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Level 2
posted Mar 31, 2025 5:36:57 PM

Changed from H1B to F1 - can I claim US-India tax treaty?

A different scenario here: My first entry to the USA was in H1B. I switched to F1 (student) after few years. Based on SPT, with exemption for first 5 years on F1 as student, I am a non-resident for tax. Can I claim standard deduction based on US-India tax treaty? Or is there any criteria preventing me from being eligible for standard deduction. Until my first entry to the USA for work on H1B, I was a resident of India.

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3 Replies
Expert Alumni
Apr 1, 2025 10:35:38 AM

If you are still within the five-year calendar-year exemption and faithfully filed your 8843 during this period, you would file a 1040 NR return. There is no tax treaty that I know of that will permit you to claim a Standard Deduction on a 1040 NR return.

Level 2
Apr 1, 2025 12:15:37 PM

Thanks for your response. This is the treaty I am referring to US-India Tax Treaty Article 21(2). I know Indian students on F1 visa are eligible for standard deduction based on this treaty. However, I am unsure if I am, as I have lived in the US for more than 5 years and had been a resident for tax purpose then and am now a non-resident.

Expert Alumni
Apr 1, 2025 12:44:36 PM

Yes, once you become a resident, your F-1 treaty exemption expired and not and not renewable. The treaty benefits don't extend indefinitely—they are meant for students and apprentices during their education or training period, which has now expired.