I came to u.s. on f-1 from Jan 2003 - Aug 2005
opt : 25 oct 2005 - 24 oct 2006
h1b : 4 dec 2006

I am working in the state of goergia from jan 2006 till date(Including opt).
I'm single and earned about 38K till nov 2006.
Though I was not suppose to work during the period of 25 oct 2006 - 3 dec 2006, my employer adviced to continue working for the period.

I received the W2 with the 38K salary earned. It says that the federal with-holding was $4600 and state tax : 1600.

What would be my returns? Further what forms do I have to file for the same?

You advise in this regard would be of a great help.

You should file as a non-resident alien, filing Form 1040NR or 1040NR-EZ.

If you need professional help doing ANY of this, email me at david.kempe@<hidden>.

Thank You.
But again, how would I choose the appropriate form from the two forms that you have mentioned.

Forgot to mention one point earlier. The W2 that I have says Federal:3 and State:3
What does that mean.
I am claiming as Single and I do not have any assets(like House Mortgage).
Further, what are the things that I can exempt from tax?

You did not specify from which country you originate, but, based on your name, I will assume it is India.

If it IS India, then it is likely you should file Form 1040NR-EZ, because, as an Indian citizen on F-1 status, you can claim the $5,150 standard deduction on the "Itemized Deduction" line of the Form 1040NR-EZ. this is specifically allowed under the U.S.-India Income Tax Treaty. That $5,150 deduction is most likely a LOT larger than all of the itemized deductions you would claim using Form 1040NR.

Also, do NOT forget to file Form 8843 with the Form 1040NR-EZ. Though much of the information IS redundant with Form 1040NR-EZ, the Form 8843 is still required one last time.

In 2007, you will be on H-1B for the entire year, at which time you can file as a resident alien, filing Form 1040, 1040A or 1040EZ. Foirm 8843 will no longer be required.

Thank You for the valuable piece of advise.
I'm now crystal clear.

Glad to help!