OPT to H1B tax filing for 2015

[Sinduja]

hi @DavidS127 

I have a follow up question on this. If I changed from F1 student to H1B in October 2019, and now file my returns as a nonresident alien for the entire year, can I claim the tax treaty exemption for the entire year? Or is it only on the portion I earned when I was on F1? 

Thanks!

[DavidS127]

More information may help resolve your question.  For example, when did you meet the requirement as a U.S. resident alien, and was it via the substantial presence test or a green card?

See IRS Publication 519 for all the rules for aliens, including those related to the first year of residency and tax treaties.

@Sinduja

[sbbyl29]

@DavidS127 

Hi David,
If I file as a dual status alien by first year choice,  Can I use standard deduction from Tax Treaty of India for 1040-NR for income for part Jan-Sept and use itemized deduction in 1040 for income for part Oct-Dec ? 

Context: F1 Visa (Jan-Sept) and H1B Visa (Sept-Dec) and fail presence test for year 2020 but will satisfy for year 2021. 

[LinaJ2020]

Yes, you can only if you meet the requirements in the treaty.  International Tax Treaty is out of scope for our service.  You would need to consult a professional for verification.  Note that Information about standard deductions only applies to students and business apprentices eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty.

Standard deduction for certain residents of India.

Students or business apprentices may be able to take the standard deduction on Form 1040-NR, line 12, instead of their itemized deductions if they are eligible for benefits under Article 21(2) of the United States-India Income Tax Treaty. They will enter the standard deduction amount found for their filing status on Form 1040 or 1040-SR. For details, click here :  https://www.irs.gov/instructions/i1040nr#idm139824531961040  ( Under Standard Deduction)