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Home > Money & Services > Taxes   »   Filing status

 
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Old Mar 24, 2006, 04:31 AM
kseethep100
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Filing status

I was on F1 till Aug 2005 and on OPT till Oct and on H1 from oct 2005
and i went to india from Dec 29th till JAn 22nd please consider the
following

1) I payed tuition for 2004($2000) and 2005($450) in FL

2) Social security and medicare taxes were with held from oct 2005 in
IL

3) I was taxed on the relocation amount from my employer moving from FL
to IL

4) I spent money($500 -$1000) on attending some job interviews which i
didn't get through

5) Iam paying interest on a loan which i took from india during F1 and
H1

6)I payed tax for a car I bought in FL as student

7)I payed $800 for medical expenses in FL in 2004 which i didn't claim

8)I was not aware of tax treaty while filing for 2002,2003 and hence
didn't claim deduction

9)For 2005 my income as F1 is $ 4080 and opt/H1 is $28,900

considering the above points please advise if i should file as
Resident(if I can) or Non Resident . If my filing status is either one of them
then please advise on how to maximize
my refund.

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Old Mar 24, 2006, 08:51 AM   #2  
AtlantaTaxExpert
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KseetheP100:

1 & 7) For 2004, you must file as a non-resident alien. Since you are filing as a non-resident alien, you cannot deduct either the tuition costs nor the medical expenses in 2004.

2) You became liable for Social Security and Medicare taxes the day your H-1B viosa was approved, so this withholding is correct.

3) If you were taxed on the relocation reimbursement, you should claim the expenses on Form 3903 in whichever year you actually moved. Form 3903 can be filed with either Form 1040 or 104NR, so it makes no difference how you file.

4) These are employee business expenses which can be deducted as a miscellaneous itemized deduction. However, since you are Indian, you can claim the $5,000 standard deduction, which is probably higher than all of oyur itemized deductions.

5) This interest is NOT deductible.

6) This interest may be deductible, but only if all your itemized deductions exceed the $5,000 standard deduction (not likely).

8) You need to amend your 2002 return by April 15, 2006 in order to fix this oversight and collect any additional tax refund. You amend the return by filing Form 1040X and attach a new Form 1040NRo the 1040X. If you fail to do this by April 15, 2006, by law you forfeit any refund that is due to you.

9) You have the option of waiting until early June to file, at which time you can file as a resident alien, filing Form 1040. You can then claim the Education Credit for the $450 you paid in tuition in Florida. You have to decide if a $450 deduction/credit is worth waiting 2.5 motnhs to file your tax return.
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Old Mar 24, 2006, 03:02 PM   #3  
kseethep100
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Thanks for the detailed reply. I was just wondering if i have the option of making first year choice and filing it right away as Resident alien and claim the tuition credit and standard deduction ?
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Old Mar 24, 2006, 04:06 PM   #4  
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You CAN do that and hope the IRS does not check on your visa status.

Several postings have indicated that the IRS is not very vigilent about making sure non-resident aliens file correctly.

However, you would be knowingly violating the tax laws, which, if proven, could affect your visa status.

Do you want to take that chance just to get your refund three months earlier??
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