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    ganeshts's Avatar
    ganeshts Posts: 4, Reputation: 1
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    #1

    Feb 5, 2007, 12:31 PM
    Filing 1040-NREZ : Partial OPT / I 797 Approved Case
    I am preparing to file 1040-NREZ, and the relevant information is as below:

    I joined grad school in Aug 2004. I graduated in May 2006, and I was working on CPT between Jan and May 2006 and OPT after that. My OPT is active till May 2007, and my I-797 petition for H1 assumed validity from 30th November 2006. However, I have not had my H1 visa stamping yet.

    My query is with regard to itemized / standard deduction (Entry 11 in 1040-NREZ). According to the 1040-NREZ instructions and IRS Pub. 519, students and business apprentices from India can take standard deduction if they do not take itemized deduction.

    Can I take standard deduction on the basis of the fact that my I-797 work permit gained validity only from December?

    Thanks for your time and patience in responding to my query.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    Feb 5, 2007, 11:24 PM
    Since your H-1B takes effect on 30 Nov 06, you have NOT met the Substantial Presence Test.

    This allows you to file as a non-resident alien for 2006. Hence, you can claim the Indian Student-eligible Standard Deduction.

    In 2007, you will file as a resident alien.
    ganeshts's Avatar
    ganeshts Posts: 4, Reputation: 1
    New Member
    		  
    #3

    Feb 6, 2007, 10:16 AM
    Hi AtlantaTaxExpert, Thanks a lot for your response! Helped me in finishing up my 1040-NREZ :)
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 6, 2007, 10:58 AM
    Glad to help!
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