pay federal income tax and state income tax.
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.
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 $5,700 instead of itemized deduction. You can also claim exemption for your spouse if she did not have any income in 2009. Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents

[sbaheti]

Thanks for the answer, So according to you there is no change in treaty for the year 2009 and F1 students are exempted for 5 years.

[MukatA]

F1 exempted for 5 years from FICA taxes but must pay income taxes.