[rubick]

Hi, I am an international student from India and resident alien for tax purposes. I have been trying to find answers to a couple of questions before I can file my taxes. One of my friends strongly recommended me to contact you.

I am a resident alien for tax purposes since jan 2006 and a citizen of India. I received a scholarship from Jan 2006 - July 2006. No tax was withheld on this money because I had filled form W8. I haven't been issued a 1042-S for the same reason. So I was wondering:

a) Is my scholarship federal tax exempt under India-US treaty? Table 3 0n publication 901 does list a treaty between India and US.

I researched on the web and found the following document. Please see Article 21 on this document. But it was confusing to understand.

http://unclefed.com/ForTaxProfs/Treaties/inditech.pdf

b) If not, then how do I declare this as income, i.e. under what column?

c) How do I find out if this amount is taxable for GA taxes?

Thanks much,

AS

[AtlantaTaxExpert]

AS:

You MAY or May NOT be a resident alien for tax purposes. When did you first enter the U.S. on your F-1 visa?

If it was AFTER 2001, then you are STILL a non-resident alien or, at most, a dual-status alien.

If the scholarship is your ONLY source of income, it is likely tax exempt, which means no tax return is needed.

[rubick]

I entered US first in August 2001. I filled W8 last year after which no tax was withheld from my scholarship money. I also get a research assistantship, so this scholarship was not the only source of income. The main confusion arises from the fact if the tax treaty between India and US makes any difference.

[AtlantaTaxExpert]

You are a resident alien for 2006. The exempt status granted under the F-1 visa expired on31 December 2005.

However, the scholarship income is exempt income In my opinion, No tax return is due.

Did you get a Form 1042-S, and was income withheld?