Hi Expert,

I was on f-1 status from Jan1st 2005-july5th 2005, and thereafter I was on CPT till December 30th 2005. I am on H1B since Decemebr 31st 2005. While on CPT, I paid for tuition for 1 semester(~3300). I incurred moving expenses while transferring for job which were reimbursed by my employer however, after deducting taxes. Please advice which form I should file? Can I claim tuition expenses? what about moving expenses?

To add, I came to US in sepetember 2003 on F-1 Status.

Thank you,

HI Again:

I did some research and deduced few things. Would appreciate if you verify/add your comments:
1. I have to file using 1040NR form. I received some income from interest (~$37) so I can't use 1040 NR-eZ (Page 1 lest most column between point 3 and 4-> http://www.irs.gov/pub/irs-pdf/i1040nre.pdf).
2. I can claim std deduction (~5K ) + personal exemp(~3200)
3. I cannot claim education credit unless I wait till june and file as resident alien. However do I have to Pay for medicare/social for the whole period or how would I handle that?
4. I cannot claim itemized deduction if I file as non-resident alien. Does that mean I cannot even claim the deduction on money I paid for state taxes. As a matter of fact i will be filing two state taxes.

Please suggest so that I can claim for tuition expense and not liable for social/medicare.
Also If I plan to file in june....how should I go about it? Do I have to file for extension?

AtlantaTaxExpert

Kyalega:

You will not be liable for the Social Security and Medicare taxes not withheld while under F-1 status if you file as a resident alien under First Year Choice.

You are correct that the only way to claim the Education Credit is to file as a resident alien. You CAN itemize if the taxes you paid exceeded the $5,000 standard deduction.

You need to request an extension by filing Form 4868.

kyalega

Thanks Expert for the reply. I have one follow-up question. IS "First year residency" option is available only to Dual status Residents (You can be both a nonresident alien and a resident alien during the same tax year. This usually occurs in the year you arrive in or depart from the United States. ) Since I neither arrive or depart from US in 2005/2006 can I still claim? Also does it matter which date I choose to define my residency status?

AtlantaTaxExpert

No. It's also available for persons who are converting from F-1 to H-1 visa status. Dr. Carter provided the exact citations from the Internal revenue Code, and the procedures are identical to the First Year Choice offered to dual-status aliens.