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| <marko.online[at]gmail.com> wrote: - quote - > I know several Indians (non-res aliens) who are in the US on
You appear confused. While there is some correlation> H1-B visas and have been in country for the last 3 years or > more. They've all applied for their green cards, of course, > to continue the Gravy Train. between a person's immigration status and their tax status, they are determined through independent means. - quote - > It seems that all of them had used the standard deduction on
If you're a non-resident, you follow the rules for a> their returns and didn't even use 1040-NR's. I see that > since they met the substantial presence test, they can in > fact use the 1040. However, does a positive substantial > presence test mean that they can take the standard deduction > as well? The Publications 17 and 519 clearly state that a > non-resident alien can't use the standard deduction, but its > not clear that you'd be considered a resident alien for > purposes of this issue (thereby eligible for the standard > deduction) if you pass the substantial presence test. non-resident. If you file as a resident, you get to claim all of the benefits of filing as a resident. In return, you also have all the responsibilities of filing as a resident (for example, needing to report all of your worldwide income). This may or not apply, but there IS a provision in the US-India Tax Treaty that allows students or business apprentices from India to claim the Standard Deduction on their Form 1040-NR (Pub 519 p24). Bryan -- ------------------------ Bryan Kellar, EA Oregon Tax Help, Inc. -- Portland, Oregon www.oregontaxhelp.com www.canadatax.org << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| I didn't intend any harm in my words regarding the gravy train. I used this phrase because of the built-in fallacy of the H1-B program limits. An H1-B alien simply has to apply for his green card and (for the most part) he's free to stay regardless of H1-B limits. I'm an IT consultant and have found my pay being cut due to overseas workers coming in and taking jobs. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| marko.online[at]gmail.com wrote: - quote - > I know several Indians (non-res aliens) who are in the US on
If you are a resident alien for tax purposes (pass the> H1-B visas and have been in country for the last 3 years or > more. They've all applied for their green cards, of course, > to continue the Gravy Train. > It seems that all of them had used the standard deduction on > their returns and didn't even use 1040-NR's. I see that > since they met the substantial presence test, they can in > fact use the 1040. However, does a positive substantial > presence test mean that they can take the standard deduction > as well? The Publications 17 and 519 clearly state that a > non-resident alien can't use the standard deduction, but its > not clear that you'd be considered a resident alien for > purposes of this issue (thereby eligible for the standard > deduction) if you pass the substantial presence test. test), then you file your tax returns in the same manner as US citizens and permanent residents. In addition, I take umbrage in your comment regarding a "gravy train" as the reason that nonresidents apply to become permanent residents of the U.S. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
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| I know several Indians (non-res aliens) who are in the US on H1-B visas and have been in country for the last 3 years or more. They've all applied for their green cards, of course, to continue the Gravy Train. It seems that all of them had used the standard deduction on their returns and didn't even use 1040-NR's. I see that since they met the substantial presence test, they can in fact use the 1040. However, does a positive substantial presence test mean that they can take the standard deduction as well? The Publications 17 and 519 clearly state that a non-resident alien can't use the standard deduction, but its not clear that you'd be considered a resident alien for purposes of this issue (thereby eligible for the standard deduction) if you pass the substantial presence test. << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << -------------------------------------------------> |
| Tags |
| deduction, presence, standard, substantial |
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