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SJP · Feb 2, 2006, 12:03 PM

Hi,

I was a student in Oklahoma from 8/03 to 06/05 and then moved to to Texas 07/05. My OPT began on 5/31/05. My company transferred my status to H1 in mid 11/05. Could you please let me know what forms do I need to fill. Also if you could let me know what deductions are available for me.

Thanks

SJP

AtlantaTaxExpert · Feb 2, 2006, 02:35 PM

SJP:

Need to know your nationality and whether you paid any tuition or fees for higher education in 2005.

I cannot advise you as to which way to file without this info.

SJP · Feb 2, 2006, 02:38 PM

I am an indian and the amt I paid for tuition in 2005 was $1200.

Thanks

SJP

AtlantaTaxExpert · Feb 2, 2006, 03:17 PM

SJP:

Then it is probably advisable that you file as a resident alien under the First Year Choice. That way, you can claim one of the Education Credits.

You will have to waiting until sometime in June 2006 before you can file, but the credit will decrease your taxes significantly, making it worth the wait.

SJP · Feb 2, 2006, 03:55 PM

How much is the deduction as a resident alien under the first year choice? And what are the fines associated with it for filing it late. Also can you explain more about the first year choice?

So as a Resident alien what forms do I need to fill and what deductions will I get. And if I decide not to wait and apply as a Non resident alien what do I need to fill and what deductions are applicable

AtlantaTaxExpert · Feb 2, 2006, 09:26 PM

SJP:

The standard deduction is $5,000. There are no fines for filing late if you file an extension (Form 4868). Calculate your return to determine if you have to pay. If not, just file the form. If you have to pay, attach a check for what you think you have to pay.

As a resident alien, you file Form 1040 or 1040A so you can claim the Education Credit, plus the Oklahoma tax return. A statement is required per IRS Pub 519 (see page 9).

If you file as a non-resident alien, you have to file Form 1040NR or 1040NR-EZ plus Form 8843 to account for your F-1 visa status. You do not lose the standard deduction, but you not get the Education Credit,

SJP · Feb 3, 2006, 11:32 AM

1) How much is the Education credit.
2) Is there a difference between first year choice and the standard deduction
3) Also there is a treaty for indian students not sure if it is the 8843 which you mentioned or 8833, that also has a deduction. I don't remember how much it was. Is that deduction applicable to me since I was a student for 6 months?

Thanks a Lot

Cheers

SJP

AtlantaTaxExpert · Feb 3, 2006, 11:12 PM

SJP:

1) Depends on which one you claim: Hope or Lifetime Learning Credit. Could be as much as $1,100.

2) The First Year Choice is the choice to file as a resident alien (which allows you to claimthe $5,000 standard deduction) in the first year you started the H-1B visa status.

3) Per treaty, Indian students can claim the $5,000 standard deduction.

SJP · Feb 3, 2006, 11:23 PM

So if I apply as a Non resident alien

1) I will get Standard Deduction=5000, Tax Treaty=5000.

Is there any other deduction I get for moving? Or is there any other deduction I am missing

2) Forms to fill 1040 NREZ, 8843, 8833, NR511

Is that right?

AtlantaTaxExpert · Feb 3, 2006, 11:30 PM

SJP:

You get the $5,000 standard deduction. That I know for sure.

I do not think you are eligible for another $5,000 treay exemption.

You definitely file Form 1040NR-EZ and 8843. Not sure about the other two.