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    dinkar443's Avatar
    dinkar443 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Mar 4, 2006, 05:32 PM
    Question about 1040NR
    Hello,
    I was on OPT and switched to H1-B starting Oct 1. I understand that I have to file 1040NR. I was using CINTAX to calculate my taxes. Here are some things that I am confused about:

    1) It states that IRS will not let me claim any tax treaty benefits - is that correct?

    2) I received 1099-DIV which mention ordinary dividends, qualified dividends and capital gains. I also received 1099-B where there were losses. CINTAX calculates "Tax on income not effectively connected with a U.S. trade or business on page 4". On page 4 it taxes dividends at 25%,capital gains at 30% and does no account for losses. Is that correct?

    Should this be reported in items 10 and 14?

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

    Mar 4, 2006, 10:06 PM
    1) No. If enough income was earned in F-1 status, you can claim the treaty exemption.

    2) Line 10 and 14 is where I would put the dividends and capital gains.
    dinkar443's Avatar
    dinkar443 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Mar 5, 2006, 08:16 AM
    Thanks! Just another small query: Do I have to attach a copy of 1099B with the return?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 5, 2006, 09:51 AM
    No, that is not necessary.
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