Ask Experts Questions for FREE Help !
Ask
    aadesh's Avatar
    aadesh Posts: 10, Reputation: 1
    New Member
    		  
    #1

    Oct 31, 2008, 11:47 AM
    Tax Deductions on F-1 Visa status
    Hi,
    I am student in TX, I am summarizing my earning (I have added my payment and deduction for Nov and Dec as well) and deductions below,

    YTD Gross Taxes
    10302.5 934.84 Pay from Assistantship
    14875 1920.72 Pay from Internship
    25177.5 2855.56 Total


    Also I have taken a student loan that I am repaying. In 2008 till date I have re paid $2062 and the balance on the loan is $1860.


    How much is the tax refund that I can get? I have read that I can use the loan repayment to be deducted from the taxable income is this true? What can be done so that I get a full refund of the taxes? Please help :eek:

    Thank you all in advance!!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Oct 31, 2008, 10:37 PM

    On F1 you are exempt from residency for 5-years. You must file non-resident tax return. You do not pay FICA taxes.

    You will get personal exemption of $3500 and standard deduction of $5,450 (as per tax treaty between India and the U.S.).

    You federal income tax on $25177 is $2033 without student loan interest deduction.
    aadesh's Avatar
    aadesh Posts: 10, Reputation: 1
    New Member
    		  
    #3

    Oct 31, 2008, 10:50 PM
    Quote Originally Posted by MukatA View Post
    On F1 you are exempt from residency for 5-years. You must file non-resident tax return. You do not pay FICA taxes.

    You will get personal exemption of $3500 and standard deduction of $5,450 (as per tax treaty between India and the U.S.).

    You federal income tax on $25177 is $2033 without student loan interest deduction.
    So does it mean that I will get a refund of $822? What will be my tax with student loan deductions? Can in any way can I get a complete refund?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Nov 1, 2008, 07:01 AM

    You did not mention how much student loan interest you paid in 2008. If you paid $200, you will save $20 of federal income tax.
    aadesh's Avatar
    aadesh Posts: 10, Reputation: 1
    New Member
    		  
    #5

    Nov 1, 2008, 07:20 AM
    Quote Originally Posted by MukatA View Post
    You did not mention how much student loan interest you paid in 2008. If you paid $200, you will save $20 of federal income tax.
    Hello Mukta,
    I have made repayment of $2062 from which $169.21 was the interest that I paid. So does it mean that I will get a refund of $822 + $169.21? Can in any way can I get a complete refund? Thank you for your quick responses.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #6

    Nov 1, 2008, 07:52 AM
    No, the interest is a deduction, NOT a credit.

    Your refund will be $822 plus $17 for $839.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Deductions for Interns on F1 Visa status. [ 2 Answers ]

Hello All, I am an international student working as an intern in Houston TX. It would be a great help if you could inform me what are the taxes that are deductible from my salary. Currently there are 3 types of taxes that are being deducted from my account. 1) FED W/H. 2) OASDI FED 3)...

L-1 Visa holder - filing status - Can all the deductions be claimed ? [ 1 Answers ]

Hi, I am on L-1 Visa in US since Nov 27,2005 through Mar 03, 2006 and was back on Apr 15 2006. My Spose and child joined me in Apr 15,2006. I have filed taxes for 2005 as NR as I was here for a month only. For 2006 I believe I will be a resident alien having passed the substantial...

H1B Resident Status deductions [ 3 Answers ]

Last year, I was in dual status (part-OPT, part H1B) and filed a 1040NR-EZ. This year I have become a resident for tax purposes as I have been in H1B throughout 2005. So I have to file 1040/1040EZ. Last year, with 1040NR-EZ, claimed $5000 standard deduction as I am a citizen of India. Can I still...

Status, Required forms and Deductions [ 9 Answers ]

Hi, I was a student in Oklahoma from 8/03 to 06/05 and then moved to to Texas 07/05. My OPT began on 5/31/05. My company transferred my status to H1 in mid 11/05. Could you please let me know what forms do I need to fill. Also if you could let me know what deductions are available for me. ...

Deductions for dual-status [ 2 Answers ]

I am using 1040-nr form for filing my taxes. Since I am on h1 from nov. 1, 2004 (before that I was on f1 for 5 years), I cannot take standard deduction. My question is which deductions can I take?? I am indian so can I take $4500 deduction acc. To india treaty? What about itemized deductions?...

View more questions Search