Hi,

I came to US on F1 visa (Indian citizen). I've been working full time on my OPT since April'05 for a company and am expecting to get my H1B visas by mid January. That means that I've worked the entire 2005 on my OPT. So my question is when I file for tax returns for the year 2005, I will be filing in as F-1 right? Since I've been on OPT till now I've gotten exemptions from social security and medicare. Please let me know as to what forms do I need to fill? Also any tips to maximize tax returns for 2005 would be much appreciated.

Thanks for your response in advance!

Insomnia:

You will not be filing under your F-1 visa, but rather under your H-1B visa.

The time under the F-1 visa does not count for the Subtantial Presence Test, but, based on your input, your F-1 visa time will be less than 30 days, whereas your H-1B visa time will exceed 330 days. Tha is more than enough to meet the Subtantial Presence Test, which therefore requires that you file a normal (Form 1040/1040A/1040EZ) return instead of the non-resident alien return (Form 1040NR/1040NR-EZ.

Since you will have to pay Social Security and Medicare taxes anyway, you will find the normal tax return somewhat easier to deal with. The tax rates will essentially be the same, and you will be eligible for more deductions and more credits than as a non-resident alien.

Thanks, AltantaTaxexpert!

I appreciate your prompt response!

How much does a tax expert generally charge for cases like I described?

Also is it worth paying?

Thanks much!

Insomnia:

I charge a flat fee of $125 for non-resident tax returns which covers the Schedule A and Form 1040NR or 1040NR-EZ. This fee is slightly higher than my fee of $100 for a Form 1040 and Schedule A because I have do the return manually (no tax software). There are additional fees for additional forms.

How much a local tax professional would charge depends on the locale. However, given the ease of transmitting data via fax and e-mail, I can do the return for you just as easily as the local H&R Block. I have more than a few clients who have hired my service via the Internet whom I have never met in person.

Contact me at dpmtax@<hidden> if you want to pursue this.