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    rramach1's Avatar
    rramach1 Posts: 1, Reputation: 1
    New Member
     
    #1

    Mar 25, 2008, 02:13 PM
    India US Tax Treaty + Resident Alien + Standard deduction
    Hello,

    I am an Indian national who finished 5 years on an F1-visa in 2007 and therefore am a resident alien for tax purposes (2007 tax year).

    Can I claim the India-US Tax treaty ($ 5000 deduction) + standard individual deduction ( $5350) for the tax year ? Am I just being too greedy ? :D

    Please advise.

    Thanks,
    Regards
    krismede's Avatar
    krismede Posts: 9, Reputation: 1
    New Member
     
    #2

    Mar 25, 2008, 10:52 PM
    Hey..
    Am also F1 in USA since 3 yrs from India
    Can you please tell me what is that $5000 exempt income?

    Is it in addition to from standard deduction($5350) and personal exemption ($3400) ?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #3

    Mar 26, 2008, 01:21 AM
    Quote Originally Posted by rramach1
    Hello,

    I am an Indian national who finished 5 years on an F1-visa in 2007 and therefore am a resident alien for tax purposes (2007 tax year).
    Can I claim the India-US Tax treaty ($ 5000 deduction) + standard individual deduction ( $5350) for the tax year ? Am I just being too greedy ? :D
    Please advise.

    Thanks,
    Regards
    When did you come to the US on F1 visa? Also the US India tax treaty for students does not have any $5,000 deduction.
    Read Your U.S. Tax Return: U.S. Tax Treaties for Students and Apprentices
    krismede's Avatar
    krismede Posts: 9, Reputation: 1
    New Member
     
    #4

    Mar 26, 2008, 06:36 AM
    I came in 2005 as F1 student.
    According to W2 form for 2007

    My wages were: 19000
    Federal withheld: 1675
    State withheld: 806

    Please let me know how much amount is exempt from my wages.. and how does the tax treaty help me?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #5

    Mar 26, 2008, 10:17 AM
    You will get standard deduction of $5,350 (as per tax treaty) and exemption of $3,400. Your taxable income is $10,250. Income tax is $1150. Your federal refund is $625.

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