Tax Fundas for Non Resident Indian Citizens in US

Tax Calendar Year = 1st January - 31st December
Tax Filing Deadline = 15th April
Penalty for not filing by deadline (a) Late filing penalty (b) Failure to pay dues (if you owe money to IRS)
Non resident alien status = F1 for 5 years
Resident alien = H1B for the whole tax calendar year, F1 for more than 5 years
Dual alien status = F1/OPT plus H1B for more than 181 days in the same tax calendar year

1) Exempted from FICA (Social Security & Medicare) Taxes for a period of 5 years
2) F1 is a non resident till a period of 5 years
3) Non resident need to fill in Forms 1040NR or 1040NR-EZ
4) India US tax treaty Article 21(2) entitles them a standard deduction of $3400 and personal deduction of $5300
5) Taxable income = Gross income - 3400 - 5300
6) Tax on your taxable income = See table 8 IRS Pub 519
7) Incorrect filing (form or amount) affects the process in Green Card processing
8) If there is mistake in filing you could file for a correction back to a maximum of 3 years of filing by using form 1040X
9) If a student is on F1 for more than 5 years or on H1B in the calendar year for taxation (1st January - 31st December) he/she is considered a resident alien and needs to file form 1040 or 1040A or 1040A-EZ
10) If a student is on F1/OPT and on H1B for more than 181 days in the calendar year of taxation, he/she is considered dual status and needs to file 1040NR as well as 1040
11) If you have incurred moving expenses not borne by employer, it is fully deductible