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amitsworld21 · Mar 6, 2006, 01:01 PM

Hello Atlanta Tax Expert

I was on F1 visa from Jan 2005-August 2005, on OPT from September 2005- Nov 2005 and on H1-B visa from Dec1.
During my student visa I was in Texas and now moved to Colorado (two W-2 forms). And for the last month of December also had paid State Taxes for Colorado.
Please tell me which forms do I need to fill up. Can I take the 5000$ deduction for indian students.
Also I tried to use Turbo-tax but am not sure if it gets me the deductions from the Indian Tax treaty. Can you suggest me any online tax websites that can consider my tax-treaty status and offer me the deduction?

It would be great if you can help me out on this.
Thanks
Amit

AtlantaTaxExpert · Mar 6, 2006, 09:19 PM

There is an online website for tax returns for non-resident aliens. I believe the name is CINCTAX.COM.

You should file as a non-resident alien (Form 1040NR or 1040NR-EZ). You can claim the tax treaty exemption if you made at least $5,000 while under the F-1 visa.

Texas has no state income tax.

You can get the Colorado forms from the Colorado state government website.

amitsworld21 · Mar 9, 2006, 08:50 AM

Thanks a lot AtlantaTaxExpert. It was a big help

AtlantaTaxExpert · Mar 9, 2006, 10:23 AM

The website is actually www.cintax.us.

However, several of the posters says is it does not work well for people converting from F-1 to H-1, which means you probably will have to fill in the forms manually.

amitsworld21 · Mar 9, 2006, 01:07 PM

Hi AtlantaTaxExpert
I figured out the website had a spelling mistake,, thanks though for the update. I just wanted to know if I can fill any of the 1040 NR or the 1040 NR-Z. I am confused what's the difference between the two.
Thanks a lot
Amit

AtlantaTaxExpert · Mar 9, 2006, 03:11 PM

From 1040NR-EZ is a lot easier to fill out, but you cannot claim any credits or itemized deductions with it.

amitsworld21 · Mar 9, 2006, 03:32 PM

AtlantaTaxExpert
Can I conclude the following...
As in your last message you said that if I have more than 5000$ income on F-1 visa (I had income more than 5000$ on my F-1) and worked for less than 180 days on H1-B in 2005, and if I want to take both the 3200$ and 5000$ deductions then I should fill up the 1040 NR.
I guess I can fill in the form 1040 NR (I am assuming both of my W-2 forms tax data can be filled in 1040 NR).
Thanks
Amit

AtlantaTaxExpert · Mar 9, 2006, 03:35 PM

Amit:

Yes, that would be the best way to file. On the line where you put "Itemized Deductions", put $5,000 and write in the dotted line the following statement:

"Standard Deduction allowed under U.S.-India Income Tax Treaty".

Highlight in green or yellow so it will be noticed.

amitsworld21 · Mar 9, 2006, 04:54 PM

AtlantaTaxExpert
Your comment and tips have been very helpful.. thanks a lot for your guidance. I will try to follow your instructions. Thanks
Amit

AtlantaTaxExpert · Mar 9, 2006, 09:28 PM

Glad to help!

arkanand · Mar 11, 2006, 07:40 PM

To ATE

Iam planning to fill in the 1040NR-EZ form and my question is

Which line do you fill in the $3200 exemption?

Thanks

extraaapace · Mar 11, 2006, 08:50 PM

Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

Please let me know similar to the $5000 deduction you have explained.

Thanks.

extraaapace · Mar 11, 2006, 08:50 PM

Thanks for all that info. I am in the same boat. Where would I put the $3200 deduction, and what explanation should I give with it?

Please let me know similar to the $5000 deduction you have explained.

Thanks.

extraaapace · Mar 11, 2006, 08:53 PM

Where does the $320 deduction go in the 1040NR form and with what explanation. Please let me know.

AtlantaTaxExpert · Mar 11, 2006, 11:06 PM

ExtraAapace & Arkanand:

The $3,200 personal exemption goes on Line #13, Form 1040NR-EZ.

extraaapace · Mar 12, 2006, 12:23 AM

Atlanta Tax Expert,

Thanks for the answer. Don't we use form 1040 NR for the $5000 deduction? Can we put in the $3200 deduction into the 1040NR form ? If yes, where?

If not, are you saying that at one time we can use either the $5000 (1040NR form) or the $3200 (1040 NR-EZ)?

Please advise.

AtlantaTaxExpert · Mar 12, 2006, 07:43 AM

ExtraAapace:

If you are both Indian nationals on F-1 status, you can claim both the $5,000 standard deduction and the $3,200 personal exemption on either Form 1040NR or 1040NR-EZ.

On Form 1040NR, You would claim the $3,200 personal exemption on Line #38 and the $5,000 standard deduction on Line #36. You would write "Standard deduction allowed under U.S-India Income Tax Treaty" on the dotted line just left of the #36.

On Form 1040NR-EZ, you would do the same thing on Lines #11 and 13.

amitsworld21 · Mar 12, 2006, 07:37 PM

AtlantaTaxEXpert
I would like to round off the discussion with the following. Please correct me if I am wrong.
People who have been in the US on F-1 visa in 2005 lets say till November 2005 and H1-B for the rest (Thus not passing the substantial presence test of 180 days) can fill either the 1040NR or 1040 NR-EZ.
Both the forms will allow us to take both 5000$ (If the income on F-1 was higher than 5000) and 3200$ deductions. So any one of the forms can be filled.
Lastly I heard some of my friends talking about form 8843. Do we need to do that? Can you please guide us on that issue. Your help has been valuable.
Thanks
Amit

AtlantaTaxExpert · Mar 12, 2006, 09:29 PM

Amit:

Yes, everything you said is accurate.

And, yes, you need to file Form 8843 one last time.

amitsworld21 · Mar 13, 2006, 09:10 AM

AtlantaTaxExpert
Thanks a lot. Can you put some more light on the 8843 form. I mean by what you have said I guess that one needs to fill up this form if he/she is on F-1 during the tax year. And since from this year I would not be on a student visa, I would not have to fill up the form for next year taxes. Also from next year I will have to use 1040 NR and cannot fill up 1040 NR-EZ.
Thanks
Amit