[Dream]

I arrived in the US from Jamaica in 2002 on a FI visa and remained in this status until May 2006. At that time, I switched to OPT and then to H1-B. I received fellowship income from 2004 up to the time I switched to OPT.

My fellowship income was taxed and I filed f-1040 for 2004 and 2005, based on the tax treaty with Jamaica that allows students to be residents for tax purposes. For this year, I will be declaring fellowship income + H1B income. My question is mutlipronged:

1) I am assuming that my educational institution made an error when they taxed my fellowship. Since the treaty allowed me to be a resident alien for tax purposes, can I claim this as an exemption when I file this year's tax return? This way, the fellowship income will not be part of my AGI.
2) If I do this, do I still get the 3300 (personal) + 5150 (standard) deductions ?
3) How would I claim this tax treaty exemption since I am filing as a resident? I don't see any provision for this on the f-1040.

Thanks for your help.

[AtlantaTaxExpert]

1) The fellowship income probably WAS taxable income The university has a lot of experience in these matters, so if they reported the income as taxable, it probably IS taxable income. You can contact the university and discuss it with them, but I doubt that you will change their minds.

2) Yes.

3) You CANNOT claim a treaty exemption if you have H-1B income UNLESS the tax treaty has a SAVING provision.