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    kmariyappan's Avatar
    kmariyappan Posts: 1, Reputation: 1
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    #1

    Feb 6, 2008, 06:22 AM
    Massachusets - India- US Treaty exemption
    Hi,

    I am from India and in USA with J1 Visa(Training). I have received my W2 Form and completed my 1040-NR-EZ for federal return with Exemption deduction($3400) and Standard deduction($5350) as per India-US Treaty. Since, I am in MA I have state tax withheld in my W2 Form. Could I deduct this state tax withheld for federal filing or I can opt only the standard deduction?

    For filling Massachusets state tax, Form 1-NR/PY Personal exemption $4125 is allowed. Apart from this can I deduct $5350 in other deduction (Schedule Y Line 4) Income exempt under U.S tax treaty?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #2

    Feb 6, 2008, 09:00 AM
    If you take standard deduction, then you can deduct state tax.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Feb 8, 2008, 10:34 PM
    You can try, as the standard deduction IS a treaty exemption under Artile 21(1).

    No guarantee that the MA state tax authorities will buy it, though.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #4

    Feb 9, 2008, 12:07 AM
    Quote Originally Posted by MukatA
    If you take standard deduction, then you can deduct state tax.
    Correction: If you take standard deduction, then you can't deduct state tax.
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