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imadakbar001 · Mar 24, 2008, 03:58 PM

I had tax related questions and was hoping someone could help. I am from Pakistan, I came to the US on an F1 visa in July 2005 and my status changed from F1 to H1B on October 1st 2007. I have been working full time since Aug/1/2007. Am I a resident or non resident alien? Can I claim the standard deduction? Can I claim a deduction on my taxable income based on the Pakistan/US tax treaty? Thanks in advance.

The Texas Tax Expert · Mar 24, 2008, 05:47 PM

You would be a Non Resident for 2007. With regard to the treaty, you should be able to exlude something like $5000 but only for the period during which you were on F1. You need to look more closely at this to make sure you get it right. Which state are you in?

imadakbar001 · Mar 24, 2008, 09:52 PM

Originally Posted by The Texas Tax Expert

You would be a Non Resident for 2007. With regard to the treaty, you should be able to exlude something like $5000 but only for the period during which you were on F1. You need to look more closely at this to make sure you get it right. Which state are you in?

Thank you for replying. I am in California. I spoke to a tax consultant who said that in addition to the ~$5000 amount you mentioned, there was an additional $3400 I could deduct from my taxable income. Would you agree?

MukatA · Mar 24, 2008, 11:22 PM

Yes, you will file nonresident tax return. Everyone on nonresident tax return gets personal exemption of $3,400. Then you will get additional deduction as per tax treaty for your OPT income. You will also file Form 8843.

The Texas Tax Expert · Mar 25, 2008, 04:58 AM

Originally Posted by imadakbar001

Thank you for replying. I am in California. I spoke to a tax consultant who said that in addition to the ~$5000 amount you mentioned, there was an additional $3400 I could deduct from my taxable income. Would you agree?

Yes, there is an additional $3,400 deduction but this is not unique to your situation -- all non-residents will qualify for this -- and it has nothing to do with the treaty.

I'd be a little careful about the tax consultant to whom you are speaking. It might be that they are telling you information that is relevant to filing a resident return, with a standard deduction (5,350) and an exemption amount (3,400). If they don't understand clearly the difference between resident and non-resident, find someone else.