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

    Feb 4, 2012, 06:06 PM
    Standard deduction in dual alien status
    Hello,

    I am a citizen of India. I was in OPT till August, 31 st 2010 and my H1-B started from 1st October 2010. I am aware that I have to file a 1040 indicating a dual status. I am concerned with regard to the standard deduction that applies in my case. The instructions of 1040 say that, when an individual is in dual status for any part of the year, he is not entitled of any standard deduction. However, I believe that as per TAX treaty between India and US I am entitled a standard deduction.

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

    Feb 8, 2012, 03:55 PM
    Do NOT file dual-status!

    If you are married, file jointly with your wife and you both CHOOSE to be treated as resident aliens for all of 2011. You have to wait until 1 June 2012 to file, but it is worth the wait.

    If you are single, you have NOT YET met the Substantial Presence Test, so you can file as a non-resident alien, filing Forms 1040NR-EZ and 8843 (and claiming the standrd deduction udner Article 21 of the U.. S.-India Tax Treaty) one last time.

    You CAN file dual-status by waiting until 1 June 2012 to file, but you get NO added tax benefits for doing so, so WHY WAIT?

    If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there.
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