[usrneel]

Hi
Is the $5700 std deduction for us-india applicable for non-resident h1b holders?

On 1040 nr it says
"Residents of India who were students or business apprentices may be able to take the standard deduction"

What is a business apprentice? It is applicable to h1b holders?

[MukatA]

No, on H1-B you are not exempt individual and you must pay SS tax, Medicare tax and income taxes. You do not get treaty deduction available for students or researchers. Your U.S. Tax Return: The U.S. Visas

[usrneel]

Thakns a lot, but I was a student on F1 and I came back in jan 2008. My status changed from f1 to h1 dec 2008. But I am still in india. So that invalidates the treaty for me since I am no longer on f1?

[MukatA]

When did you enter and depart the U.S. You visa status? Did you file 2008 tax return; and what form?

[usrneel]

Thanks for taking interest mukta. Here is the info

Entry: 8/16/2004 (F1)
Departure: 1/25/08 (F1)

Current status: H1B since 12/22/2008, but not entered us

Did you file 2008 tax return: yes
What form: 1040NR

When In us 1040NR-EZ with W2+state tax
-----------
On my 2005 I have claimed std deduction
On my 2006 I have claimed std deduction

In india: 1040NR with 1099misc (non employee compensation)
-------
On my 2007 I have claimed std deduction
On my 2008 I have claimed std deduction

[usrneel]

Moving to top of forumQ!

[AtlantaTaxExpert]

You CAN claim the $5,700 standard deduction on the 2008 return due to the F-1 visa status in the first part of the year; hope you did so.

Any income earned while on H-1 status in 2008 is not subject to U.S. income tax, because the income was earned OUTSIDE of U.S. borders.