On Apr 11, 9:42 am, Mark Bole <ma...[at]pacbell.net> wrote:

- quote -

Line 37 - itemized deductions. Rather confusing in my opinion.

http://www.irs.gov/instructions/i104...2.html#d0e1585

<Quote
Line 37--Itemized deductions. Enter the total itemized deductions
from
line 17 of Schedule A on page 3 of the form.
Note.

Residents of India who were students or business apprentices may be
able to take the standard deduction instead of their itemized
deductions. See Pub. 519 for details .

</Quote

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Yes.

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removeps-groups[at]yahoo.com wrote:
- quote -

Thanx for the reply. No, as stated in first sentence, status is single.

[...]
- quote -

Where would that go on the 1040NR?


- quote -

Yes, but that is what I was asking.

- quote -


-Mark Bole

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On Apr 8, 8:04 pm, Mark Bole <ma...[at]pacbell.net> wrote:

- quote -

Note that the 183 day rule is not met. Is the person married to a US
citizen or resident?

- quote -

1040-NR is not required.

http://www.irs.gov/taxtopics/tc852.html

<Quote
If you do not meet either test this year, but will meet the
substantial presence test next year, you may have the choice to be
treated as a resident alien for part of this year. For more
information, including an example of a dual status tax return, refer
to Publication 519, U.S. Tax Guide for Aliens.

</Quote
BTW, permanent residency applications take a long time (sometimes as
much as 10 years), so applying for permanent residency next year does
not mean you'll pass the green card test next year.


- quote -

Right. There's an exception for Indian apprentices, who get the
standard deduction all the same.


- quote -

On the 1040-NR, US income connected with trade or business in the US
(let's call it U1) is taxed at the normal rates. The calculations
suggest that you do not include US source income subject to the 30%
rule (let's call it U2) in determing the tax rate of U1, nor do you
include the worldwide income (let's call it W1) in determing the tax
rate of U1. Do you agree?

What if the person's income puts them in the 35% tax bracket, but
because they are a non-resident they file 1040-NR and pay only 30%?
Is this possible, or does the law modify the flat 30% to 35%?

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My favorite programming language sustains a maxim: easy things should
be easy, and hard things should be possible. In that spirit, I'm trying
to get clear on nonresident alien taxation in the U.S., at least at the
"easy" level.

Suppose foreign citizen, single with no dependents, makes clean break:
first 2/3rds of tax year, reside in and income in foreign country only;
last 1/3rd of year, live and work in U.S. on H-type visa with no foreign
income. No special treaty provisions apply. No application for
residency during the tax year, everything simple as can be. W-2 is very
straight-forward, wouldn't even know it was for a nonresident by looking
at it.

1) Is 1040NR required, or can an election be made for a dual status tax
year by filing 1040 with a statement regarding 1040NR (statement details
to be determined)? In the following year (year after the tax year in
question), permanent residency application may or may not be made.

2) Is the tax result all the same either way under (1), or is it correct
that a nonresident alien can only itemize deductions, no standard
deduction available? IOW, by filing as a resident, a full standard
deduction would apply, whereas otherwise it would not?

3) While it is clear that only U.S. source income is taxable in this
case, is the tax rate determined solely by such income, or does the
method apply where you combine all income, even if not locally taxed, to
determine the tax rate? The calculations on the form indicate the former.

-Mark Bole

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<< ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- >