Subject: More thoughts on CSPA Tax Return:

From: [email-masked] (Mi Mi)
Date: Mon, 14 Mar 94 16:10:33 CST

Following is mere a example of filing CSPA Tax. No responsibilities is 
assumed by me. Consult your accountant before file your return.

Suppose Mr. A came to the States in 1982 with F-1 status. He took four years
to earn his B.S. Then he went on to earn his M.S in 3 years. Then he took
another M.S. in 3 years. He then took a Ph.D program in 1992. His income
came as fellowships, library assistant, etc. He kept his F-1 until July 1,
1993, when he filed as CSPA principal. Then, let us look at his tax status.
He solely purpose to stay in the U.S. was to pursuit his education, upto 
july 1, 1993, when he sought PR status. The time spent was reasonable, 4
years for B.S., 3 years each for M.S.s', and years for Ph.D. Then his 
income as fellowship is from educational, governmental and scientific
institutions, thus is tax exempt. His income from library assistantship
is service based, so the amount which exceeds $5000 is taxable. After
further deduction of the personal allowance, his taxable income should
be (library assistantship - $5000 -$2350)/year. After the approval, all 
of his income is taxable, including the fellowships. For the rest of the 
year, the Treaty does not apply.

Mr. B. entered practice training 1/1/93. He applied CSPA later on. His
income should have $5,000/year deduction before he applied CSPA.

Theoritically speaking, the "sole purpose is for the education" ends
when you apply PR, so the treaty does not apply once you applied CSPA.
Your status is then governed by the Pub. 519. 

Again, the above is only my opinion. Any one want to use it takes your
own riskes.

Happy Filing!

Mi Mi Sr.