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    afialam's Avatar
    afialam Posts: 2, Reputation: 1
    New Member

    Mar 16, 2008, 09:06 AM
    F1 to EAD/OPT: Tax Exemptions

    Here's the situation:

    1. Student on F1 in SC from Aug 2005 to Aug 2007.
    • Received W2 from University

    2. Working with New Employer in MD from Aug 2007 to Dec 2007 on EAD/OPT.
    • Received W2 from Company
    • Company has refunded FICA taxes
    • I was supposed to receive $3000 as relocation money. But I received only $1900. The Taxable income amount in the W-2 includes the $3000.

    I know I have to file 1040NR-EZ. I have a few questions:
    • I know I claim the single filing status claim. So will get an exemption of $3400. Right?
    • Can I claim both the standard deduction of $5350 and the US-India tax treaty?
    • Can I get the taxes deducted for my moving expenses refunded using 3903?

    Now regarding state taxes.
    • I moved out of SC to MD in Aug 2007. Do I have to file for SC as Part Year Resident or Part Year Non-Resident?
    • Do I have to file for MD as Part Year Resident/Part Year Non-Resident
    • What standard/other deductions are available for MD?

    Thanks for your time.

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

    May 1, 2008, 01:23 PM
    Since your relocation money is added to your taxable wages, you need to claimthe moving expenses using Form 3903, which requires you file Form 1040NR.

    If the relocation income is NOT properly allocated on the W-2, you need to tell the employer to get the W-2 corrected.

    You can claim ONLY the $5,350 standard deduction. For Indians, that IS the treaty exemption.

    For the states, you file as part-year resident for both returns.

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