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    Seek_guidance's Avatar
    Seek_guidance Posts: 2, Reputation: 1
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    #1

    Mar 22, 2006, 08:41 PM
    Exemptions for Non resident Indian on H1
    Hi,

    I came to US on H1 in Oct 2005. (I do not satisfy the substantial presence test). I suppose I need to file the 1040NR-EZ form.

    1. Can I claim the 5000$ standard deduction under India US treaty as a business apprentice (I do not know who qualifies to be a business apprentice)?
    2. Am I exempt from Medicare and Social Security taxes?
    3. I got interest on money deposited in my bank (ING Direct). Am I exempt from tax on it? Do I still need to report it and fill in 1040NR instead of NR-EZ?

    Thanks!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Mar 22, 2006, 09:41 PM
    SG:

    1) No, you cannot. Students and business apprentices would be under a F-1 visa. Your H-1 visa is a work visa.

    2) No. Your H-1 visa status makes oyu liable for these taxes.

    3) No, that interest is subject to taxes.

    You CAN file as a resident alien if you wait until June 2006 to file under First Year Choice. That will allow you to claim the $5,000 standard deduction.
    Seek_guidance's Avatar
    Seek_guidance Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Mar 23, 2006, 09:49 AM
    Thanks a lot!
    I did not know about that option. Could you please elaborate a little?
    Or give me some links as to where I can find more information on this?

    In this case I will have to apply for an extension for filing returns before filing it in June. Is that correct?

    Thanks again!!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 23, 2006, 10:32 AM
    I have explained First Yea Choice multiple times on this forum. If you read the questions over the past two weeks, you will find a detailed explanation.

    Yes, you need to file an extension. The Form is Form 4868.
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