Rudra Khatri, a citizen of India, came to the United States as a student. He entered in F-1 immigration status (visa number 88779914) on September 1, 2019. He has remained in the country since then and is a full-time student at the local university. • Rudra was born on July 30, 2000, and is single. He filed the proper treaty and withholding forms with the university payroll office. Rudra has filed a U.S. tax return Form 1040-NR for 2021. His address in India is B block, GK II, New Delhi – South, Delhi NCR, India. • If he is entitled to a refund, he wants it mailed to him. He doesn’t want to designate anyone else to discuss his return with the IRS. Rudra has not taken any steps to apply for permanent residence in the U.S. • He will not be taxed in his home country on the income he has from the U.S. Using the following Form W-2, prepare Rudra’s federal income tax return. (He has already completed his Form 8843.) • Rudra received $25 in bank interest from an account he opened with money from his parents, this money is not connected with a U.S. trade or business. • He owed additional State Income tax when he filed his taxes last year. He mailed a payment of $85 on April 1, 2022 to his state. • He donated $100 to the American Red Cross as a charitable contribution. • After completing the required tax form, review the scenario and resource materials, and answer each of the test questions.

1. What is the Adjusted Gross Income (AGI) on Form 1040-NR?

a. $25,200

b. $22,375

c. $22,350

d. $17,350

2. Rudra Khatri is a student who is considered a resident of India. According to the U.S.-India Tax Treaty, he can take the standard deduction instead of itemizing.

a. True

b. False

3. Will Rudra have a refund on Form 1040-NR?

a. Yes

b. No

4. The taxable income line on Rudra’s Form 1040-NR shows $9,400.

a. True

b. False

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