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    ijb2672's Avatar
    ijb2672 Posts: 1, Reputation: 1
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    #1

    Jul 7, 2006, 09:59 AM
    Taxes For Indian Students
    Hi,
    I am a Indian student on F1 at Georgia. I am married and my wife is in F2 visa. We are directly coming from india. I am getting full tuition waiver and graduate assistantship. I wanted to know what will be the portion of taxes withheld every month from my slary and whether the indian US treaty will help in reducing the withhelding amount. If my income is say $1000, what will be the total amount of federal and state taxes, incurred on my income.
    Please let me know ASAP.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,834, Reputation: 846
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    #2

    Jul 7, 2006, 06:11 PM
    As an F-1 visaholder, you must file Form 1040NR or 1040NR-EZ, as well as Form 8843. You are entitled to a personal exemption of about $3,300 for 2006.

    Because you are an Indian citizen, you can claim your wife as a dependent, which is another $3,300 exemption. Further, you can claim the $5,100 standard deduction as a result of the U.S.-India Tax Treaty.

    This means that the $11,700 earned will NOT be taxed. You must file the tax return noted, but if your income is less than $11,700, you will owe no taxes.

    Finally, as a F-1 visa holder, any income you earn is totally exempt from Social Securtiy and Medicare taxes.

    As for Georgia, you will file Form 500 just like any other Georgia resident.

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