india tax treaty

[adityamate22]

Am I eligible to claim India tax treaty standard deduction on both fed as well as state (MA) if I'm on F-1 visa (OPT) but have become a US tax purpose resident?

[RobertB4444]

A resident of the US is still able to claim the benefits of foreign tax treaties with their home country while in the US.  Massachusetts recognizes foreign tax treaties.  So, yes.

@adityamate22 

[adityamate22]

Thank you! 

How much is this standard deduction and article number? I vaguely remember 21(a) from last year, but I couldn't find the amount anywhere for this year @RobertB4444 

[DaveF1006]

It depends. If you are a resident who has fulfilled his exemption requirement, you are a resident alien for tax purposes. This means you report all your world wide income on the 1040 return. If you receive foreign income and pay tax to India on that same income, you may claim a foreign tax credit for the tax you paid in India to avoid double-taxation. This stipulation is listed in Article 25 in the US/India Tax Treaty.

Filing a1040 resident return for 2023 will allow you to take the US Standard Deduction. This isn't mentioned in the treaty but since you are a resident alien for tax purposes, you are eligible to take the standard deduction regardless on whether or not this is mentioned in the treaty.

The 2023 standard deduction is $13,850 for single filers and those married filing separately, $27,700 for those married filing jointly, and $20,800 for heads of household.

@adityamate22