[kums20]

I am an Indian student in F1-OPT status. My wife and kids are in F2 status. My kids are 7 years old and 3 years old. My Reported W-2 wages are $41305. My federal income tax with held is $3723. My state income tax is $1394 and my local income tax is $667. I recently went to H&R block to do my filing. They told me that I would get an refund of $812 from state and I owe $53 to IRS.

However, my friends told me that I should get a refund of more than $3500. I also checked H&R block's free tax estimator and got a figure of $4300 as refund. H&R block consultant also said, the US treasury some how does not consider the benefit given to kids if I am in F1-OPT status. I am confused. Am I missing something there? Is H&R block's estimate accurate and trustable?

-kums20

[AtlantaTaxExpert]

I have not checked the figures, but H&R Block is likely correct, because, as an Indian student, you are a non-resident alien and thus unable to claim the $1,000 Child Tax Credit for each child, or are you allowed to claim the Earned Income Credit (EIC).

Because you are Indian, under the U.S.-India Tax Treaty, you CAN claim your wife's and children's three $3,800 personal exemptions (for a total of $11,400 deduction) .

The Child Tax Credit will change should you convert to a work visa (H-1, H-01B or L-1), but you will still be unable to claim the EIC as long as your wife or any of your children have an ITIN.

Be sure the H&R Block people file Form 1040NR for you. If they attempt to file your return electronically, you will know that they are filing incorrectly, because Form 1040NR CANNOT be filed electronically; it MUST be mailed.

[kums20]

Hi there,

Thanks a lot for your response. There is one standard deduction for item line number 38 in 1040 NR form (which is NOT sent electronically), for $5950 and $35,655 exempted under India Income Tax treaty for line number 39 and exemption in item line 40 for $7600. H&R block also filled the W-7 form for my wife to get her an ITIN number. Does these figures look good?

I feel better now and informed. Thanks for the quick reply.

-Kums20

[AtlantaTaxExpert]

Kums20,

Please email me a copy of the return H&R Block prepared for you. They should be getting ITINs for your children as well as your wife.

My email address is in my profile if you cannot see it below.

[kums20]

Hi,
Sorry for my late response. As I understand from your answer, my kids should also be applied for ITIN. But still I won't get any extra tax benefits. Am I right? Also I have sent you the H&R Block's tax filing form 1040NR to your email.

Kums20

[AtlantaTaxExpert]

I got the tax return, and have responded on what you should do.

Ghe H & R Block people are doing their best, but it is clear they lack the experience to properly deal with your case.

Get someone who DOES have such experience.