pk
Level 15
Level 15

After you file

@adityain2003 , thank you for your answer to my questions.  Namaste Aditya ji

 

(a) absent any contravening facts, from your post you appear to be a Non-Resident Alien (NRA).  Therefore  you need to file your return on form 1040-NR ( not  supported by TurboTax --- need to use some service like SprinTax, your own school Foreign Student office  etc.).

(b) If above is true and you have filed a form 1040, then you need to amend your return.  This would mean filing a return using 1040-NR, a note explaining  ( and including a copy of your original return--1040) that you had used the wrong form. On this 1040-NR, you have to recognize the  US sourced income and then exclude this income with a comment  such as  " Exclude  Per Article 22 of US-India tax treaty".

(c) Note that this exemption from tax is valid for two years from the date of entry and  if your plan  ( or high likelihood) of extension of stay past two years, then you are better off allowing the taxation  of the income to proceed i.e. not assert article 22  conditions/benefits.  This is because  there is a claw back condition if  employment/stay goes beyond 2 yrs.  ( IMHO India uses  "may" rather than "will" while US technical explanation kind of recognizes the "may" but does not quite clarify. Also I have not come across any case history one way or the other).

 

Is there more I can do for you ?

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