I did an internship in Texas where I was paid $3000 as a stipend for 3 months. As mentioned I was under the visa category J-1 Student Intern. 14% of my stipend was withheld as part of federal tax.

I have verified that there would be no state tax deduction but I am unable to verify if I am able to account for any refund. I know about the NREZ 1040 tax form but I have seen that there is a tax of $303 mentioned in page-22. In many places, I have seen that there is a provision for full tax refund on J Visas for first 2 years.

Can someone help me about this as to how I can avail it ?


I have seen that there is a provision for full tax refund on J Visas for first 2 years.

Not exactly. There's a provision in the USA-India tax treaty, that Indian researches (usually on J or H1b visa) will be exempt from Federal taxes on their earnings as such for the first 2 years. I'm not sure you fall under that category, as you're a student (Article 21), not a researcher (Article 22).

Indian students get the same exemptions and deductions as US citizens (per the same treaty), which means you can take the standard deduction which should offset all the income in your case.

You have to fill form 1040NR and attach explanation to the treaty claims you're making on form 8833.

Usually, big US schools allow their international students access to the GLAICER tax preparation service that does everything you need. In case you don't have such access - I suggest getting a professional help you filling up the forms to make sure you do everything right.

I'm not a tax professional and this is not a tax advice. When in doubt - talk to a EA or a CPA licensed to practice in your state.

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