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Old 02-15-2007, 05:33 AM
Dick Adams
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Default Re: tax treaty exemption

kw wrote:

- quote -

> I am an F-1 student at a US university.
> I am filing Form 1040 since I am a resident alien for tax
> purpose. I claimed the $5000 treaty exemption at the
> beginning of 2006. Thus, my W-2 shows my income is my
> actually gross income less $5000. and I get a 1042-S showing
> $5000 income. These are true and alright.
> Can I withdraw my claim now?
> I now find that it would be better for me if I did NOT claim
> the treaty exemption. If Yes, can I just put my actually
> gross income into line 7 on Form 1040? or please suggest a
> solution.


Since I don't know which treaty applies to you, I can't
comment on your details. However, it had always been my
opinion that the treatment of students and teachers under
tax treaties is highly preferentual. So it surprises me
that you would be better off without the treaty. I suggest
you discuss this with someone in the Foreign Students Office
at your University.

Dick

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 02-15-2007, 05:22 AM
A.G. Kalman
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Posts: n/a
Default Re: tax treaty exemption

kw wrote:

- quote -

> I am an F-1 student at a US university.
> I am filing Form 1040 since I am a resident alien for tax
> purpose. I claimed the $5000 treaty exemption at the
> beginning of 2006. Thus, my W-2 shows my income is my
> actually gross income less $5000. and I get a 1042-S showing
> $5000 income. These are true and alright.
> Can I withdraw my claim now?
> I now find that it would be better for me if I did NOT claim
> the treaty exemption. If Yes, can I just put my actually
> gross income into line 7 on Form 1040? or please suggest a
> solution.


As an F-1 student you are exempt from the substantial presence
test. In other words, you don't get to count your days of
presence for any period in which you held a valid F-1 visa.
As such, you are a nonresident alien of the US and file either
Form 1040NR-EZ or Form 1040NR. In addition, as an NRA, you
may avail yourself of any treaty benefit that exists for
students. Almost always (I know of one exception), a resident
alien is taxed like citizens and can not benefit from the
treaty article pertaining to students.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 02-15-2007, 02:18 AM
kw
Guest
 
Posts: n/a
Default tax treaty exemption

I am an F-1 student at a US university.
I am filing Form 1040 since I am a resident alien for tax
purpose. I claimed the $5000 treaty exemption at the
beginning of 2006. Thus, my W-2 shows my income is my
actually gross income less $5000. and I get a 1042-S showing
$5000 income. These are true and alright.

Can I withdraw my claim now?
I now find that it would be better for me if I did NOT claim
the treaty exemption. If Yes, can I just put my actually
gross income into line 7 on Form 1040? or please suggest a
solution.

Thank you,

-kevin

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

Tags
exemption, tax, treaty
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