Hi,
I was on F1 student visa from January 1, 2022 to September 30, 2022. My visa changed to H1B on October 1, 2022. I entered the United States in August 2018 on F1 visa, and based on the substantial presence test, I am filing as a non-resident alien for 2022 tax purposes. I am a citizen of India.
My question is whether I can claim the standard deduction under US-India Tax Treaty Article 21(2) for 2022 given that I was on the F1 student visa only for 9 months in 2022.
ARTICLE 21
Payments Received by Students and Apprentices
1. A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other State principally for the purpose of his education or training shall be exempt from tax in that other State, on payments which arise outside that other State for the purposes of his maintenance, education or training.
2. In respect of grants, scholarships and remuneration from employment not covered by paragraph 1, a student or business apprentice described in paragraph 1 shall, in addition, be entitled during such education or training to the same exemptions, reliefs or reductions in respect of taxes available to residents of the State which he is visiting.
3. The benefits of this Article shall extend only for such period of time as may be reasonable or customarily required to complete the education or training undertaken.
4. For the purposes of this Article, an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracting State in the taxable year in which he visits the other Contracting State or in the immediately proceeding taxable year.
See publication 901, page 22, India for more information: https://www.irs.gov/pub/irs-pdf/p901.pdf
