Indian Student. F1 to H1B in Nov. Filing as a non-resident. Can I claim standard deduction as per US-India Tax Treaty Article 21(2) as I was student only till November?

F1 indian student starting from June 2015.
I worked under F1 OPT from February 6th to Nov 9th, 2017. (My OPT started on Feb 4th, 2017
And then I got approval for H1B, I worked on H1B from November 9th to December 31st, 2017.
As per today, I am working under the H1B visa status.

I am not eligible for tax filling as resident alien since I haven't fulfilled 183 days of substantial presence test. Neither I can make the first year choice for dual status alien. I will be filling as a non-resident alien (1040NR or 1040 NR-EZ) only. (I came to the USA in June 2015 as F1. So not completing 5-year rule either)

But my question is: Am I eligible to get USA-India tax treaty Article 21(2) standard deduction?

4204

New Member

Jun 4, 2019 12:49:27 PM

asd

Intuit Alumni

Jun 4, 2019 12:49:29 PM

Yes, based on your information, you have an option to choose to claim the standard deduction.

Per IRS, 1040-NR instructions,

Residents of India who were students or business apprentices may be able to take the standard deduction instead of

their itemized deductions. A special rule applies to students and business apprentices who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty. You may be able to take the standard deduction along with a net disaster loss. See chapter 5 of Pub. 519 for details.

New Member

Apr 24, 2021 4:13:30 PM

How do I determine the amount of standard deduction I can claim as part of Article 21?

Expert Alumni

Apr 25, 2021 11:51:59 AM

@gunjan172 The standard deduction is the same as the U.S. standard deduction. Refer to the worksheet on page 29 of Publication 519.

TurboTax does not support nonresident returns (Form 1040NR). You can use Sprintax.com.

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Indian Student. F1 to H1B in Nov. Filing as a non-resident. Can I claim standard deduction as per US-India Tax Treaty Article 21(2) as I was student only till November?