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

    Mar 23, 2011, 01:46 AM
    Claiming tax exemption
    Hi Mukata,
    I am an Indian student (on F1 visa) and have been working for a US based company on OPT for 6 months. I earned approx $7000 during that period. I had no US income before I started my OPT. Can I claim tax exemption for my wages under the tax treaty with india?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 4, 2011, 08:25 AM
    Negative; your wages ARE subject to U.S. income taxes, and a tax return IS required.

    However, the combination of your personal exemption ($3,650) and the standard deduction ($5,700) which you can claim under Article 21(1) of the U.S.-India Tax Treaty will completely offset the $7,000 in income, which means you will get a complete refund of what was withheld for federal income tax.

    If you need professional help filing your return, email me at [email protected] or [email protected].
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