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

    Apr 9, 2006, 09:13 AM
    F1-H1B exemptions ?
    I was on F1 from August 2003, I started working from Feb 2005 on My OPT and my H1b came into effect from October 2005. I am assuming I have to fill the 1040 NREZ form since I read that if India has a treaty with USA I should fill forms as NR alien. My question is the exemption deduction of 5000 which is meant to be taken by students and trainees (not sure who they are), Can I take that exemption? I think I can take the 3200 personal exemption but am not sure about the 5000.

    I would appreciate any help with this. In addition if any of the facts I stated above are incorrect kindly let me know.

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

    Apr 10, 2006, 09:27 AM
    If you were on F-1 visa status until October 2005, you CAN take the $5,000 standard deduction authorized under the U.S-India Tax Treaty. You just need to cite Article 21(1) on page 5 of Form 1040NR.
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