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    pratiksgandhi's Avatar
    pratiksgandhi Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Apr 13, 2011, 01:18 PM
    US India Tax Treaty - F1-OPT?
    Hi,

    I am on F1-OPT and working full time with in US as software engineer. I came to US in August 2008 on F1 visa. If I understand correclty first two years my income is not subject to tax . So till August 2010 my income is not subject to tax. And for sept to dec 2010 I have to pay regular tax?

    Is my understanding correct?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Apr 25, 2011, 01:31 PM
    No, your understanding is NOT correct. Though it is a common mistake.

    Income that comes from OUTSIDE of the United States while you are under the F-1 visa is tax-exempt.

    However, income received from a U.S. source (such as wages earned while on OPT) are fully subject to U.S. income taxes.

    You ARE exempt from FICA (Social Security and Medicare) taxes while on OPT, however. You need to ensure your employer is aware of that fact.

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