[Zifa]

What are exemption Deductions?
Can we use exemption deduction as well as standard deduction ?
As a professional having H1b visa status

[MukatA]

When did you enter the U.S. and on what visa? When did you start on H1-B? Are you married or single. Only if you answer these questions, then someone can post the reply.

If you are nonresident for tax purpose, you will not get standard deduction.

[Zifa]

Hi Mukta

I entered USA in 2006 on F1 visa. Then In 2007 Oct. My visa status changed from F1 to H1B. I am Indian national. And I am single.I don't have any dependents.I don't have any property or estate, no other social services funds... basically nothing for deductions.
I wanted to know if one can get Exemption Deduction along with standard deductions irrespective of you are resident or on H1 B ? Or even nationality matters_ e.g. Japan korea India etc. ( I am concern only about personal exemptions and not dependent exemption)
I tried HandR block and it shows me exemption deductions as well as standard deduction for rough estimation of the Taxes.

Thanks

[MukatA]

Everyone resident or nonresident gets personal exemption ($3,400 for 2007).

For 2007, you will file nonresident tax return. If you have income during F1 or OPT, on your OPY income you will get standard deduction of $5,350 based on tax treaty on.

[Zifa]

I have one more question since this time as well my Social Security and Medicare Taxes are not charged for half of 2007 do I need to file 8843 along with the federal form ?

[MukatA]

Yes, you will also file Form 8843.

For more info on nonresident filing: Your U.S. Tax Return: U.S. Tax Filing Requirements for Non-Residents