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    octopus555's Avatar
    octopus555 Posts: 5, Reputation: 1
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    #1

    Mar 20, 2008, 02:39 PM
    Claim deduction on 1040NR?
    Hi, I'm a Canadian resident and I went to the States for an internship last summer (H-3 visa). Before I left I went to IRS office and an officer helped me with 1040-C. She put $17700 on line 15 (Total income) and $925 on line 25 (Total tax).

    This year when I received W-2, it says my total income is $25783.4 (my company paid me for living in the states and they included this on box 1 in W-2). I tried to calculate the tax by myself and I surprisingly found I should pay $2965 for the tax. Did I miss any deduction or excemption?

    Thank you very much!
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    octopus555 Posts: 5, Reputation: 1
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    #2

    Mar 25, 2008, 02:02 AM
    Can anyone helo me out please? Thank you!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #3

    Mar 25, 2008, 02:26 AM
    In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

    In 2006, your income is $25,783. Your deduction $8,750. Taxable income $17,033. Your federal income tax is $2,163.
    octopus555's Avatar
    octopus555 Posts: 5, Reputation: 1
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    #4

    Mar 30, 2008, 03:44 PM
    Quote Originally Posted by MukatA
    In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

    In 2006, your income is $25,783. Your deduction $8,750. Taxable income $17,033. Your federal income tax is $2,163.
    Hi MukatA,

    Actually it's tax year 2007, not 2006.

    Would you kindly explain how can I calculate the deduction of $8450 and $8750 please? From 1040NR/NR-EZ, I can only figure out my exemption is 3400.

    I was in Washington last year so I didn't pay State or City tax.

    Thank you very much!
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    octopus555 Posts: 5, Reputation: 1
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    #5

    Mar 31, 2008, 08:21 PM
    Any help is greatly appreciated :)
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #6

    Apr 1, 2008, 02:27 AM
    In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

    In 2007, your income is $25,783. Your deduction is $8,750 (standard deduction of $5,350 plus exemption of $3,400). Taxable income $17,033. Your federal income tax is $2,163.
    octopus555's Avatar
    octopus555 Posts: 5, Reputation: 1
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    #7

    Apr 1, 2008, 07:00 PM
    Quote Originally Posted by MukatA
    In 2006, your income was $17,700. Your deduction was $8450. So taxable income was $9,250. Federal income Tax $925.

    In 2007, your income is $25,783. Your deduction is $8,750 (standard deduction of $5,350 plus exemption of $3,400). Taxable income $17,033. Your federal income tax is $2,163.
    Hi MukatA and other experts,

    Can I claim $5350 standard deduction in 1040NR? I'm not from India... and now I'm back to Canada already. Thanks a lot!
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
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    #8

    Apr 1, 2008, 08:12 PM
    H-3 visa is for training in the U.S. In the publication 901: Tax treaties, I could not find any deduction based on U.S. Canada tax treaty for students and trainees; that is you can't have standard deduction. You can have itemized deductions.
    You can read this at: Your U.S. Tax Return: U.S. Tax Treaties for Students and Apprentices

    But you should also refer to Publication 597: U.S. and Canada Tax Treaty.
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