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    Tej's Avatar
    Tej Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Feb 9, 2007, 05:28 PM
    1040NR-EZ Total wages and scholarships exempt by a treaty
    I came to US in October, 06 on H1B visa from India and would be filing my US returns for the first time. I would be filing my 1040NR-EZ form and in that context would like to know

    a) what is the amount I should put against line 6 Total wages and scholarships exempt by a treaty from page 2, Item J.

    b) Should I deduct this exempt amount from my W2 wages and put in line 7

    c) Is my Exemption deduction USD 3300

    d) Would I be taxed in India for my income in US and hence double taxed

    Regards

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

    Feb 10, 2007, 12:07 AM
    Tej:

    Determine your treaty exemption. Deduct the treaty exemption from your total wages. Put that amount on Line #3.

    Put the treaty exemption amount in Line 6.

    b) No! It is the total of your wages (#3), refunds (#4), and scholarship and grants (#5).

    c) Yes!

    d) Do not know, as I am not an Indian tax expert
    Tej's Avatar
    Tej Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Feb 11, 2007, 08:51 PM
    Thanks Atlanta Tax Expert for your prompt answer. As for those who would be interested whether the US income would be taxed in India for Resident Indians, after doing some research I have reached the conclusion that the answer is yes but the assesee would get a credit for the tax paid in US.

    Regards
    Tej
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Feb 11, 2007, 10:34 PM
    That's pretty typical. Most countries give such credits to avoid double taxation on the same income.
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