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

    Jul 14, 2008, 12:17 PM
    Tax exemption for a Chinese with F-1 visa interning under CPT during summer
    Hi, I'm a Chinese student with F-1 Visa. Now I'm doing a paid internship under CPT in New York City. This is my first summer here in the US. Would anyone advise that whether I'm qualified for the tax exemption based on the US-China tax treaty regarding my current income? If so, how should I proceed with my current employer? Thanks in advance.
    Regards,
    Raymond
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #2

    Jul 14, 2008, 08:18 PM
    Everyone on F1 and OPT is exempt from residency and FICA taxes for 5-years. Your income is subject to income taxes. You will get deduction of $5000 as per U.S. china tax treaty.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Jul 16, 2008, 06:36 AM
    Additionally, you will be able to deduct the NY state income taxes withheld from your salary as an itemized deduction.

    If your employer is withholding NY CITY income taxes, ask that he stop withholding and refund what HAS been withheld, because students on CPT retain their internatinal student status and are, by law, NOT NYC residents and therefore NOT subject to NYC income taxes.
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