[mehuljk]

Dear Atlanta taxexpert,
I came in US in Aug 2002. I was on F1 visa till Dec 12, 2004. Then, I was on OPT till 15th September, 2005. Then I am on H1B visa after that. I would like to know do I have to file form 1040, 1040NR or 1040NR-EZ. Am I considered non-resident alien or resident alien for tax purposes. Do I still get benefit of US-INDIA tax treaty ? Last year I filled 1040NR-EZ for the income I earned in School.

Regards,
Mehul.

[AtlantaTaxExpert]

Mehul:

Unless you are hoping to claim education credits, you should file Form 1040NR-EZ again for 2005. You are considered a non-resident alien for 2005.

In 2006, you will file as a resident alien.

[mehuljk]

Dear AtlantaTaxExpert

Thanks for your reply. I am not going to claim any education credits and I am single too. Then Do I have to file 1040NR or 1040NR-EZ as I am a non-resident alien ?

But, I tried using CINTAX software and it had given me the same form(1040 NR-EZ). But it didn't gave me standard deduction of $5000. It just took $3200 as personal excemption.

But Do I get benefit of US-INDIA tax treaty as I am on H1B visa now ? If yes then I will be able to get $5000 + $3200 as non-taxable or will I get only $3200 or only $5000 ?

Regards,
Mehul

[AtlantaTaxExpert]

Mehul:

Unfortunately, the CINTAX software does not work well during the year you convert from F-1 to H-1B visa status.

You are entitled to the $5,000 standard deduction. You just need to put that amount where the itemized deduction go and print "Standard Deduction authorized under U.S.-Indian Tax Treaty" on the dotted line to the left of the entry on Form 1040NR.

[mehuljk]

Dear AtlantaTaxExpert,

Thanks for your help.
Can you tell me the Article number for the same treaty. The form 1040 NR needs me to write article number too.

Regards,
Mehul

[AtlantaTaxExpert]

Mehul:

ARTICLE 21(2)