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Non-resident tax guide

Form 1040-NR for Indian students

The India treaty gives qualifying students a special deduction rule. Check eligibility before applying it to your return.

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Checked against IRS.gov, October 3, 20265 min read
Quick answer

Students and business apprentices eligible under Article 21(2) of the U.S.–India treaty may claim a standard deduction on Form 1040-NR. This is a limited exception to the usual non-resident rule, not an exemption for every Indian citizen or every payment.IRSIRS

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Help with your non-resident return

Start with your income records and withholding forms. We review the treaty position with your Form 1040-NR.

If you need an ITIN, application plans are available separately. The ITIN application fee excludes the U.S. tax return.

Non-resident return

Form 1040-NR for your U.S. income.

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Includes:

  • Form 1040-NR prepared from your documents
  • Treaty position reviewed
  • Review with you before filing
  • Filed with the IRS
  • Help by email and phone
On this page0% read
  1. Help with your non-resident return
  2. What Article 21 actually covers
  3. The standard deduction is a specific exception
  4. Check your student day counts and filing duties
  5. A research scholar has a different treaty article
  6. Prepare your Indian student return
  7. Questions
  8. Sources
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Before you file

What Article 21 actually covers

The treaty's student provision starts with a person who is or was resident in the other country immediately before the visit and is visiting principally for education or training. Article 21(1) concerns qualifying maintenance, education and training payments arising outside the country visited.IRS

Article 21(2) addresses grants, scholarships and employment remuneration outside that first rule. It provides qualifying students and apprentices access to specified relief available to residents. The IRS applies that provision through its current filing instructions; it does not mean all wages disappear from your return.IRSIRS

The article limits benefits to the time reasonably or customarily required for the education or training. Keep admission and program records together with the dates of your visit. An Indian passport, by itself, is not the complete eligibility test.IRS

Before you file

The standard deduction is a specific exception

Most Form 1040-NR filers cannot use the standard deduction. Eligible Indian students and business apprentices can choose it instead of itemized deductions under the treaty rule. Use the instructions for the tax year being filed, rather than a remembered amount from an earlier year.IRS

Publication 519 provides a worksheet and explains limitations. If you are married filing separately and your spouse itemizes, you cannot take the standard deduction. Being eligible for Article 21 does not turn a non-resident return into a joint return.Pub. 519

Keep the deduction decision separate from whether income is exempt. Wages, scholarship payments and support from outside the United States can require different treatment. A deduction reduces the amount used to calculate tax; it is not a refund guarantee or a certificate that payroll should withhold nothing.IRSIRS

Before you file

Check your student day counts and filing duties

Certain F, J, M and Q student days can be excluded from substantial presence counting if the requirements are met. The word exempt in that day-counting rule refers to the presence test, not an exemption from tax on every dollar you receive.IRS

The Form 1040-NR instructions contain filing exceptions for some non-resident students with no taxable income. Separately, excluded-day reporting can require Form 8843. Do not decide whether to file merely by looking at whether you received a refund last year.IRSPub. 519

Bring all Forms W-2 and 1042-S. They help distinguish employment pay from scholarship income and show withholding already paid. Your school or payer's treaty paperwork is useful supporting material, but it does not replace the year-end filing decision.IRSIRS

Before you file

A research scholar has a different treaty article

Article 22 concerns professors, teachers and research scholars. It has its own conditions and time limit; it is not the Article 21 student deduction rule. A job title or university address cannot be used to choose whichever article produces less tax.IRS

The treaty's technical explanation describes the scholar exemption and the consequence of exceeding its permitted visit period. Check the full expected and actual visit, including any extension, before treating research compensation as exempt. The student standard-deduction exception should not be carried into a scholar return without checking eligibility.IRSIRS

How to proceed

Prepare your Indian student return

  1. 1

    Confirm your status

    Collect visa, arrival, departure and program records; review tax residence.Pub. 519

  2. 2

    Separate your payments

    Identify wages, scholarship income and qualifying foreign support.IRS

  3. 3

    Check Article 21 eligibility

    Apply the current tax-year deduction rules and any relevant limitations.IRS

  4. 4

    Use the right tax ID

    Use an SSN if eligible. If an ITIN is required, follow Form W-7 requirements.IRS

Questions

Your questions answered

No. The exception applies to students and business apprentices eligible for Article 21(2), subject to the filing rules.IRS

No. Employment remuneration and qualifying foreign support are addressed differently. The article must be applied to the actual payments.IRS

No. Scholars have a separate treaty provision and must independently qualify for any deduction claimed.IRSIRS

No. Use the SSN. An ITIN is for people with a federal tax purpose who cannot obtain an SSN.IRS

More questions? See the full Nolly.com FAQ.

Sources

How we checked this

Every IRS fact on this page comes from IRS.gov or the other official pages listed below and was checked on October 3, 2026. Nolly.com's own prices are the only exception. Nolly.com is a private company and is not part of the IRS.

Proof Nolly.com is on the IRS list
Excerpt of the IRS page Acceptance agents - Canada showing Nolly Services Inc d/b/a Nolly.com, 265 Rimrock Road, Suite 201, Toronto

Nolly Services Inc, d/b/a Nolly.com, appears on the IRS page Acceptance agents – Canada. Nolly.com is a private company and isn't part of the IRS.

Pages used
  1. Instructions for Form W-7 (Rev. 12-2024)https://www.irs.gov/instructions/iw7
  2. Publication 519, U.S. Tax Guide for Alienshttps://www.irs.gov/publications/p519
  3. Instructions for Form 1040-NR (2025)https://www.irs.gov/instructions/i1040nr
  4. U.S.–India income tax convention: Articles 21 and 22https://www.irs.gov/pub/irs-trty/india.pdf
  5. Technical explanation of the U.S.–India conventionhttps://www.irs.gov/pub/irs-trty/inditech.pdf
  6. Instructions for Form 8233https://www.irs.gov/instructions/i8233
  7. Exempt individual: who is a studenthttps://www.irs.gov/individuals/international-taxpayers/exempt-individual-who-is-a-student

Checked against IRS.gov on October 3, 2026. General information, not tax advice.

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